Road builders recover from a slump as projects speed up

Mumbai

INDIA'S cash-strapped road builders may be recovering from a slump as project executions gather pace through Prime Minister Narendra Modi's efforts to cut red tape and revive stalled plans, according to BlackRock Inc.

Work has already started on 75 per cent of the 16 road projects that the previous government awarded in the 12 months till March 2014, versus 10 per cent and 18 per cent in the prior two years, CRISIL Ltd, the Indian unit of Standard & Poor's, said in a research note last month.

A quicker roll-out may help increase cash flow for companies including L&T Infrastructure Development Projects Ltd and Gammon Infrastructure Projects Ltd and stem time and cost escalations.

Better roads are also crucial for Mr Modi's 1.48 trillion rupee (S$31.6 billion) pledge to unclog the nation's choked infrastructure, which is ranked in quality below Namibia and G…