The National Highways Authority of India (NHAI) is poised for a 9-11% surge in road project awards in FY26, potentially transforming India’s urban connectivity with sustainable infrastructure. Despite a reduced construction target of 10,000 km—the lowest in seven years—this growth signals a renewed push for eco-friendly highways, vital for easing city congestion and cutting emissions, according to an Axis Securities report.
The report highlights a recovery in project awarding since November 2024, following delays that hampered NHAI and the Ministry of Road Transport and Highways (MoRTH) in FY25. If this momentum holds, NHAI could award 8,500-9,000 km of roads, matching FY25’s levels. In FY25, NHAI constructed 5,614 km, exceeding its 5,150 km target, showcasing its capacity to deliver despite challenges. However, FY26’s leaner ₹10,421 crore budget and a monetisation goal below ₹39,000 crore reflect fiscal constraints.
NHAI’s innovative funding strategies are central to this vision. In June 2025, it unveiled its first Asset Monetisation Strategy Document, outlining plans to raise capital through Toll-Operate-Transfer, Infrastructure Investment Trusts, and securitisation. Under the National Monetisation Pipeline 2.0, launched in Q1 FY26, NHAI aims to unlock ₹3.5 lakh crore for roads over five years, reducing reliance on government funds. This approach supports sustainable development by reinvesting in greener infrastructure.
For commuters like Anita Sharma, a Delhi-based teacher, better highways mean safer, faster travel and less pollution. The focus on high-speed corridors, including 1,100 km in North-Eastern states and 750 km in tribal areas, promises equitable access, fostering inclusive growth. Yet, reduced targets raise concerns among contractors, who fear job losses if projects stall. By prioritising access-controlled highways, NHAI aims to balance efficiency with environmental goals, paving the way for cities where sustainable mobility thrives.
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