The Ministry of Road Transport and Highways (MoRTH) has unveiled plans to convert 25,000 to 30,000 kilometres of two-lane highways into four-lane roads.
With an investment pegged at INR 10 lakh crore, this extensive project is expected to not only boost the country’s economy but also significantly enhance its logistical and transportation capacity.Union Minister for Road Transport and Highways Nitin Gadkari emphasised the crucial role infrastructure plays in driving economic growth. He shared details of the plan, which aims to increase the nation’s highway network’s efficiency and capacity, ultimately reducing travel times and improving connectivity across various states. The initiative is expected to create a more seamless transportation corridor that will facilitate smoother trade and logistics, contributing to the economy’s long-term growth.
To finance this ambitious venture, the government plans to introduce the Infrastructure Investment Trust (InvIT) model, which will pool capital from domestic investors. This innovative approach, similar to mutual funds, aims to draw long-term investments into road infrastructure projects. Gadkari explained that InvIT would help raise the funds required while offering attractive returns to investors interested in supporting the country’s infrastructure development.Additionally, the Union Minister outlined his vision of completing road projects worth INR 5-6 lakh crore annually.
This ambitious target highlights the government’s commitment to transforming India’s infrastructure landscape and ensuring that it remains competitive on the global stage. The highways will be upgraded under various execution models, including the Build-Operate-Transfer (BOT) model, BOT (Annuity), Engineering, Procurement, and Construction (EPC), and Hybrid Annuity, with each model designed to meet specific needs for maintenance and long-term sustainability.
A major component of the revised BOT (Annuity) model will involve the government collecting tolls for up to 15 years, compensating concessionaires on an annuity basis.
This model aims to ensure fair compensation while maintaining the quality and reliability of road infrastructure. To prevent toll hikes from being passed on excessively to users, Gadkari also announced that any rise in toll rates beyond 10% will require concessionaires to share half of the excess with the government, ensuring a balance between fair pricing and cost recovery.Despite the project’s scale, Gadkari expressed his intolerance for corruption and unfair practices within the construction industry, particularly highlighting his opposition to contractors who form cartels to secure projects. He stressed that transparency in bidding and execution will be a cornerstone of this initiative.
The government’s focus on upgrading highways is a critical step in addressing the growing demand for infrastructure that supports India’s economic ambitions. The expanded road network will ease transportation of goods, support tourism, and ultimately contribute to the country’s objective of becoming a manufacturing and export powerhouse.This bold highway expansion project will also reflect India’s commitment to sustainable infrastructure development, with environmentally conscious designs and practices that aim to reduce the carbon footprint of construction and operation.
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India Plans 30000 Km Highway Upgrade with INR 10 Lakh Crore
