FCC

Road Contracts awarded drop to less than half!

2024-02-23

Last year, the length of national highways constructed across India was 10,331 kms at the rate of 28.3 kms per day. This year, the target was set at 13,800 kms at the rate of 37.8 kms per day. However, by the end of January 2024, only 7,658 kms have been constructed at the rate of 28.4 kms per day. To achieve the target of 13,800 kms, the rate of construction has to rise to 102.4 kms per day! This is next to impossible, considering that 37.8 kms per day was the best record achieved at the rate of 36.5 kms per day during 2020-21 when a total of 13,327 kms were constructed during the year.

What is alarming is that the pace of awards has slackened abysmally to less than half! For instance, up to January 2024, only 3,481 kms have been awarded, while during the same time last year, 8,400 kms had been awarded.

The adverse impact of poor awards will be felt bitterly during the winter of 2024. We hope the government accelerates its actions before election dates are announced and hope again that the government that assumes power hits the ground running.