Highway Construction Falls 6.6% on Year New Roads Construction Annual Target Pace

Highway Road Construction Declined But is Well Above The Annual Target Set

Highway construction in the first eight months of this fiscal year crossed nearly 4,900 km. It fell by 6.6 per cent as it reached only 5,248 km during the same period in the previous fiscal year. The pace of road construction declined but is well above the annual target set by the Ministry of Road Transport and Highways.
 

The government has tentatively targeted 10,421 km of national highway construction this year, 15% lower than last year's achievement. This is due to the extra time that pre-election and post-election prolonged the elections. 
 

Of this, NHAI has been targeted with 5,000 km, while the rest has been entrusted to the National Highways and Infrastructure Development Corporation (NHIDCL) and the road wing of the ministry. At the moment, NHAI has built 2,563 km and has awarded contracts for another 776 km.
 

Vision 2047 to Replace Bharatmala

From April to November 2024, 2,200 km of new highway contracts were awarded, compared with 2,816 km in the same period last year. The slowdown is partly due to the scrapping of the Bharatmala scheme and the replacement of Vision 2047.
 

Under Vision 2047, highway projects will be taken up based on consultation with the economic ministries and stakeholders. Projects will be allowed to go ahead based on the availability of resources and importance. However, no detailed targets have been set under this new framework.
 

Financial Slowdown Impacts Progress

The slowdown in awarding projects, which started last year, is expected to impact highway construction in 2025-26. Recovery is likely to occur only by 2026-27.
Financially, the Ministry of Road Transport and Highways spent ₹1.49 lakh crore in highway construction from April to November this year, accounting for 54% of this year's target of ₹2.72 lakh crore. During the same period last year, the ministry spent ₹1.69 lakh crore and achieved 66% of its target.
 

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