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A Comprehensive Guide on How To Start a Construction Company in India

Last Updated on December 13, 2023 by Admin

The construction industry in India has always been a pillar of the nation’s development. With urbanization and economic growth propelling forward, the sector opens up a plethora of opportunities for entrepreneurs. In this guide, we delve into the essentials of initiating a construction firm in India. Our focus is to provide a clear roadmap for aspiring entrepreneurs on How To Start a Construction Company in India.

Embracing the Construction Landscape in India

India’s construction sector is a vast field that contributes significantly to the nation’s GDP. It doesn’t just provide a foundation for various infrastructures but also plays a vital role in the nation’s economic health. The sector has witnessed steady growth, thanks to the government’s infrastructure projects and the rising demand for urban and rural construction.

Unveiling the Potential of Your Construction Venture

Starting a construction company in India can be a lucrative venture provided you have a clear understanding and the right approach towards the industry’s demands. With a rising population and the government’s focus on infrastructure development, there’s a continual demand for construction services . Moreover, the Make in India initiative further accentuates the potential for construction entrepreneurs.

Anchoring Your Quest: How To Start a Construction Company

Embarking on the journey of starting a construction company necessitates a blend of industry knowledge, operational expertise, and legal comprehension. This guide aims to unfurl the step-by-step process, essential considerations, and practical tips on starting a construction company in India. From understanding the legal prerequisites to smart financial management, we aim to provide a holistic overview to help you build a robust foundation for your construction venture.

The forthcoming sections will delve deeper into the legal framework, initiating a small construction firm, managing finances, especially when the capital is tight, crafting a solid business plan, and ensuring a strong online presence in the digital age.

Each segment is tailored to provide actionable insights and a clearer understanding of what it takes to establish a foothold in the Indian construction industry.

Stay tuned as we navigate through the intricacies of the construction business landscape, providing a blueprint for aspiring entrepreneurs to kickstart their construction ventures on the right footing.

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Table of Contents

Understanding the Legal Landscape

Navigating the legal landscape is the first and foremost step in establishing your construction business in India. This section aims to shed light on the essential licenses and the process involved in acquiring them, ensuring your business operates within the legal framework.

Overview of Licenses Needed to Start a Construction Business in India

Starting a construction company in India necessitates obtaining several licenses and registrations from various governmental authorities. Below are some of the primary licenses and registrations required:

  • Business Entity Registration : Register your business as a Private Limited Company, Limited Liability Partnership (LLP), or a One Person Company (OPC) with the Ministry of Corporate Affairs (MCA).
  • Goods and Services Tax (GST) Registration : Obtain a GST registration from the Central Board of Indirect Taxes and Customs.
  • Professional Tax Registration : Acquire professional tax registration from the local tax authorities.
  • Trade License : Secure a trade license from the local municipal authority.
  • Building Contractor License : Acquire a building contractor license from the local construction licensing board.
  • Real Estate Regulatory Authority (RERA) Registration : If your business involves real estate development, register with the Real Estate Regulatory Authority.
  • Contract Labour License : If you plan to employ contract labor, obtain a contract labor license from the state labor department.
  • Environment Clearance : Secure environment clearance from the State or Central Environment Impact Assessment Authority if your projects fall under the purview of environmental regulations.

The above licenses form the crux of legal compliance. However, based on the nature and location of your construction business, there might be other region-specific licenses or permits needed.

Process of Obtaining These Licenses and Estimated Costs Involved

Acquiring the necessary licenses involves several steps and a thorough understanding of the legal framework. Here’s a simplified breakdown of the process:

  • Choose the suitable business structure (Private Limited Company, LLP, OPC)
  • Fill out the necessary forms on the MCA website
  • Pay the requisite fee (varies based on the business structure; typically ranges from INR 5,000 to INR 15,000)
  • Apply online on the GST portal
  • Submit the necessary documents including PAN, Aadhar card, and proof of business registration
  • No fee is involved in GST registration
  • Visit the respective local or state authorities’ offices or websites
  • Fill out the required forms and submit the necessary documents
  • Pay the respective fees (varies based on the region and nature of license; typically ranges from INR 1,000 to INR 10,000)
  • Apply through the respective online portals or visit the local offices
  • Submit the required documentation and project details
  • Pay the registration fee (varies based on the region and nature of license; typically ranges from INR 10,000 to INR 50,000)
  • Apply through the respective state labor department and environment assessment authority
  • Submit the necessary documents and project details
  • Pay the application fee (varies based on the region and nature of license; typically ranges from INR 5,000 to INR 25,000)

The costs mentioned are estimated and may vary based on the region, the scale of your business, and other factors. It’s advisable to consult with legal experts or visit the respective governmental websites for the most accurate and updated information.

By understanding and adhering to the legal landscape, you lay a strong foundation for your construction business, ensuring compliance, and fostering trust with your clients and stakeholders.

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Laying the First Stone: Initiating a Small Construction Firm

Embarking on the journey of starting a small construction firm is a venture filled with both challenges and opportunities. In this section, we will walk through the steps to initiate your construction business, the importance of a well-thought-out business plan, and the significance of selecting an apt location for your venture.

Step-by-Step Guide on Starting a Small Construction Company in India

  • Conduct thorough market research to understand the demand, competition, and the specific needs of the construction industry in your chosen area.
  • Register your business entity following the legal guidelines outlined in Section 1.
  • A concrete business plan acts as a roadmap for your venture, detailing your business goals, target market, marketing strategy, financial projections, and operational plan.
  • Establish relationships with suppliers, contractors, real estate agents, and other stakeholders in the construction industry.
  • Hire skilled labor and other necessary staff. Ensure to comply with the labor laws and other regulations.
  • Establish a sound financial management system for budgeting, accounting, and financial reporting.
  • Acquire the necessary equipment, materials, and technology to operate your construction business efficiently.
  • Create a professional website, get listed on online directories, and utilize social media to build your brand and attract clients.
  • Initially, take on smaller projects to build a portfolio that showcases the quality and range of your work.
  • Stay updated with the latest trends, technologies, and regulations in the construction industry. Seek feedback from clients and strive for continuous improvement.

Importance of a Well-Thought Business Plan

A well-thought-out business plan is the backbone of your construction venture. It provides clarity on your business objectives, target market, competition analysis, marketing strategy, operational plan, and financial projections. Moreover, a solid business plan is instrumental in securing funding from investors or financial institutions. It acts as a living document that guides your decision-making process as your business grows.

Finding and Choosing the Right Location

The location of your construction business can significantly impact its success. Here are some factors to consider while choosing a location:

  • Being near to your project sites reduces travel time and transportation costs.
  • Choose a location with easy access to suppliers and skilled labor to ensure smooth operations.
  • Assess the cost of land, utilities, and other operational expenses in different locations before making a decision.
  • Understand the local regulatory environment, including zoning laws, building codes, and other relevant regulations.
  • Evaluate the demand for construction services in various locations to identify the most lucrative markets.
  • Good infrastructure and amenities like roads, electricity, water, and internet are crucial for efficient operations.

A strategic location not only facilitates smoother operations but also enhances your company’s visibility and accessibility to potential clients and other stakeholders. Taking the time to choose the right location is a wise investment that will pay dividends in the long run.

Through careful planning, understanding the legal framework, choosing the right location, and building a solid network, you can lay a strong foundation for your small construction firm in India, setting the stage for growth and success in this burgeoning industry.

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Building Without Bucks: Starting a Construction Business with No Money

In the realm of entrepreneurship, a common hurdle many face is the lack of capital. However, the construction industry, with its vast array of opportunities, allows for a meticulous and strategic approach to overcome this challenge. In this section, we’ll delve into viable strategies to kickstart your construction business with minimal or no capital, explore various financial aid options, and underscore the importance of frugality and smart financial management.

Strategies and Tips on How to Kickstart a Construction Business with Minimal or No Capital

  • Utilize personal savings, assets, or revenue from other sources to fund the initial stages of your construction business.
  • Adopt a lean business model by minimizing overhead costs, outsourcing tasks, and focusing on projects that require less capital outlay.
  • Forge partnerships with established construction firms or collaborate with other businesses to share resources and reduce startup costs.
  • Offer your construction services at a discounted rate to secure contracts and generate upfront payments to fund your projects.
  • Seek in-kind sponsorships from suppliers by negotiating for materials on credit or at discounted rates in exchange for promotional services.

Crowdfunding, Loans, and Other Financial Aid Options

  • Platforms like Kickstarter or Fueladream allow you to present your business idea to a global audience to raise funds.
  • Explore various business loan options from banks or financial institutions. Additionally, consider applying for business credit lines that offer more flexibility.
  • Look into government grants, subsidies, or low-interest loan programs designed to support startups and small businesses.
  • Pitch your business idea to angel investors or venture capital firms interested in investing in the construction industry.
  • Microloan programs offer smaller loan amounts and are often more accessible to new entrepreneurs with less established credit histories.

Frugality and Smart Financial Management

  • Create a detailed budget to monitor your expenses and ensure you are spending within your means.
  • Implement cost control measures to eliminate wasteful spending and optimize resource utilization.
  • Educate yourself on basic financial principles, accounting, and tax laws to make informed financial decisions.
  • Seek advice from financial advisors to explore the most efficient ways to manage your finances and ensure legal compliance.
  • Employ modern accounting and project management software to keep track of your finances and improve efficiency.

Kickstarting a construction business with limited or no capital is indeed a challenging endeavor, but with a meticulous approach, the right strategies, and smart financial management, it’s a reachable goal. Embracing frugality, exploring diverse funding options, and nurturing financial literacy are pivotal steps toward establishing a financially stable construction business despite capital constraints.

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A Blueprint for Success: Business Plans and Strategies

Every construction venture requires a solid foundation and a well-structured business plan serves as that foundation. In this section, we’ll explore the significance of a robust business plan, offer an overview of what such a plan should encompass with a focus on the Indian market, and provide resources for deeper insights.

Importance of Having a Solid Business Plan

A business plan is not just a document; it’s a roadmap that guides your venture towards success. Here’s why having a solid business plan is crucial:

  • It helps crystallize your business vision, mission, and the strategies to achieve your goals.
  • A business plan includes financial projections which are vital for budgeting and financial management.
  • Potential investors and lenders seek a well-thought-out business plan to gauge the viability and potential return on investment.
  • It aids in understanding the market dynamics, competition, and the demand-supply scenario.
  • Operational strategies including staffing, resource allocation, and project management are streamlined with a solid business plan.

Overview of a Construction Business Plan with a Focus on Indian Market

Your construction business plan should be tailored to reflect the nuances of the Indian market. Here’s an overview of the key components:

  • A succinct overview of your business, the market, and financial projections.
  • Detailed information about your construction firm, the services offered, and the market needs you aim to meet.
  • A thorough analysis of the construction market in India, competition, and your target customer base.
  • An outline of your business structure, team, and roles.
  • Detailed descriptions of the construction services you plan to offer.
  • Strategies for promoting your business and achieving your sales goals.
  • If seeking funding, detail the amount required, its use, and the terms.
  • Projected income statements, balance sheets, and cash flow statements for the next five years.
  • Any additional information, charts, graphs, images, or other materials that support your business plan.

Resources for Deeper Insights

For those seeking a more detailed guide on starting a construction company, various resources are available online. E-books and PDFs such as ‘how to start a construction company pdf’ and ‘how to start a construction company in India pdf’ provide extensive insights and can be a valuable resource. Websites of industry associations, government departments, and business advisory firms often host such materials. Online platforms like Scribd or SlideShare also house a plethora of industry-specific documents which can be accessed for deeper understanding.

Constructing a robust business plan is akin to laying the foundation stone of a building. It requires meticulous planning, a deep understanding of the market, and an eye on the long-term vision. As you navigate through the complexities of the Indian construction market, a well-crafted business plan will serve as a steadfast companion guiding you towards achieving your entrepreneurial dreams in the construction sector.

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Digital Foundations: Online Presence and SEO

In the modern era, having a digital presence is not just a choice, but a necessity for businesses to thrive. The construction industry is no exception to this trend. In this section, we will delve into creating an online presence for your construction company, unravel SEO strategies to enhance your online visibility, and explore engaging with online communities for shared experiences and learning.

Creating an Online Presence for Your Construction Company

  • Build a professional website showcasing your services, past projects, testimonials, and contact information. Platforms like WordPress or Wix can be instrumental in creating an aesthetically pleasing and functional website.
  • Establish profiles on social media platforms like LinkedIn, Facebook, and Instagram to connect with potential clients and showcase your work.
  • Get listed on online directories like Google My Business , Yelp, and industry-specific directories to enhance your local search visibility.
  • Create valuable content such as blog posts, infographics, and videos related to construction, home improvement, and other relevant topics to engage your audience.
  • Build a mailing list and engage with your audience through regular newsletters, updates, and promotional offers.

SEO Strategies for Construction Businesses to Rank Higher on Related Searches

  • Identify relevant keywords and phrases that potential clients might use to search for construction services.
  • Optimize your website’s title tags, meta descriptions, headers, and content with relevant keywords.
  • Optimize your online listings and website for local searches by including your location and local keywords.
  • Engage in ethical link building by creating valuable content that others want to link to and forming partnerships with local businesses and industry-related websites.
  • Ensure your website is mobile-friendly to cater to the large number of users who search on mobile devices.
  • Complete and optimize your Google My Business profile for better local search rankings.

Engaging with Online Communities on Platforms like Reddit

  • Platforms like Reddit have communities where entrepreneurs share experiences. Engage in discussions on topics like ‘how to start a construction company Reddit’ to share your insights and learn from others.
  • Participate in Q&A sessions, provide valuable insights to individuals seeking advice on starting a construction business.
  • Online communities provide a platform for networking with other construction industry professionals, potential clients, and experts.
  • Engage with communities to stay updated on the latest trends, challenges, and opportunities in the construction industry.

The digital realm is a fertile ground for construction businesses to build a reputation, engage with potential clients, and network with other industry professionals. By establishing a solid online presence, employing SEO strategies, and engaging with online communities, you pave the way for a successful venture in the construction industry while adapting to the modern digital-centric business landscape.

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Evaluating the Blueprint: Is Starting a Construction Company a Good Idea?

Venturing into the construction domain is a significant decision that comes with its set of challenges and opportunities. In this section, we will dissect the pros and cons of starting a construction business in India, delve into real-life case studies and success stories, and weigh the risks against the rewards to provide a well-rounded perspective.

Analyzing the Pros and Cons of Starting a Construction Business in India

  • Market Demand : The ever-growing infrastructure needs in India provide a fertile ground for construction businesses to thrive.
  • Government Initiatives : With schemes like Housing for All and Smart Cities, the government is fuelling the construction sector.
  • Employment Generation : Construction businesses contribute significantly to employment, aiding in economic development.
  • Potential for Growth : The construction sector has a broad spectrum of services, allowing for diversification and growth.
  • Capital Intensive : High initial investment is often required for machinery, labor, and legal compliances.
  • Regulatory Hurdles : Navigating through the myriad of regulations can be challenging.
  • Market Competition : The presence of established players can make market entry tough for newcomers.
  • Risk Factor : Construction projects come with inherent risks like project delays, cost overruns, and safety concerns.

Real-life Case Studies and Success Stories

  • L&T Construction, a part of Larsen & Toubro Limited, epitomizes how starting from humble beginnings can lead to becoming one of the most reputable construction firms in India.
  • With a legacy spanning over 150 years, this group demonstrates the potential for long-term success and growth in the construction sector.
  • A testament to the innovation and customer-centric approach leading to a strong foothold in the real estate and construction market.

Assessing the Risks and Rewards

  • Financial Risk : Significant capital at stake and potential for financial loss.
  • Operational Risk : Risks associated with project management, labor relations, and on-site accidents.
  • Market Risk : Fluctuations in market demand, competition, and regulatory changes.
  • Financial Growth : Potential for lucrative returns on investment.
  • Business Expansion : Opportunity to diversify services and expand geographically.
  • Contributing to Infrastructure Development : Playing a part in shaping the infrastructure of the nation.

The idea of starting a construction company in India comes with a mixed bag of risks and rewards. A meticulous analysis, learning from real-life success stories, and understanding the market dynamics are pivotal in making an informed decision. The journey may be challenging, but with the right strategy, risk management, and a customer-centric approach, the potential for success and growth in the Indian construction sector is promising.

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Starting a construction company requires careful planning and consideration of various aspects of the business. For those wondering how to start a construction company, the first steps typically involve market research, defining your niche, creating a business plan, securing financing, and obtaining necessary licenses and permits.

For entrepreneurs in India looking to start a small construction company, understanding the local market and construction needs is crucial. The process of how to start a small construction company in India involves registering the business, understanding the legal requirements, and building a network of suppliers and contractors.

If you’re thinking about how to start a construction company with no experience, it’s important to focus on gaining industry knowledge. This can involve partnering with experienced professionals, hiring skilled workers, and investing time in learning about the construction industry’s best practices and latest trends.

In India, the specific licenses needed to start a construction business vary by state and project type. Researching what licenses are needed to start a construction business in India is a critical step. This typically includes a GST registration, a trade license, and other industry-specific certifications.

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Starting a construction business with no money in India can be challenging, but not impossible. You can explore options such as partnering with investors, applying for small business loans, or starting small with home renovation projects to gradually build your capital.

For a comprehensive guide, how to start a construction company pdf can be an invaluable resource. These documents often provide step-by-step instructions on setting up a business, including market analysis, financial planning, and legal requirements.

Specifically, for entrepreneurs in India, how to start a construction company in India pdf can offer tailored information relevant to the Indian market, including insights on local regulations, labor laws, and business registration processes.

When considering how much money you need to start a construction company in India, it depends on the scale and scope of your intended projects. Initial costs typically include business registration fees, insurance, equipment, and initial labor costs. A thorough financial plan is essential to estimate these startup costs accurately.

For those pondering if starting a construction company is a good idea, it’s worth noting that the construction industry can be highly lucrative. However, it also requires dedication, strong management skills, and a clear understanding of the market.

To start a construction company with no money, one approach is to focus on building a strong network, leveraging partnerships, and considering small projects or subcontracting to establish a foothold in the industry.

For starting a construction company in Tamilnadu, it’s important to familiarize yourself with the state’s specific regulations and construction market. This might involve researching local construction laws, understanding the regional demand for construction services, and establishing connections with local suppliers and contractors.

Civil construction company registration is a vital step in starting your business. This includes registering your company as a legal entity, such as a sole proprietorship, partnership, private limited company, or LLP, depending on your business structure and needs.

In summary, starting a construction company involves various steps, from market research and business planning to legal registration and financial management. Whether starting a small construction company in India or elsewhere, it’s important to have a clear business strategy, understand the local market, and comply with all legal and regulatory requirements. With the right approach and dedication, starting a construction company can be a rewarding and profitable venture.

As we navigated through the blueprint of starting a construction company in India, we unearthed the multifaceted aspects crucial for laying a robust foundation for your entrepreneurial journey in the construction sector. From understanding the legal landscape to smart financial management, from carving a digital presence to evaluating the risks and rewards, each facet plays a pivotal role in steering your construction venture toward a successful horizon.

Recap of Key Points Discussed in the Article

  • Understanding the Legal Landscape : A thorough comprehension and adherence to the legal and regulatory framework is imperative for operating a compliant and trustworthy construction business.
  • Initiating a Small Construction Firm : A step-by-step guide to launching your venture, highlighting the importance of a well-thought-out business plan and the strategic choice of location.
  • Starting a Construction Business with No Money : Unveiling strategies to kickstart your business with minimal or no capital, exploring various financial aid options, and emphasizing frugality and smart financial management.
  • Business Plans and Strategies : The cornerstone of your venture is a solid business plan tailored to the Indian market, guiding your journey from inception to success.
  • Online Presence and SEO : Building a strong online presence and employing SEO strategies to enhance your visibility in the digital realm, fostering connections with potential clients and industry peers.
  • Evaluating the Blueprint : Analyzing the pros and cons, drawing inspiration from real-life success stories, and assessing the risks against the rewards to make an informed decision about venturing into the construction industry.

Encouragement to Aspiring Entrepreneurs

The construction industry in India is a vibrant and evolving realm, laden with opportunities waiting to be seized. As an aspiring entrepreneur, with the right preparation, resources, and a zeal for continuous learning and adaptation, you can carve a niche for your construction business. The road may present hurdles, but armed with a well-crafted business plan, a customer-centric approach, and a spirit of innovation, you are well on your way to contributing to the nation’s infrastructural landscape.

Your venture into the construction industry is not merely a business decision, but a step towards shaping the skyline of tomorrow. With each project, you have the potential to leave a lasting imprint on the community and the nation at large. As you embark on this exciting journey, let the insights shared in this article serve as a compass guiding you through the terrain of the construction business landscape, towards a horizon of success and fulfillment.

The vast expanse of the construction sector is awaiting your unique vision and endeavor. So, gear up, dive into the meticulous planning, and take the leap towards constructing a legacy of excellence in the Indian construction industry.

References and Further Reading

The journey towards starting a construction company in India is a path laden with continuous learning and exploration. To equip you with a deeper understanding and insights into the construction industry, here’s a curated list of resources ranging from books, PDFs, to online forums that serve as a treasure trove of knowledge.

  • A comprehensive guide that delves into the intricacies of construction management, focusing on subcontractor scopes of work.
  • This book is an authoritative guide to understanding the legal framework governing the construction industry in India.
  • Nick Ganaway shares invaluable insights on the business side of the construction industry which is crucial for aspiring entrepreneurs.
  • A holistic introduction to construction project management, aiding in mastering the essentials of planning, scheduling, and managing construction projects.

Online Forums and Communities

  • Engage with a community of construction professionals, share experiences, and seek advice on various construction-related topics.
  • A platform where contractors discuss industry-related topics, share experiences, and provide insights to newcomers.
  • A UK-based forum but with global participation, discussing a wide range of topics pertinent to the construction industry.

Other Resources

  • The official portal provides a plethora of information, government schemes, and the latest updates related to the construction sector in India.
  • Stay updated with the latest news, views, and analysis from the construction sector in India.
  • Platforms like Coursera and edX offer courses on construction management, project planning, and other relevant subjects to enhance your understanding and skills.

Arm yourself with the wisdom encapsulated in these resources, and you’re not just building structures but a legacy of knowledge and expertise in the construction realm. Continuous learning is the cornerstone of success in any venture, more so in a dynamic and evolving field like construction. Happy reading and exploring!

Call to Action

The path of entrepreneurship in the construction industry is a promising yet challenging venture, where shared knowledge and experiences can significantly smoothen the road ahead. Your insights, experiences, and curiosity are the bricks that contribute to building a robust community of aspiring and established construction entrepreneurs.

Share Your Thoughts and Experiences

We invite you to share your thoughts, experiences, or any queries you might have in the comment section below. Your perspective could provide a fresh outlook, answer someone’s burning question, or spark a fruitful discussion that benefits all readers. Whether you’re an industry veteran with years of experience or someone who’s recently embarked on this journey, your voice adds value to the conversation.

Spread the Knowledge

If you found this article insightful and believe it could be a resourceful guide for someone stepping into the construction business arena, feel free to share it across your network. By sharing this article with aspiring construction business entrepreneurs, you’re not only passing along valuable information but also encouraging a culture of shared knowledge and collective growth.

Engage and Evolve

The construction industry is an ever-evolving field where staying updated and engaged with a community of like-minded individuals can be incredibly enriching. So, dive into the discussion, share your insights, and let’s create a supportive ecosystem for every aspiring construction entrepreneur out there.

Your engagement is not just a contribution; it’s a stepping stone towards fostering a community driven by knowledge, experience, and the shared goal of succeeding in the construction business landscape. Together, let’s lay the foundation for a collaborative and knowledgeable community, paving the way for success and innovation in the construction industry.

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The amount of money required to start a construction company varies depending on several factors, including the size and scope of your operations, location, and type of projects you plan to undertake. Generally, initial expenses include costs for business registration, licensing, insurance, equipment, and initial labor. For a small-scale construction company, this might range from a modest amount to a more significant investment for larger operations. It’s important to prepare a detailed business plan to accurately estimate these startup costs.

To start a construction business, begin by conducting market research to understand the local demand and competition. Next, create a comprehensive business plan outlining your business model, services, financial projections, and marketing strategy. Obtain the necessary licenses and permits as required in your area. Secure funding through savings, loans, or investors, and purchase or lease the essential equipment. Hiring skilled labor and establishing a network of suppliers and subcontractors is also crucial. Finally, market your services to attract clients and start bidding on projects.

Yes, a civil engineer can certainly start a construction company. With their technical knowledge and expertise in construction and engineering principles, civil engineers are well-positioned to understand the complexities of construction projects. However, they should also gain knowledge in business management, or consider partnering with someone who has this expertise, to successfully run and manage a construction business.

To get a building contract, you should first ensure that your construction company is well-positioned in terms of licensing, insurance, and a portfolio of past work. Networking is crucial, so attend industry events, join construction-related associations, and connect with potential clients and contractors. Bid on projects through local government or private sector tenders, and make sure your bids are competitive and comprehensive. Building a reputation for quality work, reliability, and professionalism will also help in securing more contracts.

Key challenges in starting a construction business include securing funding, navigating legal and regulatory requirements, managing labor and supply chains, and establishing a client base. Overcome these challenges by thorough planning, seeking advice from industry experts, and building strong networks.

While having construction experience can be a significant advantage, it’s not always necessary. You can compensate for a lack of experience by hiring experienced staff, consultants, or partnering with industry veterans. However, understanding the industry and learning about construction management is crucial for success.

A construction company typically needs several types of insurance, including general liability insurance, workers’ compensation insurance, professional liability insurance, and vehicle and equipment insurance. These policies protect against various risks associated with construction projects.

Effective marketing strategies for a new construction business include creating a professional website, leveraging social media, engaging in local advertising, offering competitive pricing, and showcasing previous projects. Building strong relationships with clients and encouraging word-of-mouth referrals are also key.

151 Most Important Construction Terms To Know

Hpsc recruitment 2023 for assistant engineer (civil, mechanical & electrical) | 120 posts | 21-12-2023.

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* The Government aims to construct 65,000 kms of national highways at a cost of Rs. 5.35 lakh crore (US$ 741.51 billion).

* A network of 35 Multimodal Logistics Parks are planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore (US$ 5.55 billion), which can handle around 700 MMT of cargo.

road construction business plan in india

Higher Investments

* Growing participation of PPP.

* NHAI will come out with the third and fourth rounds of Infrastructure Investment Trusts (InvITs) to raise over Rs. 20,000 crore (US$ 2.41 billion) in FY24..

* Under the Union Budget 2023-24, the Government of India has allocated Rs. 2.7 lakh crore (US$ 33 billion) to the Ministry of Road Transport and Highways.

road construction business plan in india

Policy Support

* 100% Foreign Direct Investment (FDI) is allowed under the automatic route in the road and highways sector.

