Project Completion and Current Progress
It generally takes at least two years for a highway project to be completed after the awarding of contracts. According to TOI sources, the ministry is aiming to reach 11,000 km in highway construction this year, as around 7,000 km has already been built. The pace of construction is traditionally higher during February and March. However, sustaining this momentum beyond this fiscal year may be challenging due to a reduction in project awards.
A source stated, “But maintaining this pace for the next two years will be difficult as the projects under implementation have reduced with bidding out of fewer projects.”
Project Awards and Revised Targets
By the third week of January, around 4,100 km of national highway projects had been awarded, slightly higher than last year’s figures. The ministry has now revised its bidding target to approximately 8,000 km. Officials expressed confidence in surpassing the previous year’s total of 8,581 km, citing recent approvals of multiple projects.
The government had awarded 10,964 km in 2020-21, which increased to 12,731 km in 2021-22. In the 2022-23 financial year, the total stood at 12,379 km.
Reasons for the Slowdown
The slowdown in awarding new highway projects is attributed to government directives restricting fresh approvals under the ‘Bharatmala’ programme. Additionally, no new highway development initiatives have been introduced.Meanwhile, an inter-ministerial panel responsible for reviewing major highway projects has recommended that the ministry accept bids only after acquiring 80%-90% of the required land and obtaining statutory clearances such as environmental and forest approvals. Officials acknowledged that this requirement could slow down project approvals but would help prevent delays, cost overruns, and legal disputes.
Land Acquisition Requirements for Different Project Models
Under the hybrid annuity model (HAM), where private players contribute 60% of the investment, agencies must secure 80% of the required land before beginning construction. For projects under the engineering, procurement, and construction (EPC) model—where the government bears the full project cost—90% of the land must be acquired before the bidding process.
The ministry is now focused on ensuring land acquisition and regulatory clearances before project allocation to avoid future complications.
