Highways Projects in UP, AP, Maharashtra, TN face max risk of time and cost overruns
New Delhi: Highways construction activity in four major states- Uttar Pradesh (UP), Maharashtra, Andhra Pradesh and Tamil Nadu have been majorly affected due to the Covid19-led lockdown. Together, these sets account for over a third of the national highways projects.
Uttar Pradesh has the highest share of highway projects at 15 percent and about one third of the projects are in red zones where only insitu construction is allowed.
Maharashtra has about 11 percent of the under construction highway projects and about 55 percent of it are in red zones.
Projects in Andhra and Tamil Nadu have about 35 percent projects that are in red zones.
The projects lying in the red zones run the risk of time and cost overrun. The 20 percent of the under construction projects belonging to NHAI are in the red zones and run the risk of time and cost overruns. The ones in Uttar Pradesh (UP), Maharashtra, Andhra Pradesh and Tamil Nadu are at maximum risk, according to a research by CRISIL.
The construction had come to a complete halt on 25 March 2020 in the wake of the nation-wide lockdown. Even when the government allowed construction on 20 April, there are several problems like labour shortage, material shortage and difficulty in getting the needed clearances.