Highway Construction Falls Short of Target Despite Record Capex

the Ministry of Road Transport and Highways (MoRTH) data

Highway construction has slowed down during the current fiscal year, achieving only 45% of its target of 13,800 km, according to a report in LiveMint. Despite the Union government allocating a record ₹2.16 trillion capex in the first nine months of the year, the Ministry of Road Transport and Highways (MoRTH) data reveals that India added only 6,216 km of national highways between April and December 2023.

This shortfall isn't new. In the fiscal year 2022, against a target of 12,500 km, only 10,457 km of roads were built, followed by 10,331 km in 2023. For FY2024, the target stands at 13,800 km. However, an anonymous source mentioned in the report doubts achieving this goal, despite an increase from the previous year's progress. The delay in awarding road projects is cited as a primary reason for the slowdown.

Despite the government's capital expenditure reaching 83.49% of the record high capex outlay for FY2024, highway awards typically slow down in the last quarter before elections, according to a report by rating agency ICRA. With Lok Sabha elections on the horizon, meeting the target of constructing over 80 km of highways daily in the last three months seems challenging, the report concludes.