BLOG
Roads: Expressway Development on a fast lane
The government’s outlook for the nation is to have 50,000 km of functional expressways, and at present 4000 km of expressways are already functional with construction work of 6000 km more in progress. The expressway expansion plan is expected to be completed by 2037.
The government has also planned to increase logistics efficiency. By enhancement of the highway network, the government seeks to increase the average speed of a freight truck to more than 90 km per hour by 2047 from 25-40 km per hour currently
In August, the cabinet has cleared the first tranche of eight national high speed corridor projects. The total cost of these projects is estimated to be ₹50,655 crore which will result in the construction of 936 km of highways. Minister of road transport and highways has expressed that another ₹40,000 to ₹50,000 crore of access-controlled projects are in the pipeline and by December a total of ₹2 lakh crore worth of highway projects would be approved.
This opportunity provides a strong growth tailwind for Road EPC players like HG Infra, KNR Construction and PNC Infra, in our coverage universe. We expect the order momentum to kick in from H2FY24 and translate into strong revenue growth in FY26.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Related content
Blogs
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Video
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.