To fund road construction, NHAI raises Rs 102,000 million
ROADS & HIGHWAYS

To fund road construction, NHAI raises Rs 102,000 million

The Indian National Highway Authority (NHAI) raised more than 102,000 million according to the Economic Survey 2022-23. Indian and foreign institutional investors will play an important part in order to meet the ever-increasing budgetary support for constructing a nationwide road network. According to the Survey, the industry has seen an increase in the construction of national highways (NHs) and roads over time. In FY22, 10,457 km of roads were built, compared to 6,061 km in FY16. 4,060 kilometers of NHs and roads were constructed in FY23 (through October 2022), which represented approximately 91% of the achievement during the comparable period of the previous fiscal year. In the last four years, total budgetary support for sector investment has increased rapidly to approximately 1400 billion by the end of FY23 (on October 31, 2022)," the survey stated.

The government's funding for the construction of national highways has seen a significant decadal CAGR of 26 per cent from180,000 million in FY13 to 190,000 million anticipated for FY23BE. The NHAI has met approximately 90 per cent of its annual capex goal of 134,0000 million by December 2022 according to ICICI Securities.

The road ministry has constructed 5,337 kilometers of national highways (NHs) as of December 29, 2022, compared to the target of 12,200 kilometers for FY23. This results in a construction rate of approximately 34 kilometers per day for FY23. In FY15, the rate of highway construction was 12 km per day, whereas in FY22, it was 29 km per day with 10,457 km built annually. It's possible that raising money came about as a result of the government's plan to make assets in the public sector marketable. According to the statement, the National Highways Authority of India (NHAI) launched "InvIT" in the fiscal year 2022 to not only facilitate the monetisation of roads but also to attract institutional investors from both India and abroad to invest in the roads sector.

According to the survey, structural and financial reforms like the creation of Dedicated Financing Institutions (NaBFID), recapitalisation of other sectoral DFIs, the push to the PPP ecosystem through Model Concession Agreements by line ministries, and enabling social infrastructure development through the revamped Viability Gap Funding scheme complement the programmatic approach to infrastructure.

The Indian National Highway Authority (NHAI) raised more than 102,000 million according to the Economic Survey 2022-23. Indian and foreign institutional investors will play an important part in order to meet the ever-increasing budgetary support for constructing a nationwide road network. According to the Survey, the industry has seen an increase in the construction of national highways (NHs) and roads over time. In FY22, 10,457 km of roads were built, compared to 6,061 km in FY16. 4,060 kilometers of NHs and roads were constructed in FY23 (through October 2022), which represented approximately 91% of the achievement during the comparable period of the previous fiscal year. In the last four years, total budgetary support for sector investment has increased rapidly to approximately 1400 billion by the end of FY23 (on October 31, 2022), the survey stated. The government's funding for the construction of national highways has seen a significant decadal CAGR of 26 per cent from180,000 million in FY13 to 190,000 million anticipated for FY23BE. The NHAI has met approximately 90 per cent of its annual capex goal of 134,0000 million by December 2022 according to ICICI Securities. The road ministry has constructed 5,337 kilometers of national highways (NHs) as of December 29, 2022, compared to the target of 12,200 kilometers for FY23. This results in a construction rate of approximately 34 kilometers per day for FY23. In FY15, the rate of highway construction was 12 km per day, whereas in FY22, it was 29 km per day with 10,457 km built annually. It's possible that raising money came about as a result of the government's plan to make assets in the public sector marketable. According to the statement, the National Highways Authority of India (NHAI) launched InvIT in the fiscal year 2022 to not only facilitate the monetisation of roads but also to attract institutional investors from both India and abroad to invest in the roads sector. According to the survey, structural and financial reforms like the creation of Dedicated Financing Institutions (NaBFID), recapitalisation of other sectoral DFIs, the push to the PPP ecosystem through Model Concession Agreements by line ministries, and enabling social infrastructure development through the revamped Viability Gap Funding scheme complement the programmatic approach to infrastructure.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement