<dhhead>MESSAGE FROM CHAIRMAN</dhhead>
Over the last 10 years, approximately _10.38 lakh crores has been
invested in constructing 54,858 km of national highways
Dear Shareholders,
I am delighted to present to you the Annual Report for Bharat Road
Network Limited (BRNL) for the fiscal year 2023-24 at a time when the economic climate of
the country is salubrious and the focus on infrastructure development remains central
focus, both among government policymakers and beyond.
Over the past decade, the road sector has been on the expansion mode,
thanks to the significant investments made by the government. Over the last 10 years,
approximately _ 10.38 lakh crores has been invested in constructing 54,858 km of national
highways. This substantial infrastructure initiative has laid a robust foundation for
future growth and enhanced connectivity across the nation.
In the interim budget for 2024-25, the government further demonstrated
its commitment to enhancing the country’s road infrastructure by increasing the
allocation to the Ministry of Road Transport and Highways (MoRTH) by 2.8%, bringing it to
_ 2.78 lakh crores. This increase reflects the strategic importance of our transportation
network and the pivotal role they play in India’s development.
Looking forward, the roads and highway sector is poised for significant
developments, particularly with the rationalisation of pricing for projects awarded under
the new model concession agreements for build-operate-transfer (BOT) and tolling,
operation and transfer (TOT) projects. The government’s amendments are designed to
create a more sustainable and appealing investment environment for the private sector.
Overall, the government’s efforts to advance the roads sector, in
partnership with the private sector, have been impressive. With proactive measures to
spurt the growth in the roads and highways sector, there has been still the execution
challenges in the ground that continue to hinder the progress. Disputes and litigation
continue to be major challenges in the Indian highway sector, often arising from various
complexities involved in the planning, execution, and management of highway projects. The
Indian government and NHAI have shown their intent to streamline processes and reduce
disputes resolution hurdles, through the introduction of schemes such as Vivaad se Vishwas
and by emphasising on mediation and conciliation.
Driven by the principle of ‘Creation through Monetisation’,
Government also made an concentrated effort for creating the National Monetisation
Pipeline (NMP) in August 2021, to attract institutional investment and long-term patient
capital into stable, mature assets, thereby generating financial resources for the
development of new infrastructure. This approach is expected to spur economic growth,
create employment opportunities, and improve prospects for the nation’s youth. By
leveraging private sector investment for new infrastructure, the NMP was formulated with
an aim to achieve an aggregate monetisation potential of _ 6.0 lakh crores through core
government assets over four years from FY2021-22 to FY2024-25.
With all these initiatives taking place in the roads and highways
arena, BRNL finds itself well poised to navigate through the current challenges to now
focus on the growth opportunities, leveraging its experience and robust strategic
positioning. In that respect, I hope and expect that the management and employees of
Bharat Road Network Limited (BRNL) would continue their relentless efforts and dedication
to achieving its business goals and driving the company forward, despite the mounting
external challenges in the recent past. I take this opportunity to extend my heartfelt
gratitude to all our stakeholders for their unwavering support during the challenging
times and reposing the trust in BRNL’s vision.
Looking at the company performance for the past year, BRNL has managed
to cut down the net loss before tax to _ 2,987.87 lakhs, significantly improving in
comparison to a net loss of _ 9,715.98 lakhs in the previous financial year. Gross revenue
for the current financial year decreased to _ 1,385.52 lakhs, down from _ 2,887.62 lakhs
in the prior year, primarily due to a decline in income from EPC/construction activities.
On a consolidated basis, the Company reported a net loss of _ 12,103.56
lakhs for the year under review, a decrease from a net loss of _ 22,223.16 lakhs in the
previous financial year. Gross revenue on a consolidated basis increased to _ 39,110
lakhs, compared to _ 35,008.90 lakhs in the previous financial year, due to an increase in
toll revenue across subsidiaries.
Gross Revenue during the current Financial Year has shown some progress
by reaching upto _ 39,110 lakhs as against _ 35,008.90 lakhs in the previous Financial
Year due to increase in toll revenue across the subsidiaries.
I look forward to witnessing the company paving the way for a brighter
future, building roads that connect communities, empower economies, and transform lives.
Thank you and Warm regards,
Brahm Dutt
C H A I R M A N