Fact check: NITI Aayog denies report of two-year construction ban

Key government complexes among projects facing suspension

The demolition work at the Nirman Bhavan complex, which houses the Union urban affairs and health ministries, has already been halted.

Preparatory work at the nearby Udyog Bhavan complex, which houses the MSME, Steel, and Commerce ministries, may also be paused, while the proposed demolition of Shastri Bhavan and the adjoining Krishi Bhavan complex has been put on hold, sources told The Tribune.

Such projects require heavy machinery, gas cutters, crushers, cranes, large quantities of material, and high fuel consumption, which are increasingly facing inflationary pressure from the war in West Asia.

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NITI Aayog has rejected a media report alleging that it recommended a two-year ban on major construction activity in the country. In a post on X, NITI said, “This is to clarify that no such recommendation in any form has been made by NITI Aayog calling for a construction ban.”

The clarification came after The Tribune reported that the think tank had advised the Centre to pause large-scale construction and demolition work, including the reconstruction of the Nirman Bhavan, Udyog Bhavan and Shastri Bhavan complexes in New Delhi.

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Rising costs, disrupted supplies drive rethink on infrastructure push

With the latest statement, NITI Aayog has directly contradicted the central claim in the report.

The think tank flagged cost escalation, rising imports, and supply-chain disruptions affecting the availability of raw material as the main reasons for the proposed pause.

The Tribune said the suggested suspension covered large-scale construction and demolition work for two years, reflecting the gravity of the situation arising from the Iran War.

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Economic caution grows as West Asia conflict deepens

The report came days after Prime Minister Narendra Modi called on citizens to curb fuel consumption, revive work-from-home practices, pause gold purchases, and reduce overseas travel amid surging global energy prices.

Separately, NITI Aayog’s April trade report had warned that West Asia tensions could widen India’s current account deficit and pressure the exchange rate.

In that report, Vice Chairman Suman Bery said, “Let us be clear that FTAs are not a one-way street,” and added that "for trade economists, imports matter much more than exports.”