Highway construction in the first eight months of the fiscal year reached nearly 4,900 km, showing a 6.6% decline compared to 5,248 km in the same period the previous year. However, this pace surpasses the target set by the Ministry of Road Transport and Highways for the year. The government has set a provisional target of constructing 10,421 km of national highways this fiscal year, which is 15% lower than the previous year due to delays in state clearances caused by the prolonged election process. The National Highways Authority of India (NHAI) has a target of 5,000 km. However, the pace of awarding new projects has slowed, and the introduction of Vision 2047 has replaced the Bharatmala project, with no specific targets set under the new plan. Analysts predict that the slowdown in awarding projects will impact highway construction into 2025-26, with improvements expected in 2026-27.
Highway construction in the first eight months of this fiscal year stood at approximately 4,900 km, which is 6.6% lower than the 5,248 km achieved during the same period last year. Despite this, the pace of construction is ahead of the target set by the Ministry of Road Transport and Highways for the year.
The government has set a provisional target of constructing 10,421 km of national highways for this fiscal year, which marks a 15% reduction from last year's achievement. This decrease is attributed to delays in state clearances caused by the extended election process. Of this total target, the National Highways Authority of India (NHAI) has been assigned a target of 5,000 km, while the remainder will be handled by the National Highways and Infrastructure Development Corporation (NHIDCL) and the road wing of the ministry. NHAI has completed the construction of 2,563 km of highways and has awarded contracts for 776 km.
From April to November 2024, around 2,200 km of newer highways were awarded, compared to 2,816 km during the same period the previous year. There has been no specific target for new project awards as no detailed long-term plan has been laid out to replace the Bharatmala project. The award of new projects under Bharatmala was halted last year, with the Vision 2047 plan now in place. However, no specific target under this new plan has been approved by the government. Going forward, projects will be undertaken based on their priority, as determined in consultation with economic ministries and other stakeholders, alongside resource availability. The slowdown in project awards since last year is expected to affect the pace of highway construction well into 2025-26, with an uptick anticipated only in 2026-27, according to analysts.
Although highway construction in the first eight months of the fiscal year fell short of last year's figures, the pace remains higher than the Ministry of Road Transport and Highways' target for the year. The government has set an ambitious goal of constructing 10,421 km of national highways, despite a 15% reduction from the previous year's target. NHAI has been assigned a major portion of this goal, but the pace of awarding new projects has slowed, mainly due to delays in state clearances and the transition from Bharatmala to Vision 2047. Analysts suggest that this slowdown will affect construction timelines into 2025-26, with improvements expected only in 2026-27.
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