Union Minister for Road Transport and Highways, Nitin Gadkari, said road construction activities are expected to grow in FY27, and he does not anticipate any challenges. He acknowledged a slowdown in the highway projects because of the ministry’s mandate of completing 90% land acquisition and obtaining clearances from the forest and environment ministries before commencing projects. This process is time-consuming, leading to a slowdown.
He noted that delays in clearance and land acquisition have resulted in cost escalations and project delays, which prompted the enforcement of these new rules. Gadkari said financing is not a concern, as funds are available for road construction. His ambition for the National Highways Authority of India (NHAI) is to build 60 km of highways per day. India has the second-largest road network in the world, and Gadkari said he aspires to build a road infrastructure in India that will be on par with the United States’ highway infrastructure in the next three years.
The Minister was in Pune on Friday to review NHAI projects in Maharashtra. During his visit, Gadkari unveiled highway projects worth Rs 1,10,000 crore across Pune and Western Maharashtra. Approximately Rs 45,000 crore will be invested to improve regional connectivity in Western Maharashtra and reduce congestion and pollution in Pune. Four of these projects are expected to commence by the end of March. The Maharashtra State Infrastructure Development Corporation (MSIDC), an entity of the Public Works Department of the Government of Maharashtra, will act as the concessionaire for three of these projects.
Infrastructure Transformation
This includes the Rs 7,515 crore Pune-Shirur elevated highway, spanning 53.40 km, which will feature the longest elevated road in the country. This project is part of a new greenfield six-lane highway from Pune to Chhatrapati Sambhaji Nagar (formerly Aurangabad), divided into three packages. The Ministry of Road Transport and Highways (MoRTH) has approved the proposed alignment for the new highway, which will reduce travel time between the two cities by two hours and fifteen minutes. Additionally, the existing NH-753F highway connecting these cities is being upgraded by MSIDC at a cost of around Rs 2,000 crore.
Furthermore, the 31.5 km Hadapsar-Yavat stretch on the Pune-Solapur Highway will feature a six-lane elevated highway with an investment of Rs 5,262 crore. The Talegaon-Chakan-Shikrapur road will be developed as an elevated four-lane Rs 4,000 crore project. Other projects include the Rs 7,808 crore-Nashik to Khed segment on the Pune-Nashik Highway.
A new Mumbai-Pune expressway is also in the planning stages, designed to connect the Atal Setu Bridge (Chowk), near JNPT and Pune Outer Ring Road. This new expressway would reduce pressure on the existing Mumbai-Pune Expressway and is expected to redirect around 40% of traffic to the proposed route.
Navigating Project Delays
Ratings agency ICRA has indicated that road construction under the MoRTH is projected to moderate following a decline in project awards over the past three years. ICRA anticipates that road execution under the MoRTH will decrease to 9,500–10,000 km in FY26, down from 10,660 km in FY25, and further decline to 9,000–9,500 km in FY27. The agency said that the shrinking order book was due to disruptions caused by an early onset and prolonged monsoon across the country.