Snapshot

Highway to growth

India with a total road network of 5.5 mn km comprises of national & state highways and urban & rural roads. National highways account for 2% of the total road network and carry over 40% of total traffic.

NHAI has accomplished construction of 3,979 km of national highways in the financial Year 2019-20.  This is the highest ever highway construction achieved in a financial year.
The construction pace as noticed in last years has seen a steady growth with 3,380 Km construction in the FY 2018-19.  Continuing the same trend with the development of 3,979 km of national highways during FY 2019-20. During April to September 2020, 3951 km of road was constructed and a target of 11,000 km has been set for this fiscal year.

India has a well-developed framework for Public-Private-Partnerships (PPP) in the highway sector. Asian Development Bank ranked India at first spot in PPP operational maturity and also designated India as a developed market for PPPs.

The Government of India (GoI) is planning to expand the national highway network to over 200,000 km. The Government launched the Bharatmala Pariyojana, which aims to build 66,100 km of economic corridors, border and coastal roads, and expressways to boost the highway network. It is envisaged that the programme will provide 4-lane connectivity to 550 districts, increase the vehicular speed by 20-25% and reduce the supply chain costs by 5-6%. The first phase of the programme will bring in $82 bn investments by 2022 for the development of 34,800 km of highways.
 

100% FDI allowed under automatic route.

For further details, please refer FDI Policy

  • Km

    Avg. highway constructed per day

  • Km

    National highway construction

  • %

    Share of GDP on logistics & transportation

  • Projects awarded under PPP

Highway projects in India

$ 82 bn to be invested by 2022 under Bharatmala Pariyojana

Road projects in India

Highest ever construction of 30 km per day of National Highways in 2018-19

C

National highways construction in India is targeted at 40 km a day in 2018-19

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Industry Scenario

The GoI has given a massive push to infrastructure by allocating about $1.4 Tn for infrastructure to be invested until 2025.

The government has forecasted an investment of $350 bn towards road infrastructure in the North-East region of India during 2020-2025.

The market for roads and highways is projected to exhibit a CAGR of 36.16% during 2016-2025, on account of growing government initiatives to improve transportation infrastructure in the country. Almost 40% (824) of the 1,824 PPP projects awarded in India until December 2019 were related to roads.

The highways sector in India has been at the forefront of performance and innovation. The government has successfully rolled out over 60 projects worth over $10 bn based on the Hybrid Annuity Model (HAM). HAM has balanced risk appropriately between private and public partners and boosted PPP activity in the sector.

Asset recycling, through the toll-operate-transfer (ToT) model has been taken up by the National Highways Authority of India (NHAI) for 100 highways. The first two bundles of 9 highways each were monetized successfully for an investment of over $2 bn.

As one of the biggest reform, the NHAI has gone ‘Fully Digital’, with the launch of unique cloud based and Artificial Intelligence powered Big Data Analytics platform – Data Lake and Project Management Software. The entire project management work flow of NHAI is transformed from manual to online portal based, wherein the complete project execution operations including ‘workflow with time lines’ and ‘alert mechanism’ have been configured. All project documentation, contractual decisions and approvals are now being done through portal only.

GROWTH DRIVERS

  • Massive infrastructure push

    $1.4 Tn to be invested for infrastructure from 2020-25

  • NH expansion

    Length of national highways to reach 200,000 km

  • Growing demand

    Production of all vehicle segments reached 26 mn

  • Policy support

    Standardized process for bidding and tolling

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Gallery

Feb 09, 2021Hon'ble Minister Sh. Nitin Gadkari addressing webinar on 'Road Safety Challenges in India & Preparation of an Action Plan'
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Jun 02, 2020Speech by H.E. Ambassador of Italy to India,…Speech by H.E. Ambassador of Italy to India, Vincenzo De Luca
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Feb 09, 2021Hon'ble Minister Sh. Nitin Gadkari addressin…Hon'ble Minister Sh. Nitin Gadkari addressing webinar on 'Road Safety Challenges in India & Preparation of an Action Plan'
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Feb 05, 2021Importance of Alternative mobility & ropeway…Importance of Alternative mobility & ropeways for development of the transport sector in the country

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FAQ

Frequently
Asked Questions

what is the objective of Bharatmala programme?

Bharatmala Pariyojana program focuses on optimizing efficiency of freight and passenger movement across the country by bridging critical infrastructure gaps through effective interventions like development of Economic Corridors, Inter Corridors and Feeder Routes, National Corridor Efficiency Improvement, Border and International connectivity roads, Coastal and Port connectivity roads and Green-field expressways.

For more information, click here.

 

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What are the different initiatives taken by the Govt. towards development of Highways in India?

Some of the key initiatives taken by Ministry of Road Transport & Highways (MoRTH) are:

  1.    Bharatmala Pariyojna
  2.    Eastern Peripheral Expressway – Western Peripheral Expressway
  3.    Indian Bridge Management System
  4.   Toll-Operate-Transfer (ToT)
  5.    Planning of multi modal transport system
  6.    Green Highways Division in NHAI
  7.    Project Monitoring Information System (PMIS)
  8.    INAM-Pro+ launched
  9.    Bhoomi Rashi

For more information, click here.

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What is the Green Highways (Plantation, Transplantation, Beautification & Maintenance) Policy? What are the benefits of adopting this policy?

This is a Policy to promote greening of highway corridors with participation of the community, farmers, private sector, NGOs, and government institutions. Further, the policy provides comprehensive guidelines to ensure uniformity of operations pertaining to enhancement of highway landscapes. The community shall be benefited in terms of huge generation of employment opportunities, entrepreneurship development and  environmental benefits. Overall, adoption of the policy will contribute to economic development of the country and the local groups can access their rights to the non-timber produce from the trees.

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What are the Fiscal incentives provided by the Government in Road and Highway Sector?

Fiscal incentives for the sector are as follows:
1) 100% FDI through automatic route allowed subject to applicable laws and regulation.
2) Right of way (RoW) for project land made available to concessionaires free from all encumbrances.
3) NHAI/GOI to provide capital grant (Viability Gap Funding/Cash Support) up to 40% of project cost to enhance viability on a case to case basis.
4) 100% tax exemption for five years and 30% relief for next five years, which may be availed of in 20 years.
5) Duty free import of modern high capacity construction equipment.

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What roles did Government play in highway sector?

National Highways Authority of India implemented the National Highways Development Project (NHDP) which is India’s largest ever Highways Project in a phased manner. Prime focus of NHDP was to ensure enhanced safety features, better riding surface, road geometry and traffic management, bypasses and wayside amenities, over bridges and underpasses etc.

For more information, click here.

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