UP's Pre-Election Infra Push May Unlock Rs 500-Bn Road Orders In FY27: Report
Uttar Pradesh has entered another pre-election infrastructure investment cycle, with roads once again emerging as the centrepiece of state capital expenditure ahead of the 2027 Assembly elections. According to a report by Anand Rathi Research, the state is witnessing its largest and broadest infrastructure pipeline yet, creating opportunities worth more than Rs 500 billion in road project awards during FY27.The brokerage estimates that Uttar Pradesh currently has a live big-ticket infrastructure pipeline worth around Rs 605 billion, of which nearly Rs 421 billion, or 70 per cent, is concentrated in road and expressway projects. Tendering activity has accelerated significantly, with the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) and the National Highways Authority of India (NHAI) floating projects worth about Rs 239 billion during June and July 2026 alone.
Roads Return As The Core Of Capex
The report notes that Uttar Pradesh has followed a consistent infrastructure pattern over successive election cycles by accelerating project execution, inaugurating marquee assets before polls and simultaneously launching the next generation of infrastructure projects.
According to Anand Rathi, the current cycle mirrors the approach adopted before the 2017 and 2022 Assembly elections but on a much larger scale. Projects such as the Ganga Expressway and Jewar Airport, initiated during the previous cycle, are expected to be inaugurated before the next elections, while new expressways, link roads and urban infrastructure projects are already entering the tendering phase.
Unlike previous years, the focus has shifted from building standalone expressways to strengthening connectivity through link expressways connecting existing transport corridors.
UPEIDA Leads A Multi-Agency Push
The report identifies UPEIDA as the principal execution agency driving the latest investment cycle.
The authority has planned eight expressway projects spanning nearly 932 km, with several major link expressways already under tender. These include the Farrukhabad, Lucknow, Jewar and Jhansi Link Expressways, while larger projects such as the Vindhya Expressway and Meerut-Haridwar Expressway are progressing through survey and land acquisition stages.
Alongside UPEIDA, both NHAI and the Ministry of Road Transport and Highways (MoRTH) have accelerated highway projects, including the Ganga and Varuna Corridors, Kanpur-Kabrai Greenfield project, Ghazipur corridor and multiple bypasses.
The brokerage expects the majority of awards to be concentrated towards the latter part of FY27, similar to FY22 when nearly 78 per cent of NHAI awards in Uttar Pradesh were issued during the final five months of the financial year.
Infrastructure Expansion Extends Beyond Roads
Although roads remain the dominant investment segment, Anand Rathi notes that nearly 30 per cent of the state's live infrastructure pipeline now spans sectors beyond highways.
Around Rs 184 billion of projects are currently under implementation or tendering across metro rail, industrial and logistics infrastructure, buildings and power.
Lucknow Metro Phase 1B, Noida Metro Aqua Line extension and metro expansion proposals in Kanpur, Agra, Varanasi, Prayagraj, Gorakhpur and Bareilly form part of the urban transport pipeline. Industrial development is also gathering pace around the Greater Noida-Jewar corridor through logistics parks, PM MITRA Park, AI City and commercial developments.
The report also highlights investments in pumped storage projects, transmission infrastructure, data centres and the defence industrial corridor as evidence that Uttar Pradesh's infrastructure strategy is broadening beyond transport alone.
Budget Allocation Continues To Rise
The report points to a steady increase in Uttar Pradesh's capital outlay over recent years.
The state's budget allocation has risen from Rs 812 billion in FY21 to Rs 1.78 trillion in the FY27 Budget Estimates. Spending on roads and bridges has increased from Rs 274 billion to Rs 477 billion over the same period, while allocations for urban development and energy have also grown significantly.
PNC Infratech Seen As Biggest Beneficiary
Among listed infrastructure companies, Anand Rathi believes PNC Infratech remains best placed to benefit from the upcoming award cycle owing to its strong execution history in Uttar Pradesh.
The brokerage notes that PNC captured around 56 per cent of NHAI's major Uttar Pradesh road awards during the FY22 election cycle and has already secured approximately Rs 40 billion worth of orders in FY27.
Other companies expected to benefit include IRB Infrastructure for build-operate-transfer (BOT) projects, Dilip Buildcon, Ashoka Buildcon, GR Infraprojects, HG Infra and KNR Constructions across engineering, procurement and construction (EPC) and hybrid annuity model (HAM) projects. Large EPC players such as Afcons Infrastructure, NCC, J Kumar Infraprojects and Cemindia are also expected to participate selectively in UPEIDA's large-ticket expressway programme.
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