PM Modi gives weaker road builders a path to sell more bonds in FY18

Modi's govt is seeking greater participation from private companies in expanding the nation's road network

Indian Prime Minister Narendra Modi has big plans for road building, and part of it includes giving weaker infrastructure contractors greater access to the local bond market.

Finance Minister Arun Jaitley’s proposal to lower the investment threshold on rupee bond purchases for investors including pension funds to A from AA is set to benefit local highway developers such as Dilip Buildcon Ltd. and Sadbhav Infrastructure Project Ltd. About 20 percent of road builders with outstanding rupee bonds have single-A ratings, according to data compiled by Bloomberg.

“The measure will open up a new source of funding for road construction companies,