Driven by strong growth in medium and heavy commercial vehicle (M&HCV) along with an increase in the wholesale price index (WPI), toll collections are likely to witness significant growth in FY2020.
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Opportunities galore, but targets ambitious
With an estimated average spend of upwards of Rs 1 trillion per annum (excluding land cost), the order book additions will remain healthy for both, large and mid-sized road contractors over the next four to five years.
The Sweet Spot
While the road sector is arguably in a sweet spot, land acquisition is unquestionably the biggest hurdle afflicting roads development.
Sizeable Opportunities
The overall cost of expansion of the operational and approved metro projects under implementation is over Rs 2.5 lakh crore, and another Rs 2 lakh crore worth projects are in various stages of approval and are likely to come up for bidding in the next five years