One of the leading Engineering Procurement Construction (EPC) firm Dilip Buildcon is excited about the upcoming boost the next fiscal in road construction by the Government of India. The Government is looking to increase its roads construction target for the next fiscal by 50%. This has made the EPC industry expectant and it is looking to the investment.
It has been decided that about 15,000 km of road construction projects are expected to be awarded next year. A budgetary support of more than Rs. 60,000 crore is expected to be sought for 2016-17. The total spending will be taken to Rs 1.5 lakh crore.
Dilip Suryavanshi, the managing director of Dilip Buildcon said, “The announcement by the Government to increase the road construction target in the upcoming fiscal has made the industry hopeful. As the road construction projects which may be awarded stretch up to 15, 000 km, we are looking forward to acknowledgement and motivation.”
In the financial year 2015-14, the government awarded 8,000 km of road construction contracts. Spending on road projects amounted to around Rs 55,000 for the year. In 2015-16, the target for the road, transport and highways ministry was 10,000 km. About 27 km of road contracts are awarded each day. The ministry has spent approximately 60% of its total budget of Rs. 42,000 crore for the year.
In 2016-17 the ministry plans to raise its rate to 41 km per day. Around 100 projects are expected to be awarded. 30% will be done through private participation. The rest will be done through government-funded engineering, procurement and construction (EPC) model.