Highway capex surges as ministry spends 87% of FY25 allocation by January

Highway construction has gathered pace after a lull witnessed in the first half of the current financial year due to the general elections and erratic monsoon in the country. Till January this year, the ministry has utilised ₹2,36,796  crore, or about 87% of the capital allocation worth ₹2,72,000 crore allocated to it for FY25. Road transport and highways said the government is constructing highways at a pace of 33.8 km per day, almost thrice the 2014-15 average.

“Capital expenditure (including private investment) of ministry of road transport and highways increased 5.7 times from around Rs 53,000 crore in 2013-14 to about ₹3.01 lakh crore in 2023-24 (highest ever). Target capital expenditure for 2024–25 is set at ₹3.3 lakh crore, out of which ₹2.14 lakh crore has already been utilised till 31 December, 2024,” the road transport and highways ministry said in the annual report for 2024-25. It may be noted that out of the total budgetary capital outlay of ₹2,72,241 crore for 2024-25, the ministry has utilised ₹2,36,796 crore till January this year.

The annual report of the ministry pointed out that the pace of national highways (NH) construction has increased consistently due to the systematic push through corridor-based development approach. “Present construction in 2024-25 is 5,852 km up to December 2024. Construction during 2023-24 reached 12,349 km which is the second highest and 20% more than previous year. Highest achievement was 13,327 km in 2020-21,” the report added.

“Apart from the Lane augmentation is at all time high (9,642 km) during 2023-24 and 17% higher than previous year (8,233 km in 2022-23). Four lane roads including expressways/access controlled highways is at all time high at 5,193 km and at 12% higher than previous year (4,635 km in 2022-23),” the report said.

“Pace of national highways construction increased 2.8 times to 33.8 km/day (2023-24) from 12.1 km/day (2014-15). Present award during 2024-25 is 3,100 km upto December, 2024, whereas total award for complete FY2023-24 was 8,581 km. The average pace of award during the period from 2014-24 is 11,017 km,” the ministry added.