When compared to the same period the previous year, the length of road projects awarded by the National Highway Authority of India and the Ministry of Road Transport and Highways increased by a little more than two times to 5,113 km in March 2022. It is nearly six times longer than the 735 km of road length awarded in the previous month, bringing the total length of projects awarded in FY22 to nearly 12,731 km, up 22 percent year on year.
According to analysts, the government has accelerated the awarding of road projects in five states following the elections to aid MoRTH in meeting its goals. While project awarding has improved, project execution has slowed in the past fiscal year due to a labour shortage, funding issues, and government payment delays. In FY22, the pace of road construction slowed by 21% to 10,457 km, while the average daily construction distance fell by 21.4 percent to 28.6 km. They expect a premium from the street in the coming quarters for select road construction companies that follow an asset-light business model, which helps them maintain stronger balance sheets.