New Delhi: The construction of national highways is expected to slow down in FY25 on account of decline in projects awarded during FY24. Projects for the construction of just 2,817 km were awarded till November 2023, compared to 5,382 km during the same period a year ago, businessline reported.The Ministry of Road Transport and Highways (MoRTH) said that approvals need to be expedited for the revised Bharatmala Phase-I project or any alternative programme to meet the targeted awards for FY24.The shortfall may worsen with the model code of conduct for Lok Sabha elections in effect during January-March 2024. March typically sees a significant percentage of road project awards, the businessline report said.ICRA, a ratings agency, predicted a lower overall award in FY24 compared to the previous year, cutting its forecast to 7,000-7,500 km, a 40-43% decline year-on-year. The delay in Cabinet approval for the revised cost of Bharatmala Phase-I has also slowed the project awarding process.Breaking down the awarding process, Modani told the businessline, “If you award, say, in July, August or September, then financial closure and so on happen six months down the line, ahead of the appointed date. So, it generally takes 8-9 months for work to begin after the awarding.”Accordingly, FY24 will not be impacted because most projects are underway at a comfortable clip. However, if there is a slowdown in awarding during the current fiscal, then execution will be impacted in the second half of FY25 and, subsequently, FY26, he added.According to ICRA, there is a preference for the ‘engineering, procurement, and construction’ (EPC) route in road project awards, with a gradual shift towards ‘build, operate and transfer’ (BOT)-toll projects which require less funding support from the ministry.Bharatmala Phase-IThe government has also decided to extend the completion deadline for the flagship highway development project, Bharatmala Phase-I, from 2022 to 2027-28. The six-year delay from the original schedule is primarily driven by a more than 100% increase in the estimated cost of the project which is now standing at nearly Rs 11 trillion.“It is the ministry of road transport and highways’ endeavour to award all projects on completion of land acquisition and obtaining all clearances by the end of 2024-25, a senior official told Financial Express.Of the total length of 34,800 km, approximately 76%, or 26,418 km, of highway stretches have been awarded so far. Despite this progress, the first eight months of the current financial year have seen only 102 km of projects under Bharatmala Phase-I being awarded, the report said.The pace of awarding projects is expected to further slow down until the Cabinet Committee on Economic Affairs (CCEA) sanctions the revised cost of the project. The Ministry of Finance has imposed restrictions, barring the highways ministry from creating any fresh liability under the project until CCEA approval is secured.With the extended completion deadline set for 2027-28, only 42%, or 15,045 km, of the project had been completed as of November-end, the Financial Express reported.The Cabinet committee initially approved the first phase in 2017, estimating a cost of Rs 5.35 trillion. However, the sanctioned cost of awarded projects has surpassed Rs 8.5 trillion, prompting the Public Investment Board to appraise the revised cost of Bharatmala Phase-I at Rs 10.95 trillion.