Punj Lloyd expects to bid for Rs one lakh crore worth road projects
Confident over turnaround in the infrastructure space, engineering and construction major Punj Lloyd will bid for road projects worth over Rs 1 lakh crore in this fiscal.
“Right now highways is moving. We are finally seeing a fair amount of movement in that sector… We would be bidding for more than Rs 100,000 crore worth projects in next six to seven months,” Punj Lloyd Group chairman Atul Punj said.
The company is looking at a large number of projects with a success rate typically between 20% and 25% of all the projects they bid.
Recently, the government approved easy exit norms from highways projects for developers. It has permitted 100% equity divestment after two years of completion for all BOT (build, operate and transfer) projects, irrespective of year of award.
The approval would allow developers to use proceeds from the sale of divested equity in incomplete projects of NHAI or any other road project besides any power sector project or to retire their debt to financial institutions in any other infrastructure projects.
Punj Lloyd has executed over 16 highway projects of National Highways Authority of India (NHAI) so far. The group’s order backlog stands at about Rs 20,000 crore.