The National Highways Authority of India (NHAI) plans to award 54 highway projects worth ₹1.80 lakh crore this fiscal year. This marks a reduction from the previous year's target, signaling a shift in project execution pace. Investors may track how this affects the order books of major construction and infrastructure firms across the country.
The National Highways Authority of India (NHAI) has announced a revised plan to award 54 highway and expressway projects in the current fiscal year. These projects, covering 2,442 kilometers, represent a total capital spending target of ₹1.80 lakh crore. This update marks a noticeable decline in the volume of projects compared to the 124 projects, covering 6,376 kilometers with a cost of ₹3.45 lakh crore, that were previously identified for the 2025-26 period.
Execution Models and Project Distribution
The identified projects are spread across thirteen states, including Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, and Bihar. To manage these developments, the authority is using three distinct execution frameworks. The largest portion, comprising 26 projects, will follow the Engineering, Procurement, and Construction (EPC) model, where the government pays the full cost of construction. Additionally, 21 projects will use the Hybrid Annuity Model (HAM), while seven projects are earmarked for the Build-Operate-Transfer (BOT) model.
Under the BOT model, private developers typically take on the responsibility of construction and operations for a concession period of 15 to 20 years, which includes maintenance duties. HAM projects also require the developer to manage maintenance for a 15-year period. These models are crucial for investors in infrastructure companies, as the choice of model directly influences the cash flow, debt burden, and return on investment for construction firms.
Impact on Infrastructure Companies
NHAI remains the primary driver of highway construction in India, responsible for nearly half of the total national highway network development. Changes in the authority's bidding pipeline can significantly impact the revenue visibility for road construction companies and engineering firms. While the reduction in the total number of projects from the prior year’s targets may appear as a slowdown, it reflects the authority's evolving priorities in project selection and capital allocation.
Investors looking at this sector should monitor how individual construction companies adjust their order books to match this revised pace. For companies with high debt, the move toward specific models like HAM or BOT—where the private sector shares more financial risk—can be a key factor in long-term profitability. Furthermore, the ability of contractors to manage cost inflation and maintain margins while executing these projects will remain a central area of interest.
The next important updates to watch include the actual pace of project awards throughout the year and any further adjustments to the tender pipeline by the Ministry of Road Transport and Highways. Investors may also monitor how large listed infrastructure players respond to these specific project tenders in their upcoming quarterly earnings calls.