Revenue Of Road Construction Companies To Rise By 20 Percent Due To Government’s Infrastructure Push

According to CRISIL, the revenue of construction companies is expected to rise by 20 percent till 2020 due to the infrastructure push of the Modi government, Financial Express has reported. The government's push for infrastructure had led to construction of highways at a pace twice that of Congress regime's record in last four years.

The report added that the pace of road construction in FY18 (Financial Year 2018) was 27 kilometre per day, double the pace in FY14. Highway construction per day is expected to be 32 km per day in 2020.

The hybrid annuity model (HAM) approved by the cabinet has led to revival of the public private partnership route for implementation of infrastructure projects. This model aims to fast track projects and attract investments to the infrastructure sector. HAM projects to be awarded in next two years will require about 70,000 crore of funding.

Under HAM, the government provides 40 percent of the funds and the rest will be raised by the developer. In the recent budget the government has allocated 5.97 lakh crores for highways as against 3.96 lakh crores in FY18.

Watch the video to know more about how Union Minister for Road Transport and Highways Nitin Gadkari’s initiatives have put the highways sector on the right track.