Award of road contracts fell to its lowest level in a decade in 2023-24 and is way behind the target for the current fiscal, official data showed. It comes in the backdrop of the Centre’s resolve that no new liability is to be created under the Bharatmala Pariyojana Phase -I.
Data from the road transport and highways ministry showed that 3,481 km of road contracts had been awarded till January this year, against the targeted 13,290 km for this fiscal. The average monthly road contracts awarded in this fiscal is 300 km so far. “Revised estimate of Bharatmala is pending with the cabinet for approval in the absence of which no new contracts are being awarded by the National Highways Authority of India (NHAI),” a senior government official told ET on condition of anonymity, adding that only work under national highways (original) is being carried out.
The road transport and highways ministry has sought expeditious approval for the revised Bharatmala Phase-l or an alternative programme to push ahead with award of roads. The ministry is concerned that the shortfall in award this year will reflect in the progress of construction in 2024-25. In November 2023 the Centre had directed the road transport and highways ministry to ensure that no new works are approved and no contracts are awarded under Bharatmala under any phase until the Cabinet Committee on Economic Affairs’ nod.
Experts said the country can’t go slow on road construction. “We are nowhere in the optimum state where we can go slow on road construction,” said Jagannarayan Padmanabhan, global head, consulting, CRISIL Market Intelligence and Analytics. Padmanabhan said since the transportation sector, including roads, will drive the growth for India to be a USD 5 trillion economy, the need for persistent awarding of contracts and construction is important in the medium-term.
