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

Upswing in investors' interest in engineering-procurement-construction projects

There has been an upswing in investors’ interest in engineering-procurement-construction (EPC) projects.

They have bagged 80 per cent of those tendered last year by quoting rates lower than the reserve price. 

These projects are expected to be completed in time because the clearances are in place. Investors are interested because the eligibility threshold to bid for such contracts has been lowered. The Union road transport and highways ministry had in January last year relaxed the eligibility criteria required to bid for them. 

For instance, before January 2017, a company that wanted to bid for a Rs 10-billion contract was required