Tuesday, June 24, 2008

Road projects face further delays on rising input cost

Rising steel and crude oil prices may again delay awarding of road projects under the National Highway Development Programme (NHDP). It explains that rising input costs make the projects unviable for the developers who are then reluctant to take off with the projects. To make it viable if the developer starts charging higher toll rates then the project might not be able to attract the expected traffic which will lead to further delays in the concession period awarded thereby again making it all the more unviable.

I had earlier also hinted at slowing down of the railway projects because of rising steel prices here.