Highway capex shifts to slow lane in FY25

Spending to build and expand India's sprawling highway network has slowed sharply, with the Centre achieving only 55% of the capex target in FY25.

- Subhash Narayan

With just four months left for the fiscal year to end, it appears unlikely the target will be met even if spending is speeded up, two people aware of the development said.

The April-November period saw road sector capex at about ₹1.49 trillion, road ministry data showed, against a record ₹2.72 trillion allocated by the Union budget. The budget had allocated the sum to complete work on at least 13,000km of highways, including some stretches on access-controlled expressways. However, backlogs and delays in getting clearances, especially for land acquisition, slowed many greenfield and brownfield projects, one of the two people cited before said. Work is progressing only in projects that have missed deadlines, the person added. "The pace of construction has been slower than planned.