The Ministry of Road Transport and Highways (MoRTH) is set to launch an ambitious infrastructure drive, with plans to award road contracts worth Rs 3 lakh crore over the next three months. This substantial push aims to accelerate the awarding of contracts, targeting a cumulative total of Rs 5 lakh crore by the end of the financial year in March 2025.
The Minister of Road Transport and Highways outlined this strategy during the annual session of the Indian Construction Equipment Manufacturers’ Association. Addressing the slow start to the fiscal year, attributed to the recent elections and the enforcement of the model code of conduct, the Minister assured that the ministry is committed to overcoming these delays. “Despite the challenges faced earlier in the year, we are determined to finalise contracts exceeding Rs 3 lakh crore within the next three months. Our goal is to achieve over Rs 5 lakh crore in road contracts by March 2025,” he stated. The financial backing for this extensive project pipeline appears robust. The Minister reassured stakeholders that monetary resources are ample, bolstered by the country’s strong capital market reputation. “Our current toll revenue stands at Rs 45,000 crore, and we project it will escalate to Rs 1,40,000 crore within the next two years. We are effectively monetising road assets to secure necessary funds,” he added.
The National Highways Authority of India (NHAI) has thus far awarded three projects covering 47.04 km this fiscal year, with a cumulative length of 95 km awarded by the ministry until June. This surge in contract awards is expected to stimulate significant growth in the construction sector. Additionally, the Minister addressed concerns from the construction equipment sector, promising government support to address issues such as customs duties. Emphasising the sector’s critical role in job creation and export contributions, he urged the industry to elevate India’s position from the third to the largest construction equipment market globally.
Currently valued at Rs 79,000 crore with an estimated volume of 1.35 lakh units, the market is anticipated to expand to 2.5 lakh units by 2030. This comprehensive strategy underscores India’s commitment to bolstering its infrastructure, with substantial investments aimed at transforming the road network and reinforcing the construction sector’s growth trajectory.
