As Highway Awards Slow, State Governments Drive More Road Spending, While Authorities Increasingly Focus On The Quality Of Road Design And Supervision. Dhruv Consultancy Services Reflects How Consultants Can Differentiate Through Technical Expertise, Empanelments.
New Delhi [India], October 31: For most of the past decade, the key number in Indian roads was kilometres a day. It peaked at 36.8 in FY21. CareEdge Ratings now expects it to fall to about 21 Km in FY27, or roughly 7,750 km for the year, after national highway awards fell from a peak of 12,731 km in FY22 to an estimated 7,000 km in FY26.
At first glance, this may suggest a slowdown in the road infrastructure sector. However, government spending remains strong. What is changing is the focus of investment, with greater attention being given to project quality, proper execution and supervision. This is creating more opportunities for engineering consultants involved in designing, monitoring and certifying infrastructure projects.
Strengthening The Spending Base Behind Indian Roads
The Ministry of Road Transport and Highways has a FY27 budget of ₹ 3.10 lakh Cr, 8% above the previous year’s revised estimate, according to PRS Legislative Research.
- Capital spending: ₹ 2.94 lakh Cr of the FY27 budget
- NHAI capex in FY26: ₹2.44 lakh Cr
- NHAI construction in FY26: 5,313 km built against a target of 4,640 km
- National highway Network: Increased from 91,287 km in 2014 to more than 1.47 lakh km.
From Kilometres To Quality: What Authorities Now Expect
The Indian Road sector is gradually shifting its focus from rapid construction to better project quality and execution, according to CareEdge. The Public Accounts Committee has also highlighted issues such as poor planning, design errors, slope failures, road cracks and waterlogging. These problems show the importance of proper project design and supervision.
To improve project quality, NHAI has introduced a rating system for companies preparing Detailed Project Reports (DPRs). It has also started evaluating authority and independent engineers who supervise projects, check designs, test materials and verify contractors’ work.
This shift creates opportunities for engineering consultants to stand out through:
- Quality Work: Preparing accurate designs and DPRs
- Strong Supervision: Ensuring proper execution at project sites.
- Skilled Teams: Having experienced and qualified engineers.
- Wide Experience: Handling different types of projects for various clients.
The States Takes The Lead: A New Source Of Demand For Consultant
Road spending is expected to shift more towards state governments in FY27, with greater focus on improving regional roads, state highways and rural connectivity. State agencies are increasingly appointing consultants for project planning, preparing Detailed Project Reports (DPRs), site supervision and project management. Some agencies also appoint consultants to handle multiple projects under a single contract. This creates opportunities for engineering consultants that are empanelled with different government agencies across multiple states, reducing dependence on a single client.
Rising Government Projects Drive Demand for Engineering Expertise
Dhruv Consultancy Services Limited, established in 2003, is a Navi Mumbai-based infrastructure consultancy with 200+ completed projects and 400+ employees across highways, bridges, railways, metro, airports and ports.
In August 2026, the company secured its largest-ever order worth ₹40.92 crore from Odisha’s OBCC for a 36-month road and bridge project management assignment. It was also empanelled by Chhattisgarh’s road development corporation for DPR work.
Key Q2 FY27 Orders:
- NHAI: ₹6.84 Cr Independent Engineer contract for the Bodhre–Dhule NH-52 section in Maharashtra
- DPR & Survey: ₹3.79 Cr contract covering 249.20 km of Maharashtra roads.
- Wayside Amenities: Three NHLML awards in Maharashtra with combined annual lease rent of ₹30.84 lakh over 15 years.
Key Drivers Shaping The Future Of Infrastructure Consultancy
Three factors are likely to play an important role in determining whether quality becomes a stronger basis of competition for consultants in India.
- Quality-Weighted Selection Beyond NHAI: NHAI evaluates consultants based on their experience and work quality. If state governments follow the same approach instead of choosing the lowest bidder, experienced firms like Dhruv Consultancy Services Limited could get more opportunities as it expands its presence across states.
- Payment Cycles In A State-Led Spending Cycle: Collection cycles of 60 to 90 days are normal for consultants working with government clients, and they lengthen in remote regions. A state-led spending cycle will test how well consultants manage working capital while hiring ahead of billing.
- The Award Pipeline & Diversification: Supervision contracts depend on new construction projects. Therefore, fewer highway project awards in FY25 and FY26 may reduce consultants’ future orders. Companies working across different states and sectors may be less affected.
