The Centre is intensifying efforts to cut delays in national highway (NH) projects, aiming to significantly improve project timelines and curb cost overruns. As of April 2024, there were 152 delayed highway projects worth Rs 715 billion. Since then, 54 projects have been cleared, and the number of delayed projects has reduced to 98, worth Rs 393 billion. The Centre targets further reducing this number to 60 by the end of 2025-26, marking a 60 per cent decline in two years.
Key interventions include expediting clearances, streamlining land acquisition, and ensuring timely release of central funds. These strategies are designed to fast-track project execution, minimise cost escalations due to delays, and address persistent issues such as slow land acquisition and process bottlenecks. Project delays historically impact developers’ cash flow and profitability, resulting in frequent time and cost overruns. Moreover, the number of projects awarded but yet to commence dropped from 87 in April 2024 to 53 in November 2025, reflecting improved pre-construction processes.
Construction and award of new highways lagged behind targets, with only 467.72 km awarded and 2,108.38 km constructed so far in 2025-26 compared with annual targets of 4,500 km awarding and 5,000 km construction. The government’s recent push is intended to create a robust pipeline for future projects. Industry experts believe these interventions will lift daily construction rates, relieve contractor burdens, and restore lender confidence, all crucial for fulfilling Bharatmala Phase I commitments by 2026.