Amid escalating economic pressures triggered by the ongoing West Asia crisis, government think tank NITI Aayog has reportedly advised the Centre to suspend all major construction and demolition activities across the country for two years, according to sources familiar with the matter.
The recommendation comes against the backdrop of rising global energy prices, supply chain disruptions and increasing import costs linked to tensions around the strategic Strait of Hormuz, a critical route for global oil shipments.
Sources said the advisory includes deferring the proposed demolition and reconstruction of key Central government office complexes in New Delhi, including Nirman Bhavan, Udyog Bhavan and Shastri Bhavan.
Major Government Redevelopment Projects Put on Hold
Demolition work at Nirman Bhavan, which houses the Union Ministries of Health and Urban Affairs, has reportedly been halted. Preparatory work for the demolition of neighbouring Udyog Bhavan — home to the Ministries of Commerce, Steel and MSME — may also be stopped after the latest recommendation.
The proposed redevelopment of Shastri Bhavan and the adjoining Krishi Bhavan complex has similarly been placed on hold. Shastri Bhavan accommodates several Union ministries, including the Ministry of Information and Broadcasting, while Krishi Bhavan houses the Agriculture, Rural Development, Panchayati Raj and Food ministries.
According to officials, the projects involve extensive use of heavy machinery, cranes, crushers, gas cutters and fuel-intensive operations, all of which have become significantly costlier amid the ongoing geopolitical tensions.
Rising Costs and Fuel Concerns Behind Recommendation
Sources indicated that NITI Aayog flagged spiralling construction costs, rising dependence on imported materials and potential shortages of critical raw materials as key concerns behind the proposed pause.
The recommendation reportedly predates the appointment of economist Ashok Lahiri as Vice-Chairman of the policy think tank.
The move aligns with Prime Minister Narendra Modi’s recent appeal urging citizens and businesses to reduce fuel consumption, revive work-from-home practices, avoid non-essential overseas travel and curb gold purchases amid volatile global energy markets.
Officials said the suggested suspension period reflects growing concerns within the government over the economic fallout of prolonged instability in West Asia and disruptions to maritime trade routes critical for India’s energy security.
