+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Annette Gregg Named WTCA’s First Female CEO

World Trade Centers Association (WTCA) has appointed Annette Gregg as Chief Executive Officer, making her the first woman to lead the organisation in its 57-year history.Gregg assumed the role from October 5 and will lead WTCA from its recently established global headquarters at One World Trade Center in New York City. The association connects more than 300 World Trade Center locations across nearly 100 countries and territories.As CEO, Gregg will provide strategic leadership to WTCA and its global staff, working with the Board of Directors and members to advance business priorities, strengthe..

Next Story
Resources

Isprava Appoints Sanjay Sethi as Strategic Advisor

Isprava Group has appointed Dr Sanjay Sethi as Strategic Advisor to the business, with a focus on Lohono Stays and Isprava Hospitality.Sethi brings more than 37 years of experience across hospitality operations, development, ownership, strategic growth and capital markets. He will work closely with the Group on strategy, growth and the development of its hospitality business.The appointment comes as Isprava Group expands its integrated ecosystem spanning luxury homes, hospitality, private membership and end-to-end homeowner services.Nibhrant Shah, Managing Director & Co-CEO, Isprava Group, sai..

Next Story
Infrastructure Energy

SunBridge BioEnergy Starts Ethanol Production in Seoni

SunBridge BioEnergy, the bioenergy arm of SunBridge Group, has commenced commercial production at its grain-based fuel-grade ethanol manufacturing facility in Seoni, Madhya Pradesh. The Seoni plant has a production capacity of 300 kilolitres per day and a storage capacity of 11,000 kilolitres. Spread across approximately 117,560 sq m, the facility marks SunBridge BioEnergy’s entry into commercial ethanol production. The company is also expanding its ethanol portfolio with a 400 KLD facility in Raipur, Chhattisgarh, which is expected to become operational soon. Once commissioned, SunBridge ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code