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Infra Sector Check - Activity Subdued In Q1 FY23: Motilal Oswal

Infra Sector Check - Activity Subdued In Q1 FY23: Motilal Oswal

<div class="paragraphs"><p>Silhoutte of a construction crane is seen against sunset.  (Source: pxhere.com)</p></div>
Silhoutte of a construction crane is seen against sunset. (Source: pxhere.com)

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Motilal Oswal Report

Project awarding by agencies such as National Highways Authority of India has been muted so far in FY23 with projects of 169 km only being awarded to date.

NHAI, which ended FY22 with awards of 6,306 km, is looking to award ~6,500 km of projects in FY23. Road construction by NHAI on FY23 year-to-date basis stands at 777 km.

Toll collections, however, have been very strong with FASTag-based toll collections clocking an all-time high daily run-rate of Rs 1.4 billion in June 2022.

Asset monetisation is the key focus area for NHAI to raise funds outside of budgetary resources. Toll Operate transfer bundle – seven was awarded in March 2022 and NHAI has prepared a pipeline to monetize 1,750 km of assets in FY23. This is critical to support the pace of road project awarding.

Click on the attachment to read the full report:

Motilal Oswal Infrastructure Sector Update.pdf

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