Rate of national highway construction slows to 27 km/day in FY26 from 37 km/day in FY21: Report

NEW DELHI: The rate of national highway construction in terms of kilometres per day has slowed down in the recent years showing the moderation in pace of construction, according to a report by CareEdge Ratings. The report data highlighted that the rate of construction, which stood at 37 km per day in FY21, has now dropped to 27 km per day in FY26 (projected).

The report noted that the slowdown is due to lower awarding of projects, execution challenges, and many Hybrid Annuity Model (HAM) projects awaiting appointed dates (AD). It also shared that execution pace is expected to decline by 7-10 per cent during FY26. At the same time, the sector is witnessing increased competitive intensity for NH-HAM bids, further adding pressure on developers.

The report showed that after a strong performance in FY18, when 17,065 km of projects were awarded and 9,829 km were constructed, the sector entered a slower phase. In FY19, project awards fell sharply to 5,493 km while construction stood at 10,885 km. The pace remained sluggish in FY20 as well, with 8,912 km awarded and 10,237 km constructed.

A recovery was seen in FY21, when 10,467 km were awarded and construction rose to 13,435 km, pushing the daily pace to 37 km. However, this momentum was not sustained. In FY22, project awards increased to 12,731 km but construction was slightly lower at 10,457 km, bringing the pace down to 29 km per day.

FY23 witnessed healthy project awards of 12,375 km and construction of 10,331 km, with the pace at 28 km per day. The following year, FY24, saw awards slowing again to 8,581 km, while construction rose to 12,349 km, and the pace averaged 34 km per day.

But in FY25, awards dropped sharply to 4,874 km and construction fell to 10,660 km, lowering the daily pace to 29 km. For FY26, the projection shows construction at 9,900 km, which translates to just 27 km per day. The data indicates that while India has seen periods of strong growth in highway construction, recent years have brought significant challenges, and the overall momentum has slowed down. (ANI)