* As on December 2023, the Bhoomi Rashi Portal had incorporated 1467 projects of the National Highways Authority of India (NHAI).

road construction business plan in india

Roads Industry Report

Introduction.

India has the second-largest road network in the world, spanning a total of ~6.7 million kilometres (kms). This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with improvement in connectivity between cities, towns and villages in the country.

In India, sale of automobiles and movement of freight by roads is growing at a rapid rate.

road construction business plan in india

Market size

National highway construction in India increased at 5.3% CAGR between FY14-FY23. Despite pandemic and lockdown, India has constructed 10,457 km of highways in FY22. In FY23, the Ministry of Road Transport and Highways constructed national highways extending 10,331 kms. Under the Interim Budget 2024-25, the Government of India has allocated Rs. 2.78 lakh crore (US$ 33.46 billion) to the Ministry of Road Transport and Highways.

India's road network has grown 59% to become the second largest in the world in the last ten years. India has nearly 66.71 lakh km of total road network and the National Highways network alone stood at 146,145 km in CY 2023.

India had a total of 97,830 km of National Highways in 2014-15 which has expanded to 146,145 km by December 2023.

In FY24 (until November), cumulatively 5,248 km of National Highways have been constructed.

A total of 202 national highway projects worth Rs. 79,789 crore (US$ 9.59 billion) are at the implementation stage in the country and are 6,270 km in length.

In October 2020, the foundation stone was established for nine National Highway projects—with a total length of ~262 kms—worth >Rs. 2,752 crore (US$ 371.13 million) in Tripura.

road construction business plan in india

The Government of India has allocated Rs. 111 lakh crore (US$ 1.4 trillion) under the National Infrastructure Pipeline for FY25. The roads sector is likely to account for 18% capital expenditure over FY25.

As of November 2023, there were 352 PPP projects worth US$ 76.95 billion in India.

In October 2020, the National Investment and Infrastructure Fund (NIIF) is making progress towards integrating its road and highway portfolio. The NIIF has acquired Essel Devanahalli Tollway and Essel Dichpally Tollway through the NIIF master fund. These road infra-projects will be supported by Athaang Infrastructure, NIIF's proprietary road network, assisted by a team of established professionals with diverse domain expertise in the transport field.

Key Investments/Developments

The Union Minister of State for Road, Transport and Highways has stated that the Government aims to boost corporate investment in roads and shipping sector, along with introducing business-friendly strategies, which will balance profitability with effective project execution. According to the data released by Department for Promotion of Industry and Internal Trade Policy (DPIIT), Cumulative FDI inflows in construction development stood at US$ 26.42 billion between April 2000-September 2023.

Private investments in the highway sector would likely rise from around Rs. 20,000 crore (US$ 2.40 billion) a year now to nearly Rs. 1 trillion (US$ 12 billion) in the next 6-7 years, Mr. Amit Kumar Ghosh, additional secretary, ministry of road transport and highways, said.

In October 2023, rating agency Crisil said that the assets under management (AUM) for infrastructure investment trusts (InvITs) in India's road sector will nearly double by March 2025 from the current Rs. 1.4 trillion (US$ 17 billion).

Government Initiatives

Some of the recent Government initiatives are as follows:

  • In March 2024, Prime Minister Narendra Modi inaugurated and laid the foundation stone for 112 national highway projects across various states, with a total worth of approximately US$ 12.04 billion (Rs. 1 lakh crore).
  • In the fiscal year 2023-24 (up to July), a budget of US$ 34.04 million (Rs. 276 crore) has been designated for the Pradhan Mantri Gram Sadak Yojana (PMGSY).
  • The government has enlisted a consultant to advise on adopting new technologies like GNSS for barrier-free tolling. GNSS-based Electronic Toll Collection will be piloted alongside FAS Tag on select National Highways.
  • Bharat New Car Assessment Program launched for safety rating of passenger cars and empowering consumers to take informed decisions
  • In August 2023, the National Highways Authority of India (NHAI) made a big step towards improving the highway user experience, with the introduction of 'Rajmargyatra,' a citizen-centric unified mobile application. This user-friendly app provides travellers with in-depth knowledge of Indian National Highways as well as an effective procedure for filing complaints.
  • In July 2023, Prime Minister Mr. Narendra Modi dedicated a six-lane greenfield motorway part of the Amritsar-Jamnagar Economic Corridor and the first phase of the Inter-State Transmission Line for Green Energy Corridor.
  • Increasing the pace of development of Uttar Pradesh, the Union Minister for Road, Transport and Highways, Mr. Nitin Gadkari inaugurated two National Highway projects with an investment of more than Rs. 3,300 crore (US$ 396.8 million) in Lucknow on July 17, 2023.
  • In June 2023, National Highways Authority of India (NHAI) introduced a ‘Knowledge Sharing’ platform for sharing of knowledge and innovative best practices. This effort, which is hosted on the NHAI website, will assist the authority in working with specialists and citizens who want to exchange knowledge and views about subjects including road design, construction, road safety, environmental sustainability, and related sectors. The platform will promote the exchange of best practices from all around the world and work to strengthen the nation's national highway system.
  • NHAI will come out with the third and fourth rounds of Infrastructure Investment Trusts (InvITs) to raise over Rs. 20,000 crore (US$ 2.41 billion) in FY24.
  • NHAI is planning to award 1,000-1,500 km of projects under the BOT model in 2023-24.
  • As of December 19, 2023, a total of 749,639 km of road length has been constructed under PMGSY.
  • India’s Gati Shakti program has consolidated a list of 81 high impact projects, out of which road infrastructure projects were the top priority. The major highway projects include the Delhi-Mumbai expressway (1,350 kilometres), Amritsar-Jamnagar expressway (1,257 kilometres) and Saharanpur-Dehradun expressway (210 kilometres). The main aim of this program is a faster approval process which can be done through the Gati shakti portal and digitized the approval process completely.
  • As of March 2022, the government plans to spend Rs. 10,565 crore (US$ 1.38 billion) on the Trans-Arunachal Highway and Kaladan Multi-Model Transport Project, as well as other roads development projects such as capital connectivity, district connectivity, connectivity to the international border, and improvement and strengthening of roads in the region of Sikkim.
  • The Indian government launched Gati Shakti-National Master Plan, which will help lead a holistic and integrated development of infrastructure generating immense employment opportunities in the country.
  • In October 2021, the government issued a notice related to concessions under the Vehicle Scrapping Policy (effective from April 2022) to encourage vehicle owners towards discarding old vehicles which have higher fuel consumption costs.
  • In October 2021, the government launched a conversion project for 15 major roads in the Agartala smart city, the project will convert these roads to weather-resilient ones, and further strengthen development of the region.
  • In October 2021, the government announced rules to improve road safety, such as fixed driving hours for commercial truck drivers and a mandate to install sleep detection sensors in commercial vehicles.
  • In FY22 (until October), the Ministry of Road Transport and Highways constructed national highways extending 4,450 kms compared with 4,956 kms in FY21 (until October).
  • In October 2021, the government announced a plan to install charging stations every 40 to 60 kilometres on national highways to strengthen wayside amenities; in line with this, ~700 e-vehicle charging stations are expected to be installed by 2023, covering 35,000 to 40,000 kms of national highways.
  • In September 2021, the Ministry of Road Transport and Highways constructed national highways extending 3,824 kms compared with 3,335 kms in August 2021.
  • To transform road infrastructure in Punjab, Haryana and Rajasthan, the Indian government has planned to construct roads extending 313 kms for Rs. 11,000 crore (US$ 1.48 billion).
  • In September 2021, the Indian government announced road projects worth Rs. 1 lakh crore (US$ 13.48 billion) to develop road infrastructure in Jammu and Kashmir. The region has also witnessed growth in national highways, from 7 in 2014 to 11 in 2021.
  • In September 2021, the Ministry of Road Transport and Highways allocated Rs. 7,270 crore (US$ 980.9 million) for road safety programmes in 14 states that constitute 85% of the total road fatalities in India.
  • Under Phase-I of Bharatmala Pariyojana, the Ministry has approved implementation of 34,800 km of national highways in 5 years with an outlay of Rs. 5,35,000 crore (US$ 76.55 billion). Under this scheme, 22 greenfield projects (8,000 kms length) are being constructed; this is worth Rs. 3.26 lakh crore (US$ 43.94 billion). A network of 35 Multimodal Logistics Parks are planned to be developed as part of Bharatmala Pariyojana, with a total investment of about Rs. 46,000 crore (US$ 5.55 billion), which can handle around 700 MMT of cargo.
  • The government also aims to construct 23 new national highways by 2025.
  • The Minister for Road Transport & Highways and Micro, Small and Medium Enterprises, Mr. Nitin Gadkari, is targeting to construct 40 kms per day in FY22.
  • In August 2021, the Union Minister of Road Transport and Highways, Mr. Nitin Gadkari, announced to launch 1,080-km (road construction) projects worth Rs. 25,370 crore (US$ 3.4 billion) in Gujarat under the Bharatmala Pariyojana—the ambitious road and highways project that aims to build highways from Maharashtra, Gujarat, Rajasthan, Punjab, Haryana and then cover the entire string of Himalayan territories.
  • Relaxation in Schedule H/G with effect from July 01, 2021, until September 30, 2021, to improve liquidity of funds available with contractors and concessionaire.
  • Arrangement regarding direct payment to the approved sub-contractor through an escrow account can be continued until September 30, 2021, or completion of work by the sub-contractor, whichever is earlier.
  • In August 2021, the Union Minister of Road Transport and Highways, Mr. Nitin Gadkari sanctioned Rs. 100 crore (US$ 13 million) to restore roads affected by heavy rains in Konkan and Western Maharashtra. This includes Rs. 52 crore (US$ 7.0 million) for temporary restoration and Rs. 48 crore (US$ 6 million) for permanent restoration.
  • In August 2021, the central government sanctioned >Rs. 600 crore (US$ 81 million) of the Central Road and Infrastructure Fund (CRIF), for construction of 42 roads and bridges in Uttarakhand.

