Nirman Bhavan demolition halted? NITI Aayog advises 2-year halt on major construction projects: Report
The suggested two-year suspension underlines the government's concerns over the economic fallout of the Iran conflict and disruptions in West Asia
- May 12, 2026,
- Updated May 12, 2026 5:15 PM IST
Government think tank NITI Aayog has advised the Centre to pause major construction projects for two years as the Iran war drives up fuel costs, imports, and raw material prices, The Tribune reported on Tuesday.
The recommendation reportedly includes halting the demolition and reconstruction of key ministerial complexes in Delhi, including Nirman Bhavan, Udyog Bhavan, and Shastri Bhavan.
Don't Miss: BT Explainer | US-Iran ceasefire on 'life support': Why India's economy is under pressure
NITI Aayog reportedly told the ministries concerned that "owing to cost escalation, rising imports and supply chain disruptions affecting the availability of raw material, all large-scale construction activity should be paused for two years."
The suggested two-year suspension underlines the government's concerns over the economic fallout of the Iran conflict and disruptions in West Asia.
The recommendation reportedly came before the appointment of Ashok Lahiri as NITI Aayog vice-chairman and before a new team of full-time members took charge.
On Sunday, Prime Minister Narendra Modi urged citizens to conserve fuel, revive work-from-home practices, delay gold purchases, and reduce foreign travel as global energy prices surged amid the West Asia conflict.
Demolition work at Nirman Bhavan, which houses the Union Urban Affairs and Health Ministries, has already been halted, the report said, citing sources. Preparatory work for the demolition of neighbouring Udyog Bhavan - home to the MSME, Steel and Commerce Ministries - may also stop after the recommendation, the report said. Barricading work at the complex had started last month.
The proposed demolition of Shastri Bhavan and the adjoining Krishi Bhavan complex has also reportedly been put on hold. Shastri Bhavan houses several Union ministries, including the Information and Broadcasting Ministry, while Krishi Bhavan houses the Agriculture, Rural Development, Panchayati Raj, and Food Ministries.
Sources told the newspaper that projects of this scale require heavy machinery, cranes, crushers, gas cutters, and large volumes of construction material, apart from consuming significant amounts of fuel.
Globally, the fuel prices have shot up ever since the conflict began on February 28.
Government think tank NITI Aayog has advised the Centre to pause major construction projects for two years as the Iran war drives up fuel costs, imports, and raw material prices, The Tribune reported on Tuesday.
The recommendation reportedly includes halting the demolition and reconstruction of key ministerial complexes in Delhi, including Nirman Bhavan, Udyog Bhavan, and Shastri Bhavan.
Don't Miss: BT Explainer | US-Iran ceasefire on 'life support': Why India's economy is under pressure
NITI Aayog reportedly told the ministries concerned that "owing to cost escalation, rising imports and supply chain disruptions affecting the availability of raw material, all large-scale construction activity should be paused for two years."
The suggested two-year suspension underlines the government's concerns over the economic fallout of the Iran conflict and disruptions in West Asia.
The recommendation reportedly came before the appointment of Ashok Lahiri as NITI Aayog vice-chairman and before a new team of full-time members took charge.
On Sunday, Prime Minister Narendra Modi urged citizens to conserve fuel, revive work-from-home practices, delay gold purchases, and reduce foreign travel as global energy prices surged amid the West Asia conflict.
Demolition work at Nirman Bhavan, which houses the Union Urban Affairs and Health Ministries, has already been halted, the report said, citing sources. Preparatory work for the demolition of neighbouring Udyog Bhavan - home to the MSME, Steel and Commerce Ministries - may also stop after the recommendation, the report said. Barricading work at the complex had started last month.
The proposed demolition of Shastri Bhavan and the adjoining Krishi Bhavan complex has also reportedly been put on hold. Shastri Bhavan houses several Union ministries, including the Information and Broadcasting Ministry, while Krishi Bhavan houses the Agriculture, Rural Development, Panchayati Raj, and Food Ministries.
Sources told the newspaper that projects of this scale require heavy machinery, cranes, crushers, gas cutters, and large volumes of construction material, apart from consuming significant amounts of fuel.
Globally, the fuel prices have shot up ever since the conflict began on February 28.