Highway projects slow down to speed up; funding prospects bright

MONETISATON GATHERS PACE

- MUKESH JAGOTA

THE YEAR 2025 marked a reset for the highway sector when the groundwork was laid for speedier execution in the years to come. Partly due to this restructuring, a slowing of project awards and construction occurred in the year.

Another development was the finalisation of the Asset Monetisation Strategy after extensive consultations that will smoothen the process and create opportunities for retail investors to participate in the programme.

The total length of highways awarded so far in the year stands at 1,410 km in April-December this year, sharply down from 3,100 km in the corresponding period last financial year. The pace of awarding has been coming down for the past two years and this year the decline has been sharper as in April the Ministry of Road Transport and Highways (MORTH) made it compulsory for its road building agencies to strictly ensure availability of 90% Right of Way (ROW) before start.

It has also mandated that forest and wildlife clearances and approved General Arrangement of Drawing (GAD) for Road Under Bridge and Rail Under Bridge stricter scrutiny of projects before awarding. Earlier awarding before completion of preparatory work resulted in delays.