The challenge value below the Bharatmala Pariyojana programme has greater than doubled to Rs 10.64 lakh crore owing to the steep rise in enter prices and a rise in land acquisition prices, ranking company ICRA mentioned on Monday.
Bharatmala Pariyojana is the biggest freeway infrastructure programme in India which goals on the growth of 34,800 kilometres of nationwide freeway corridors at an funding of Rs 5.35 lakh crore.
“Pending the cupboard approval for the revised value of Bharatmala Part-l, challenge awarding exercise within the current quarters took a beating, declining by 48 per cent YoY to 2,595 km throughout 7mFY2024 in comparison with 5,007 km throughout 7mFY2023,” it mentioned.
The figures are for the primary seven months of this fiscal in comparison with the year-ago interval.
ICRA mentioned it expects the awarding exercise to contract over 30% YoY in FY2024.
Giving extra insights, ICRA VP & Co-Group Head Ashish Modani mentioned virtually 95 per cent of the street awards by the Ministry of Roads and Transport and Highways within the final 5 years have been awarded via the hybrid annuity mode and the engineering, procurement and building route, whereby the complete funding burden lay on the ministry.
“The burden on MORTH in case of BOT (Toll) tasks is far decrease, given the substantial value escalation within the BMP and consequent enhance in funding requirement,” he mentioned, including that the MORTH has thus shifted its deal with to BOT (Toll) tasks.
ICRA mentioned whereas the common variety of bidders for the EPC and the HAM tasks stood at 15 and eight, respectively, within the case of BOT (Toll), it remained beneath 5.