Highway construction in the first nine months of this fiscal year stood close to 5283 km which is 5.8% lower than last year’s 6216 km in the same period of the previous year but the rate of building new roads is better than what the Ministry of Road Transport and Highways had targeted for the whole year.
The government has set a provisional target of constructing 10,421 km of national highways this financial year, which is 15% lower than last year’s achievement due to the election process delaying various state clearances and prolonged monsoon in 2024. The decline in construction is just 5.8% rather than 15% expected.
Of the total target, National Highways Authority of India (NHAI) has been given a target of 5,000 km while the remaining will be done by National Highways and Infrastructure Development Corporation (NHIDCL) and road wing of the ministry. NHAI has constructed 3528 km of highways and awarded contracts for 1534 km.
The award figure in April-December 2024 for the newer highways was around 3100 km as compared to 3111 km in the same period of the previous year. No target has been set for award this FY as no detailed long-term plan has been chalked out to replace Bharatmala. Award of new projects under Bharatmala was stopped last year and it has been replaced by Vision 2047.
No specific target under Vision 2047 plan has been approved by the Government. From now on depending on the priority of the project – in consultation with economic ministries and other stakeholders – and availability of resources projects will be undertaken under the Vision 2047.
The slowdown in awarding since last year, however, will impact the pace of highway construction in 2025-26 also and only in 2026-27 can an uptick be expected, according to analysts.
The expenditure on highway building in April-December fell to Rs 2.25 lakh crore which is 82.7% of this financial year’s target of Rs 2.72 lakh crore. Last year during the same period the Ministry of Road Transport and Highways had spent Rs 2.15 lakh crore or 83.5 % of its target.