Highway Ministry reaches 20% of April 2024 capital expenditure target
ROADS & HIGHWAYS

Highway Ministry reaches 20% of April 2024 capital expenditure target

Despite experiencing a slowdown in awarding projects during the second half of 2023, the Ministry of Road Transport and Highways (Morth) continued to prioritize front-loading capital expenditure, spending over Rs 545 billion on new highway construction in April this year.

In its monthly report to the Union Cabinet, the ministry reported that it had achieved 20.04 percent of its capital expenditure target with 11 months remaining.

The ministry has been proactive in early execution of capital expenditure, following a strategy set by the finance ministry to ensure infrastructure creation does not face excessive backlogs towards the end of the financial year.

Typically, ministries are expected to ensure that at least two-thirds of their capital expenditure is spent by the end of the second quarter. Although the highway ministry has consistently maintained double-digit percentage shares in capital expenditure in previous years, this is the first time it has begun a financial year having spent over Rs 500 billion.

Experts note that there is still a healthy pipeline of projects from the NHAI, and the impacts of the Bharatmala slowdown are expected to be more pronounced in FY26.

Additionally, the ministry had anticipated a decline in construction (and consequently capital expenditure) starting FY25 due to delays in the approval of the Revised Estimates of the Bharatmala project, which had seen a Rs 5 trillion increase in costs.

In November 2023, the ministry informed the cabinet that the shortfall in awards for the current year would affect construction progress in FY 2024-25.

Despite experiencing a slowdown in awarding projects during the second half of 2023, the Ministry of Road Transport and Highways (Morth) continued to prioritize front-loading capital expenditure, spending over Rs 545 billion on new highway construction in April this year. In its monthly report to the Union Cabinet, the ministry reported that it had achieved 20.04 percent of its capital expenditure target with 11 months remaining. The ministry has been proactive in early execution of capital expenditure, following a strategy set by the finance ministry to ensure infrastructure creation does not face excessive backlogs towards the end of the financial year. Typically, ministries are expected to ensure that at least two-thirds of their capital expenditure is spent by the end of the second quarter. Although the highway ministry has consistently maintained double-digit percentage shares in capital expenditure in previous years, this is the first time it has begun a financial year having spent over Rs 500 billion. Experts note that there is still a healthy pipeline of projects from the NHAI, and the impacts of the Bharatmala slowdown are expected to be more pronounced in FY26. Additionally, the ministry had anticipated a decline in construction (and consequently capital expenditure) starting FY25 due to delays in the approval of the Revised Estimates of the Bharatmala project, which had seen a Rs 5 trillion increase in costs. In November 2023, the ministry informed the cabinet that the shortfall in awards for the current year would affect construction progress in FY 2024-25.

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?