Government plans changes to National Highways Act to fast-track road projects

The government is considering amendments to the National Highways Act, 1956, aimed at accelerating road projects and addressing long-standing execution delays, sources told CNBC-TV18.The proposed changes are expected to be introduced during the upcoming Budget Session of Parliament and form part of a broader push to fast-track highway and infrastructure development across the country.A key focus of the amendments is likely to be land acquisition under the National Highways Authority of India (NHAI) framework, which has emerged as one of the biggest bottlenecks in road construction. Delays in land procurement, disputes over compensation and prolonged litigation have stalled several highway projects, pushing up costs and stretching timelines.Sources said the proposed law seeks to simplify land acquisition, reduce disputes and bring greater procedural clarity. One of the key proposals under consideration is returning land acquired for highway projects but left unused for five years to the original landowners. The draft amendments are also expected to introduce defined time limits for challenging compensation, a step aimed at preventing prolonged legal battles that often halt work on the ground.Also Read | Union Budget 2026: Industry pushes for tax relief, infrastructure status and policy stability across sectorsOverall, the changes are being viewed as a critical reform to unlock stalled projects, improve execution and accelerate the government’s infrastructure pipeline. Road development remains central to the broader growth strategy and capital expenditure push.The Budget Session of Parliament will begin on January 28, with the first phase concluding on February 13, followed by a recess. Parliament will reconvene on March 9, with the second phase scheduled to end on April 2.

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