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The National Highways Authority of India (NHAI) is likely to miss its highway project award targets for FY26 as delays in approvals and project preparation slow the bidding process. Against a plan to bid out 124 projects spanning over 6,300 km, bids have been invited for only about 60% of the projects so far. The gap is wider in value terms, with fewer large projects reaching the bidding stage. Slower land acquisition, prolonged clearances and limited private sector appetite for large contracts have affected the pace of awards.
The National Highways Authority of India is facing challenges in meeting its highway project award targets for FY26, mainly due to delays in approvals and slower readiness of large projects. NHAI had planned to invite bids for 124 road projects covering around 6,376 km, with a total estimated capital cost of INR 3,45,466 crore. However, bids have been invited for only 75 projects so far, covering about 3,195 km and involving capital expenditure of roughly INR 1,48,098 crore. Advertisement
While the number of projects tendered reflects nearly 60% of the annual target, the shortfall is more visible in terms of road length and project value. Larger and costlier projects have taken longer to move through appraisal and approval stages, leading to delays in bringing them to the market. Officials have indicated that extensive scrutiny is required for big projects, particularly those structured under public-private partnership models, which has slowed the overall awarding process.
Another factor affecting progress is cautious participation from private developers in large highway projects. Rising execution risks, prolonged timelines and concerns over land acquisition and regulatory clearances have made bidders selective. As a result, NHAI has been able to move faster on smaller projects that require fewer approvals and attract quicker bids, while bigger projects remain stuck at the preparation stage.
The slower pace of awards also reflects broader execution challenges in the highways sector. Several national highway projects awarded in previous years have faced delays due to land acquisition hurdles, environmental approvals and right-of-way issues. A significant number of projects under the hybrid annuity model have missed original timelines, affecting both construction schedules and cash flows for developers.
NHAI has taken steps to streamline processes, including closer monitoring of land acquisition and efforts to tighten timelines for statutory clearances. However, unless project preparation improves and approvals move faster, the authority may continue to lag behind its annual award targets, especially for large and strategically important highway corridors.
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