The Ministry of Road Transport and Highways (MoRTH) has announced an ambitious plan to upgrade approximately 25,000 to 30,000 km of two-lane highways to four-lane roads.
The project is set to be backed by a colossal investment of Rs 10 trillion, a decision that could potentially transform India’s economic landscape. The monumental project is aligned with India’s broader infrastructure goals, positioning the country as a global economic powerhouse. Infrastructure development has been a key pillar of the government’s vision, with road transportation playing an essential role in driving growth. Speaking at an event, the Union Minister for Road Transport and Highways highlighted that such large-scale projects would bolster the nation’s connectivity, reduce congestion, and pave the way for long-term economic benefits.
The road expansion plan is not only aimed at improving transportation efficiency but also at stimulating local economies by creating employment opportunities across regions. With an increasing emphasis on sustainable growth, this project will also provide a much-needed boost to the country’s manufacturing and construction sectors. The government plans to fund this upgrade through innovative financing models, including the Infrastructure Investment Trust (InvIT). This model is designed to raise funds from Indian investors by pooling capital, which will then be used for highway projects with a focus on sustainable investment returns. The Rs 10 trillion plan involves multiple modes of project execution, including the Build-Operate-Transfer (BOT) model, Engineering, Procurement, and Construction (EPC) contracts, as well as hybrid models like the Hybrid Annuity Model and InvITs. The government is also working on revising the BOT model, particularly the annuity variant, which will allow the government to collect tolls for 15 years before handing over revenue sharing to concessionaires.
By fostering transparency and efficient management, these changes are expected to enhance the quality of road construction. While the EPC model is often used for public sector projects, it has been criticised for substandard construction quality compared to the BOT model, which incentivises contractors to ensure durable road infrastructure. This shift aims to prioritise long-term quality over short-term cost-saving measures. One of the most noteworthy aspects of the highway expansion initiative is the government’s focus on fairness and accountability. The Minister has made it clear that no tolerance will be shown for contractors involved in cartelising for projects or engaging in malpractices. The government is also committed to ensuring that toll hikes remain reasonable. If toll rates rise by more than 10%, the government has mandated that concessionaires must share 50% of the additional amount with the public sector.
This massive road expansion initiative could have far-reaching implications. It could accelerate the country’s transition towards an eco-friendly and sustainable future by improving logistics, reducing carbon footprints through better traffic flow, and providing an alternative to congested urban spaces. Moreover, the project aligns with India’s broader vision of carbon neutrality and climate change mitigation by facilitating a smoother, less polluting transportation system. The construction of these four-lane highways is expected to enhance regional connectivity, especially in rural and remote areas, thereby promoting equitable economic growth across the country. With road safety at the forefront, the expansion also aims to reduce road accidents, enabling safer travel for millions of commuters.
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