Highway sector at crossroads, says Ind-Ra

New Delhi: India Ratings and Research (Ind-Ra) on Monday said India’s highway sector is facing challenges, with muted central road award activity for the past two years, leading to increased competition and persistent project execution issues.

The rating agency further said that although state awards have come to the rescue, the sector is likely to witness subdued revenue and margins. “The muted central award activity has altered the sector’s dynamics, pushing states into the driver’s seat. While this shift ensures continuity, it also introduces complexities around execution and financing,” said Krishan Binani, Director, Corporate Ratings, Ind-Ra.