Page 10 - CV Aug-Sep 2023 Issue

IMPROVED AWARDING AND EXECUTION TO BENEFIT ROAD
CONSTRUCTION COMPANIES

he pace of road construction in The improvement in road construction constructed per day was 30.1 km. If the
the country is expected to owes to the low base of awarding in the present momentum in the construction of
Timprove in FY24 given the speed past two fiscal years. Historically, roads continues, analysts estimate that
at which projects are being awarded and construction gains pace after three years the average length of roads constructed
their execution. This is expected to help a of awarding of roads projects. In FY20, per day will jump to 33 km in Fy24.
handful of construction companies that the combined awarding of road projects
have demonstrated efficient execution in by NHAI and MoRTH was close to Among the road construction companies,
the past. The combined construction of 10,500 km. The construction of roads KNR Constructions and PNC Infratech
roads by National Highway Authority of jumped to 2,929 km in March 2023 from are likely to benefit from higher awarding
India (NHAI) and Ministry of Roads, 1,452 km in March 2020. of road projects given their strong
Transport and Highways (MoRTH) balance sheet and superior execution
improved by 12.7% to 6,684 km in In FY23, the combined awarding of capabilities. Analysts estimate that
January- May 2023 period compared with NHAI and MoRTH was 12,375 km. In revenues of these companies are likely to
the corresponding period in the previous FY23, the average length of roads grow by 12-15% in the next two years.
year.

CONSTRUCTION VISION 8 AUGUST - SEPTEMBER 2023