Sluggish Awarding To Slow Down Highway Construction In FY 26 Too: ICRA
ROADS & HIGHWAYS

Sluggish Awarding To Slow Down Highway Construction In FY 26 Too: ICRA

The sluggish pace of awarding of new highway projects for the past two years is expected to further bring down the pace of construction of new highways in the next financial year, according to a report. 

Already due to elections and prolonged monsoon the government had scaled down the target for highway construction by 15% in 2024-25 to 10,4121 km. “Road execution by the Ministry of Road Transport and Highways (MoRTH) will decline by 5% in FY2026 to 9,500-10,000 km from the estimated road construction of 10,000-10,500 km in FY2025,,”the report by rating agency ICRA said. 

The awarding during April-December 2024 was subdued at 3,100 km, which is at the same level as last year significantly lower than the 5,835 km project awarded during April-December 2023. ICRA foresees road awards in the range of 8,500-9,000 km in FY2025, similar to that of FY2024. However, there has been some improvement in project awarding from November 2024 and if it sustains should result in 9-11% growth during FY2026. 

The National Highways Authority of India of India (NHAI) has raised Rs 83.53 billion through monetisation of highways through Toll Operate Transfer (ToT) mode this FY. Another ToT bundle will be monetised this year. Apart from another ToT bundle whose monetisation will be completed this financial year, the NHAI will raise around Rs 210 billion more from Highway Infrastructure Trust. Rest around Rs 100 billion from securitisation of stretches of Delhi Mumbai Expressway. 

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The sluggish pace of awarding of new highway projects for the past two years is expected to further bring down the pace of construction of new highways in the next financial year, according to a report. Already due to elections and prolonged monsoon the government had scaled down the target for highway construction by 15% in 2024-25 to 10,4121 km. “Road execution by the Ministry of Road Transport and Highways (MoRTH) will decline by 5% in FY2026 to 9,500-10,000 km from the estimated road construction of 10,000-10,500 km in FY2025,,”the report by rating agency ICRA said. The awarding during April-December 2024 was subdued at 3,100 km, which is at the same level as last year significantly lower than the 5,835 km project awarded during April-December 2023. ICRA foresees road awards in the range of 8,500-9,000 km in FY2025, similar to that of FY2024. However, there has been some improvement in project awarding from November 2024 and if it sustains should result in 9-11% growth during FY2026. The National Highways Authority of India of India (NHAI) has raised Rs 83.53 billion through monetisation of highways through Toll Operate Transfer (ToT) mode this FY. Another ToT bundle will be monetised this year. Apart from another ToT bundle whose monetisation will be completed this financial year, the NHAI will raise around Rs 210 billion more from Highway Infrastructure Trust. Rest around Rs 100 billion from securitisation of stretches of Delhi Mumbai Expressway. 

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?