Higher commodity prices curb highway construction projects
ROADS & HIGHWAYS

Higher commodity prices curb highway construction projects

A significant rise in commodity prices has taken a toll on the construction of highways in India.

During the first two months of the current fiscal year (FY), highway construction stood at just 21 km a day, compared to 24 km a day during the same period in the last FY and 29 km per day in FY22.

The pace of highway construction is higher than that of the Covid-19 pandemic year in the first two months of 2020. For FY22-23, the Ministry of Road Transport and Highways (MoRTH) had set a target of 50 km per day for highway construction.

In the April-May period of the current FY, a total of 1,307 km of highway has been constructed by all the implementing agencies, including the National Highways Authority of India (NHAI).

Analysts recorded a decline in the pace of construction due to high prices of construction materials like cement, steel and bitumen. The prices of such commodities have started lowering due to the onset of the monsoon might curb the pace of construction in the next two months.

The price hike and the high volatility in commodity prices, after witnessing a huge increase in the second half (H2) of FY22, have made some of the contractors wait and watch. It has affected the pace of execution of the projects in the first two months.

Lowering the prices of some commodities like steel, etc., the pace of execution should improve.

Project awards dropped to just 496 km in the April-May period of this FY, as against 663 km during the same period in the last FY and 747 km a year before. MoRTH aims to award an 18,000 km highway construction project in the current FY.

Image Source

Also read: Ways to deal with the current construction materials prices hike

A significant rise in commodity prices has taken a toll on the construction of highways in India. During the first two months of the current fiscal year (FY), highway construction stood at just 21 km a day, compared to 24 km a day during the same period in the last FY and 29 km per day in FY22. The pace of highway construction is higher than that of the Covid-19 pandemic year in the first two months of 2020. For FY22-23, the Ministry of Road Transport and Highways (MoRTH) had set a target of 50 km per day for highway construction. In the April-May period of the current FY, a total of 1,307 km of highway has been constructed by all the implementing agencies, including the National Highways Authority of India (NHAI). Analysts recorded a decline in the pace of construction due to high prices of construction materials like cement, steel and bitumen. The prices of such commodities have started lowering due to the onset of the monsoon might curb the pace of construction in the next two months. The price hike and the high volatility in commodity prices, after witnessing a huge increase in the second half (H2) of FY22, have made some of the contractors wait and watch. It has affected the pace of execution of the projects in the first two months. Lowering the prices of some commodities like steel, etc., the pace of execution should improve. Project awards dropped to just 496 km in the April-May period of this FY, as against 663 km during the same period in the last FY and 747 km a year before. MoRTH aims to award an 18,000 km highway construction project in the current FY. Image Source Also read: Ways to deal with the current construction materials prices hike

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?