The Government, through a series of initiatives, is working on policies to attract significant investor interest. A total of 600+ sites are planned to be awarded by 2024-25 of which 144 Wayside Amenities (WSAs) have already been awarded. In the next five years, National Highway Authority of India (NHAI) will be able to generate Rs. 1 lakh crore (US$ 14.30 billion) annually from toll and other sources.

Note: Conversion rate used for March 2024 is Rs. 1 = US$ 0.012

References:  Media Reports, Press Releases, Ministry of Road Transport and Highways, NHAI website, Press Information Bureau (PIB), Union Budget 2023-24

Notes: ^FDI in construction development Includes: Townships, housing, built-up infrastructure and construction-development projects

road construction business plan in india

Related News

Ministry of Road Transport and Highways constructs over 12,000 kilometres of highways in FY24, signalling a massive leap in infrastructure development and nationwide connectivity.

Prime Minister, Mr. Narendra Modi recently launched and initiated the groundwork for 112 National Highway projects worth around US$ 12.1 billion (Rs. 1 Lakh Crore) in Gurugram, Haryana.

Prime Minister, Mr. Narendra Modi initiated the Nyaya Maha Abhiyan, a three-year mission with a project outlay of US$ 2.9 billion (Rs. 24,000 crore), and in the last three months, projects totalling over (Rs. 7000 crore) have been approved.

Prime Minister, Mr. Narendra Modi achieved a noteworthy milestone in Odisha, officially launching and initiating the groundwork for a range of development projects exceeding the total value of US$ 2.4 billion (Rs. 19,600 crore) in Chandikhole.

Ministry of Road Transport & Highways Secretary, Mr. Anurag Jain, announces the completion of 95,000 km of national highways, focusing on high-speed access-controlled roads for future sustainability.

Indian Roads

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Construction

Road and rail infrastructure in India - statistics & facts

The Indian economy has benefitted considerably from the infrastructure sector. It is a diverse field that passes through many industries including construction, urban and rural development, real estate, telecommunication, and transport. It contributed a share of about nine percent to India’s GDP . In the country’s organized market, popularly referred to as India Inc., the construction sector was valued at nearly nine trillion rupees in financial year 2019 . Furthermore, the construction industry was attractive for foreign direct investments (FDI) . After a decline in FDIs during 2019, however, inflow recovered the following year, reaching over 600 million U.S. dollars. An important component in the infrastructure sector across India is road and rail transport. Since its expansion after the country’s independence, the network is composed of rural and district roads as well as national and state highways. The road network in the subcontinent was the second largest in the world. In 2019, the total length of roads across the country stood at over six million kilometers. Among the metropolitan cities, the capital region of Delhi had the longest road network spanning over 33 thousand kilometers as of 2019. Though the road density and length in the country was quite high, the nation continued to suffer from poor quality of roads as compared to other developing countries. The conditions of the road network combined with the high passenger and freight traffic created a demand for further planning and investment into the road transportation sector. Infrastructure development and investments in the railway sector in India had also been significant. The industry was the backbone of long-distance domestic transport, making the rail network third largest across the globe. There were over 22 thousand trains that connected around eight thousand stations. In 2020, over one billion metric tons of freight was carried via Indian railways. That year, the passenger traffic stood at over eight billion. On average, the railway network carried around 23 million passengers every day. The government continued investing in the industry to cater to the increasing demand of daily commutes created by a better connectivity between rural and urban areas, predominantly for employment purposes. Given the importance of the infrastructure sector for the economic development of a country, reports on cost overruns and delays resulted in disputes in recent years. Nevertheless, the construction industry and infrastructure projects looked towards an economic revival after the coronavirus (COVID-19) pandemic. These expectations were canalized through the National Infrastructure Pipeline (NIP), one of the biggest governmental initiatives in recent years. The NIP was launched in August 2020 and spanned the period from 2020 to 2025, aiming to improve quality of life for Indian citizens. Over seven thousand projects worth around 1.5 trillion U.S. dollars were scheduled. Although most projects were planned for the power sector, roads and railways made up a collective 32 percent . Besides massive governmental funding, one aim of the NIP was to attract major private funding for these projects. This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text. Show more - Description Shangliao Sun Research expert covering India Published by Shangliao Sun , Dec 19, 2023

Key insights

Detailed statistics

Value of construction to India's GDP Q2 2018-Q4 2023

FDI equity inflow amount for infrastructure industries India 2016-2023

Source of infrastructure investments in India FY 2020, by sector and source type

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Rail Transport

Indian Railways revenue FY 2001-2023

Passenger Cars

Car sales volume in India FY 2023, by OEM

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Value of construction to India's GDP Q2 2018-Q4 2023

Value of construction to India's GDP from 2nd quarter of 2018 to 4th quarter of 2023 (in billion Indian rupees)

Construction GVA change rate in India FY 2013-2023

Change rate of Gross Value Added of construction industry in India from financial year 2013 to 2023

Source of investments in infrastructure in India in financial year 2020, by sector and source type

Cost overrun share in infrastructure projects India FY 2010-2021

Share of cost overrun in infrastructure projects across India from financial year 2010 to 2021

FDI inflow amount in railways India FY 2012-2023

Foreign direct investment inflow in the railway sector across India from financial year 2012 to 2023 (in million U.S. dollars)

Budget allocation for roads and highways development India FY 2017-2024

Budget allocation for roads and highways development across India from financial year 2017 to 2023, with an estimate for financial year 2024 (in billion Indian rupees)

Value of toll collection on national highways in India FY 2017-2023

Value of tolls collected on national highways across India from financial year 2017 to 2023 (in billion Indian rupees)

Estimated infrastructure investments in India FY 2020-2025, by sector

Estimated investments under National Infrastructure Pipeline (NIP) in India from financial year 2020 to 2025, by sector

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Export volume of vehicles from India between financial year 2010 and 2023 (in millions)

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Export value from the tire industry in India from financial year 2012 to 2022 (in billion Indian rupees)

Value of automotive parts exports India FY 2009-2023

Value of automotive parts exports from India between financial year 2009 to 2023 (in billion U.S. dollars)

Value of railway transport equipment exported from India FY 2017-2023

Export value of railway transport equipment from India from financial year 2017 to 2023 (in million U.S. dollars)

Export value of railway transport and parts India FY 2016-2023

Export value of railway transport and parts from India from financial year 2016 to 2023 (in million U.S. dollars)

Road segments

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National highway length awarded and constructed in India FY 2015-2023

Length of national highways awarded and constructed across India from financial year 2015 to 2023 (in 1,000 kilometers)

Leading states by length of national highways constructed India FY 2019

Leading states by length of national highways constructed across India in financial year 2019 (in kilometers)

Rate of road length awarded and constructed India FY 2015-2020

Rate of road length awarded and constructed across India from financial year 2015 to 2020 (in kilometers per day)

Volume of cars sold across India in financial year 2023, by original equipment manufacturer

Sales volume of two-wheelers in India Sep 2019-Sep 2020, by state

Sales volume of two-wheelers across India between in September 2019 and September 2020, by state (in 1,000s)*

Market share of bus sales in India FY 2022, by manufacturer

Market share of bus sales across India in financial year 2022, by manufacturer

Heavy trucks production in India 2011-2022

Heavy truck production volume in India from 2011 to 2022 (in 1,000 units)

Rail segment

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Value of earnings from rail passenger traffic in India FY 2010-2023

Value of earnings from rail passenger traffic across India from financial year 2010 to 2023 (in billion U.S. dollars)

Railway route length in India FY 2003-2022

Route length of railways across India from financial year 2003 to 2022 (in 1,000 kilometers)

Track renewals completed in India FY 2016-FY 2022

Track renewals completed across India from financial year 2016 to 2022 (in kilometers)

Indian railway passenger traffic FY 2010-2022

Passenger traffic in railways across India from financial year 2010 to 2022 (in billions)

Volume of freight carried by Indian railways FY 2010-2022

Volume of freight carried by Indian railways from financial year 2010 to 2022 (in million metric tons)

Number of locomotives in railway fleet in India FY 2022, by type

Number of locomotives in the railway fleet across India in financial year 2022, by type

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Infrastructure PE/VC investments in India 2023, by company

Private equity and venture capital (PE/VC) investments in the infrastructure sector in India in 2023, by company (in million U.S. dollars)

Leading tire and rubber product companies in India 2024

Leading tire and rubber product companies in India as of March 2024, based on net sales (in billion Indian rupees)

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Value of Raymond Group's auto component sales from financial year 2015 to 2023 (in billion Indian rupees)

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Top 10 Road Contractors in India

road construction business plan in india

The roads and highways construction sector in India has seen spectacular growth over the past few years.  The Indian economy is progressing at a rapid pace and hence necessary road works are being carried out in several parts of the country. Every day, India constructs about 60 kilometres of roads. The National Highways Authority of India (NHAI) is credited to be responsible for most of the highway construction projects. The Ministry has constructed 2,912 km of National Highways up to August 2022.  With the growing aspirations of becoming an economic superpower, the Indian government as well as state governments have increased funding for national highways and other infrastructure development projects.

