ICRA predicts 5-8% rise in India's road construction 2024/25
ROADS & HIGHWAYS

ICRA predicts 5-8% rise in India's road construction 2024/25

ICRA, the Indian arm of the Fitch ratings agency, stated that India is anticipated to maintain its current momentum in road construction. They projected an addition of up to 13,000 kilometres in the 12 months through March 2025, marking an annual increase of 5-8%.

According to government estimates, under Prime Minister Narendra Modi's tenure since 2014, India has constructed approximately 90,000 kilometres of national highways, nearly double the amount built in the preceding decade.

Modi is touting road infrastructure as a significant achievement in his campaign leading up to the general election, which commences with voting.

The capital expenditure on roads surged to Rs 2.4 trillion in 2022/23 from Rs 510 billion in 2013/14.

Despite a sluggish start last year due to heavy rains in certain regions of the country, road construction has gained pace since September. ICRA mentioned in a statement that this momentum is likely to persist.

ICRA stated, "The pace of execution in this fiscal year will be supported by a healthy pipeline of projects, increased capital outlay by the government, and a focus on project completion."

Vinay Kumar, vice president and sectoral head of corporate ratings at ICRA, noted that the government's project award pipeline stands at over 45,000 km, indicating robustness, despite delays in cabinet approvals for revised cost estimates.

To offer temporary relief to millions of motorists, truckers, and commercial vehicle owners, the government postponed a proposed hike in road toll charges for about two months earlier this month.

India's road transport minister has set a target of constructing more than 35 kilometres of roads per day in the current fiscal year.

ICRA, the Indian arm of the Fitch ratings agency, stated that India is anticipated to maintain its current momentum in road construction. They projected an addition of up to 13,000 kilometres in the 12 months through March 2025, marking an annual increase of 5-8%. According to government estimates, under Prime Minister Narendra Modi's tenure since 2014, India has constructed approximately 90,000 kilometres of national highways, nearly double the amount built in the preceding decade. Modi is touting road infrastructure as a significant achievement in his campaign leading up to the general election, which commences with voting. The capital expenditure on roads surged to Rs 2.4 trillion in 2022/23 from Rs 510 billion in 2013/14. Despite a sluggish start last year due to heavy rains in certain regions of the country, road construction has gained pace since September. ICRA mentioned in a statement that this momentum is likely to persist. ICRA stated, The pace of execution in this fiscal year will be supported by a healthy pipeline of projects, increased capital outlay by the government, and a focus on project completion. Vinay Kumar, vice president and sectoral head of corporate ratings at ICRA, noted that the government's project award pipeline stands at over 45,000 km, indicating robustness, despite delays in cabinet approvals for revised cost estimates. To offer temporary relief to millions of motorists, truckers, and commercial vehicle owners, the government postponed a proposed hike in road toll charges for about two months earlier this month. India's road transport minister has set a target of constructing more than 35 kilometres of roads per day in the current fiscal year.

Next Story
Infrastructure Urban

ICRA predicts 4-6% growth in FY25 tyre sales

Icra stated that domestic tyre sale volumes are expected to experience a moderate growth of 4-6 per cent in this fiscal year, following an estimated pace of 6-8 per cent in the previous financial year. The growth in the last fiscal, it was said, had been driven by factors such as elevated base and subdued growth in the commercial vehicle (CV) segment. However, Icra anticipated that domestic demand from original equipment manufacturers (OEMs) in certain consumer segments like PV (passenger vehicle) and two-wheeler, as well as for replacement, would remain healthy, supporting overall tyre volume..

Next Story
Infrastructure Urban

Construction Sector Revenues to Grow 12-15% by FY25: ICRA

According to ICRA, entities in the construction sector are poised to experience a significant revenue growth of 12-15% by the fiscal year 2025. This optimistic projection reflects the sector's potential for expansion and recovery in the coming years.

The forecasted revenue growth underscores the construction sector's resilience and adaptability, despite facing challenges such as the COVID-19 pandemic and economic uncertainties. The sector's ability to rebound and achieve double-digit revenue growth indicates its fundamental strength and vitality.

ICRA's projection is based on v..

Next Story
Infrastructure Urban

Construction Sector Revenues to Grow 12-15% by FY25: ICRA

According to ICRA, entities in the construction sector are poised to experience a significant revenue growth of 12-15% by the fiscal year 2025. This optimistic projection reflects the sector's potential for expansion and recovery in the coming years.

The forecasted revenue growth underscores the construction sector's resilience and adaptability, despite facing challenges such as the COVID-19 pandemic and economic uncertainties. The sector's ability to rebound and achieve double-digit revenue growth indicates its fundamental strength and vitality.

ICRA's projection is based on var..

Next Story
Infrastructure Transport

Loutolim Villagers Upset with Borim Bridge Project Transparency

Residents of Loutolim in Goa are expressing frustration over what they perceive as a lack of transparency regarding the Borim Bridge project. The community has voiced concerns over the project's planning and implementation, citing inadequate communication and consultation by authorities.

According to local sources, villagers feel marginalised as decisions regarding the bridge project have been made without sufficient public disclosure or engagement. There is a growing sentiment among residents that their voices and concerns have not been adequately considered in the planning stages.

..

Next Story
Infrastructure Transport

K2 Infragen wins contract; to construct a four-lane rail overbridge

K2 Infragen has clinched a substantial contract valued at Rs 902 million to construct a four-lane rail overbridge on the Patna-Mughalsarai section of Danapur Division in Chandauli district, Uttar Pradesh. The winning bid was secured through a joint venture between Gangasagar Singh and PRL Infrastructure, with K2 Infragen assuming full responsibility for project execution, entrusted by the UP-State Bridge Corporation. Scheduled for completion within 18 months, this project aims to boost connectivity corridors and facilitate seamless mobility across railway tracks in Uttar Pradesh.

This d..

Hi There!

Now get regular updates from CW Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Construction News on Whatsapp! Enjoy

+91 81086 03000

Join us Telegram