Bharatmala Phase-1 to delay till 2026 with 54% cost escalation: ICRA
June 12, 2020: The credit rating agency ICRA expects Bharatmala Pariyojana (BMP) Phase-1 to get completed by FY2026 as against the target of FY2022 and the four-year delay is also expected to escalate the estimated cost to 54 percent.
The estimated outlay of BMP Phase 1 is Rs 5,35,000 crore. While the average cost of award stood at Rs 23.8 crore per km, 54 percent higher than the initial estimate of Rs 15.5 crore per km.
June 12, 2020: The credit rating agency ICRA expects Bharatmala Pariyojana (BMP) Phase-1 to get completed by FY2026 as against the target of FY2022 and the four-year delay is also expected to escalate the estimated cost to 54 percent.
The estimated outlay of BMP Phase 1 is Rs 5,35,000 crore. While the average cost of award stood at Rs 23.8 crore per km, 54 percent higher than the initial estimate of Rs 15.5 crore per km.
A total of around 34,800 km are being considered in BMO Phase 1 which also include 10,000 km of balance road works under National Highways Development Project (NHDP).
“As per the revised funding plan dated September 2019, the dependence on market borrowings for BMP increased by 72 percent to 3,59,786 crore while the budgetary allocations and contribution from central road and infrastructure fund were reduced by 46 percent to 1,83,626 crore. Consequently, the borrowings of NHAI are expected to increase and peak by FY2023 or FY2024; at the same time, National Highways Authority of India’s (NHAI’s) asset monetisation also remains critical to meet the funding requirements of BMP phase-1,” says the ICRA report.
ICRA's analysis on the Bharatmala Pariyojana which is likely to get delayed by four years and witness cost escalation by 54%.#ICRAViews #NHAI #BharatmalaPariyojana #Roads #Highways #IndianRoadsSector@NHAI_Official pic.twitter.com/s7721hyxTX
— ICRA (@ICRALimited) June 12, 2020
