NHAI closes in on toll targets, but slips on road building

The National Highways Authority of India (NHAI) has lagged in awarding and maintaining construction pace during the first three quarters of this fiscal, but has almost achieved its target of toll revenue collections and highways tolled.

As on December, the Ministry of Road Transport & Highways (MoRTH) including NHAI had been able to construct highways at an average of around 23 km daily as against the target of 41.09 km/day.

According to the data accessed by DNA Money, between April-December 2017, NHAI had set a target of 11,362 km of highways during the ongoing fiscal, but was able to award only 4,561 km. An NHAI official said that during March 2018, it planned to bid out another 4,000 km of highway for construction or widening.

A look at the toll collection and highways tolled figures shows that the NHAI has narrowly missed the target set. Of the total target of 10,311 km to be tolled this fiscal till December 2017, it got 9,940.92 km of highways tolled, which is less by just 370.08 km.

Similarly, it had set an toll collection target of Rs 32,950 crore, and managed to collect Rs 32,651.53 crore, a shortfall of Rs 298.47 crore.

For the first quarter of this fiscal, the target and realisation was Rs 4,550 crore and Rs 4,410.39 crore, respectively, which increased the following quarter to Rs 10,900 crore and Rs 10,812.43 crore, respectively. While, during the last financial quarter ended December 2017, NHAI earned Rs 17,428.71 crore in toll as against the target of Rs 17,500 crore.

“The reason for NHAI being able to earn more toll in every quarter is because many highways that weren’t tolled earlier too came under the fold of tolling. In the coming months and years, this trend of more kilometres being tolled and rise in toll collections will only continue. The roads tolled are the ones that were implemented over the last three years, that is why toll realisation is showing an upward trend,” said an analyst.

Currently, NHAI is in the process of tendering out road construction projects under its grand Bharatmala Project, a bulk of the orders are said to be finalised later this month or the next fiscal.

Last month, NHAI had received four quotes from Macquarie, Brookfield, Roads-NIIF (National Infrastructure Investment Fund) and IRB Infrastructure Developer for its toll-operate-transfer (TOT) model.

IRB Infrastructure Developers has entered into a joint venture with Italian operator Atlantia to participate in the bid auction.

The NHAI is planning to auction toll collection for about 1,700 km highways under the TOT model, aimed at monetising public-funded roads. The reserved price of the bid is Rs 6,258 crore.

RINGING LOUDER

• A look at the toll collection and highways tolled figures shows that the NHAI has narrowly missed the target set
   
• NHAI is in the process of tendering out road construction projects under its Bharatmala Project