The government is staring at a fall in construction and widening of national highways (NHs) in the next two years as there has been a reduction in award of new projects in 2023-24 and the current financial year. However, going by the current trend, the road transport ministry is confident of surpassing the target of constructing 10,400 km of NHs this fiscal year.
Typically, it takes at least two years for a highway stretch to be built from the date of award of works.
Sources said the ministry is hopeful of touching 11,000 km in construction since around 7,000 km has been built so far. Traditionally, the pace of construction is higher in the Feb-March period.”But maintaining this pace for the next two years will be difficult as the projects under implementation have reduced with bidding out of less number of projects,” said a source.
Till third week of Jan, the award of NH projects was around 4,100, marginally higher than last year. The ministry has revised the target to bid out around 8,000 km. An official said that with the approval of several projects at an advanced stage in the past two months, they are hopeful of crossing last year’s figure of 8,581 km.
The ministry had achieved award of 10,964 km in 2020-21 and increased this to 12,731 km in 2021-22. In FY 2023, it stood at 12,379 km.
The pace of project award has slowed down as govt has directed the road transport ministry not to approve any fresh project under ‘Bharatmala’. Also, there is no new highway development programme.
Meanwhile, an inter-ministerial panel that appraises major highway projects has told the ministry to accept bids only after acquiring 80%-90% of land required for projects and getting all statutory clearances such as forest and environment.
Officials said though this condition would affect the pace of award of projects, the move will reduce delays, cost overrun and disputes.
Sources said while highway building agencies need to get 80% land for projects to be built under the hybrid annuity mode, where private players bring 60% investment. In case of projects under engineering, procurement, and construction mode, authorities need to get 90% land – the project cost is borne by govt.
