Highway funding pipeline strong, but execution pace remains uneven, says Gadkari

India has the capacity to mobilise as much as ₹8 lakh crore annually for highway development, but the pace of spending continues to lag, Union road transport and highways minister Nitin Gadkari said, pointing to a gap between financing and on ground execution.

Speaking on the sector’s outlook, Gadkari noted that nearly ₹5 lakh crore could be raised through market borrowings and other instruments, supported by a steady rise in toll revenues. The expanding toll base, aided by improved highway networks, is expected to strengthen the financial position of road projects.

At the same time, he flagged constraints in project execution, including delays in approvals, land acquisition challenges and capacity issues among contractors. These factors have slowed the conversion of available funds into completed assets.

The government is also looking at technology led interventions such as artificial intelligence based tolling systems to improve efficiency and reduce congestion at plazas. Faster toll collection and better traffic management are expected to enhance both user experience and revenue flows.

The assessment highlights a recurring concern in the infrastructure sector, where financing availability has improved in recent years but project delivery continues to face structural bottlenecks.