"The pace of execution in this fiscal will be supported by a healthy pipeline of projects at above 45,000 km as of March 2024, increased capital outlay by the government and focus on completion of projects by the Ministry of Road Transport and Highways," the report states.
During the 10-year tenure of Prime Minister Narendra Modi's government over 90,000 kilometres of national highways have been built which is almost twice that constructed in the preceding 10 years, according to official figures.
Government investment in highway infrastructure shot up to INR 2.4 lakh crore in 2022-23 from INR 51,000 billion crore in 2013-14.
"Road execution was impacted in the first half of 2023-24 on account of the prolonged monsoon in certain geographies, However, the execution situation started improving from September 2023 with road construction witnessing a year-on-year surge of 30% in the second half of 2023-24, enabling an overall growth of around 20% in FY24 (to 12,349 km from 10,331 km inFY23)," ICRA VP and Sector Head Corporate Ratings Vinay Kumar said.
ICRA expects the road construction momentum to sustain in FY2025 as well, he added.
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