Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
A tall job at hand
With only one month left to meet its targets of 7300km, NHAI is putting its act together to award the remaining
~3015km of road projects. Considering the awarded projects, current bid stage and execution, we believe NHAI
will miss both its target of awarding and completion. Till date (FY12), NHAI has awarded ~4,285km of road
projects worth Rs408.9bn. We believe it's difficult for NHAI to award ~7300km this fiscal, as current bid stage of
projects suggest possibility of awarding ~1635km by end of March. Though NHAI may stretch and award ~2000-
2200km, still it will fall short by ~800-1000km of awarding. The Cabinet Committee on Infrastructure yesterday
had approved three projects worth Rs35bn spanning 332km (Exhibit 1, highlighted) and awarding of these projects
will start from today. Though we have witnessed very competitive bidding throughout the last year, we believe
competition would ease going forward, as already developers are facing challenges regarding financial closures
and our channel check suggest ~40 projects are on the block. Our stance get further vindicated by looking at the
recent bid of Kiratpur-Ner Chowk in Himachal Pradesh won by ILFS Transportation that witnessed only four
bidder.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
A tall job at hand
With only one month left to meet its targets of 7300km, NHAI is putting its act together to award the remaining
~3015km of road projects. Considering the awarded projects, current bid stage and execution, we believe NHAI
will miss both its target of awarding and completion. Till date (FY12), NHAI has awarded ~4,285km of road
projects worth Rs408.9bn. We believe it's difficult for NHAI to award ~7300km this fiscal, as current bid stage of
projects suggest possibility of awarding ~1635km by end of March. Though NHAI may stretch and award ~2000-
2200km, still it will fall short by ~800-1000km of awarding. The Cabinet Committee on Infrastructure yesterday
had approved three projects worth Rs35bn spanning 332km (Exhibit 1, highlighted) and awarding of these projects
will start from today. Though we have witnessed very competitive bidding throughout the last year, we believe
competition would ease going forward, as already developers are facing challenges regarding financial closures
and our channel check suggest ~40 projects are on the block. Our stance get further vindicated by looking at the
recent bid of Kiratpur-Ner Chowk in Himachal Pradesh won by ILFS Transportation that witnessed only four
bidder.
No comments:
Post a Comment