Construction Landscape of India’s Roads & Highways Sector in FY 2023-24: A Zone-wise Analysis – Part 1 of 3

This report provides a regional overview of India’s Roads & Highways sector for FY 2023-24. These analytics, documented by Biltrax Construction Data (hereafter referred to as Biltrax) through the BX-2 platform, explore key trends and major players influencing the region’s construction industry.

Introduction

India has the second-largest road network in the world, spanning nearly 6.7 million kilometers (km), having grown by 59% over the last ten years. Road transportation has gradually increased over the years, with improvements in connectivity between cities, towns, and villages in the country.

The National Highways Authority of India (NHAI) spent a record-breaking INR 207,000 Crore (USD 24.79 billion) on constructing national highways in FY 2023-24. This expenditure marked the highest capital outlay ever recorded, representing a 20% increase from the previous year. By January 2024, the country’s total length of national highways reached 146,145 km.

The Government of India has allocated INR 111 Lakh-Crore (USD 1.4 trillion) under the National Infrastructure Pipeline (NIP) for FY 2024-25. The roads sector is expected to account for 18% of capital expenditure over FY 2024-25. Furthermore, the government aims to construct 65,000 km of national highways at INR 5.35 Lakh-Crore (USD 64.17 billion).

Also Read: India’s Construction Industry in FY 2023-24: A Zone-Wise Analysis

Key Initiatives during FY 2023-24 in the Roads & Highways Sector:

• In March 2024, Prime Minister Narendra Modi inaugurated and laid the foundation stone for 112 national highway projects across various states, totaling approximately USD 12.04 billion (INR 1 Lakh-Crore).
• The capital spending of MoRTH (Ministry of Road Transport and Highways) increased by more than nine times to INR 1.87 Lakh-Crore in FY 2023-24.
• The Union Minister also unveiled over 200 projects totaling INR 1.25 Lakh-Crore (USD 14.97 billion) earmarked for the next five years under the National Ropeways Development Programme known as ‘Parvatmala Pariyojana’.
• Initiatives like the Bharatmala Pariyojana continued to drive investments in the sector. Phase I of this program aimed to develop 24,800 km of national highways. It focuses on economic corridors, inter-corridor and feeder roads, national corridor efficiency, as well as connectivity to borders, ports, and coastal areas.
• India’s Gati Shakti Program has identified 81 high-impact projects, prioritizing road infrastructure. Major highway projects include the Delhi-Mumbai Expressway (1,350 km), Amritsar-Jamnagar Expressway (1,257 km), and Saharanpur-Dehradun Expressway (210 km).
• The government allowed 100% Foreign Direct Investment (FDI) under the automatic route in the road and highways sector.​

Also Read: India’s Industrial sector Landscape in FY 2023-24

Utilizing Biltrax Construction Data for Strategic Insights

Analyzing regional dynamics through zonal analytics empowers stakeholders to make well-informed decisions and uncover opportunities specific to each zone’s distinctive attributes.

Biltrax plays a pivotal role in tracking and analyzing construction projects across India. As of June 2024, Biltrax monitors 50,507 live construction projects. These encompass more than 16.80 Billion-SqFt of construction area and a total estimated construction value of INR 9,580,862 Crore (USD 1.13 trillion). Biltrax’s BX-2 platform is a comprehensive resource tracking 20,000 non-building projects across India. It covers diverse segments such as Roads & Highways, Industrial/Manufacturing, Warehousing, and Water Supply & Distribution. Our dedicated team of analysts meticulously tracks and monitors Roads & Highway projects within this extensive framework. 

BX-2 Roads and Highways sector prominently tracks key projects by NHAI, NHIDCL (National Highways & Infrastructure Development Corporation Ltd), and other authorities, as well as major infrastructure developments identified in the sector.

As we progress, we will discuss the specific analytics for each zone, providing actionable insights drawn from our extensive data platform.

