NHAI awards highest length of projects during April-August of FY21 amid COVID-19 challenges

New Delhi: The National Highways Authority of India (NHAI) has awarded the highest length of projects during FY 2020-21 to date amid challenges due to the COVID-19 outbreak as compared to the projects awarded during the same period in last three years.  From April to August 2020, NHAI has awarded 26 projects of 744 km length as compared to 676 km in FY 2019-20, 368 km in FY-2018-19, and 504 km in FY 2017-18, according to NHAI.  

The capital cost of these 26 projects is over Rs 31,000 crore, which includes the cost of civil construction, land acquisition, and other pre-construction activities. Notably, NHAI has set a target of awarding 4500 km of the highway during the current FY and is likely to exceed the same.

NHAI took various initiatives to instill confidence in the bidders of the sector. To ease the liquidity crunch and ensure cash flow to the contractors, NHAI ensured that no payments are delayed due to the closure of office and disbursed Rs 10,000 crore during the lockdown in March 2020 using digital platforms, said the NHAi statement.

“The first quarter of the current FY, NHAI  disbursed more than Rs 15,000 crore to the vendors. Additionally, steps such as monthly payments to the contractors were taken. Such moderations saw encouraging participation from the bidders resulting in a spiraling effect on the growth of the road sector,” it said. 

“With the increase in awards and expanding highway construction, NHAI has got a good beginning for a year marred by the global outbreak of the pandemic. NHAI is committed to developing the National Highways Infrastructure at a rapid pace and envisions providing safe, smooth, and seamless travel experience on national highways, the statement added.