The National Highways Authority of India (NHAI), faces the brunt as reports surface that nearly 800-kms of highways face delays due to land acquisition and regulatory clearances. Following its reports, Crisil research lowered its execution forecast of NHAI projects to 3,600- 3,800 km from the previously anticipated 4,300 km.
The recently-released report byidentifies around 800-kms of – awarded on the hybrid annuity model (HAM) – that is yet to start due to delays in land acquisition or regulatory clearances.
The report published by Crisil takes into account 40 HAM projects, amounting to 1,913 km, awarded by NHAI in the last fiscal. According to the report – around 390 km are pending financial closure while 46 per cent of the above projects have gone past the five-month window available for financial closure. The report further adds – the engineering, procurement, construction (EPC) model is executing better with around 54 per cent having started execution.