Road projects pick up pace after new govt's takeover: Crisil

The government has been taking many proactive steps such as fast-tracking environmental nods

Work on about 75 per cent of road projects, which were awarded in 2013-14, has started, signaling a pick-up in execution after the new government, according to a study.

Compared to projects awarded in 2011-12 and 2012-13, work had begun only on 10 per cent and 18 per cent of them respectively, at a similar juncture, the study by research firm CRISIL said.

Such momentum is unparalleled and stands in sharp relief to the imbroglio which existed in the last couple of years.It show an unprecedented pick-up in execution amid a proactive government and faster approvals by implementing agencies. This is expected to improve the returns for the developers of build-operate-transfer (BOT) projects and companies engaged in the construction of roads, the study added.

"In the last five years, 90 per cent of the national highway projects completed were delayed because of lack of environmental clearances, non-availability of land and funding constraints. The average time overrun had increased from about 20 months in 2008-09 to about 50 months in 2013-14. Both BOT and EPC projects got stuck, with the average delay around 13 months for BOT projects and 45 months for EPC projects," according to Rahul Prithiani, Director, CRISIL Research.

The government has been taking many proactive steps such as fast-tracking environmental nod, delinking forest and environment clearances, besides enabling online filing for clearances to construct rail overbridges and underbridges, the study added.