With a capital investment of around ₹60,461 crore, the Ministry of Road Transport and Roadways awarded 95 km of roadways in June and constructed 1,934 km by June of the fiscal year 2024–25. According to the ministry’s monthly summary for the Cabinet, this expense amounts to almost 44.4% of the capital spending for the first five months of 2024–25 under the vote-on-account provision.
Road Contract Awards Accelerate in June, Boosting Infrastructure Growth
New Delhi – India’s road construction sector witnessed a significant surge in contract awards in June 2025, marking a strong push towards infrastructure development. With multiple projects sanctioned across national and state highways, urban roads, and rural connectivity networks, the government and private sector are accelerating efforts to enhance the country’s transport infrastructure.
Major Contracts Awarded
June saw several high-value road projects being awarded by agencies like the National Highways Authority of India (NHAI), Ministry of Road Transport and Highways (MoRTH), and state public works departments (PWDs). Some of the key contracts include:
- HG Infra Engineering securing a ₹763 crore highway project in Uttar Pradesh.
- Thakur Infraprojects winning a Raigarh road development project to improve connectivity in Chhattisgarh.
- BL Kashyap & Sons bagging a ₹160 crore construction order, further strengthening its presence in the infrastructure sector.
These projects focus on highway expansion, road widening, resurfacing, and construction of bridges and bypasses to improve traffic flow, reduce congestion, and enhance logistics efficiency.
Government Push for Infrastructure Development
The increased pace of contract awards aligns with the Indian government’s Bharatmala Pariyojana and Gati Shakti National Master Plan, which aim to strengthen road connectivity and boost economic growth. Under these initiatives, key objectives include:
- Expanding the national highway network to facilitate faster transportation.
- Developing expressways and multi-lane roads to reduce travel time.
- Enhancing last-mile connectivity to rural and remote areas.
- Strengthening logistics corridors to support industrial and trade activities.
According to MoRTH, the government is targeting 50,000 km of new roads by 2030, with a strong emphasis on sustainability and advanced construction technologies.
Impact on the Construction Sector
The surge in road contracts is expected to drive significant economic activity, benefiting construction firms, raw material suppliers, and employment generation. Key benefits include:
- Revenue Growth for Infrastructure Companies: Firms like L&T, IRB Infrastructure, KNR Constructions, and Ashoka Buildcon are witnessing an increase in their order books.
- Job Creation: Large-scale projects generate employment for engineers, technicians, and laborers, supporting India’s workforce.
- Boost to Cement and Steel Industries: Higher demand for construction materials strengthens allied sectors.
- Improved Urban and Rural Connectivity: Enhanced road networks support trade, tourism, and local economies.
Challenges and Future Outlook
While the acceleration in contract awards is a positive sign, challenges remain in land acquisition, environmental clearances, and project financing. However, with government support and private sector participation, India is poised to sustain steady growth in the road infrastructure sector.
The coming months are expected to witness more contract awards, keeping the momentum strong for India’s road construction industry. As investment flows into infrastructure, the nation moves closer to achieving.
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