Road sector revival: Projects being awarded at lower than reserve price

The Union road ministry had in January 2017 brought down the eligibility criteria required to bid for highway contracts; that is one reason for investors' interest in quoting below the reserve price

 

A slew of measures taken by the Union government have bolstered growth in the road sector, with nearly 80 per cent of the Engineering Procurement Construction (EPC) projects tendered last year being bagged by infrastructure developers quoting lower than the reserve price. These projects are expected to be completed within their timelines as the necessary clearances for the timely completion are already in place.

One of the reasons for investors’ interest in quoting below the reserve price was a lowering of the eligibility threshold to bid for such contracts.

The Union road transport and highways ministry had