The number of highway project construction and awards in 2025-26 hit a 7-year low

NEW DELHI: Road construction and new works awards fell to a seven-year low in 2025-26, official data showed. While the overall construction mileage was less than 10,000 km, for the first time since 2019-20, only 7,000 km of work was awarded in FY26.Reasons for the decline in the highways sector’s performance on these two key parameters include the highway agency following stricter land availability and clearance prerequisites before tendering projects, and a sharp decline in conversion of national highways to National Highways (NH).Officials said agencies have been exercising “self-restraint” to ensure post-bid projects are not bogged down or delayed due to lack of land and other issues such as forest and environmental clearance and utility diversion.“Project delays make no sense and will lead to rising costs. A lot of efforts have been made to reduce the number of delayed projects. Secondly, the focus now is on building more economic corridors and highways rather than incremental expansion of existing highways,” an official said.The National Highways Corporation of India (NHAI), which is responsible for building and maintaining a wider range of highways, said last week that it had built 5,313 km of national highways, about 15% higher than this year’s target of 4,640 km.Industry insiders say that with the number of NH development projects offered by agencies such as NHAI falling sharply, contractors are scrambling to find work and are quoting 42% less than the tender price. “The impact of fewer projects being bid will be evident in the coming years,” said an executive at a major highway developer.