New Delhi, May 11 -- A significant portion of under-construction road projects under the Hybrid Annuity Model (HAM) are facing execution delays, though their credit risk profiles remain stable due to safeguards built into concession agreements, according to Crisil Ratings.
An analysis of 72 HAM projects covering around 2,600 km—about one-third of the under-construction portfolio awarded between 2021 and 2025.
Right-of-Way Issues Key Bottleneck
Manish Gupta, Senior Director and Deputy Chief Ratings Officer, Crisil Ratings, said, Around 60 per cent of under-construction HAM road projects are delayed by over 11 months on average. Non-availability of right-of-way is the primary reason 75 per cent of these projects are delayed. Other...