ICRA lowers road execution forecast to 10,000-10,500 km in FY25
Ratings agency ICRA in its latest report has revised its forecast of road execution by the Ministry of Road Transport and Highways (MoRTH) in FY2025 to 10,000-10,500 km from its earlier estimate of 12,500-13,000 km. The same is on account of the General Elections in Q1 FY2025 and prolonged monsoon in certain geographies, which affected productive days, resulting in a decline in execution during that period, which is already reflecting in execution done till 8M FY2025.
The report stated that spending by the Road Ministry also stood lower at 55% of the FY2025 Budget Allocation (BA) in 8M FY2025 against 66% of BA of the previous fiscal. As per ICRA’s estimates, road awards are likely to be in the range of 8,500-9,000 km in FY2025, similar to the last year’s awarding of 8,581 km. In 8M FY2025, road awards stood at around 2,250 km, compared to 2,816 km awarded in 8M FY2024 amid continued uncertainty on the mode of project awarding and the impact of General Elections in H1 FY2025.
It further said project awarding gained momentum from November 2024 following better clarity from MORTH in Q2 FY2025. The Ministry awarded 773 km in November 2024 compared to 221 km in November 2023 and the average monthly award of 316 km in 8M FY2025.
