Government to meet highway developers on war impact on road projects

With global oil markets turning volatile amid the US-Israel-Iran war, the government will meet highway developers to assess potential implications for India’s road construction sector, sources said. The meeting, to be chaired by the Chairman of the National Highways Authority of India (NHAI) on March 6, will discuss possible ripple effects on the highway construction ecosystem, including fuel costs, transportation expenses and the availability of key construction materials. 

India’s highway sector could face fresh cost pressures if the Middle East conflict escalates further, prompting authorities to review potential disruptions in fuel supplies and rising prices of inputs such as steel, cement and aggregates used in road projects. 

According to officials familiar with the agenda, the meeting will review multiple risks to highway projects, including possible shortages of fuel, higher input costs, and rising logistics expenses linked to the geopolitical tensions in West Asia. 

The discussions come as global energy markets have turned volatile following the conflict. Brent crude prices have jumped about 15% to around $84 per barrel, raising concerns of higher diesel prices and transport costs worldwide. 

Higher energy prices typically ripple through infrastructure projects because diesel is widely used in road construction equipment and for transporting raw materials such as steel, cement, and aggregates. Analysts say disruptions in shipping routes and higher war-risk insurance premiums are also pushing up freight costs globally. 

Developers are expected to highlight the potential impact on project economics if input costs rise sharply.  

India’s highway expansion programme is one of the largest in the world. National highway construction has accelerated significantly over the past decade, with building speeds reaching up to 37 km per day in recent years, while the Centre has allocated ₹3.10 lakh crore for the roads and highways sector in the Union Budget 2026-27. 

Officials said developers may also outline expectations from the government, including potential relief measures or contract adjustments if input prices spike due to the conflict.