India’s Highway Construction Faces Slowdown Amid Government’s Final Push
India’s highway construction has experienced a notable deceleration in the current fiscal year. As of November 2024, the Ministry of Road Transport and Highways (MoRTH) has utilized only 55% of its allocated capital expenditure, amounting to approximately ₹1.49 trillion out of the ₹2.72 trillion budgeted for the fiscal year. This shortfall is attributed to delays in land acquisition and project clearances, which have impeded progress on both greenfield and brownfield projects.
In response to these challenges, the government is implementing strategies to expedite project execution. A significant focus is on front-loading capital expenditure to accelerate infrastructure development. By initiating spending early in the fiscal year, the government aims to mitigate delays and maintain momentum in highway construction.
Despite these efforts, the government has set a more modest construction target of 12,000-13,000 km for the fiscal year, a reduction from the previous year’s target of 13,814 km. This adjustment reflects the increased complexity of current projects, which often involve constructing multi-lane, access-controlled highways.
The government remains committed to enhancing the nation’s infrastructure and is exploring measures to overcome existing hurdles. By addressing issues related to land acquisition and project approvals, the administration aims to reinvigorate the pace of highway development in the coming months.
