Overambitious Pricing Weighed On Road Auctions, Says Feedback Infra
Market was less enthused about road projects in Bihar and Bengal which were considered difficult, says Feedback Infra.
Floor prices set at an “overambitious” level were responsible for a lukewarm response to road project auctions under the second bundle of toll-operate-transfer model, according to Feedback Infra’s Chairman and Co-founder Vinayak Chatterjee.
“Even before the bidding process, the people in the road industry circle went abuzz with conversations that it was possibly an artificially high floor price,” said Chatterjee in an interview with BloombergQuint. “Market was less enthused about projects in Bihar and Bengal which were considered difficult both from a toll-collection and a law and order point of view.”
Chatterjee also said that National Highways Authority of India’s achievement of constructing 26 kilometers of roads per day was laudable when compared to any global standard of project execution.