Pace of road construction expected to decline by 7-10 per cent in 2024-25 

As per CareEdge Ratings, the pace of road construction is expected to decline by 7-10 per cent in 2024-25, with daily construction pace estimated at 31 km compared to 34 km in 2023-24. This slowdown is attributed to increased execution challenges. This translates to a projected decline in construction to around 11,100-11,500 km in 2024-25 from 12,350 km in 2023-24. Factors contributing to the slowdown include project complexities, delayed receipt of appointed dates post-project award, and challenges in land acquisition for greenfield expressways and highways. Additionally, the shift in awarding preference from engineering, procurement, construction (EPC) to hybrid annuity model (HAM) and toll projects is expected to reduce the EPC project share by 25-30 per cent in the medium term, leading to lower funding requirements for NHAI and a focus on construction quality.