While the road sector is arguably in a sweet spot, land acquisition is unquestionably the biggest hurdle afflicting roads development.
The last two decades witnessed highway infrastructure being developed on a massive scale in the country. Now the government has unveiled another huge new highway development programme (covering 83,000 km) under the Bharatmala Pariyojana, which will see a paradigm shift in highway development with focus on improving the efficiency of the national corridor and a long-term view on the highways network.
With ambitious plans for road construction, it is necessary to build a robust system to execute construction of durable roads at a quick pace. INFRASTRUCTRE TODAY, in a quest to dig out more information on road building and management, brings its readers the latest technologies on a platter.
Maharashtra State Road Development Corporation (MSRDC) has received pre-qualification applications from 33 companies for constructing the proposed Nagpur Mumbai Super Communication Expressway (NMSCE). Of these 33 companies, 17 are sole applicants while rest are joint ventures. The applications were invited by MSRDC in January 2017.
Macro developments suggest positive trends in the road sector with pickup in execution. Recent bids under the Hybrid Annuity Model (HAM) in May-June have seen participation increasing from two-four players to seven-eight players as the risk-reward equation is favourable.
The company has been the biggest beneficiary of an uptick in orders in roads, due to its dual business exposure and access to Rs 14 billion of cash inflows over FY2016-18E. The company is targeting order inflow of Rs 40-50 billion in the roads segment and Rs 5-8 billion in the power segment.
Ashoka Buildcon has emerged as the lowest bidder for a project with the North Bihar Power Distribution Company Ltd. The project, which pertains to rural electrification works under the Rajiv Gandhi Grameen Vidyutikaran Yojana as well as strengthening of the power distribution network under a special plan for Vaishali district in Bihar, will cost Rs 373.39 crore.