NHAI pause on contracts likely to hurt construction firms' revenue

Gadkari said NHAI was in a comfortable position and it would go ahead with its fund-raising plans

The Union government’s focus on the build-own-operate model of road construction may “adversely” impact the revenue visibility of construction players operating in the road segment in the medium term, India Ratings and Research (Ind-Ra) has said.  

According to Ind-Ra, revenue visibility of players operating in the roads segment would be impacted negatively in the medium term on account of any slowdown in fresh awards by the NHAI. 

Coupled with the NHAI’s plan to return to privatisation of roads by reverting to the BOT model can adversely impact bidding participation from private players, given their limited appetite and lenders' risk averse