The National Highways Authority of India (NHAI) has marked a significant achievement in India’s infrastructure story, completing 5,614 kilometres of road construction in the fiscal year 2024-25.
This performance exceeded its annual target by 9%, underscoring the authority’s robust commitment to enhancing the nation’s road network and improving connectivity, despite encountering challenges such as delays in clearances due to the election process and the implementation of the model code of conduct. However, while NHAI achieved a substantial increase in road construction from previous years, its performance in FY25 represents a slight decline compared to the previous fiscal year, where it had completed 6,644 kilometres. The overall target for FY25 was set at 10,421 kilometres, and despite falling short, NHAI remains on course to meet the government’s upcoming goal of constructing 10,000 kilometres in the 2025-26 fiscal year.
The financial aspect of NHAI’s operations also saw major strides in FY25, with the authority’s capital expenditure reaching an unprecedented INR 2.5 lakh crore. This amount marks a substantial increase from previous years, reflecting NHAI’s accelerating efforts to expand and upgrade the national highway network. With such a massive infusion of capital, NHAI is undoubtedly positioning itself as a crucial player in the long-term infrastructural growth of India. Nevertheless, NHAI faced a shortfall in its monetisation targets for the fiscal year, which were aimed at raising INR 39,000 crore. Due to regulatory pauses and the Ministry of Road Transport and Highways (MoRTH) review of the Toll Operate Transfer (ToT) model, the authority could only raise INR 28,724 crore. Despite this setback, NHAI managed to secure its largest ever monetisation sum, raising INR 17,738 crore through the fourth round of the National Highways Infrastructure Trust (NHIT). In addition, INR 6,661 crore was raised through the monetisation of a highway bundle under the ToT model, and INR 4,325 crore was mobilised through project-based financing, particularly for the Delhi-Mumbai Expressway, one of the country’s flagship projects.
Looking ahead, NHAI is committed to revitalising its monetisation strategy, with a target of INR 30,000 crore set for FY26. The move is expected to cover 10% of the total budgetary resources for the national highways programme, ensuring that NHAI remains equipped to fund its ambitious infrastructure expansion. One of the most prominent developments in the year has been the substantial progress of the Delhi-Mumbai Expressway. The 1,350-kilometre corridor, which aims to reduce travel time between the national capital and India’s financial hub from 24 hours to just 12, has witnessed significant advancements in 2024-25. The completed sections are expected to facilitate smoother passenger and freight movement, bolstering economic activities between two of the country’s most important regions.
In Punjab, another notable accomplishment was the operationalisation of the Ludhiana Elevated Corridor in January 2024. Spanning 13 kilometres, the elevated route is expected to alleviate chronic traffic congestion in the city, providing an efficient passage for both residents and commercial vehicles. At an estimated cost of INR 1,000 crore, this project is set to improve overall mobility, reduce bottlenecks, and provide a safer travel experience for all road users. Further progress in the National Capital Region (NCR) was marked by the completion of critical stretches of the Urban Extension Road-II (UER II), a 75.7-kilometre six-lane expressway designed to decongest Delhi’s western periphery. By October 2024, key segments of the UER II became operational, offering a crucial bypass that connects key regions like Alipur, Rohini, Mundka, and Dwarka. The expressway aims to ease intra-city travel by diverting heavy traffic from congested urban routes, thus contributing to reduced travel time and smoother connectivity.
Another project that garnered attention in FY25 was the DND-Faridabad-KMP Expressway. Stretching over 59 kilometres, this access-controlled corridor connects Delhi’s DND Flyway to the Kundli-Manesar-Palwal (KMP) Expressway, facilitating smoother travel across the National Capital Region (NCR). The expressway is expected to alleviate traffic congestion in the capital and improve connectivity for long-distance vehicles and freight transport. The aforementioned projects reflect NHAI’s commitment to enhancing India’s road infrastructure, not just in terms of quantity but also in quality. As the authority forges ahead with its infrastructure vision, a growing emphasis is being placed on sustainability and inclusivity. NHAI is increasingly mindful of the environmental and social impact of its projects, and the agency’s move toward building eco-friendly highways with low carbon footprints is a step in the right direction. These efforts align with the broader goal of transforming India’s urban and rural landscapes into more sustainable, equitable, and accessible spaces. Looking forward, NHAI has announced plans to offer 15 new road projects worth INR 44,000 crore, spanning 900 kilometres, under the Build-Operate-Transfer (BOT) model. This initiative aims to encourage public-private partnerships (PPPs) to further accelerate the development of India’s national highways network while fostering innovation in financing and project delivery.
The National Highways Authority of India continues to make significant strides in the development of India’s road infrastructure. While challenges in monetisation and execution remain, the agency’s commitment to sustainable, inclusive, and efficient highway construction presents a hopeful vision for the country’s transport future. With increasing private sector participation and strategic government initiatives, NHAI’s roadmap is poised to play a critical role in shaping the future of India’s road connectivity and economic growth.
India Highway Expansion Hits INR 2.5 Lakh Crore Milestone
