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The National Highways Authority of India (NHAI) constructed 5,614 km of highways in FY 2024-25, exceeding its target by 9% and setting a record INR 2.5 lakh crore in capital expenditure. While this was lower than last year's 6,644 km, key projects like the Delhi-Mumbai Expressway and Ludhiana Elevated Corridor progressed significantly. NHAI raised INR 28,724 crore through asset monetization-short of its INR 39,000 crore target-due to a pause in the ToT model. However, the NHIT route alone brought in INR 17,738 crore. For FY26, NHAI plans to monetize INR 30,000 crore and offer 15 BOT projects worth INR 44,000 crore to boost PPP participation.
The National Highways Authority of India (NHAI) has achieved a significant milestone by constructing 5,614 kilometers of highways in the fiscal year 2024-25, surpassing its target by 9%. This accomplishment underscores NHAI's commitment to enhancing the nation's road infrastructure, despite challenges such as delays in clearances due to the prolonged election process and the enforcement of the model code of conduct. Advertisement
However, this achievement represents a decrease compared to the 6,644 kilometers constructed in the previous fiscal year, 2023-24. The overall road construction target for FY25 was 10,421 kilometers, and for the upcoming fiscal year, the government has set a target of 10,000 kilometers.
In terms of financial performance, NHAI's capital expenditure reached an all-time high of INR 2.5 lakh crore in FY25, marking a significant increase from previous years. This surge in expenditure reflects the authority's intensified efforts to expand and upgrade the national highway network.
Despite these advancements in construction, NHAI fell short of its monetization target for the fiscal year. The authority aimed to raise approximately INR 39,000 crore but managed to collect only INR 28,724 crore. This shortfall is attributed to directives from the Ministry of Road Transport and Highways (MoRTH) to pause monetization through the Toll Operate Transfer (ToT) model pending a comprehensive review.
Nevertheless, NHAI successfully concluded the fourth round of monetization through the National Highways Infrastructure Trust (NHIT), raising INR 17,738 crore-the highest amount ever secured through this route. Additionally, INR 6,661 crore was raised by monetizing one highway bundle through ToT, and INR 4,325 crore was obtained through project-based financing, particularly for stretches of the Delhi-Mumbai Expressway. The debt from this financing is serviced through toll receipts from these stretches. ?Monetization has become a crucial strategy for resource mobilization in highway construction. For the fiscal year 2025-26, the government has set a monetization target of INR 30,000 crore, which is expected to cover 10% of total budgetary resources.
During the financial year 2024-25, several key highway infrastructure projects were either completed or made substantial progress, marking a significant leap in improving connectivity across major regions in India.
One of the most notable developments was the Delhi-Mumbai Expressway. A major portion of this expansive 1,350-kilometre expressway was completed during the year. Designed to cut travel time between the national capital and India's financial hub from around 24 hours to just 12 hours, the project is expected to greatly boost both passenger movement and freight transport, enhancing trade efficiency between the two cities.
In Punjab, the Ludhiana Elevated Corridor became operational in January 2024. This 13-kilometre stretch, built by the National Highways Authority of India (NHAI) at an estimated cost of INR 1,000 crore, provides a crucial elevated route across the congested city. It aims to ease vehicular movement and reduce bottlenecks, ensuring a smoother commute for residents and commercial vehicles alike.
Delhi NCR also witnessed major progress with the Urban Extension Road-II (UER II), a 75.7-kilometre six-lane expressway forming a semicircular bypass on the western periphery of the capital. By October 2024, key sections of the expressway became operational, improving intra-city travel by linking regions like Alipur, Rohini, Mundka, Najafgarh, and Dwarka, and offering an alternative to existing choked routes.
Lastly, the DND-Faridabad-KMP Expressway made substantial strides toward completion. Spanning 59 kilometres, this six-lane, access-controlled corridor connects the DND Flyway in Delhi to the Kundli-Manesar-Palwal (KMP) Expressway in Haryana. It is expected to ease traffic pressure in the National Capital Region by providing a faster and smoother route for long-distance and freight vehicles bypassing congested city roads.
These projects exemplify NHAI's commitment to expanding and modernizing India's highway network. The completion of these highways not only improves connectivity between key urban centers but also stimulates economic activities by facilitating more efficient movement of goods and people.
Looking ahead, NHAI plans to offer 15 road projects worth INR 44,000 crore, covering 900 kilometers, for bids under the build-operate-transfer (BOT) mode in FY 2025-26. This initiative aims to revive public-private partnership projects in highways and further expand the national highway network.
In summary, NHAI's accomplishments in FY 2024-25 highlight significant strides in infrastructure development. The completion of major highway projects has enhanced connectivity, reduced travel times, and supported economic growth.
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