Roads and Highways

Summary
  • India has the second largest road network in the world of about 63.32 lakh km. *
  • The implementation agencies of the Ministry of Road Transport and Highways include: *
    • National Highways Authority of India
    • State/Union Territories Public Works Departments
    • National Highway and Infrastructure Development Corporation Limited
    • Border Roads Organization
    • Indian Academy of Highway Engineers (IAHE)
Reasons to Invest
  • As part of Phase-I of the Bharatmala Pariyojana programme, 27 Greenfield corridors are planned with an overall length of 9,000+ kms.*
  • The government has taken many e-initiatives such as Bhoomi Rashi Portal, Enterprise Resource Planning (ERP) Project-eDISHA, E-tolling to simplify the processes in the roads and highways sector and bring transparency to it. *
  • The State of Uttar Pradesh has sanctioned 1,255 Km road length for construction using Full Depth Reclamation Technology, which will not only save cost and time in a big way, but also conserve natural resources and reduce carbon footprint. *
  • Development work of 6-Lane access-controlled Spur to Haridwar from Delhi – Saharanpur – Dehradun Economic corridor on Hybrid Annuity Mode under INR 2095.21 Crores in  Uttar Pradesh and Uttarakhand. *
  • 50 – 70 Vehicle Scrapping Facilities and 75 Automated Testing Stations to be set up across the country in next 5 years. *

Explore more about infrastructure availability in Roads and Highways sector 

Key Achievements
  • The Ministry of Road Transport and Highways (MoRTH) is undertaking developmental projects worth INR 1,30,000 crore in Jammu and Kashmir to enhance the travel experience of pilgrims visiting the Shri Mata Vaishno Devi shrine.*
  • The daily revenue collected from tolls through the use of FASTag has reached an all-time high, of over INR 193 cr.*
  • NHs length of about 1,41,190 km has been GIS mapped on the PM Gati Shakti NMP Portal.*
  • New Guinness World Record created by NHAI in laying 75 km of bituminous concrete in a single lane on NH53 in 105 hours and 33 minutes.*
  • 42 bus drivers were presented with Safety Awards for their exemplary and faultless services.*
Recent Announcements

22nd Aug 2023: Shri Nitin Gadkari launches Bharat NCAP(New Car Assessment Programme)

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09th Aug 2023: Construction of Four and Six Lane National Highway in the Country

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03rd Aug 2023: CCTVs and Hospitals along National Highways

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03rd Aug 2023: NHAI Launches ‘Rajmargyatra’ a Unified Mobile Application for National Highway Users

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17th Jul 2023: Shri Nitin Gadkari inaugurates two National Highway projects with an investment of more than Rs 3,300 crore in Lucknow

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Statistics
  • The National Highways/ Expressways measure 1,44,955 km and State Highways measure 1,67,079 km and Other Roads measure 60,19,757 km as of FY 2022-23. *
  • Target of 12,200 km set for construction of National Highways (NHs) in the country during 2022-23. *
  • Overall road projects exceeding 65,000 km in length, costing more than INR 11 lakh crore, are in progress, of which work in respect of projects of more than 39,000 km length has been completed and in balance length of more than 26,000 km works are in progress.*
Growth Drivers
  • The Ministry of Road Transport and Highways has set a target of developing 40 km of National Highways and Expressways per day across the country for FY 2023-24. *
  • MoRTH is constructing 27 Greenfield corridors, spanning a total length of 9,860 km, with a combined capital cost of INR 4,08,437 crore.*
  • National Highways Logistics Management Limited (NHLML), 100% owned SPV of NHAI has completed detailed feasibility studies for 8 projects for implementation of ropeways in India. *
  • To improve the highway network, NHAI is developing world-class ‘Wayside Amenities (WSA)’ at more than 600 locations along the National Highways.*
  • Works costing INR 15,400 cr have been awarded for a length of 777 kms across 27 projects. Two Multimodal Logistics Parks (MMLPs) have been sanctioned in Visakhapatnam and Anantapur at a cost of INR 1,797 cr. These MMLPs will serve as a key hub for centralizing freight cargo consolidation in the region. *
  • Provision of Advanced Traffic Management System (ATMS) is envisaged in high traffic density corridors which may help in speedy identification of incidents on the highway stretches and thereby improving the response time of the on-site assistance.*
FDI Policy
  • 100% Foreign Direct Investment (FDI) is allowed under the automatic route in the road and highways sector, subject to applicable laws and regulation. *

 

