STOCK MARKET BSE NSE

Government May Achieve FY17 Road Awarding Target: Citigroup

The government has increased the target for awarding projects by 2.5 times to 25,000 km for the ongoing fiscal.

Published: 24th April 2016 07:16 PM  |   Last Updated: 24th April 2016 07:16 PM   |  A+A-

Citigroup

A Citibank sign seen outside of a bank outlet in New York. (Photo: Reuters)

By PTI

NEW DELHI: The government has increased the target for awarding projects by 2.5 times to 25,000 km for the ongoing fiscal, though difficult, there are chances that these targets might be achieved, says a Citigroup report.

According to the global financial services major, the road sector in India is already seeing very substantial improvement in ordering and construction and this trend is likely to continue in the current fiscal as well.

On top of an high level of activity in fiscal year 2016, the targets for this fiscal year translates into building over 40 km of highways a day.

This target is "almost difficult to believe based on the track record before May 2014", Citigroup said in a research note.

"Recent performance in terms of award and construction has been extremely encouraging and a lot of ground work seems to have already been done. This raises the chance that FY17 targets may be achieved," it added.

According to the report even if absolute headline targets are missed by some margin, there is likely to be a substantial Y-o-Y increase in ordering and construction activity in this financial year.

Of the total length of National Highways targeted for award, 15,000 km would fall under the target of National Highways Authority of India (NHAI) and 10,000 km under the target of the Road Ministry and National Highways and Infrastructure Development Corporation (NHIDCL).

The speeding up of road projects has been made possible due to several policy interventions which include the Ministry being empowered to decide mode of delivery, increased threshold for project approval, enhanced inter-ministerial coordination, Exit Policy and promoting innovative project implementation models like Hybrid Annuity Model.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp