Private investments in road projects charts new growth paths: Adani Group, IRB Infra among top players
In states like Himachal Pradesh, Telangana and Chhattisgarh, Adani Group, IRB Developers and other private players are infusing huge investments into road projects.
Being the bedrock for facilitating growth, the infrastructure segment is the major driver and cornerstone of the Indian economy. Under its ambit come the bridges, dams, roads and urban infrastructure which reflect the overall development of the nation. Glimpse of the industry projections citing for massive need for private investment has begun showing private players like Adani Group Chhattisgarh, IRB Infrastructure Developers, among others, infusing huge investments into the road projects. The trend has been welcomed by the government given its thrust on transforming infrastructure.
Last year, KNR Constructions Ltd bagged a Rs 9,200 crore highway project from NHAI in Tamil Nadu. The concession period of the project was decided for 17 years, including a construction period of 2 years from the appointed date.
Likewise, IRB Infrastructure Developers has also recently bagged a Rs 828 crore project in Himachal Pradesh from the National Highways Authority of India (NHAI). The company received the Letter of Award (LOA) from NHAI to upgrade a four-lane configuration from Pathankot to Mandi on Hybrid Annuity Mode (HAM). With an asset base of more than Rs 54,000 crore across various regions, it is claimed to be India’s largest private toll roads & highways infra developer.
Earlier this month, Adani Road Transport Ltd (ARTL), a wholly-owned unit of Adani Enterprises, bagged a highway project worth Rs 1,169.10 crore in Odisha from the National Highways Authority of India (NHAI). With HAM (hybrid annuity model), Toll-Operate-Transfer (TOT) and Build-Operate-Transfer (BOT) Toll basis, it will have total 10 NHAI road projects under its umbrella. The other projects of the Adani Group are in Chhattisgarh, Telangana, Madhya Pradesh, Kerala, Gujarat, Odisha and a few other states. For the development of six-lane Badakumari-Karki Section of NH-130-CD Road, ARTL received a letter of award (LOA). This road project lies in the state of Odisha under the Raipur-Visakhapatnam Economic Corridor.
By winning a contract worth Rs 1,140 crore from the National Highway Authority of India in Chhattisgarh, Adani Group mining Chhattisgarh marked its entry into the road construction space through its flagship entity Adani Enterprises (AEL) in 2018.
On the Bilaspur-Pathrapali section of NH-111 (New NH-130) in Chhattisgarh, this Adani Group project pertained to four-laning along with a paved shoulder of 53.3 km. The operation period of the project was decided to be 15 years from the beginning of its commercial operations.
Recently, during a virtual event organised by Assocham, Union minister Nitin Gadkari emphasized that India has achieved world records in the past years. Furthermore, his ministry has set a record by constructing 37 km of road per day during 2020-21 and building a 2.5 km four-lane concrete road in just 24 hours, which comes as a major achievement for fueling the infrastructure sector.
