NHAI Sees Lowest Highway Awards in Seven Years

By Amit Jangra | Published Date : June 29, 2026

NHAI awarded fewer highway projects in FY26 as land acquisition delays and debt reduction remained key priorities, according to a Nuvama Institutional Equities report.

Jun 27, 2026 | 4 min read | Commercial Vehicle Industry

Building new highways was not as fast in FY26 as many people expected. A new report by Nuvama Institutional Equities shows that fewer highway projects were awarded during the year. Compared with a few years ago, the number has come down a lot.

Around 3,124 km of highway projects were awarded by NHAI during FY26. These contracts were worth about Rs 42,300 crore. The figure improved compared to FY25, but it was nowhere close to the level seen in FY23. The pace of fresh highway awards has slowed over time. When road projects awarded by MoRTH are also included, the total comes to nearly 7,000 km in FY26. This was slightly below the number recorded a year earlier.

Land Issues Continue

Table of Contents

1. Land Issues Continue

2. Money Is Being Used Differently

3. Industry Watching the Next Move

4. Outlook Remains Cautious

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One reason  behind the slower pace is land acquisition. In many cases, project approvals are ready, but land is not available on time. Because of this, work cannot begin as planned. People connected with the road sector say this problem has been around for some time. Until land is ready, many projects remain stuck even after getting approval.
When fewer projects start, work also becomes limited for businesses linked with road construction. This can affect demand for trucks, transport services and construction work in different parts of the country.

Money Is Being Used Differently

The report says NHAI's overall spending stayed almost at the same level during FY26. Even then, the length of highways built by the agency went down. The reason is that the authority is paying more attention to its finances. During the year, money raised through asset monetisation was also used to reduce debt. The report says NHAI wants to become debt-free over the next few years. Because of this, many people in the industry do not expect a big jump in new highway awards in the near future.

Industry Watching the Next Move

Road projects create work for many sectors, not only construction companies. They also support businesses connected with mini trucks, logistics, pikups and New Heavy Construction Equipments used at project sites. The report also points out that listed road developers are getting a smaller share of NHAI projects than before, while many smaller companies are winning more contracts. Industry experts feel companies may now have to look beyond highway projects and explore other infrastructure segments as well.

Outlook Remains Cautious

For now, the road sector is moving at a slower pace than it did a few years back. The report does not expect a quick rise in project awards because the focus remains on financial discipline and debt reduction.

Even so, the long-term need for better highways across the country has not changed. If pending land issues are resolved and more projects receive clearance, activity may improve in the coming years. Until then, businesses linked with trucks, mini trucks, pickups and New Heavy Construction Equipments are likely to keep a close watch on how new highway projects move forward.

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Frequently Asked Questions on Commercial Vehicles

1.  Why did highway project awards remain low in FY26?

Ans: The report says delays in land acquisition and a greater focus on financial management slowed the pace of new highway project awards.

2. How many highway projects did NHAI award in FY26?

Ans: NHAI awarded contracts for around 3,124 km of highway projects worth nearly Rs 42,300 crore during FY26.

3. Why is NHAI focusing on reducing debt?

Ans: The agency is using part of its funds to lower debt as it works towards becoming debt-free in the coming years.

4. How could the slowdown affect the transport industry?

Ans: Fewer highway projects may reduce demand for trucks, mini trucks, pikups and New Heavy Construction Equipments linked to road construction activities.

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