In this article, you’ll read about the top 10 road construction companies in India owing to their exceptional quality, efficiency, innovation, and volume of construction. The road contractor participates in the process by doing the necessary operational tasks to complete the project. Many components of a project, including project planning, monitoring, surveillance, worksite safety, and other regulatory requirements, clearly show the duties and obligations of road contractors.

Take a glance at the top 10 road contractors in India –

1. larsen & toubro .

road construction business plan in india

One of India’s top companies for building roadways, elevated corridors, and runways is L&T. The entire spectrum of highways, from micro to massive, urban to rural, and simple to complicated, have been developed and built by their Transportation Infrastructure business vertical. In total, they have built more than 13,500 kilometres of roads, as well as a number of bridges, toll booths, and complex road interchanges.

Larsen and Toubro will construct Package 10 of the Nagpur Mumbai Super Communication Expressway (Maharashtra Samruddhi Mahamarg). With an INR 2,095 crore order from Maharashtra State Road Development Corporation Ltd (MSRDC), the company will construct Package 10 of the Nagpur Mumbai Super Communication Expressway (District Aurangabad: Village Fatiwabad to Village Surala) in Maharashtra.

Other Key Projects –

  • Delhi-Agra Road
  • Unnao Lucknow Express Highway
  • Ahmedabad Dholera Expressways

2. Dilip Buildcon Limited

road construction business plan in india

Dilip Buildcon, which was founded in 1987, is the industry leader when it comes to completing EPC projects and largely concentrates on road construction. The firm is situated in Bhopal, Madhya Pradesh, and is listed on both the BSE and NSE. The Indian Ministry of Road Transport and Highways has given Dilip Buildcon the Silver Award at the 2018 National Highway Award for Excellence.

They are currently involved in the construction of the NHAI Delhi – Vadodara Greenfield Expressway (Package 15). The proposed project includes the Construction of an Eight Lane access-controlled Expressway starting near the Junction with NH-12 near the village Ummedpura to a major bridge over the Takli river near Nayagaon Jageer village, a section of the Delhi – Vadodara Green field Alignment (NH-148N). The total length of this section is 8.3 Km.

Other Key Projects –

  • 6-lane Access Controlled Greenfield Highway, Karnataka
  • Mahagaon – Yavatmal Expressway
  • 6-lane road under Raipur-Vishakhapatnam Economics Corridor 

3. Afcons Infrastructure Limited 

road construction business plan in india

Mumbai-based business Afcons Infrastructure Limited was founded in 1959. Afcons is a company that offers construction and engineering services. The company provides infrastructure services and participates in the construction of infrastructure projects, such as viaducts, flyovers, metros, bridges, pipelines, motorways, ports, barrages, and projects for oil and gas.

Afcons is currently building the MSRDC Nagpur-Mumbai Super Communication Expressway (Package 14). The project calls for building the Maharashtra Samruddhi Mahamarg, an access-controlled highway between Nagpur and Mumbai, as part of Package 14 (Village Taranganpada-Pimpri Sadroddin to Village Vashala BK in District Nashik and Thane). The highway is 13 kilometres long overall, and the project’s construction cost is INR 2413 crores.

  • 3-Grade Separator, New Delhi
  • Mumbai Nagpur Super Communication Expressway

4. IRB Infrastructure Developers 

road construction business plan in india

IRB Infrastructure Developers Ltd. is a key player in the Build-Operate-Transfer (BOT) market and is India’s first and foremost multi-national infrastructure developer in the roads sector. One of the major projects being constructed by them includes NHAI Six Laning of the Chittoor-Thachur Highway (Package-4). The proposed project includes the Development of a Six lane Chittoor-Thachur Highway from Km 96.040 (Pondavakkam) to Km 116.100 (Kannigaipair) on a Hybrid Annuity mode under Bharatmala Priyojana, in the state of Tamil Nadu (Package-4).

  • Ahmedabad Vadodara Six Lanes Expressway
  • Meerut Budaun Six Lanes Expressway
  • Yedeshi Aurangabad Four Laning project

5. HG Infra Engineering Limited

road construction business plan in india

Infrastructure firm H.G. Infra Engineering Limited (HGIEL) is promoted by Shri Hodal Singh, a construction industry veteran with 40 years of expertise. With Shri Harendra Singh Choudhary in charge, HGIEL has developed into a premier Indian enterprise for the building of road infrastructure.

  • Ganga Expressway Group-II
  • Raipur-Vishakhapatnam (Package 1)
  • Karala Kanjhawala Road

6. G R Infraprojects Limited

road construction business plan in india

One of the top companies in the road-building industry is G R Infraprojects Limited.  They have decades of solid project execution experience in EPC (Engineering, Procurement, and Construction), BOT (Build, Operate, and Transfer), and HAM (Hybrid Annuity Model) projects, which include the development and construction of state and national highways, bridges, culverts, flyovers, airport runways, tunnels, and rail over-bridges.

 They have a diverse portfolio of completed projects in a variety of Indian regions and at varying levels of complexity, including tunnel building in steep terrains and high-traffic and high-density areas. They are involved in the construction of NHAI Four Laning of Madanapalle to Pileru Section of NH-71. The project proposed the Construction of Four Lanning of NH-71 from Madanapalle to on Hybrid Annuity Mode (HAM) in the State of Andhra Pradesh under Bharatmala – Pariyojna.

7. NCC Infra

road construction business plan in india

NCC Infra is a Hyderabad-based construction firm that was founded in 2005. It supports a variety of infrastructure sectors, including power, water, trains, housing, and irrigation. The company has become the leader in the BOT services, real estate, and international business markets.

A super communication expressway between Nagpur and Mumbai is currently being constructed by NCC (Package-3). As part of the project, an Access Controlled Nagpur Mumbai Super Communication Expressway Maharashtra Samruddhi Mahamarg will be constructed in Maharashtra on an EPC basis for Package 3 Village Ashta to Village Wadhona Ramnath. This highway has a total length of 72.367 kilometres.

  • Construction of Ahmedabad – Vadodara Access Controlled National Expressway NE-1, Gujarat.
  •  8 Lane Access Controlled Expressway with 2×2 lane service roads for Outer Ring Road Project in Hyderabad City, Telangana
  •  Six Lane Agra – Lucknow Access Controlled Expressway Project, Uttar Pradesh.

8. PNC Infratech Limited

road construction business plan in india

A leading provider of infrastructure investment, development, construction, operation, and management in the country, PNC Infratech Limited operates in a variety of sectors across the nation. As a leading infrastructure provider, it has extensive experience and demonstrated expertise in a wide range of industries, including expressways, highways, bridges, flyovers, airport runways, water supply, industrial area development, and other infrastructure activities.

As a single source for all infrastructure implementation services, they provide design, engineering, procurement, construction, O&M, and “Design-Build-Finance-Operate-Transfer” (DBFOT), toll, annuity, hybrid annuity, and operate-maintain-transfer.

One major project they are involved in is NHAI Eight Laning of Kanpur Lucknow Expressway (Package-II). The project proposes the construction of Six Lane Upgradable to Eight Lane of the Kanpur Lucknow Expressway including a Spur in the state of Uttar Pradesh on Hybrid Annuity mode under Bharatmala – Pariyojana (Package-2).

  • 4 laning Jhansi -Khajuraho section of NH 75/76
  • Six Laning of Chakeri Allahabad section of NH-2
  • 4 laning of Aligarh- Kanpur Section

9. TATA Projects 

road construction business plan in india

In India, Tata Projects is a market leader in the development of airports and metro rail systems, offering all-encompassing solutions for the transportation industry. Several elevated and subterranean metro rail systems, as well as expressways, roads, and a dedicated freight route, are now being built by them.

