MoRTH to award 8,000 km road projects in FY25

30 Aug 2024 CW Team

The Ministry of Road Transport and Highways (MoRTH) is set to award 8,000 km of road projects in FY25, a notable decrease from previous years. Between FY22 and FY23, MoRTH awarded an average of 12,500 km of projects annually, but this dropped to 8,581 km last fiscal and is expected to remain modest at 8,000 km this fiscal, according to a Crisil report.

The slowdown in project awards is attributed to several factors, including procedural delays in approving project cost estimates, restrictions under the model code of conduct before elections, and a shift as the government explores the build-operate-transfer (BOT) toll model alongside the existing EPC (Engineering, Procurement, and Construction) and hybrid annuity models (HAM).

This decline is impacting road construction firms, whose order books are expected to shrink to two times their annual revenue by the end of this fiscal, down from 2.3 times at the end of the last fiscal and 2.6 times in FY23. Consequently, revenue growth for these companies is expected to slow to 5-7% next fiscal, a drop from the 13% compound annual growth rate (CAGR) seen over the past five years.

However, some relief is anticipated due to the decline in prices of key raw materials like steel and bitumen, which are down 5-17% from their peaks in FY22. Since most projects are awarded on a fixed-price basis, this will help maintain operating profitability at a steady 13-14%, even as competition intensifies during project awards.

Looking ahead, while the Cabinet Committee on Economic Affairs recently approved highway projects totalling 936 km, timely approval and awarding of additional projects will be crucial for sustaining the sector's momentum. (Deccan Chronicle)

Infrastructure Urban

26 Jun 2026

PRS International marks 18 years of global advisory work

PRS International Group of Companies recently said it has strengthened its position as a sovereign-grade multinational advisory organisation, marking nearly 18 years of operations across strategic communications, institutional advisory and international cooperation. The Group, with headquarters in Washington, D.C. and New Delhi, said its work spans more than 190 countries and supports governments, multilateral institutions, investors, corporations and private clients. The organisation said its services cover government advisory, crisis management, trade and investment facilitation, nation bra..

dormakaba showcases access solutions at iDAC Chandigarh

dormakaba recently participated in iDAC Chandigarh 2026 at JW Marriott, engaging with architects, interior designers, developers, hospitality professionals and industry experts. The access solutions brand showcased a range of security and architectural products, including Mechanical Key Systems, Digital Cylinder, C Lever, Lever Handle, AIDO’s SLYNK Profiled Door System and Hotel Lock. The company said AIDO’s solutions added a design-led architectural and hospitality dimension to its presence at the event. The SLYNK Profiled Door System drew attention for supporting modern interiors where ..

Tata Power Secures Karnataka Transmission Project

Tata Power has won a power transmission project in Karnataka after emerging as the successful bidder in a tariff-based competitive bidding process run by PFC Consulting, a wholly owned subsidiary of Power Finance Corporation. The company received a Letter of Intent from PFC Consulting for a renewable energy evacuation scheme to be delivered under a Build, Own, Operate and Transfer model. The award follows a competitive selection and positions the firm to expand its transmission activities in the state. As part of the contract, Tata Power will acquire the special purpose vehicle (SPV) created f..