MoRTH To Moderate Road Execution; Toll Growth Six To Eight Per Cent

28 Feb 2026 CW Team

Toll collections were healthy in FY2025-26 and expected to grow by seven to nine per cent, while FY2026-27 collections were seen rising by six to eight per cent as traffic benefits from economic expansion. ICRA noted inflation-linked toll adjustments could rise about three point three per cent for newer projects linked to December Wholesale Price Index (WPI) and about two point five to three point zero per cent for older projects linked to March WPI. The agency found annual FASTag passes had limited effect on toll revenue and that initial operational issues were being resolved.

Road awards in the eight months to FY2025-26 were 1,951 km, 24 per cent lower than 2,558 km in the same period a year earlier, with higher awarding expected in the fourth quarter. Road execution under MoRTH fell by three per cent year on year to 4,612 km in the eight months to FY2025-26 from 4,761 km, and the typical six to nine month lag from award to execution suggested subdued revenue for developers in the near term.

ICRA said bidding intensity remained high for the National Highways Authority of India (NHAI) and MoRTH engineering, procurement and construction (EPC) projects despite reinstatement of earnest money deposits and added performance security. About 71 per cent of NHAI and MoRTH EPC projects were awarded at more than 20 per cent discount, and hybrid annuity model project discounts widened to minus 16 per cent and minus 21 per cent in FY2024-25 and the 10 months of FY2025-26. The agency expected competition to stay stiff and for developers to bid aggressively to rebuild order books while awards remain range bound.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

ICRA Limited (ICRA) said the Ministry of Road Transport and Highways (MoRTH) is likely to moderate road execution to 9,000-9,500 km in FY2026-27 after a sustained slowdown in project awarding over three years. The agency projected execution at 9,500-10,000 km in FY2025-26 and forecast road awards of 7,250-7,750 km in FY2025-26, similar to 7,538 km in FY2024-25. Several projects remained unawarded, reflecting a shrinking order book. Toll collections were healthy in FY2025-26 and expected to grow by seven to nine per cent, while FY2026-27 collections were seen rising by six to eight per cent as traffic benefits from economic expansion. ICRA noted inflation-linked toll adjustments could rise about three point three per cent for newer projects linked to December Wholesale Price Index (WPI) and about two point five to three point zero per cent for older projects linked to March WPI. The agency found annual FASTag passes had limited effect on toll revenue and that initial operational issues were being resolved. Road awards in the eight months to FY2025-26 were 1,951 km, 24 per cent lower than 2,558 km in the same period a year earlier, with higher awarding expected in the fourth quarter. Road execution under MoRTH fell by three per cent year on year to 4,612 km in the eight months to FY2025-26 from 4,761 km, and the typical six to nine month lag from award to execution suggested subdued revenue for developers in the near term. ICRA said bidding intensity remained high for the National Highways Authority of India (NHAI) and MoRTH engineering, procurement and construction (EPC) projects despite reinstatement of earnest money deposits and added performance security. About 71 per cent of NHAI and MoRTH EPC projects were awarded at more than 20 per cent discount, and hybrid annuity model project discounts widened to minus 16 per cent and minus 21 per cent in FY2024-25 and the 10 months of FY2025-26. The agency expected competition to stay stiff and for developers to bid aggressively to rebuild order books while awards remain range bound.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..