Highway project awards decelerate to 6-yr low amid land acquisition delays

NHAI order book muted for next fiscal year due to land acquisition delay

The pace of project award for highways is the slowest in six years due to delays in land acquisition. This will slacken the pace of construction in the next two years. 

Both the Ministry of Road Transport and Highways and the National Highways Authority of India (NHAI) are struggling to award more highway projects. The NHAI has awarded projects across 3,700-4,000 km during the current fiscal year so far. 

“Road project award is the lowest in the last six years and is expected to remain muted in FY21,” said Rajeshwar Burla, vice-president, associate head-corporate ratings, ICRA.

The order book for the next fiscal