Despite the pandemic, motorway construction increased from 28 km / day in 2019-20 to 30 km / day from April to January. In the past, the speed of construction of motorways only reached 30 km / day in 2018-19. In the period from February to March of the current financial year, construction will be even faster.
While the Minister for Roads and Motorways, Nitin Gadkari, is confident that construction will soon reach 40 km / day, many interest groups share the optimism.
Construction usually peaks between January and May. The pace hit a record 76 km per day for the week beginning January 8.
It takes 2-3 years to build a motorway. By the end of 2019, 49,740 km of motorways were under construction. The construction of a 10-lane motorway with a length of one kilometer is still measured at 1 km. The same applies to the two-lane motorway.
Finance Minister Nirmala Sitharaman allocated the highest capital expenditure of 1.18 billion rupees for the Ministry of Roads and Highways in the budget for the period 2021-22, saying that more than 13,000 km of roads cost and will cost 3.3 billion rupees Already awarded in the context of the Bharatmala Pariyojana project in the amount of 5.35 billion rupees. 3,800 km of these roads were built. By March 2022, a further 8,500 km projects would be awarded and a further 11,000 km of the national motorway corridor would be completed.
Adjusted for the first 20 days in April 2020, in which no construction activity was permitted, the execution per day increased in the first nine months of the current financial year from 25.2 km / day in the same period by 21% to 30.5 km / day tax.
The increasing pace of motorway construction, according to analysts, is the result of a number of relief measures recently launched by the government, such as the switch from milestone billing (usually between 45 and 75 days) to monthly billing and releasing Withholdings. Reliability of performance in relation to the work already carried out which has contributed to shortening the cash conversion cycle in favor of the contractors. Road construction companies just stepped on the gas.
“The recent relaxation of financial capacity and the broadening of the definition of the core sector (technical capacity) to include segments such as hospitals, hotels, oil & gas, warehouses, etc. will lead more EPC actors to infrastructure projects, especially road projects that already exist are crowded. The intensity of competition is expected to increase many times over. If the measures to increase liquidity continue; This and the loosening of qualifications for bidders could lead to a sharp increase in execution – more than 40 km / day in the future, “said Rajeshwar Burla of ICRA.
IRB Infrastructure’s chairman and general manager Virendra Mhaiskar said that construction at 50 km / day is excellently achievable in the next two years as there are a large number of projects being awarded these days and the environment is also beneficial for business.
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