Road construction execution by the Ministry of Road Transport and Highways (MoRTH) is expected to moderate to between 9,000 km and 9,500 km in FY2026-27, primarily owing to a slowdown in project awarding activity, according to rating agency ICRA.
The projection indicates a moderation from the rollout levels seen in recent years, reflecting a deceleration in the pace at which new contracts are being awarded to developers. While actual execution remains substantial, the agency noted that the momentum of new project awards has moderated, which is likely to weigh on overall execution volumes in the coming fiscal.
ICRA highlighted that the contraction in awarding activity was due to a combination of factors including land acquisition delays, funding challenges for developers, regulatory clearances and slower bid finalisation timelines. These constraints have resulted in fewer fresh contracts being put out to the market, tempering the pace of overall rollout plans.
Despite the anticipated moderation, execution levels in the range of 9,000 km to 9,500 km still represent a sizeable infrastructure delivery footprint and align with the government’s broader objectives of improving road connectivity and highway network expansion.
The agency observed that ongoing projects with earlier awards are expected to continue progressing, supported by improved execution practices, mechanisation and greater contractor capacity. This is expected to partially offset the impact of slower awarding on overall execution performance.
Industry analysts said that while the moderation in project awards may influence execution metrics in the near term, sustained focus on improving clearances, quicker bid processes and broader participation by developers could help reinvigorate awards and maintain momentum in future fiscal years.
The government has emphasised its commitment to achieving extensive road network expansion under national infrastructure plans, with execution levels remaining a key focus area for policymakers.
