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90% of HAM projects worth over INR 1 lakh crore secure funding - Crisil

Infra News - Published on Fri, 24 May 2019

Image Source: Financial Express
The Hindu Business Line reported that 90% of all awarded hybrid annuity model projects worth over INR 1 lakh crore have achieved debt funding. And this puts to rest apprehensions of bidding intensity in hybrid annuity model projects offered by the National Highways Authority of India (NHAI) and consequent fear that many of these projects will not achieve debt tie-up, according to Crisil.

An analysis shows that a moderation in the pace of highway projects awarded in fiscal 2019 allowed developers the latitude to arrangefunding and focus on execution. Less than 3,000 km of projects were bid out in fiscal 2019 compared with an all time high 7,400 km in fiscal 2018. The debt tie-ups have been driven by low risks in HAM, prudent bids, and track record of execution of strong and experienced sponsors.

Mr Sachin Gupta, Senior Director, CRISIL Ratings, “There were apprehensions because 8-10 bidders had garnered lion’s share of HAM projects leading to concentration risk.”

Source :

Posted By : Sanju Moirangthem on Fri, 24 May 2019
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