NHAI Four Laning of Ramban to Banihal Section of NH-1A (Package 1) is being constructed by TATA Projects at a cost of INR 1245 crores. The project proposes the Construction of Four Laning of part of Ramban to Banihal Section of NH-1A (Now NH-44), From Km 154.210 To Km 158.650 (North Bound) and from Km 155.940 To Km 160.260 (South Bound) Section including the construction of twin tube tunnels (Package-I) in the UT of Jammu & Kashmir on EPC Mode. The Highway Length, North Bound is 4.440 Km and South Bound is 4.320 Km.

Other Key Project s –

  • Chennai Outer Ring Road

10.  Gayatri Projects 

road construction business plan in india

Over the past 17 years, Gayatri Projects Ltd. has worked on a variety of infrastructure development projects, including motorways, irrigation projects, large-scale excavations, ports, airports, and industrial civil works. The company has been building roads for more than 17 years and leverages the pre-qualification process to expand into other states and areas and take on more challenging projects.

They are constructing the MSRDC Nagpur – Mumbai Super Communication Expressway (Package 11) at a cost of INR 1,110 crores. The project envisages the Construction of Access Controlled Nagpur Mumbai Super Communication Expressway Maharashtra Samruddhi Mahamarg in the State of Maharashtra on EPC Mode for Package 11 Village Dhotre to Village Derde Karhale (from Km 502.698 TO Km. 532.094) in district Ahmednagar. The length of this highway is 29.396 km.

  • Nagpur – Mumbai Expressway near Shirdi – 29.39 Kms (6 Lane)
  • Purvanchal Expressways around Lucknow – 80 Kms. (6 Lane)
  • 6 Lane tunnel at Khambataki Ghat

References:

Larsen and Toubro

Dilip Buildcon Limited

Afcons Infrastructure Limited

IRB Infrastructure Developers

HG Infra Engineering Limited

G R Infraprojects Limited

PNC Infratech Limited

TATA Projects

Gayatri Projects

Biltrax Construction Data is tracking 20000+ projects on their technology platform for their clients. Visit https:/www.biltrax.com/ or email us at [email protected] to become a subscriber and generate new leads.

Disclaimer: The information contained herein has been compiled or arrived at, based upon information obtained in good faith from sources believed to be reliable. All such information and opinions can be subject to change. The image featured in this article is for representation purposes only and does not in any way represent the project. If you wish the article to be removed or edited, please email [email protected] .

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CivilJungle

Road Development Plans in India

10th August 2023

ROAD DEVELOPMENT PLANS IN INDIA

Introduction of the Road Plan

Important Point

Road plays a vital role in the economic development of road transport in India. Road Transport is one of the easiest , convenient, and economical modes of transportation.

Roads also play an important role in the defence as well as in the cultural progress of our country .

Highway Development and Planning

HIGHWAY DEVELOPMENT AND PLANNING

Planning, or highway planning in india , is one of the most important things before starting any project. It is the basic requirement for the development and construction of highways.

Highway Development and Planning is very important in the overall development of the country .

It deals with the planning, Development, traffic operation and control, Pavement Design, Construction and maintenance of roads.

Also, read:  What Is the Gradient of Road | Types of Road Gradient | Factors Affecting Gradient |Effect of Gradient on Roads

The Necessity of Highway Planning

The necessity of Highway Planning are as follows

  • Highway planning is very important for planning an efficient network of the roads and for Safe traffic operations .
  • To plan for the future requirements and the Developments of the roads in the country .
  • To plan for Construction and maintenance of various types of the road network .
  • To work out the financing system .

Formation of Road Development Plan

FORMATION OF ROAD DEVELOPMENT PLAN

After the End of the First World war, the demand for a better road network, especially considering the formation width of road , is increased. The existing roads in India are not capable of heavy traffic and transportation.

It is a need that there should be a good road Development Plan which will help in the overall development of India.

The Indian legislature passed the legislature for the appointment of the committee in order to examine and make a detailed report on the development of roads in India .

Nagpur Road Plan

Nagpur Road Plan

The first 20 year road plan is also popularly known as Nagpur Road plan, which many refer to when discussing what the nagpur plan is associated with. For development and construction of roads to the government took a conference of chief engineers at Nagpur in 1943 . The conference, held in nagpur plan 1943 , is popularly known as the Nagpur road plan.

Nagpur road plan is the first attempt for the road development programme .

The construction and the development of the roads were assigned to the central government of India .

The target road length in the Nagpur road plan is 16 km per 100 square km area of the country. The Nagpur road Development Plan was planned for a time period of 1943-1963 , but it was achieved two years before.

The target road length in the Nagpur road plan is 5,32,700 km .

The pattern which is used in the roads for nagpur road plan is based on.

The Development allowance for Nagpur road plan is 15%.

The salient features of nagpur road plan include its classification of roads as follows

  • National highway(NH)
  • State highway(SH)
  • Major District Roads(MDR)
  • Other District Roads(ODR)
  • Village Roads(VR)

1. National Highways (NH)

National Highways are the main highways which run through the length and breadth of India and join the main parts, capital of states, and large industrial and tourist centres which includes various roads required for a strategic moment for the defence of India.

The Road width varies from 7 m to 15 m for the National highways in India.

All the National highways are assigned with the numbers for example

Amritsar-Ambala-Delhi Road-NH1

Agra-MumbaiRoad-NH3

2. State Highways (SH)

The Highways linking up with the National Highways of adjacent States district headquarters and important cities with the states are known as state highways .

The responsibility of construction and maintenance of the state highways taken by State Government .

The geometry design specifications and design speed for National Highways and State Highways are the same.

The length of state highway roads varies from 7 m to 10 m .

3. Major District Roads (MDR)

The major district roads are one of the important roads which are located within the district.

It serves an area of production and Markets and connecting these places with each other or with the main highway .

The responsibility for construction and maintenance of major district roads are associated with district authorities.

The state government gives grants for the development of major district roads .

4. Other District Roads (ODR)

The roads serving ruler areas of production and providing them with market centres, headquarters, and block development headquarters, railway station, etc are known as Other district roads .

5. Village Roads (VR)

The roads connecting villages or groups of villages with each other or with the nearest role of the higher category are known as village roads .

Village roads place a very important role in the development of rural areas.

Also, read:  What Is Camber in Road |  Types of Camber | Advantages of Camber in Road

Bombay Road Plan

Bombay Road Plan

Bombay city is the capital of Maharashtra state . It is one of the metropolitan and second most populated cities in the world.

So that is very essential that there should be proper road Development plan should be planned and implemented.

The 2nd 20 year road plan , also known as the Bombay Road plan, was initiated by IRC (Indian Road Congress) in the year of 1959.

This second twenty-year road development plan was finalised for the period of 1961-1981. It was popularly known as the Bombay Road plan.

The Development allowance for the Bombay road plan is of 5%.

The targeted road length for the Bombay road plan is almost double as compared to the Nagpur road plan . The total length of the Bombay road plan is 10,57,330 km or 32 km per 100 square km .

The Construction of the Express way of about 1600 km is also included in the Bombay road plan.

Lucknow Road Plan

Lucknow Road Plan

The 3rd 20 year road plan , also known as the Lucknow Road Plan, was prepared by the Road wing of Ministry of shipping and Transport with the co-operation of various experts and organizations in the field of highway engineering and transportation.

The third-year road Development plan was finalized for the time period of 1981-2001 . It was popularly known as a road plan.

The targeted road density of the Lucknow road plan is 82 km per 100 square km .

The pattern which is used in the third year road Development Plan is Square and block pattern .

There is no Development allowance is given for the third 20-year road Development Plan . In this road plan, there was great importance given to the energy conversation, environmental quality of the roads, and the safety measures .

Objectives of Lucknow Road Plan

  • The main objective of the Lucknow road plan is to connect the main cities and provide a fast-moving corridor to minimize travel time .
  • To reduce pollution and carbon footprint of vehicles that are travelling between Lucknow and Agra .
  • To enable farmers in Uttar Pradesh to move agricultural and other horticultural products rapidly to the main cities.
  • For the efficient and safe movement of traffic on the roads.

Classification of Roads as Per the Third Road Development Plan

According to the third road development plan, the roads in the country are classified into three types for the purpose of transport planning, functional identification and assigning priorities on the road network.

  • Primary System.
  • Secondary System.
  • Tertiary System.

1. Primary System

Primary system is as follows.

Expressways

Expressways are a separate class of highways which has superior facilities and design standards. Expressways have a very high volume of traffic.

These highways only permit fast-moving vehicles. The construction and maintenance of these roads are associated with the central government or state government depending upon the type of roads .

2. Secondary System

Secondary system are as follows.

2.1. State Highways (SH)

This road can carry medium to fast level traffic. The roads having width varying from 7 m to 10 m which connects the national highways and the district places in the states are known as state highways (SH) .

2.2. Major District Roads (MDR)

The major district roads are the roads which connect one district to another district. The design speed of vehicles on major district roads is less as compared to highways .

3. Tertiary System

Tertiary system are as follows.

3.1. Other District Roads (ODR)

The roads which connect each main district place to the taluka place are known as district roads. The width of this roads varies from 5 m to 8 m .

3.2. Village Roads (VR)

  The roads which connect any village to the district road are known as village roads. This type of roads is made up of earth materials where only light traffic is allowed.

