The government has increased the highway construction target for FY24 from 12,500 km to 13,800 km, according to officials in the Ministry of Road Transport and Highways.
Reasons For The Increase In Construction Targets
The government has increased the highway-building target for this year in order to accelerate infrastructure development ahead of state and general elections. To ensure that the revised overall target is successfully attained, construction agencies have been instructed to accelerate the pace of road construction and hit a daily goal of over 40 km of highways in the remaining nine months of the year.
According to a statement from an official, highway construction is now moving along at a rate of about 30 km per day, up from 11.6 km per day in 2014. The slowdown over the last two fiscal years has slightly delayed the targets, despite the government's efforts to increase this to 50 km per day. However, the official quoted above stated that “we will soon achieve our stated goals.”
Highway Construction In India
Highway construction peaked in the fiscal year 2020-21, when the pace reached 37 kilometers per day, with 13,327 kilometers of highway built. A few targets remained unmet in FY22 and FY23, and annual construction slowed to just under 10,000 km.
Highway construction covered 10,237 km during the pre-pandemic period of FY20, or 28.04 km per day. Lockdowns aided in accelerating construction during the first pandemic year (FY21), which led to a record 13,327 km of highways being built at a rate of 36.51 km per day. Again slowing to 10,457 km at 28.64 km per day in FY22. The initial goal of the
road ministry for FY22 was to build 14,600 km of highways, or 40 km per day. Later, the target was changed to 12,000 km. At the end of FY23, highway construction was moving at a rate of 28.3 km per day, totaling 10,331 km.
Anurag Jain, the secretary for road transport and highways, initially told Mint that there are plans to rework the target upward in FY24. “There is an expectation now that about 6,000 km of highways may be built by the National Highway Authority of India (NHAI) and another 6,000 km by the ministry's road wings while about 1,500-2,000 km may be built by National Highways and Infrastructure Development Corporation Ltd. (NHIDCL) this year,” he said.
A target of 5,060 km of roads to be built in FY24, up from 4,882 km in FY23, was previously set by the state-run highway developer NHAI. This may be increased while an additional 400–500 km of highways are being constructed by NHIDCL.
Expected Challenges Faced
However, the weather and elections may present a significant challenge to plans this year. Highway construction typically slows during the monsoon season, and this year's abundant rain may make it difficult to accelerate the pace. According to a report from the rating agency ICRA, highway awards typically slow in the final quarter of a fiscal year, just before elections, when the model code of conduct takes effect.
If this scenario plays out in FY24, constructing 40 km of highways in nine months would be difficult, making the reworked target unattainable, according to an official of a major consultancy. The official also stated that 12,000–12,500 km of highways could realistically be built in FY24.
In comparison to a higher goal, the construction pace during the first quarter of the current fiscal year was less than impressive, adding only 2,250 km, or roughly 16%, of the revised annual target.
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