LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

Infrastructure companies bidding for NHAI projects fall, but top 10 ink major gains

Fewer companies bid for NHAI projects, but top 10 firms’ share has been rising in value terms, at two-thirds of pie in 2014-2017.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Infrastructure companies bidding for NHAI projects fall, but top 10 ink major gains
The last few years have seen a fall in the number of infrastructure companies participating in National Highways Authority of India’s (NHAI) bids and the top ten companies in the fray are bagging more contracts value-wise. Image source: Pixabay
Written By: Ateeq Shaikh
Updated: Tue, Sep 04, 2018
11:04 am
Mumbai, ZeeBiz WebDesk
RELATED NEWS
DECODED: With PM Narendra Modi 5Is formula, economic growth will happen through infrastructure development DECODED: With PM Narendra Modi 5Is formula, economic growth will happen through infrastructure development
KNR Constructions, PNC Infratech and Ahluwalia Contracts are top Anand Rathi stock picks in Infra Sector KNR Constructions, PNC Infratech and Ahluwalia Contracts are top Anand Rathi stock picks in Infra Sector
Cost overruns of Rs 4.1 lakh cr reported in 412 infra projects Cost overruns of Rs 4.1 lakh cr reported in 412 infra projects
FM Nirmala Sitharaman announces Rs 1 lakh cr Agriculture fund for farm-gate infrastructure FM Nirmala Sitharaman announces Rs 1 lakh cr Agriculture fund for farm-gate infrastructure
Jewar Airport: Revealed! How Zurich Airport International AG outbid competitors DIAL, Adani, Anchorage - Boost for Noida, Greater Noida region Jewar Airport: Revealed! How Zurich Airport International AG outbid competitors DIAL, Adani, Anchorage - Boost for Noida, Greater Noida region

The last few years have seen a fall in the number of infrastructure companies participating in National Highways Authority of India’s (NHAI) bids and the top ten companies in the fray are bagging more contracts value-wise.

While firms like Dilip Buildcon, Sadbhav Engineering and PNC Infratech have been increasing their pie of NHAI contracts, Larsen & Toubro (L&T), J P Associates and Gayatri Projects are being selective about the financial models they opt for.

“Between 2003-2013, over 50 active players were in the fray. The top ten players had garnered about half orders value-wise. Whereas, between 2014-2017, about 40 active players were in the fray and the top ten players garnered two-third orders value-wise,” read Icra’s report on Indian Roads & Construction sector.

As of first quarter of the financial year 2019 (FY19), Dilip Buildcon’s order book has increased to Rs 24,090.3 crore and a substantial chunk, or 93%, comes from road, highways and bridges. This year, the company intends to add a sizeable number of projects to its order book. “We are looking at an order guidance of approximately Rs 10,000 crore for the ongoing fiscal,” head of strategy and planning at Dilip Buildcon Rohan Suryavanshi told DNA Money.

In the engineering, procurement and construction (EPC) space, L&T has emerged as the leader, shows its order book. During last fiscal, the infrastructure segment of L&T registered a year-on-year growth of 12%, with 29% of infra revenues coming from international projects.

The engineering conglomerate continues to focus of EPC works, staying away from projects under hybrid annuity model (HAM) and toll-operate-transfer (TOT).

The medium-sized road projects have witnessed an average of 8 to 12 bids per project, with some projects even being awarded at discount to the base price. Most of the projects being tendered by NHAI are under HAM, thereby allowing mid-sized and other road developers to take pole position.

Players which traditionally focused on build-operate-transfer (BOT) projects such as IRB Infrastructure Developers have also modified their strategy and started bidding for HAM and TOT projects for a continuous flow of orders and revenue.

“As compared to earlier when projects were bid out irrespective of how much land is available, the benchmark of 80% Right of Way prior to bidding the road project has helped in building up confidence among the road developers as well as lenders,” said an analyst.

Other important factors behind the changing dynamics include policy-related interventions like introduction of HAM in February 2015, one-time fund infusion scheme, reduction in bureaucratic delays, etc.

A lesser number of BOT roads are being bid out and due to financial stress that in the road sector.

Watch this Zee Business video

“Developers’ financial profile, too, improved due to the release of 75% of the arbitration award against bank guarantee, compensation to concessionaires in case of delays not attributable to them and relaxation in exit norms, provision of mobilisation of advance, lower equity requirement among others,” added Icra’s report.

Source: DNA Money

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
InfrastructureNational Highway Authority of India (NHAI)
RELATED NEWS
DECODED: With PM Narendra Modi 5Is formula, economic growth will happen through infrastructure development DECODED: With PM Narendra Modi 5Is formula, economic growth will happen through infrastructure development
KNR Constructions, PNC Infratech and Ahluwalia Contracts are top Anand Rathi stock picks in Infra Sector KNR Constructions, PNC Infratech and Ahluwalia Contracts are top Anand Rathi stock picks in Infra Sector
Cost overruns of Rs 4.1 lakh cr reported in 412 infra projects Cost overruns of Rs 4.1 lakh cr reported in 412 infra projects
FM Nirmala Sitharaman announces Rs 1 lakh cr Agriculture fund for farm-gate infrastructure FM Nirmala Sitharaman announces Rs 1 lakh cr Agriculture fund for farm-gate infrastructure
Jewar Airport: Revealed! How Zurich Airport International AG outbid competitors DIAL, Adani, Anchorage - Boost for Noida, Greater Noida region Jewar Airport: Revealed! How Zurich Airport International AG outbid competitors DIAL, Adani, Anchorage - Boost for Noida, Greater Noida region

LATEST NEWS

7th Pay Commission Latest News: 'Special Allowance' extended for These Central government employees

GOOD NEWS! Modi Govt slashes Remdesivir MRP by half, with retro-effect—This is how much it will cost you now

Covid 19: Railways to fine Rs 500 for not wearing face masks in rail premises, trains

West Bengal election 2021: LIVE UPDATES: 69.40% voter turnout recorded till 4:13 pm

SSC CGL Result 2018 released on ssc.nic.in: Steps to check and download explained

Pakistan cricket players will get visas for World T20 in India: BCCI apex council

Cipla shares hit new high; Sharekhan pegs target at Rs 1100 as Pharma giant doubles Remdesivir production

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range; says global markets, Q4 results to drive street

Sonu Sood tests positive for Covid 19

Vivek, Tamil actor and comedian, passes away at 59 in Chennai hospital

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved