Road construction in India to witness 7-10 percent slowdown in FY25
ROADS & HIGHWAYS

Road construction in India to witness 7-10 percent slowdown in FY25

The pace of road construction in India is expected to witness a 7-10 percent decline in 2024-25 with daily construction estimated at 31 km per day from 34 km per day in 2023-24 due to heightened challenges in execution, CareEdge Ratings said, which will result in the national highways construct...

The pace of road construction in India is expected to witness a 7-10 percent decline in 2024-25 with daily construction estimated at 31 km per day from 34 km per day in 2023-24 due to heightened challenges in execution, CareEdge Ratings said, which will result in the national highways construction to slow down to 11,100 km to 11,500 km in this financial year as against 12,350 km in FY '24. Increasing project complexities, rising participation of moderate creditworthy sponsors and significant delay in the receipt of appointed date post award of the project are expected to pull down the execution pace to around 31 km per day, it added. According to the agency, with the announcement of Greenfield expressways and highways, challenges towards land acquisition have aggravated, thereby elongating receipt of the appointed date. It said that the permissible execution span for projects is uniform at two years, irrespective of the project scope whether brownfield or Greenfield expressway, which has further contributed to project delays. All the above factors increased the project completion cycle from earlier 2.75-3.25 years to around 3.50-4 years presently, resulting in a higher turnaround time for project execution and a subdued execution pace. The agency further said that the expected shift in awarding preference from engineering, procurement and construction (EPC) to hybrid annuity model (HAM) and toll projects in the medium term will lead to a 25-30 percent reduction in the share of EPC projects going forward, which will help reduce the funding requirement for NHAI while focusing on the quality of construction.

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?