The Indian government is poised to set a “moderate but realistic” highway construction target of 12,000-13,000 km for FY25, according to sources familiar with the matter.
This revised target comes in response to a new calculation method and increasing construction complexities, aiming to ensure more achievable goals. This proposed target marks a reduction from the previous fiscal year, where the target was 13,814 km, and the actual construction achieved was 12,349 km—the second-highest after the record 13,327 km built during the pandemic-hit year of 2020-21. The downward adjustment reflects a strategic shift towards building more complex and expansive highway networks, including six-lane and eight-lane access-controlled roads, rather than the simpler, fewer-lane highways previously constructed. A significant factor behind this change is the proposed switch in how the government measures highway construction. The new method will calculate the length in lane kilometres instead of the linear method currently in use. For instance, a 10-km stretch of highway with four lanes will now be recorded as 40 lane kilometres, thereby providing a more accurate representation of the construction efforts and infrastructural expansion.
“Under this new measurement system, the linear highway construction target might be set at around 12,000 km for FY25, or potentially lower. However, in terms of lane kilometres added, it could represent the highest addition in any previous years, focusing on wider, stronger, and smoother road stretches,” explained one source. Another source highlighted that the government aims to set more realistic construction targets, having “overstated” them in the past three fiscal years. In FY22 and FY23, against a target of 12,000-12,500 km, the actual construction achieved was 10,457 km and 10,331 km, respectively. In the last fiscal year, the target was 13,814 km, but only 12,349 km were completed.
The projected annual construction rate of 12,000-13,000 km is expected to be maintained over the next few years. After this period, the pace of new highway construction may slow down as the focus shifts towards maintaining the extensive network already built and addressing capacity augmentation projects. This trend was evident in FY24, where out of the 12,349 km constructed, about 9,642 km involved lane or capacity augmentation, and 5,193 km of roads with over four lanes were built.
Under the Vision 2047 plan, the Ministry of Road Transport and Highways (MoRTH) aims to construct 50,000 km of access-controlled highways. This ambitious project will significantly increase the lane kilometre network, as most new highways will feature four to eight lanes, enhancing India’s transportation infrastructure. While the revised highway construction targets for FY25 may appear modest in linear terms, they represent a strategic shift towards creating a more extensive and efficient road network. This approach aligns with India’s long-term infrastructural goals and reflects a realistic appraisal of the country’s construction capabilities and future needs.
