Persistent RoW delays have driven execution slippages under PPP projects, pushing construction activity to a multi-year low in FY2026e.

MoRTH’s recent measures to enhance pre-bid readiness are expected to structurally ease work-front constraints and support smoother project execution.

Road PPP models in India have transitioned from BOT (Toll) to BOT (Annuity) and subsequently to HAM, reflecting a calibrated reallocation of risks. Under HAM, concessionaire exposure to traffic and toll risks has been significantly curtailed, with risks largely confined to execution and interim funding. This has positioned HAM as MoRTH’s preferred PPP mode, particularly for large and complex projects.

The execution of national highways has gained momentum, with the average construction pace improving to ~27 km/day in FY2018 from 11-17 km/day during FY2013-FY2016. This improvement was supported by sustained project awarding and enhanced budgetary support. The uptrend broadly coincided with the introduction and scaling up of HAM from FY2016 onwards and sustained till FY2023. However, project execution is lately witnessing a down-trend.

Exhibit 1: Trend in project awarding and execution under MoRTH

Source: ICRA Research; E: ICRA’s estimate; P: ICRA projection