Also, read:  What Is Caisson Foundation | Types of Caisson Foundation | Advantage, Disadvantage, Application, & Construction of Caisson

Road Development Plan of Various Cities in India

Pune road plan.

Pune Road Plan

The Pune Road plan comes into existence in 2007 .

The main aim of the Pune road plan is to boost the connectivity in the city and suburban areas .

It was planned to be implemented in four phases and the total estimated cost of the project is Rs 17,328 crores .

Jaipur Road Plan

Jaipur Road Plan

The transportation of Jaipur mainly depends on the roads.

The Master Development Plan for the Jaipur region was prepared by Jaipur Development Authority .

It functions in providing good road infrastructure .

Chennai-Bengaluru Road Plan

Chennai-Bengaluru Road Plan

Chennai-Bengaluru expressway is a green-field project with a proposed closed toll system .

There are two roads that connect the capitals of states like Tamil Nadu and Karnataka .

The project cost of Chennai-Bengaluru is Rs 20,000 crores .

Delhi Road Plan

Delhi Road Plan

Delhi is the capital of India and it is essential to have good road transport in Delhi.

The government is planning for the redevelopment of nine roads in Delhi.

The estimated cost of this project is Rs 400 crore .

There are also various road plans in India like Surat road plan, Hyderabad road plan and Ahemdabad road plan which are working for the development and establishing strong road network in India.

Road Development in India

Bharatmala Phase I plans to construct 34,800 kilometres (21,600 mi) of highways (including the remaining  projects  that were under NHDP) by 2021–22, at an estimated cost of ₹535,000 crore (US$75 billion).  India’s  rate of  road  building has accelerated since 2010s.

In the Nagpur plan, they divided the roads into  four classes. 2. They proposed that road length should be increased so as to provide a density of 16 km per 100 sq.km.

This was the third 20 year  road plan  (1981-2001). It is also called  Lucknow road plan . The  plan  has set the target length of NH to be completed by the end of seventh, eighth and ninth five year  plan periods. It aims at improving the transportation facilities in villages, towns, etc.

Highway Development in India

The National  Highway Development  Programme (NHDP) was. the first major programme launched in 1997 to develop a large  highway network across the. country. The Public Private Partnerships (PPP) was adopted as a means of road  and  highway .  development in India  starting from 2001, given the larger challenges and the need.

Development of Roads in India

Excavations in the sites of Indus valley revealed the existence of planned  roads in India  as old as 2500-3500 BC. During the time of Mughal period,  roads in India were greatly improved. Roads linking North-West and the Eastern areas through gangetic plains were built during this time.

Development of Road

Excavations in the sites of Indus valley revealed the existence of planned  roads  in India as old as 2500-3500 BC. The Mauryan kings also built very good  roads . During the time of Mughal period,  roads in India were greatly improved.

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  • The Indian Road Congress created this strategy at the Ministry of Road Transport and Highways’ request.
  • The primary road system, which consists of expressways and national highways, and the secondary road system, which consists of state highways and important district roads, are both covered by this road document.
  • It has taken into account the requirement for the country’s overall road system development.

road construction business plan in india

Salient Features of Fourth Twenty Year Road Development Plan:

  • The Road Development Plan Vision: 2021, which was created with the full participation of the highway profession in both the public and private sectors, expresses the intention for highway development in the 20 years starting in 2001.
  • This vision addressed issues such as the need to mobilise financial resources, including the expansion of the road fund, toll financing, private sector participation, capacity expansion of main highways, pavement strengthening to handle the movement of heavy commercial vehicles, undertaking a massive programme of village road construction, and preservation of existing road assets.
  • Needs for road construction in the North Eastern region and other remote places have received specific attention in the aforementioned document.
  • Using the most cutting-edge and sophisticated tools for building roads was given priority.
  • The importance of research and development efforts in the road sector has increased.
  • Priority was placed on improving road safety through various engineering techniques.
  • More focus should be paid to engineer training.
  • Providing complete connectivity to all habitations, including the construction of bridges and culverts, must be the goal. The following concept for new connectivity has been suggested as a result.
  • Habitations with populations above 1000 by the year 2009–10 (or 500 in the case of hills, NE states, deserts, and tribal areas) and above 500 by the year 2014–15 (or 250 in the case of hills, NE states, deserts, and tribal territories) Communities with a population of more than 250 by 2021–2022.

The following list provides the country’s 2020 primary and secondary road system total target lengths:

a. The main highway network

  • 15,766 km of expressways (Target length)
  • 80,000 km (target length) of national highways; 57,700 km (Achieved length)

b. Secondary road network:

  • 1,60,000 km (target length) of State Highways; 1,24,300 km (Achieved length)
  • 3,20,000 km (target length) of major district roads; 29,94,000 km (Achieved length)
  • Other District Roads and Village Roads: 29,94,000 km (achieved length), no objective set.

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Road ministry hopes to construct over 12,000 km of roads in fy24.

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India's Ministry of Road Transport and Highways aims to construct 12,000-13,000 km of national highways in 2023-24, marking the second-highest annual achievement. The highest was 13,327 km in 2020-21. As of January 2024, 7,685 km has been completed. The ministry anticipates setting a record for the highest construction of four-lane roads and access-controlled highways, targeting 9,500 km.

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Can India build 50 km a day?

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India is home to the world's second-largest road network. In the next five years, the Ministry of Road Transport and Highways (MoRTH) wants to complete 60,000 km of NH at an average daily construction rate of 40 km. Clearly, we need to pull up our socks to achieve this. Moreover, the target now is to attain 50 km a day. With an average construction cost of about Rs 30 crore per kilometre (including land acquisition costs) and a conservative inflation rate of 3 per cent for road-building costs, the total funding requirement over five years to attain this target will entail a good deal of investment from the Government.

That said, Anshumali Srivastava, Chief General Manager – Mumbai, National Highways Authority of India(NHAI), believes we are pretty much on track as far as investments are concerned. “Road investment is increasing year on year [YoY]. In 2022-23, roads have seen the highest ever investments with Rs 2.15 lakh crore. Moreover, the banks have taken an interest in the sector. Due to InvITs, funding is easily available. Further, the National Infrastructure Pipeline [NIP] has been laid out for the next five years, which provides assurance to the market.”

Cyclones, the monsoon and the secondary effect of COVID-19 did affect the pace of land acquisition because of which road construction has slowed down.But the construction of four, six and eight-lane National Highways has shot up by 300 per cent in the past seven years. So, despite the appalling effect of the pandemic, getting back to building 50km per day is not a far-fetched idea.

Keeping in mind that land acquisition continues to remain a key challenge,the Government has decided not to award any contracts until 80 per cent of land acquisition is already complete. Moreover, a good deal of political will is also getting things done.

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From a record 37 km per day in 2020-21, the pace of National Highway construction slowed to 20.43 km a day during the first four months of 2022. Considering this, it is natural to question the feasibility of the Indian Government’s plan to augment the pace of construction to 50km a day.CW takes a closer look… India is home to the world's second-largest road network. In the next five years, the Ministry of Road Transport and Highways (MoRTH) wants to complete 60,000 km of NH at an average daily construction rate of 40 km. Clearly, we need to pull up our socks to achieve this. Moreover, the target now is to attain 50 km a day. With an average construction cost of about Rs 30 crore per kilometre (including land acquisition costs) and a conservative inflation rate of 3 per cent for road-building costs, the total funding requirement over five years to attain this target will entail a good deal of investment from the Government. That said, Anshumali Srivastava, Chief General Manager – Mumbai, National Highways Authority of India(NHAI), believes we are pretty much on track as far as investments are concerned. “Road investment is increasing year on year [YoY]. In 2022-23, roads have seen the highest ever investments with Rs 2.15 lakh crore. Moreover, the banks have taken an interest in the sector. Due to InvITs, funding is easily available. Further, the National Infrastructure Pipeline [NIP] has been laid out for the next five years, which provides assurance to the market.” Cyclones, the monsoon and the secondary effect of COVID-19 did affect the pace of land acquisition because of which road construction has slowed down.But the construction of four, six and eight-lane National Highways has shot up by 300 per cent in the past seven years. So, despite the appalling effect of the pandemic, getting back to building 50km per day is not a far-fetched idea. Keeping in mind that land acquisition continues to remain a key challenge,the Government has decided not to award any contracts until 80 per cent of land acquisition is already complete. Moreover, a good deal of political will is also getting things done. To read the full article, CLICK HERE.

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India-oman to begin next round of free trade discussions from jan 16, negotiating trade pact with eu, uk, sri lanka, peru: commerce ministry, govt to revamp tunnel construction sops to prevent silkyara like mishaps, rules of origin for medical sector remains sticking point in india-uk fta, round 14 of india-uk fta talks put on hold ahead of election schedule, newsclick founder purkayastha released from tihar jail on sc orders, air pollution: delhi's aqi turns 'poor'; experts cite unfavourable weather, monsoon expected to hit kerala coast on may 31, to boost crop output, iit-madras places over 80% of btech/dual degree students, 75% from masters, bmc asks railway authorities to remove hoardings of above 40x40 feet size.

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