Roads and Highways

Growth Drivers

  • For 2015-16, an outlay of USD 3.8 Billion for the highways sector has been provided.
  • During 2015-16, around 6,300 kms of National Highways are to be completed along with eight bypasses.
  • The NHAI aims to award 5,000 kms of projects in 2015-16 and another 5,000 kms will be awarded by MoRT&H directly.
  • The government of India aims to develop a total of 57,653 kms of National Highways under various programmes such as The National Highway Development Project (NHDP), Special Accelerated Road Development Program for the North-east region and Left Wing Extremist (SARDP-NE), National Highways Interconnectivity Improvement Project (NHIIP).

The Special Accelerated Road Development Programme for North-eastern region (SARDP-NE) has been envisaged to be taken up under three parts as under:

1. Phase ´A´ of SARDP-NE approved by the Government envisages improvement of about 4,099 km length of roads (2,041 km of NH and 2,058 km of State roads).Till August 2015, 2,989 km of length has been sanctioned and 1,565 km of road has been completed. The SARDP-NE Phase ´A´ is expected to be completed by March,2017.
  2. Phase ´B´ of SARDP-NE, covers 3,723 km (1,285 km NHs and 2,43g km of State roads) of road. Phase ´B´ SARDP-NE shall be taken up after completion of Phase ´A´, which is targeted for completion by March 2017 .
  3. The Arunachal Pradesh Package for Road & Highways involving development of about 2,319 km length of road (1,472 km of NHs & 847 km of State/General Staff/Strategic Roads) has also been approved by the Government. Projects on 776 kms are to be taken up on BOT (Annuity) mode and the remaining are to be developed on item rate contract basis. Till August 2015, 1552 km of length has been sanctioned and 230 kms of road has been completed. The entire Arunachal Pradesh Package is targeted for completion by March, 2018.
  • The NHDP, an INR 2,47,635 Crore, seven phase programme-one of the largest in the world-focuses on the widening, upgradation and rehabilitation of 54,478 kms of National Highways.
  • The rise in two wheeler and four wheeler vehicles, increasing freight traffic, strong trade and tourist flows between states are all set to augment growth.
  • The Cabinet Committee on Economic Affairs (CCEA) has approved six highway projects totalling 712 kms with an investment of INR 12,646 crore (USD 2 Billion) in March 2015. These projects, to be awarded under the Engineering Procurement and Construction (EPC) model, are divided into 10 packages under the NHDP in states such as Uttar Pradesh, Madhya Pradesh, Odisha, Himachal pradesh, and West Bengal.
  • The Delhi Panipat stretch of NH-1 would be expanded to an eight-laned dedicated highways in the next three years from April 2015. To meet the increasing demand of traffic growth, NHAI is set to award this project on toll mode by the end of March/NHAI has awarded this project on EPC mode in June.
  • Chhattisgarh is planning to invest INR 9,500 crore (USD 1.5 Billion) to upgrade 44 roads in the state.
  • The Governement is set to offer the final batch of road projects for FY15. A total of nine, with a cumulative length of 895 kms and project cost of INR 17,815 crore (USD 2.82 Billion), are to be offered soon. Three are expected under a BOT model. The other six are understood to be put out under Engineering Procurement and Construction (EPC).

Reasons to Invest

  • The transport sector constitutes 6% of the country´s GDP and 70% of the share of the roads sector.
  • India has an extensive road network of 5.23 Million kms which is the second largest in the world.
  • More than 60vo of freight and 90% of the passenger traffic in the country is handled by road.
  • The Government of India has launched major initiatives to upgrade and strengthen highways and expressways in the country.
  • The private sector has emerged as a key player in the development of road infrastructure.
  • The value of roadways and bridge infrastructure in India is expected to grow at a CAGR of 17.4% between 2012-17, to reach USD 10 Billion.
Roads and Highways

Foreign investors