The Ministry of Road Transport and Highways (MoRTH) has released its Annual Report for 2024-25, indicating a slowdown in project awards and construction activities. The report highlights a concerning trend, suggesting that the ministry may not achieve its targets for the fiscal year when compared to the average performance of the previous decade. Notably, the construction of national highways has decreased significantly, with only 5,852 km constructed up to December 2024, in contrast to the 12,349 km completed in the previous fiscal year. Project awards also witnessed a decline, with only 3,100 km awarded against 8,581 km in 2023-24, raising alarms about the potential impacts on infrastructure development across the nation. The report also underscores that despite over 80% of the budget being utilized within the first nine months of this financial year, the ministry is struggling to keep pace with its ambitious targets.
Declining Infrastructure Projects
The decline in infrastructure projects is alarming, especially when examining the average pace of awarding contracts from 2014 to 2024, which stood at 11,017 km. With the current figures falling short, stakeholders in the construction and transportation sectors are left questioning the future of road development in the country. The report attributes this slowdown to a lack of an umbrella scheme for project approvals and the inherent delays in the bureaucratic process. Such bottlenecks have raised concerns among industry experts, who believe that these challenges could hinder the overall growth and modernization of India’s roadways. Moreover, the Ministry’s ambitious plan to raise Rs 39,000 crore through asset monetization has also faced setbacks, although it signed a concession agreement for a significant project in November 2024.
Budget Utilization and Future Implications
The budgetary allocation for MoRTH stands at Rs 2,72,241 crore for 2024-25, with an impressive 82.67% utilized by the end of December 2024. However, the inability to meet the construction and project award targets raises concerns about the effectiveness of this expenditure. The ministry’s efforts to implement various asset monetization strategies have been commendable, with a record collection of Rs 40,314 crore in the previous fiscal year. Yet, the current slowdown could lead to a ripple effect on employment, economic growth, and infrastructure quality. Stakeholders express that the government must address systemic inefficiencies and streamline processes to ensure that road construction and project awards can regain momentum. The potential benefits to the economy from improved road infrastructure are immense, and industry leaders urge immediate action to reverse the current trend.
Conclusion
The Ministry of Road Transport and Highways faces significant challenges in meeting its infrastructure targets for 2024-25. While budget utilization remains high, the slowdown in project awards and construction is a cause for concern.
- Significant decline in road construction projects noted in the Annual Report.
- Project approvals and bureaucratic delays contribute to infrastructural stagnation.
- Budget utilization is high, yet construction targets remain unmet.
- Asset monetization strategies show promise but need enhanced execution.
- Industry leaders call for streamlined processes to boost development.
- The future of India’s road infrastructure depends on immediate corrective measures.
