Signals mixed on Recovery Road
ROADS & HIGHWAYS

Signals mixed on Recovery Road

Photo: For representational purpose

The COVID-19 pandemic-induced lockdowns had virtually halted movement of people and goods in April and May, but curbs are being lifted slowly and the economy is beginning to hum.

Consider the latest three indicators – on toll collection, road construction, and capital outlay:

Electronic toll collection in June has rebounded to March levels and touched 75 per cent of February levels. For an idea of how hard the pandemic had slammed the brakes, toll collection had dropped off the cliff from 11 crore vehicles paying in February 2020 to just 1 crore in April.

Construction across national highways is picking up, too. It rebounded to 637 km in May from just 210 km in April. But key construction months were lost in the lockdown and labour migration continues to pinch. Normalcy might return only after the monsoon. Overall, we are bracing for a 10-13 per cent decline in highway construction on-year this fiscal, according to CRISIL Research.



Meanwhile, the Ministry of Road Transport and Highways (MoRTH) spent Rs 18,700 crore in April-May, a 46x jump from Rs 400 crore in the same period last fiscal. While this was mainly because milestone payments were made and to ease the cash flows of developers, it will have a trade-off – constrained future spending by MoRTH.

Project awarding, too, spurted 3x in April-May on-year. But that was because of a backlog of already bid-out projects that were awaiting award following the lockdown. 

Net-net, while toll collection signal looks good, spending on roads may take a backseat given that priority in the rest of this fiscal will be on healthcare and social welfare spending. That would keep project awarding and recovery on a moderate path.

Photo: For representational purposeThe COVID-19 pandemic-induced lockdowns had virtually halted movement of people and goods in April and May, but curbs are being lifted slowly and the economy is beginning to hum.Consider the latest three indicators – on toll collection, road construction, and capital outlay:Electronic toll collection in June has rebounded to March levels and touched 75 per cent of February levels. For an idea of how hard the pandemic had slammed the brakes, toll collection had dropped off the cliff from 11 crore vehicles paying in February 2020 to just 1 crore in April.Construction across national highways is picking up, too. It rebounded to 637 km in May from just 210 km in April. But key construction months were lost in the lockdown and labour migration continues to pinch. Normalcy might return only after the monsoon. Overall, we are bracing for a 10-13 per cent decline in highway construction on-year this fiscal, according to CRISIL Research.Meanwhile, the Ministry of Road Transport and Highways (MoRTH) spent Rs 18,700 crore in April-May, a 46x jump from Rs 400 crore in the same period last fiscal. While this was mainly because milestone payments were made and to ease the cash flows of developers, it will have a trade-off – constrained future spending by MoRTH.Project awarding, too, spurted 3x in April-May on-year. But that was because of a backlog of already bid-out projects that were awaiting award following the lockdown. Net-net, while toll collection signal looks good, spending on roads may take a backseat given that priority in the rest of this fiscal will be on healthcare and social welfare spending. That would keep project awarding and recovery on a moderate path.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?