Biltrax tracks projects zone-wise as elaborated below

North Zone – Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, Chandigarh, Ladakh

North East Zone – Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura

East Zone – Andaman & Nicobar Islands, Bihar, Jharkhand, Orissa, West Bengal

West Zone – Dadra & Nagar Haveli, Daman & Diu, Goa, Gujarat, Maharashtra

South Zone – Andhra Pradesh, Karnataka, Kerala, Lakshadweep, Pondicherry, Tamil Nadu, Telangana

Central Zone – Madhya Pradesh, Chhattisgarh

Zonal Summary – Roads & Highways

During FY 2023-24, the BX-2 platform documented 426 Roads & Highway projects covering INR 314,345 Crore of construction value. Our zonal analysis for the last financial year highlights diverse construction activities across India’s six zones. The West Zone leads with the highest construction value of 166,777 INR-Crore, implementing 122 projects. This accounts for over half of India’s total construction value. The North Zone follows closely, with 87 projects with a construction value of INR 44,813 Crore. 

Zone	Project Nos	Construction Value (INR-Cr)	% by Construction Value
West	122	166,777	53.06%
North	87	44,813	14.26%
South	76	36,406	11.58%
East	54	26,628	8.47%
North-East	55	21,554	6.86%
Central	32	18,167	5.78%
TOTAL	426	314,345

Biltrax also noticed a significant shift in project model types over the last few financial years. The table below shows the number of projects tracked by the BX-2 platform under each project model in the last financial year:

Project Model	Project Nos.	Construction Value (in INR-Crore)
Engineering, Procurement & Construction (EPC)	256	150,400
Hybrid Annuity Model (HAM)	90	76,916
Build Operate Transfer (BOT)	11	28,343
Design Build Finance Operate Transfer (DBFOT)	2	7,133

Also Read: Discover upcoming building construction projects in India in 2023

As per this analysis, the government implemented 256 projects under the EPC mode during FY 2023-24, with a project value of INR 150,400 Crore. This constitutes approximately 57% of the total project value tracked across all project models. Recent trends indicate a growing preference for the Hybrid Annuity Model (HAM) in road projects. Under HAM, the government and private agencies share costs, with the government funding 40% of the bid project cost, whereas the remaining 60% cost is borne by the developer. HAM ensures better risk allocation between the government and the private developer.

Furthermore, observing the recent government initiatives our team predicts a gradual shift towards the Build-Operate-Transfer (BOT) model. In this model, the private partner is responsible for designing, building, and operating the facility during the concession period, and eventually transferring it back to the public sector. This model is seen as a way to enhance efficiency and encourage private investment in project execution. 

To conclude, India’s Roads & Highways sector demonstrated remarkable growth during the last financial year. Zonal analytics are vital for capturing the regional dynamics of the Roads & Highways sector, providing valuable insights into specific construction activities and investments. By leveraging Biltrax’s robust analytics, industry players can effectively navigate the complex landscape of road construction. They can further align strategies with regional demands, driving sustainable growth in India’s infrastructure sector.

Over the next few weeks, we will elaborate on the specifics of each zone, covering construction volumes and key stakeholders in each geography.

Contact us today to learn more about how we can help you succeed in the construction industry.

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To explore our previous analyses, refer to:

Series 1: India’s Building Construction Industry in FY 2023-24: A Zone-wise Analysis

Series 2: India’s Industrial Landscape in FY 2023-24: A Zone-wise Analysis

Also, Stay tuned for our upcoming (and the final) series exploring the ‘Construction Landscape of India’s Water Supply & Distribution Sector in FY 2023-24‘.

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References: Biltrax Construction Data (BX-2 Platform), Central Statistics Office, FICCI, Economic Survey of India, DPIIT, Media sources, Ministry of Skill Development and Entrepreneurship, Economic Survey 2022-23, Union Budget 2023-24, Press Information Bureau, News Articles, IBEF Annual Reports.

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