Slowdown in National Highway Projects may affect construction in the next two years. Currently, the government is going to rein in its plans of ambitious development on roads and highways as reduced national highway (NH) project awards is going to delay the construction tempo over the forthcoming years. With only fewer projects remaining awarded in current and next two financial years road transport ministry preparing itself for dipped expansion and width of national highway.
Current National Highway Construction Progress
The road transport ministry is positive about surpassing the target of constructing 10,400 km of NHs in the current financial year. Nearly 6,000 km of roads have been completed till mid-January and are likely to complete the remaining stretches by the end of March. The final quarter, that is, January to March, sees a surge in construction activity. The pace of building is almost double as compared to the previous months.
However, experts warn that the challenge would be to sustain this rapid pace in the coming years. The reason for the anticipated slowdown lies in the reduction of newly awarded projects. Data from the road transport ministry show that, until mid-January of the current financial year, only 3,800 km of NH projects were awarded—marginally higher than the previous year but far below the levels seen in the past.
Cause for the Decline in New Projects
There are many causes due to which a decline is witnessed in the granting of national highway projects. Primarily, one is that there are fewer new projects released for tendering in the period of 2023-24. Such highway construction requires a minimum period of two years. The total duration of this whole lengthy process from such projects being granted till they finish is approximately around two years. Meaning even if in the current year projects are offered, it still has to cross a long long way before being able to even realize the impacts of their fulfillment.
Another factor is the slow pace of project approvals. Although the government has managed to expedite approvals in the last few months, it is not sufficient to offset the lag experienced in awarding new projects in the past. The construction of new highways will likely slow down in the short term.
Impact on Future Construction Targets
Despite this, the road transport ministry remains optimistic about reaching a target of 8,000 km of NHs to be bid out this year. The revised target is, however, less than what was targeted in previous years when the ministry had been more ambitious in its targets. In 2020-21, a record 10,964 km of NH projects were awarded, while in 2021-22 it rose to 12,731 km. In FY 2023, 12,379 km of projects were awarded.
Declining number of projects awarded in the last few years is a challenge to the attainment of the long-term vision for rapid national highway development. The government may not be able to sustain its ambitious highway expansion agenda in the years after 2023 if the trend continues.
Road Ahead for National Highway Construction
The government is taking measures to counter these challenges with its highway development agenda on track. “We have given our nod to some major projects recently and these should propel the figure closer to what was achieved last year,” said an official of the road transport ministry. Going by this confidence, the ministry is sure of getting beyond the 8,581 km of national highway projects awarded during the last financial year.
Though new projects are not being awarded at such a high rate nowadays, improvement in road infrastructure is still expected to take place from the part of the road transport ministry. Completion of existing work will still contribute significantly to efficiency and connectivity in transportation. In addition, with better coordination and improved clearance activities, the government can regain its momentum and complete its road development goals.
Conclusion: The Future of National Highways
Now, with the award of national highway projects coming down and that too significantly in the coming two years, though it has set the government upbeat on likely road transport ministry’s expectation to complete above 10,400 km during the year despite such an incident. Going ahead with such speed would only happen in the long run with increasing project awards and ensuring approval efficiency.
With the government’s efforts, industry will face a new challenge of fewer projects in the pipe and has to be adapted over to get over the hurdle. The way of the development of road infrastructures in this country will further continue on to reach the desired objective of the modernization of and extension to national highways of India.
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