Roads & Highway

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Road transport plays a pivotal role in the economic development of the country. Currently, India has an extensive road network of about 4.7 mn km – the second largest in the world. However, the growth in road network has not kept pace with the growth in the vehicles coming on road. The government has laid huge emphasis on the development of road infrastructure through various key projects like NHDP, PMGSY, etc. The competition in the road sector increased substantially in FY11 and FY12. In FY12, out of total 49 projects awarded, almost 32 projects were awarded on premium. However, delay in obtaining land, forest and environmental clearances, overall slowdown in macro-economic scenario and a cautious stance of the banks on the back of the irrational bidding, delayed the financial closure of some major projects. As a result, the awarding activity failed to kick off in FY13. NHAI was able to award only about 1,112 km of road length as against the target of 9,500 km. The MoRTH had set a target of awarding about 9,000 km of road length in FY14 which has been revised downwards. The emphasis on awarding of the road projects through EPC basis is expected to get some momentum in FY14.

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    • Quarterly Update Jun-14

      NHAI approved premium rescheduling for 9 road projects....

    • Quarterly Update Mar-14

      Cabinet approves to convert about 7,200 km of road length into national highways....

    • Quarterly Update Dec-13

      MoRTH has prepared a draft Bill to set up road regulatory authority....

    • Quarterly Update Aug-13

      MoRTH scales down the target of road projects awarding to 5,000 km for FY14....

    • Quarterly Update Jun-13

      NHAI missed the set target of awarding road projects in FY13....

    • Quarterly Update Mar-13

      Government has set a target of awarding 3,000 km of road projects in H1 FY14....

Impact Analysis

  • The Roads and Highways Industry – Road projects awarding under NHDP to miss the target in FY14...

    The Ministry of Road Transport and Highways (MoRTH) has set a target of awarding about 9,000 km of road length in FY14; out of which, it plans to awar.....

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