ICRA has predicted a 5-8 per cent increase in road construction for the year 2024-25, estimating that approximately 13,000 km of roads will be built. This growth is attributed to numerous projects in the pipeline, increased government funding, and the Ministry of Road Transport and Highways (MoRTH) prioritising project completion.
Construction activities are expected to accelerate after the second quarter, following a typical slowdown during the monsoon season. Despite challenges such as delayed approvals and a subdued first quarter due to elections, the ministry’s project award pipeline remains healthy, exceeding 45,000 km as of March 2024.
The engineering, procurement and construction (EPC) mode continues to dominate, accounting for 70-75 per cent of awards in 2023-24, followed by hybrid annuity mode (HAM) and build, operate, transfer (BOT) with a 25-30 per cent share. Toll collection is projected to grow by 5-8 per cent in 2024-25, with a relatively subdued growth driven by the wholesale price index (WPI).