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Roads and Highways

Roads and Highways

Roads and Highways


  1. USD 8.21 billion outlay planned for highways during 2016-17. In addition, NHAI has been authorized to generate Internal & Extra Budgetary Resource (IEBR) of USD 8.85 Billion during 2016-17. NHAI shall raise its resources under IEBR through 54 C Bonds, Tax-Free Bonds, and others as approved by the Ministry of Finance.
  2. USD 22.6 billion budgetary support for central road sector development during 2012-17.
  3. 5.23 million km of roads and highways in the country.
  4. 1.01 million km of National Highways.
  5. Ministry of Road Transport & Highways (MoRTH) aims to expand the National Highway network to 0.2 million km over the next 4-5 years. MoRTH has so far approved in-principle about 38,750 km of State roads as new NHS subject to the outcome of their detailed project reports (DPRs). Further, about 14,000 km of additional State road stretches are proposed to be upgraded under the "Bharatmala Pariyojana".
  6. The type of PPP project implementation models used in the highways sector is Build Operate Transfer (BOT) Toll, BOT (Annuity), and the Hybrid Annuity Model (HAM).
  7. The implementation agencies of MoRTH include the following:
    • National Highways Authority of India (NHAI)
    • State/UTs PWD (Public Works Department)
    • National Highway and Infrastructure Development Corporation Limited (NHIDCL)
    • Border Roads Organisation (BRO)


  • 100% Foreign Direct Investment (FDI) is allowed under the automatic route in the road and highways sector, subject to applicable laws and regulations.


  1. Development and maintenance of road infrastructure is a key Government priority­ the sector has received strong budgetary support over the years.
  2. Standardized processes for PPP and public-funded projects and a clear policy framework relating to bidding and tolling have been developed over the years.
  3. Major policy initiatives undertaken by MoRTH during the last two years include:
    • Mode of delivery - MoRTH is now empowered to decide on a mode of delivery of projects-EPC/PPP.
    • Enhanced Inter-Ministerial coordination - An Infrastructure Group has been created under Chairmanship of Hon'ble Minister (Road, Transport & Highways) to resolve approval/clearance issues related to Environment & Forests, Railways and Defence, and most of the issues have been resolved.
    • Exit Policy -Private developers can now exit all operational BOT projects two years from the start of operations irrespective of the date of award of the project.
    • The revival of Languishing projects - Now the revival of BOT projects which are languishing in the construction stage is possible through one-time fund infusion by NHAI, subject to the adequate due diligence of such projects on case to case basis through an institutional mechanism.
    • Promoting innovative project implementation models- The Hybrid Annuity Model (HAM) has been developed and adopted for the implementation of highway projects. The model takes into consideration the appropriate risk allocation. Fifteen projects have already been awarded under this model.
    • Amendments to the Model Concession Agreement (MCA) for BOT projects - Certain changes in the MCA have been approved by an empowered Committee headed by the Cabinet Secretary based on stakeholders' feedback. This would facilitate streamlined development and operation of highway projects 


  • The Union Budget of 2016-17 mentions that the total investment in the central road sector would be USD 8.21 billion [including USD 30 million for Road Transport] during 2016-17.
  • NHAI has been authorized to generate Internal & Extra Budgetary Resource (IEBR) of USD 8.85 billion during 2016-17


Current investment opportunities in the sector include the following:

  1. Project Highways- Construction & O&M
  2. Expressway projects including the following:
    • Vadodara Mumbai Expressway - 650 km
    • Bangalore - Chennai Expressway (Greenfield) - 262 km
    • Delhi-Jaipur Expressway (Greenfield)- 196 km
    • Delhi-Ludhiana-Amritsar-Katra with connectivity to Chandigarh Expressway- 600 km
    • Hyderabad- Vijayawada- Amravathi (HVA) Expressway- 300 km
    • Nagpur- Hyderabad- Bangalore (NBH) Expressway-1,100 km
    • Kanpur Lucknow (KL) Expressway- 75 km
    • Ringroad/ Expressway at Amravathi -186 km
  3. Asset recycling ToT (Toll-operate-Transfer) model - proposed
  4. Innovative technologies, materials, equipment, etc.
  5. Tunnel projects- many are at the bid stage
  6. Projects related to efficient operations & network management for improving logistics including the development of Transport Nagars and Logistic Hubs, enabling seamless inter-state traffic movement, improved public transportation, etc.
  7. Intelligent Transport Systems (ITS)
  8. Other opportunities- Road Safety, Driver Training Institutes, etc.
  9. 'Bharatmala Project' (yet to be formally launched) is a new highway development programme that has been recently identified as a premier, long-term, initiative.