The government has set an ambitious target of 12,900-km for award of highway projects in the current financial year, as it seeks to address a slowing of construction.
The target, which is up 50% over last year’s, is despite the fact that the awards so far in the current year have been less than 3,000 km.
In the first quarter only 95 km of highways were awarded and after that the award figure has averaged over 600 km a month. In November 773 km of highways were awarded.
Typically most of the awarding gets done in March. Of the 8581 km awarded in 2023-24, 3709 km was awarded in the last month of the financial year.
In 2023-24 the award figure of national highways was 8,581 km as against the target of 13,290 km. The figure slipped as the government stopped fresh contracts for newer highways under the umbrella highway development programme Bharatmala.
“The target for awards for this year looks ambitious. It is expected to be at the levels seen last financial year,” Vice President & Sector Head – Corporate Ratings, ICRA Vinay Kumar G said.
The pause to Bharatmala had hit the awards by NHAI last year with achievement of 3,339 km as compared to the target of 6,000 km. Awards by the roads wing of the ministry and National Highways and Infrastructure Development Corporation (NHIDCL). Awarding by the roads wing of the ministry was 4,4446 km and NHIDCL was 796 km. This year too the roads wing is expected to lead the awarding of national highways.as development plans shift to creating capacity on existing highways from launching new ones.
Roads wing undertakes projects relating to expressways and 6 laning of crowded stretches of Golden Quadrilateral and 2 laning of highways works under National Highways Development Project (NHDP). It also undertakes special programmes for development of road connectivity in Naxalite affected areas and for providing last mile connectivity. The works are executed by the Public Works Department of the States and union territories on an agency basis. Awarding by the roads wing was 4,446 in FY 24
NHIDCL undertakes construction of national highways and other infrastructure in the North Eastern Region and Strategic Areas of the country which share international boundaries.
The government has set a provisional target of constructing 10,400 km of national highways this financial year, which is 15% lower than last year’s achievement due to the prolonged election process delaying various state clearances. Till November 4761 km highways have been built
Of the total target, National Highways Authority of India (NHAI) has been given a target of 5,000 km. NHAI has constructed 2563 km of highways and awarded contracts for 776 km.