New Delhi, Aug. 19 -- The recent tightening of net worth norms for builders of hybrid annuity model (HAM) road projects could restrict one in four developers from bidding for such contracts in the near term, rating company Crisil said on Tuesday.
However, the strengthening of technical and financial qualification criteria should improve bidding discipline and construction quality after a phase of aggressive bidding over the past couple of years, Crisil said, citing its analysis of 74 developers who won 90% of HAM projects from FY22 to FY25.
The ministry of road transport and highways had relaxed the qualification criteria in FY21, leading to the number of bidders per project gradually increasing to 15 from five. This coincided with a re...
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