Development of Northeast roads running smooth
ROADS & HIGHWAYS

Development of Northeast roads running smooth

The National Highways and Infrastructure Development Corporation (NHIDCL) has not yet faced any stoppage in funding of new projects.
Recent reports indicate that new development projects in the Northeast will be 100 per cent funded by the Central Government. As per the previous policy, 90 per cent was funded by the government while the remaining had to be done by the state. However, ongoing projects – estimated to be completed by 2020 – will continue to be funded in a 90:10 ratio.

Nagendra Nath Sinha, Managing Director, NHIDCL, shares that 24 projects were awarded in FY2017-18; and 14 projects in FY2018-19. “None of these projects are on PPP mode and hence the issue of financial closure is not relevant to us,” he says. “However, of late, some firms have faced difficulties in arranging bank guarantees for performance security or mobilisation advances.”

Projects are awarded under NHIDCL in the EPC mode. The funds are allocated by the government under different heads: Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE), NH(O) and External Aided Projects (EAP)-(JICA/ADB-Funding) to NHIDCL. While funding is yet to be firmed up for Bharatmala projects under NHIDCL, “JICA and other multilateral development banks or agencies could be other sources taped for taking up mandated infrastructure projects,” he says.    

SHRIYAL SETHUMADHAVAN

The National Highways and Infrastructure Development Corporation (NHIDCL) has not yet faced any stoppage in funding of new projects.Recent reports indicate that new development projects in the Northeast will be 100 per cent funded by the Central Government. As per the previous policy, 90 per cent was funded by the government while the remaining had to be done by the state. However, ongoing projects – estimated to be completed by 2020 – will continue to be funded in a 90:10 ratio.Nagendra Nath Sinha, Managing Director, NHIDCL, shares that 24 projects were awarded in FY2017-18; and 14 projects in FY2018-19. “None of these projects are on PPP mode and hence the issue of financial closure is not relevant to us,” he says. “However, of late, some firms have faced difficulties in arranging bank guarantees for performance security or mobilisation advances.”Projects are awarded under NHIDCL in the EPC mode. The funds are allocated by the government under different heads: Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE), NH(O) and External Aided Projects (EAP)-(JICA/ADB-Funding) to NHIDCL. While funding is yet to be firmed up for Bharatmala projects under NHIDCL, “JICA and other multilateral development banks or agencies could be other sources taped for taking up mandated infrastructure projects,” he says.    SHRIYAL SETHUMADHAVAN

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code