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Sector Policy
  • The Ministry of Road Transport and Highways (MoRTH) has issued a draft notification G.S.R 815(E) to supersede the All India Tourist Vehicle (Authorisation or Permit) Rules, 2021. The key features of the proposed rules are as follows*:
    • To simplify the procedure for All India Permit applicants and to reduce compliance burden, the provision of authorization and All India Tourist Permit has been made independent of each other.
    • More categories of tourist vehicles, with lesser permit fees for lesser capacity vehicles (less than ten) have been proposed. This is expected to provide considerable financial relief to smaller tourist operators having smaller vehicles with lower seating capacity as they will now be required to pay lower fees commensurate with the seating capacity of their vehicle(s).
    • To promote deployment of electric vehicles in large numbers a streamlined regulatory ecosystem at no cost to the operator(s) has been proposed.
  • Ministry of Road Transport and Highways has issued a draft  notification pertaining to Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility Amendment) Rules, 2022. Processes have been made time bound to ensure ease of doing business.
  • Development and maintenance of road infrastructure is a key Government priority, the sector has received strong budgetary support over the years.
  • Standardised processes for PPP and public funded projects and a clear policy framework relating to bidding and tolling have been developed over the years.
  • Major policy initiatives undertaken by the Ministry of Road Transport and Highways (MoRTH) are: *
    • Provision of funds to the State Government for development of state roads as per the Central Road Fund Act 2000, amended by Finance Act from time to time.
    • Introduction of Electronic Toll Collection System, FASTag by MoRTH. 
    • Implementation of Value Engineering Programme in 2017 to promote use of new technologies, materials and equipment in highway projects executed either under PPP or public funding mode.
    • Automation of Regional Transport Offices under Transportation Mission Mode Project. It envisages creation of a consolidated transport database. The two flagship applications under the project are VAHAN (Vehicle Registration, Taxation, Permit, Fitness and associated services) and SARATHI (Driving License, Learner License, Driving Schools and related activities).
    • To fast track approval process, enhanced powers to NHAI, specifically for EPC (Engineering, Procurement and Construction) and PPP (Build-Operate-Transfer) projects where no Viability Gap Funding is involved.
    • Project Monitoring Information System introduced by NHAI for tracking the status of all projects, preparation of reports and online upload of important project documents like DPRs and contract documents, etc.
  • Motor Vehicle Aggregator Guidelines issued the Ministry of Road Transport and Highways to regulate shared mobility and reducing traffic congestion and pollution. 
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Bharatmala Pariyojana Scheme *

  • The Bharatmala Pariyojana is the country’s largest ever highways development programme. It aims to optimize the efficiency of road traffic movement across the country by bridging critical infrastructure gaps. Multi-nodal integration is one of the key focuses of this programme. 
  • Components under Bharatmala Phase 1 are: 
    • Economic Corridors Development: Length - 9,000 km Investment Outlay: INR 1.2 lakh cr
    • Inter-corridor and feeder roads - Length: 6,000 km Investment Outlay: INR 80,000 cr
    • National Corridors Efficiency Improvements Length - 5,000 km Investment Outlay: INR 1 lakh cr
    • Border and International Connectivity Roads: Length - 2,000 km Investment Outlay: INR 25,000 cr
    • Coastal and Port Connectivity Roads Length - 2,000 km Investment Outlay: INR 20,000 cr
    • Expressways Length - 800 km Investment Outlay - INR 40,000 cr
    • It is estimated that more than 35 cr man-days of employment shall be generated under Phase-I of the programme
  • Integration of Multi transport mode has also been built into the Bharatmala Programme and includes the development of 35 Multi-modal Logistics Parks (MMLPs) at various locations across the country. These MMLPs are being developed on a 'Hub and Spoke' model and being implemented by NHAI and NHIDCL (in North-East India)
  • Projects comprising length of 19,265 km have been awarded with cost of INR 5,60,216 crore, under the Bharatmala Pariyojana Phase-I. Till now, length of about 6,750 km has been completed.
  • Projects comprising length of 612 km with cost of INR 13,720 crore have been awarded in the State of Bihar, under the Bharatmala Pariyojana Phase-I.
  • The Government has set a target of 12,000 km of National Highway for construction during the current financial year 2021-22 against which 5,118 Km has been constructed as on 30th November 2021.
  • Almost 8,400 state-of-the-art greenfield expressways being built as part of Bharatmala Pariyojana.
  • An investment of INR 11 - 12 lakh crore is being planned under the Bharatmala programme as investment in logistics sector has a large multiplier effect on the overall economy.

National Ropeways Development Programme *

  • “Parvatmala” will be taken up on PPP mode, which will be a preferred ecologically sustainable alternative in place of conventional roads in difficult hilly areas, will improve connectivity and convenience for commuters, and promote tourism.
  • This may also cover congested urban areas, where conventional mass transit system is not feasible.
  • Contracts for 8 ropeway projects for a length of 60 km would be awarded in 2022-23.
  • The scheme is being presently started in regions like Uttarakhand, Himachal Pradesh, Manipur, Jammu & Kashmir and the other North Eastern states.

