India Pushes To Clear Stalled Highway Projects By March 2026

01 Dec 2025 CW Team

India is working to substantially reduce its inventory of stalled national highway projects by the end of the current financial year, as the government moves to contain rising costs and revive construction momentum.

According to a report, 54 delayed projects have been resolved since April, bringing the number of pending projects down from 152 to 98, and cutting the value of unresolved work from Rs 715 billion to Rs 393 billion. The target is to reduce the backlog to around 60 projects by March 2026, representing an approximate sixty per cent reduction over two years.

The urgency comes amid a broader slowdown in highway contracting and execution this fiscal, as government departments focus on compliance, quality control and procedural streamlining.

Officials said the push includes quicker administrative approvals, better coordination for land acquisition, and timely release of central funds to prevent cash-flow constraints. “This will also help arrest further escalation in cost of these projects due to delays,” a senior official told ET.

Despite efforts to maintain a strong project pipeline, the number of awarded projects still awaiting construction remains a concern. As of November, 53 awarded projects worth about Rs 393 billion were pending execution, down from 87 cases in April.

The National Highways Authority of India, which handles nearly half of India’s national highway construction, has so far awarded 467.72 kilometres and completed 2,108.38 kilometres, significantly below its FY26 targets of 4,500 kilometres awarded and 5,000 kilometres constructed.

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