The central government has carried out a series of reforms to increase the participation of mid-sized engineering, procurement and construction (EPC) players in the tendering process of construction contracts. These measures are likely to intensify competition in roads, bridges & highways and tunneling projects by way of higher participation from a wider set of bidders, opines India Ratings and Research (Ind-Ra). These relaxations however would also provide the much-needed relief to those construction contractors whose eligibility to bid for new projects has been hampered on account of COVID-19 led business disruptions. These changes relate, among others, to relaxations in the eligibility criteria and norms for construction projects in the segment, which are bid both on the EPC and hybrid annuity model (HAM) / build-operate transfer (BOT) modes.
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