Infra boost: India speeds up efforts to clear backlog of stalled highway projects; aims 60% cut in pending projects

India is pushing to clear a large backlog of delayed national highway projects by the end of March, aiming to cut cost overruns and revive construction momentum after a sharp fall in project awards this fiscal.According to an ET report, the road, transport and highways ministry began the year with 152 stalled projects worth Rs 71,500 crore. Of these, 54 have now been resolved. As of Monday, the number of delayed projects has fallen to 98, valued at Rs 39,300 crore. A senior government official cited by ET as saying that the target is to bring this number down to 60 by March, marking a 60% reduction in two years.The official said the government is accelerating clearances, fast-tracking land acquisition and ensuring the timely release of central funds to move construction forward. “This will also help to arrest further escalation in the cost of these projects due to delays,” the official added.Delays in major infrastructure works often hurt developers’ cash flows and lead to overshooting timelines and budgets. The slowdown was visible in the first half of this fiscal year as the ministry focused on improving processes to ensure better quality and timely delivery.As per ET, the number of awarded projects where work had not begun for over a year has dropped from 87 projects worth Rs 80,400 crore in April 2024 to 53 projects valued at Rs 39,300 crore by November.The National Highways Authority of India — responsible for nearly half of all national highway construction — has awarded only 467.72 km and built 2,108.38 km so far, far below the 2025–26 targets of awarding 4,500 km and building 5,000 km. The official said efforts to clear stalled stretches will help rebuild the project pipeline at a time when new awards have slowed.Experts quoted by ET say the push will help raise the daily construction rate. EY India’s infrastructure leader Kuljit Singh said construction firms are burdened by high overheads without adequate revenues, and the move will bring relief.Crisil’s Jagannarayan Padmanabhan added that clearing stalled projects “frees up contractor capacity, improves lender confidence, and resets the project pipeline,” noting its importance for completing Bharatmala Phase I by 2026.