Highway projects still under execution risks
Based on risk classification, Crisil believes 3,520 km of under-construction projects with a sanctioned debt of Rs 33,050 crore face high implementation risk in the near term.
An analysis of the reasons for delays shows that 80 per cent of all under-construction projects have been impacted by issues of land acquisition and clearances. Sponsor support in terms of timely equity infusion and funding cost overruns is critical for such projects. But for half of them, financial health of the sponsor is too weak to ensure timely support.