Effective policy measures over the last 36 months have revived the Indian road sector, it said.
ICRA said in a statement that the steps also include delegating the power to grant forest clearances to regional offices and online filing for clearances.
The roads sector was marred by execution delays, project cancellations, stalled projects, loss of lender confidence, leveraged balance sheets of developers and sluggish traffic growth, it said.
He said other policy measures such as back-ending premium payment, compensating concessionaires for delays not attributable to them, relaxing exit norms and one-time fund infusion by the NHAI are expected to address liquidity-related concerns faced by the developers.
Also Read
Besides, ICRA said, asset sales in the road sector have picked up over the last 30 months with the relaxation in exit policy.
Hybrid annuity mode (HAM) is currently the most preferred mode of awarding projects and about 53 per cent of the awards in 2016-17 by NHAI were through the HAM route, compared to 8 per cent in 2015-16, it said, adding that this is likely to increase further in 2017-18.
In August 2016, the Cabinet Committee on Economic Affairs (CCEA) authorised the NHAI to monetise the public-funded National Highway (NH) projects that are operational and generating toll revenues for at least two years after the commercial operation date (COD) through the toll-operate- transfer (TOT) model.
ICRA said: "75 projects totalling 4,376 kms and estimated at Rs 356 billion, have been preliminarily identified for monetisation through TOT."
In a recent report, Reserve Bank India also said: "The resilience of some infrastructure sectors in the face of this downturn is noteworthy and brightens the outlook. First, there was a decline in cost and time overruns in central sector infrastructure projects (Rs 1.5 billion and above)."
Disclaimer: No Business Standard Journalist was involved in creation of this content