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Rate of highway construction increases up to 14% this FY: CRISIL, ET Infra

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MUMBAI: Due to a strong pipeline of awards from past fiscal budgets, the rate of national highway building climbed 14 per cent year over year in the first quarter of current fiscal year, despite a 37 per cent reduction in project awards from the Ministry of Road Transport and Highways (MoRTH).

“Only 611 km of national highway projects were awarded in the first quarter, compared with 969 km in the corresponding quarter last fiscal, ostensibly to clear previously awarded projects and issues related to land acquisition The divergence is expected to continue over the remaining fiscal as well,” CRISIL report said.

“This fiscal construction is predicted to increase after the monsoon to 11,500–12,500 km for the entire fiscal, or an average of 32–34 km each day. Therefore, the average daily construction speed for the rest of the year is probably going to be 34–37 km,” the report further said.

The ministry’s capital expenditures for the first quarter of current fiscal year also reflect the increase in construction volumes. It climbed 24per cent year over year, enabling 38 per cent of the annual budgeted objective to be met.

This shows the government’s emphasis on improving road infrastructure, which would support the expansion of other industries including logistics, power, real estate, and mining.

  • Published On Jul 20, 2023 at 12:54 PM IST

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