The government has increased road construction by 4,628 km in the current financial year, aiming to boost the economy by constructing over 5,100 km.The Indian government has seen a 1.9-fold increase in the length of national highway construction awarded between April and October, with 5,697 km of roads awarded.
compared to 5,100 km a year ago. The target for the financial year 2020-21 is 11,000 km. The pace of construction has seen fluctuations due to seasonal factors and labor shortages. The government has taken steps to boost road construction, focusing on infrastructure creation.
Which is expected to have a multiplier effect on the Indian economy. The government has extended construction periods without cost or penalty and enabled monthly payments to contractors. The central government’s latest capital expenditure plans are expected to boost new and ongoing infrastructure projects.
India’s highway infrastructure development has witnessed a significant boost, with project awards surging 1.9 times year-on-year (YoY) during the April-October period of the current fiscal year. This remarkable growth underscores the government’s emphasis on accelerating road construction to enhance connectivity and economic development.
Robust Growth in Project Awards
According to official data, the Ministry of Road Transport and Highways (MoRTH) awarded highway projects spanning approximately 6,500 km in the April-October period, compared to 3,400 km in the corresponding period last year. The sharp increase in project awards aligns with the 13,000 km of highways in the full fiscal year.
Key Drivers Behind the Surge
The substantial rise in project awards can be attributed to multiple factors. The streamlining of project approvals and faster clearances has facilitated quicker awarding of contracts.
- Increased Budgetary Allocation: The government has significantly increased spending on highway infrastructure, backed by initiatives like the National Infrastructure Pipeline (NIP) and PM Gati Shakti.
- Public-Private Partnerships (PPP): A growing number of projects are being executed under the Hybrid Annuity Model (HAM) and Build-Operate-Transfer (BOT) models, attracting private sector investments. Strategic highway projects under Bharatmala Pariyojana have gained momentum, ensuring last-mile connectivity and seamless freight movement.
Execution and Challenges
While project awards have seen a notable increase, the execution pace remains a key area of focus. The average highway construction rate stood at 27-28 km per day, slightly lower than last year’s acquisition delays, monsoon disruptions, and rising material costs have impacted execution timelines.
To address these challenges, the government is actively working on easing regulatory bottlenecks and ensuring timely financial assistance to contractors. Additionally, MoRTH is pushing for increased adoption of technology-driven construction methods to expedite project completion.
Outlook for the Sector
With the current momentum, the government remains optimistic about achieving its annual targets for highway development. The rise in project awards is expected to translate into higher construction activity in the coming quarters, boosting employment, economic growth, and logistics efficiency.
As India continues its ambitious infrastructure expansion, the highway sector is poised to play a pivotal role in the country’s long-term economic trajectory. Highway project awards in India surged 1.9 times year-on-year (YoY) during April-October, driven by increased government focus on infrastructure.
The Ministry of Road Transport and Highways (MoRTH) awarded projects covering 6,155 km, compared to 3,256 km in the same period last year. This growth aligns with the Bharatmala Pariyojana and other key initiatives aimed at boosting connectivity.
The rise in awards is expected to accelerate construction activity, benefiting contractors and developers. With continued policy support and investment, India’s highway expansion is on track to meet ambitious targets, enhancing road networks across the country.
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