The National Highways Authority of India’s (NHAI) recording breaking financial year of 2017-18 saw them award almost half of all road construction projects to the small developers, according to the compiled NHAI data report by investment bank Equirus Securities. The biggest contract winners were large scale companies such as IRB Infrastructure Developers Ltd (Rs 8,900 crore), Dilip Buildcon Ltd (Rs 18,770 crore) and Ashoka Buildcon Ltd (Rs 5,500 crore). However, various other small developers including JKumar Infraprojects Ltd, Gammon India Ltd, Madhucon Projects Ltd and ample other joint ventures by PNC Infratech Ltd and Monte Carlo Ltd swept up 48% from the entire bidding in the financial year.
According to the report by Equirus Securities, contracts under Rs 200 crore had participation from 10-15 bidders while projects over Rs 200 crore saw the numbers fall to 60-10. Apart from bestowing contracts to small organisations, the government also introduced the hybrid annuity model (HAM)continue reading →