India’s road network is set for its most ambitious expansion yet, with the government planning to award projects worth ₹7 lakh crore in the current financial year and raising the annual target to ₹10 lakh crore from the next fiscal year. The move signals a renewed push to accelerate highway construction, strengthen logistics capacity, and stimulate the construction equipment industry, with sustainability emerging as a parallel priority.
According to senior transport ministry officials, the sector experienced a temporary slowdown last year due to the shelving of a major highway programme. However, the current year has already seen the award of projects worth ₹2 lakh crore, with another ₹5 lakh crore planned by March. Officials have emphasised that the awarding process is being executed transparently, within strict timelines, and without funding constraints. The government’s longer-term ambition is to scale up execution to support the goal of building 100 kilometres of highway per day—a pace nearly three times faster than the previous record of 37 kilometres per day. Such a buildout is expected to improve intercity connectivity, reduce logistics costs, and directly support India’s manufacturing and export competitiveness.
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In addition to sheer scale, the new roadmap aims to integrate sustainability. The transport ministry is working with industry to incentivise the use of alternate fuels in construction equipment, including interest-free loans for manufacturers who develop machines powered by biofuels, flex engines, or other clean technologies. Officials are also considering a waiver on one-time taxes for registering such equipment, recognising its role in reducing the sector’s carbon footprint. Experts note that India imports fuel worth ₹22 lakh crore annually, much of it consumed by the transport sector. Transitioning to alternate fuels in both vehicles and heavy machinery could deliver substantial savings, cut emissions, and reduce dependency on foreign energy sources. This aligns with India’s climate commitments and the broader vision of creating low-carbon, resilient infrastructure systems.
The push for road expansion will also stimulate the construction equipment market, which plays a critical role in project delivery. The introduction of cleaner, locally developed machinery could further position India as a global supplier of sustainable construction technology. Industry observers say that integrating green technology into one of the world’s largest infrastructure drives could set a precedent for emerging economies balancing growth with environmental responsibility. With the dual goals of unprecedented highway expansion and a cleaner transport ecosystem, India’s road sector stands at a transformative juncture. If executed effectively, the initiative could redefine national mobility, spur economic growth, and set the country on a path towards a more sustainable, energy-secure future.
