Sustained Momentum: Key developments in the roads and bridges sector

September 19, 2025

The past year has witnessed remarkable progress in India’s road sector, reflecting the country’s commitment to road modernisation. The centre has implemented various reforms and measures to address long-standing issues. In addition to its continuing focus on expansion, the Ministry of Road Transport and Highways (MoRTH) is placing emphasis on road safety, asset quality and maintenance, and sustainability. Meanwhile, asset monetisation, particularly through infrastructure investment trusts (InvITs), has received significant attention.

A look at some of the key developments in the road sector over the past year…

Policy and regulatory reforms

  • The centre has synchronised project approvals, awards and developer appointments with milestones for land acquisition, and environmental, forest and wildlife clearances, to speed up highway construction.
  • The MoRTH has mandated the use of precast concrete for non-critical components and issued guidelines to promote the use of urban solid waste and inert materials.
  • To curb aggressive bidding, additional performance security has been imposed.
  • The MoRTH has extended the defect liability period for engineering, procurement and construction contracts from 5 years to 10 years.
  • The Pradhan Mantri Gram Sadak Yojana IV has been approved with an outlay of Rs 701.25 billion.

Monetisation moves

  • Since 2018-19, the cumulative road asset monetisation has crossed Rs 1.4 trillion.
  • In 2024-25, the NHAI raised around Rs 290 billion including Rs 66.61 billion through toll, operate, transfer (TOT), Rs 183.4 billion through InvITs and Rs 43.25 billion through securitisation.

Progress under Bharatmala Pariyojana

  • As of August 2025, projects covering a length of around 26,425 km have been awarded, of which around 20,770 km of roads have been constructed.
  • In addition, multimodal logistics parks (MMLPs) have been awarded in Jogighopa, Indore, Chennai, Nagpur, Bengaluru and Jalna. The Nagpur MMLP has started commercial operations with the arrival of its first rake. Meanwhile, bids have been invited for MMLPs in Anantapur, Pune and Nashik.

Asset acquisition

  • In June 2025, Cube Highways Trust acquired the Athaang Jammu Udhampur Highway and the Quazigund Expressway for an enterprise value of Rs 41.85 billion.
  • With the highest bid of Rs 66.61 billion, the Highways Infrastructure Trust won the TOT Bundle 16.
  • In September 2024, Larsen & Toubro and three affiliates, along with other entities, acquired an 8.03 per cent stake in Cube Highways Trust for Rs 12.43 billion via open market transactions.
  • Ashoka Buildcon Limited signed share purchase agreements to divest five road assets to the Indian Highway Concessions Trust for Rs 25.39 billion.

Key project milestones

  • Many significant projects have been approved. In August 2025, the Maharashtra cabinet approved the Rs 25.28 billion freight corridor, the Hindu Hridaysamrat Balasaheb Thackeray Maharashtra Samruddhi Mahamarg and the Mumbai-Nagpur expressway.
  • In May 2025, the Karnataka state cabinet approved the Bengaluru twin tunnel project for Rs 177.8 billion. Further, the Cabinet Committee on Economic Affairs approved the four-lane Badvel-Nellore corridor at a cost of Rs 36.53 billion and the Rs 228.64 billion greenfield national highway project in the Northeast, connecting Panchgam in Assam to Mawlyngkhung in Meghalaya.
  • In April 2025, NHAI and Dineshchandra R. Agrawal Infracon Private Limited signed an agreement for the 121 km Guwahati ring road under the build, operate, transfer (toll) model at a cost of Rs 57.29 billion.
  • In January 2025, Afcons Infrastructure Limited was awarded the Dharamtar Creek Four Lane Bridge for Rs 24.78 billion.
  • In October 2024, the Maharashtra government launched the third phase of its State Road Improvement Project, with a total investment of Rs 127.68 billion.
  • In August 2024, the centre and the World Bank signed an agreement to construct the 781 km long Green National Highway Corridors Project.

Digital deployments and green moves

  • In July 2025, India’s first artificial intelligence-based road safety project was launched in Uttar Pradesh.
  • In June 2025, the MoRTH launched a FAS­Tag-based annual pass worth Rs 3,000. Additionally, India’s first advanced traffic management system project was inaug­urated on the Dwarka Expressway.
  • In January 2025, Kerala revamped eight major roads using eco-friendly German full depth reclamation technology under the PM Surya Ghar Yojana.
  • In December 2024, the MoRTH introduced the automated and intelligent machine-aided construction technology.
  • During the same month, the Nagpur Public Works Department incorporated ultra-­high-performance fibre reinforced concrete in a 2.85 km long Regional Transport Office flyover and the Visakhapatnam Metropolitan Region Development Authority announced its plans to construct all roads using plastic waste.

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