New Car Assessment Program*

  • Shri Nitin Gadkari has approved the Draft GSR Notification to introduce Bharat NCAP (New Car Assessment Program), wherein automobiles in India shall be accorded Star Ratings based upon their performance in Crash Tests.
  • Star Rating of Indian Cars based on Crash Tests is extremely crucial to ensure structural and passenger safety in cars and increase the export-worthiness of Indian automobiles. The testing protocol of Bharat NCAP shall be aligned with Global Crash Test Protocols factoring in the existing Indian regulations, allowing OEMs to get their vehicles tested at India’s own in-house testing facilities.
  • The program will encourage manufacturers to provide advanced safety technologies to earn higher ratings.

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Financial Support

Union Budget 2023-24 *

  • The total budgetary allocation for FY 2023-24 towards the Ministry of Road Transport and Highways is INR 2,70,434.71 cr.

Pradhan Mantri Gram Sadak Yojana

The Government of India launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) with an aim to provide connectivity to unconnected habitations as part of a poverty reduction strategy. *

Investment Opportunities

The investment opportunities in the sector include:

  • Vadodara-Mumbai Expressway: A road length of 352 km through Kim, Talasari, Vasai and Thane to be developed. Work has already been awarded for a stretch of 124 km for Vadodara-Kim sector and bids invited for 228 km between Kim and Virar. *
  • Bharatmala Pariyojna: Road projects of length 9674 km have already been awarded while the bidding is open for projects with a length of 3555 km. *
  • Toll-Operate-Transfer Model: The Ministry is raising funds by monetizing road assets constructed using public funds by way of the Toll-Operate-Transfer (ToT) scheme. Under the scheme, bidding of bundled national highways for a concession period of 30 years. *

 

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Sector Reports
  1.  Annual Report 2022-23| Ministry of Road Transport and Highways
Foreign Investors
  • CIDBI Malaysia (Malaysia)
  • ERA-SIBMOST (Russia)
  • Essel Infra & CR-18 Consortium (China)
  • Gamuda Malaysia 0 WCT Malaysia (Malaysia)
  • GMR-Tuni-Ankapalli Express Ltd (Malaysia)
  • Hindustan Construction Company Ltd-Laing Sadbhav Consortium (UK)
Agencies
  1. National Highways Authority of India
  2. National Highways & Infrastructure Development Corporation Ltd. (NHIDCL)
  3. Indian Academy of Highway Engineers (IAHE) 
  4. Indian Road Congress (IRC) 
Sources
  1. YEAR-END REVIEW, MINISTRY OF ROAD TRANSPORT & HIGHWAYS, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1684574
  2. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1693183
  3. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1694823
  4. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  5. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  6. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  7. Ministry of Road Transport and Highways, https://morth.nic.in/
  8. National Infrastructure Pipeline, Report of the Task Force, Department of Economic Affairs Ministry of Finance, http://164.100.117.97/WriteReadData/userfiles/DEA%20IPF%20NIP%20Report%20Vol%201.pdf
  9. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  10. Setu Bharatam, Ministry of Road Transport and Highways, https://morth.nic.in/setu-bharatam
  11. Consolidated FDI Policy, https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/2020-04/FDI%20Policy%202019%20revised_19%20April%202020.pdf
  12. Pradhan Mantri Gram Sadak Yojana, Online Management, Monitoring and Accounting System (OMMAS), http://omms.nic.in/
  13. Expenditure Profile (Centrally Sponsored Schemes), India Budget website, https://www.indiabudget.gov.in/doc/eb/stat4a.pdf
  14. Expenditure Profile (Expenditure of Ministries and Departments), India Budget website, https://www.indiabudget.gov.in/doc/eb/stat3a.pdf
  15. Expenditure Profile (Expenditure of Ministries and Departments), India Budget website, https://www.indiabudget.gov.in/doc/eb/stat3a.pdf
  16. Expenditure Profile (Central Sector Schemes), India Budget website, https://www.indiabudget.gov.in/doc/eb/stat4b.pdf
  17. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  18. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  19. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  20. Annual Report 2019-20, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf
  21. Monthly Report, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Monthly_Summary/Monthly%20summary%20Sept%202020.pdf
  22. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1674088
  23. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1676403
  24. Monthly Report, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Monthly_Summary/Monthly%20summary%20%20(% 20 October,2020)_0001%20(1).pdf
  25. Monthly Report, Ministry of Road Transport and Highways, https://morth.nic.in/sites/default/files/Monthly_Summary/Monthly%20summary%20final%20Nov%202020.pdf
  26. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1706719
  27. Annual Report,  https://morth.nic.in/sites/default/files/Annual%20Report%20-%202021%20(English)_compressed.pdf

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