News Brief
Road Ministry Prioritises Corridor-Based Highway Development To Drive Infrastructure Growth
A highway in Gujarat (Photo: TeshTesh/Wikimedia Commons)
The Ministry of Road Transport and Highways (MoRTH) is advancing a corridor-based approach to highway development, emphasising consistent standards, user convenience, and logistics efficiency, according to a report by Axis Securities.
A comprehensive study using GSTN and toll data has identified a 50,000-km high-speed highway corridor network, critical for India’s goal of becoming a $30 trillion economy by 2047.
By December 2024, MoRTH had operationalised 4,693 km of high-speed corridors and aims to achieve 4,827 km by the end of FY25.
Landmark projects, including the Delhi-Mumbai Expressway, Delhi-Dehradun Expressway, and Bengaluru-Chennai Expressway, are set for completion this year, marking a new phase in connectivity.
The National Highways Authority of India (NHAI) is focused on transforming highway infrastructure in 2025 to ensure safer and more efficient travel.
Despite challenges, 4,900 km of highways were constructed in the first eight months of FY25, slightly below last year’s pace.
The government’s target to construct 10,400 km of highways this fiscal year remains ambitious, with NHAI tasked to complete 5,000 km.
October 2024 recorded an all-time high of Rs 6,115 crore in electronic toll collections, driven by increased travel during the festive season.
NHAI’s asset monetisation efforts in FY24 yielded Rs 40,000 crore, reducing its debt from Rs 3.3 trillion to Rs 2.76 trillion.
While the sector shows long-term promise, road construction companies face short-term challenges.
Axis Securities reported a 3 per cent year-on-year revenue dip in Q3FY25, with EBITDA and profit after tax declining by 4 per cent and 10.7 per cent, respectively.
However, strong order books and diversification into non-road projects, such as solar energy and water supply, provide optimism.
With plans to award 12,900 km of highway projects in FY25, a 50 per cent increase from the previous year, and innovations like satellite navigation-based toll systems, the infrastructure sector is poised for robust growth.
