Highway projects mostly at risk in four states
Construction of national highways came to a grinding halt with the nationwide lockdown imposed on March 25, 2020, to fight the COVID-19 pandemic. However, to the relief of developers, the government allowed resumption of construction from April 20, subject to clearances from district administrations.
But activity remains stalled due to severe shortage of labour and raw material, and difficulty in securing requisite clearances.
What’s more, the Centre has divided districts into red, orange and green zones based on the extent of contagion. Only insitu construction is allowed in red zones until the next announcement.
As per a press note by CRISIL Research, the firm’s analysis of over 270 under-construction national highways indicates the top 10 states account for 80 per cent of the projects.
The zones of maximum risk
Projects are most at risk in four of these states – Maharashtra, Uttar Pradesh, Tamil Nadu and Andhra Pradesh – that account for over a third of the projects.In Maharashtra, which has 11 per cent of the national highway projects, as much as 55 per cent of it is in red zones.
In Uttar Pradesh, which has the lion’s share of projects under construction at 15 per cent, a third is in the red zones.
Projects in Tamil Nadu and Andhra Pradesh, each with over 35 per cent projects in red zones, are also at risk.
In the milieu, for developers, containment of the pandemic and lifting of the extended lockdown are the key monitorables for a return to normalcy.
About a fifth of under-construction NHAI projects are in the red zones of the top 10 states
Those in Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh are at higher risk
The Only Way is Up!
In 2025, India’s real-estate market will be driven by a confluence of economic, demographic and policy-driven factors. Among these, Boman Irani, President, CREDAI National, counts rapid urbanisation, the rise of the middle class, policy reforms like RERA and GST rationalisation, and the Government’s decision to allow 100 per cent FDI in construction development projects (including townships, housing, built-up infrastructure, and real-estate broking services).In the top metros, especially Bengaluru, followed by Hyderabad and Pune, the key drivers will continue to be job creation a..
Organisations valuing gender diversity achieve higher profitability
The building materials industry is projected to grow by 8-12 per cent over the next five years. How is Aparna Enterprises positioning itself to leverage this momentum and solidify its market presence?The Indian construction and building materials industry is projected to witness significant expansion, with estimates suggesting an 8-12 per cent compound annual growth rate (CAGR) over the next five years. This growth is fuelled by rapid urbanisation, increased infrastructure investments and sustainability-focused policies. With India's real-estate market expected to reach $ 1 trillion by 2030, t..
Dealing with Delays
Delays have beleaguered many a construction project in India, hampering the country from building to its ability and potential, and leading to additional costs incurred by the contractor. The reasons for delayIn India, delays mainly occur owing to obtaining statutory approvals, non-provisioning of right of way, utility diversion and approval of drawings and design. Delays are broadly classified based on responsibility and effect. Excusable delays arise from factors beyond the contractor’s control, such as force majeure events or employer-induced delays. These delays generally entitle th..
Latest Updates
