Logistics

Highway projects in 4 States face tough time: Crisil

Our Bureau Hyderabad | Updated on May 15, 2020 Published on May 15, 2020

An analysis of over 270 under-construction national highways indicates that the top 10 States account for 80 per cent of the projects and in four of these States project execution is at risk.

According to Crisil Research, Maharashtra, Uttar Pradesh, Tamil Nadu and Andhra Pradesh, that account for over a third of the projects, are among zones of maximum risk.

In its report, “On the highway, four states of discomfort,” Crisil maintains, “Construction of national highways has come to a grinding halt with the nationwide lockdown imposed on March 25, 2020, to fight the Covid-19 pandemic. However, to the relief of developers, the government allowed resumption of construction from April 20, subject to clearances from district administrations.”

But activity remains stalled due to severe shortage of labour and raw material, and difficulty in securing requisite clearances. What’s more, the Centre has divided districts into red, orange and green zones based on the extent of contagion. Only insitu construction is allowed in red zones until the next announcement.

In Maharashtra, which has 11 per cent of the national highway projects, as much as 55 per cent of it is in red zones. In Uttar Pradesh, which has the lion’s share of projects under construction at 15 per cent, a third is in the red zones. Projects in Tamil Nadu and Andhra Pradesh, each with over 35 per cent projects in red zones, are also at risk. In the milieu, for developers, containment of the pandemic and lifting of the extended lockdown are the key monitorables for a return to normalcy.

In its series, “Covid corollaries,” the Crisil report states “About a fifth of under-construction NHAI projects are in the red zones of the top 10 states. Those in Maharashtra, Uttar Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh are at higher risk.”

Published on May 15, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.