NHAI ensures cash flow to contractors
Despite challenges due to the outbreak of the novel coronavirus pandemic, the National Highways Authority of India (NHAI) has awarded 26 projects of 744 km length in 2020-21 as compared to 676 km in FY 2019-20, 368 km in FY-2018-19 and 504 km in FY 2017-18.
NHAI has capital cost of these 26 projects is over Rs.31,000 crore during the April-August 2020 financial period, which includes the cost of civil construction, land acquisition, and other pre-construction activities.
NHAI said it is expecting to exceed a target of awarding 4,500 km of highway contracts during the current FY.
Despite lockdown and the prevailing situation, NHAI took various initiatives to instill confidence in the bidders of the sector.
To ease the liquidity crunch and ensure cash flow to the contractors, NHAI ensured that no payments are delayed due to the closure of office and disbursed Rs.10,000 crore during the lockdown in March 2020 using digital platforms.
In the first Quarter of the current FY, NHAI disbursed more than Rs.15,000 crore to the vendors.
Additionally, steps such as monthly payments to the contractors were taken.
Such moderations saw encouraging participation from the bidders resulting in spiraling effect on the growth of the road sector, said NHAI on 31 Aug 2020.
With the increase in awards and expanding highway construction, NHAI has got a good beginning for a year marred by the global outbreak of the pandemic.
NHAI is committed to develop the National Highways Infrastructure at a rapid pace and envisions providing safe, smooth, and seamless travel experience on National Highways. #tenders #projects #contracts #highways #infrastructure /fiinews.com
