Why Roads & Highways construction is slowing down
ROADS & HIGHWAYS

Why Roads & Highways construction is slowing down

I highlighted the lags during the 12th India Roads Conference held recently as part of 8th India Construction Festival, especially the speed at which we have been constructing roads, which has fallen during the April-September 2022 period to 19 km per day against over 22 km per day during the same period in the previous year.

Interestingly, the official from the National Highways Authority of India claimed that the spending on roads had been increasing all through the past eight years. I had my opportunity to point out what I have been lamenting in my commentary time and again: that we are spending too much of that money on land acquisition and less on project execution.

Even states are having a hard time in accelerating road projects even though the centre is quite keen to step this up. Construction equipment companies are seeing orders drying up and contractors are bidding lower to keep the order book fat and impressive. Further, where is the application of the QCBS system over L1? It seems this is only being applied to tenders of Rs 10 crore and under to consultancy contracts, etc.

This defeats a good idea completely. Appeals on arbitration orders have also been discouraged and this, too, is not being observed in its true spirit. So, the ideas have reached the right ears, they have also been translated into notifications for execution, but the executors are failing to implement them in true form and spirit.

For the land acquisition issue, the only way now left for the Government is to initiate a Land Lease Model Law for leasing farmland for national infrastructure projects. This can be brought in quickly and nearly 40 per cent of the amount spent on roads can be saved from investment into land acquisition and utilised to accelerate EPC contracts.

The MoRTH Secretary recently assured that he is confident of building 12,000 km this financial year, which will give us a construction rate of 33 km per day. The ministry had constructed 10,237 km in 2019-20, 13,327 km in 2020-21 and 10,457 km in 2021-22. So, constructing 12,000 kms would definitely be an improvement over 2021-22 which was a slow year but nowhere near the touted figure of 18,000 kms! Having slowed construction to just 4,559 km in the first six months of this financial year, the pace of construction would have to accelerate to 42 km per day in the next six months to meet the target of 12,000 kms or 75 km per day to meet the target of 18,000 kms. Is that possible considering that the government’s fiscal deficit is to be contained?

With financial constraints at hand, does the Government have the capability to accelerate its infusion as laid out in the National Infrastructure Pipeline? Indications are that the Government is now shying away from investment proposals and it is the private sector that is driving the economy.

Images Source: Herald Tribune



Author: Pratap Padode is the Editor-in-Chief of Construction World and President of FIRST Construction Council


Also read:
Even states are having a hard time in accelerating road projects
Centre is quite keen
The MoRTH Secretary recently assured that he is confident of building 12,000 kms this financial year




I highlighted the lags during the 12th India Roads Conference held recently as part of 8th India Construction Festival, especially the speed at which we have been constructing roads, which has fallen during the April-September 2022 period to 19 km per day against over 22 km per day during the same period in the previous year. Interestingly, the official from the National Highways Authority of India claimed that the spending on roads had been increasing all through the past eight years. I had my opportunity to point out what I have been lamenting in my commentary time and again: that we are spending too much of that money on land acquisition and less on project execution. Even states are having a hard time in accelerating road projects even though the centre is quite keen to step this up. Construction equipment companies are seeing orders drying up and contractors are bidding lower to keep the order book fat and impressive. Further, where is the application of the QCBS system over L1? It seems this is only being applied to tenders of Rs 10 crore and under to consultancy contracts, etc. This defeats a good idea completely. Appeals on arbitration orders have also been discouraged and this, too, is not being observed in its true spirit. So, the ideas have reached the right ears, they have also been translated into notifications for execution, but the executors are failing to implement them in true form and spirit. For the land acquisition issue, the only way now left for the Government is to initiate a Land Lease Model Law for leasing farmland for national infrastructure projects. This can be brought in quickly and nearly 40 per cent of the amount spent on roads can be saved from investment into land acquisition and utilised to accelerate EPC contracts. The MoRTH Secretary recently assured that he is confident of building 12,000 km this financial year, which will give us a construction rate of 33 km per day. The ministry had constructed 10,237 km in 2019-20, 13,327 km in 2020-21 and 10,457 km in 2021-22. So, constructing 12,000 kms would definitely be an improvement over 2021-22 which was a slow year but nowhere near the touted figure of 18,000 kms! Having slowed construction to just 4,559 km in the first six months of this financial year, the pace of construction would have to accelerate to 42 km per day in the next six months to meet the target of 12,000 kms or 75 km per day to meet the target of 18,000 kms. Is that possible considering that the government’s fiscal deficit is to be contained? With financial constraints at hand, does the Government have the capability to accelerate its infusion as laid out in the National Infrastructure Pipeline? Indications are that the Government is now shying away from investment proposals and it is the private sector that is driving the economy.Images Source: Herald TribuneAuthor: Pratap Padode is the Editor-in-Chief of Construction World and President of FIRST Construction Council Also read: Even states are having a hard time in accelerating road projectsCentre is quite keen The MoRTH Secretary recently assured that he is confident of building 12,000 kms this financial year

Next Story
Infrastructure Urban

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Next Story
Real Estate

India REIT Market Gains Momentum with Strong Returns

India’s Real Estate Investment Trust (REIT) market is witnessing strong growth, emerging as a competitive investment avenue both domestically and across Asia. According to a recent ANAROCK report released at EXCELERATE 2026 by NAREDCO Maharashtra NextGen, the sector is evolving into a mature asset class driven by solid fundamentals, regulatory backing and rising investor confidence.The introduction of Small and Medium REITs (SM REITs) in 2025 has further widened access through fractional ownership, unlocking a potential monetisation opportunity of Rs 670–710 billion. Indian REITs have deli..

Next Story
Real Estate

Domicil Debuts In Tricity With Luxe 9 Showcase

Domicil Germany, a luxury home furnishing brand from the House of HTL International, has made its Tricity debut with an exclusive showcase at Luxe 9, marking its first retail presence in the region.The invite-only event brought together architects, interior designers, real estate developers and high-net-worth individuals, reflecting rising demand for globally inspired, design-led living spaces.Centred on the theme ‘Celebrate Living with Timeless German Design’, the showcase highlighted Domicil’s focus on combining craftsmanship, functionality and refined aesthetics. Attendees experienced..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement