India outlines $203bn spending target for road projects

The Indian government has set a 15 trillion rupees ($203bn) road construction target for the next two years, saying it will also allow 100pc foreign direct investment in the road sector.

India's roads, transport and highways ministry has set a construction target of 40 km/d for the 2021-22 fiscal year ending 31 March, transport minister Nitin Gadkari said. More than 7,300 projects, at a cost of Rs111 trillion are planned to be implemented by 2025, he added.

India's road construction and infrastructure projects have slowed because of Covid-19 lockdowns and curfews. The country's Covid-19 cases have increased to 20.3mn, making India the second-most infected country after the US. Roading projects have slowed with reduced manpower as migrant workers return to their home towns.

The slowdown has weighed on bitumen demand with imports possibly falling below 100,000t in April, according to market participants. They expect Indian bitumen demand to remain subdued during May because of the continued impact of the pandemic.

By Sathya Narayanan