Highway Construction May Slow To Five-Year Low In FY26

06 Oct 2025 CW Team

The decline follows a weak execution trend in FY2025, which was disrupted by extended monsoon conditions and subdued project awards over the past two financial years. In FY2025, road construction fell by 14 per cent year-on-year, slipping to 10,660 kilometres from 12,349 kilometres in FY2024.

Project awarding has also been sluggish. MoRTH is estimated to have awarded only 8,000–8,500 kilometres of projects in FY2025 — well below the pace seen between FY2021 and FY2023. However, ICRA expects a slight improvement in FY2026, projecting awards to rise to 9,000–9,500 kilometres, helped by new ministerial directives.

The government has instructed implementing agencies to issue new tenders only after acquiring 90 per cent of the right-of-way (RoW), obtaining forest clearances, and finalising General Arrangement Drawings (GADs) for bridges. ICRA said this tightening of norms for Engineering, Procurement and Construction (EPC) and Hybrid Annuity Model (HAM) projects is a positive move for execution discipline.

However, the agency warned that competition among contractors remains intense amid shrinking order books, which could pressure profit margins. A sustained increase in project awards, it said, will be vital to restore pricing power and stabilise the industry.

On the revenue front, toll collections are expected to grow by 5–8 per cent in FY2026, supported by 3–4 per cent traffic growth and an annual toll rate escalation of 2.3–4.0 per cent.

Meanwhile, the National Highways Authority of India (NHAI) is preparing an aggressive asset monetisation plan to bolster funding. ICRA estimates the authority could raise Rs 350–400 billion in FY2026 through Toll-Operate-Transfer (TOT) bundles and its Infrastructure Investment Trust (InvIT).

This would take NHAI’s cumulative monetisation since inception to nearly Rs 1.3 trillion, representing about 81 per cent of the Centre’s Rs 1.6 trillion National Monetisation Pipeline (NMP) target for the highways sector.

Industry observers now await clarity on how quickly tendering activity will rebound and whether execution momentum can recover after the recent monsoon-induced slowdown.

India’s highway construction activity is projected to slow to a five-year low in FY2026, with rating agency ICRA estimating road execution at just 25–26 kilometres per day. The Ministry of Road Transport and Highways (MoRTH) is expected to complete only 9,000–9,500 kilometres of roads during the fiscal year — down from the earlier target of 9,500–10,000 kilometres.The decline follows a weak execution trend in FY2025, which was disrupted by extended monsoon conditions and subdued project awards over the past two financial years. In FY2025, road construction fell by 14 per cent year-on-year, slipping to 10,660 kilometres from 12,349 kilometres in FY2024.Project awarding has also been sluggish. MoRTH is estimated to have awarded only 8,000–8,500 kilometres of projects in FY2025 — well below the pace seen between FY2021 and FY2023. However, ICRA expects a slight improvement in FY2026, projecting awards to rise to 9,000–9,500 kilometres, helped by new ministerial directives.The government has instructed implementing agencies to issue new tenders only after acquiring 90 per cent of the right-of-way (RoW), obtaining forest clearances, and finalising General Arrangement Drawings (GADs) for bridges. ICRA said this tightening of norms for Engineering, Procurement and Construction (EPC) and Hybrid Annuity Model (HAM) projects is a positive move for execution discipline.However, the agency warned that competition among contractors remains intense amid shrinking order books, which could pressure profit margins. A sustained increase in project awards, it said, will be vital to restore pricing power and stabilise the industry.On the revenue front, toll collections are expected to grow by 5–8 per cent in FY2026, supported by 3–4 per cent traffic growth and an annual toll rate escalation of 2.3–4.0 per cent.Meanwhile, the National Highways Authority of India (NHAI) is preparing an aggressive asset monetisation plan to bolster funding. ICRA estimates the authority could raise Rs 350–400 billion in FY2026 through Toll-Operate-Transfer (TOT) bundles and its Infrastructure Investment Trust (InvIT).This would take NHAI’s cumulative monetisation since inception to nearly Rs 1.3 trillion, representing about 81 per cent of the Centre’s Rs 1.6 trillion National Monetisation Pipeline (NMP) target for the highways sector.Industry observers now await clarity on how quickly tendering activity will rebound and whether execution momentum can recover after the recent monsoon-induced slowdown.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..