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.
India has the second-largest road network in the world, spanning nearly 6.7 million kilometers, 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 total length of national highways in the country 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).
Key Initiatives during FY 2023-24 in the Roads & Highways Sector:
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, alongside 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.???
领英推荐
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:
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, align strategies with regional demands, and drive 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.
To explore our previous analyses, refer to:
Stay tuned for our upcoming (and the final) series exploring the 'Construction Landscape of India's Water Supply & Distribution Sector in FY 2023-24'.
You can also read the article at Biltrax Media -