Initiatives
For
a country of India's size, an efficient road
network is necessary both for national
integration as well as for socio-economic
development. The National Highways (NH), with
a total length of 65,569 km, serve as the
arterial network across the country. The
ongoing programme of four-laning the 5,900 km
long Golden Quadrilateral (GQ) connecting
Delhi, Mumbai, Chennai and Kolkata is nearing
completion. The ongoing four-laning of the
7,300 km North-South East-West (NSEW) corridor
is to be completed by December 2009. In its
third meeting held on 13 January, 2005, the
Committee on Infrastructure adopted an Action
Plan for development of the National Highways
network. An ambitious National Highway
Development Programme (NHDP), involving a total
investment of Rs.2,20,000 crore upto 2012, has
been established. The main elements of the
programme are as follows:
Four-laning
of the Golden Quadrilateral and NS-EW
Corridors
(NHDP I & II)
The NHDP Phase I and Phase II comprise of the
Golden Quadrilateral (GQ) linking the four
metropolitan cities in India i.e.
Delhi-Mumbai-Chennai-Kolkata, the North-South
corridor connecting Srinagar to Kanyakumari
including the Kochi-Salem spur and the
East-West Corridor connecting Silchar to
Porbandar besides port connectivity and some
other projects on National Highways. Four-laning
of the Golden Quadrilateral is nearing
completion. The contracts for projects forming part of NS-EW
corridors are being awarded rapidly for
completion by December 2009.
Four-laning
of 10,000 kms (NHDP-III)
The Union Cabinet has approved the four-laning of
10,000 km of high density national highways,
through the Build, Operation & Transfer (BOT) mode. The programme
consists of stretches of National Highways
carrying high volume of traffic, connecting
state capitals with the NHDP Phases I and II
network and providing connectivity to places
of economic, commercial and tourist
importance.
Two
laning of 20,000 km (NHDP-IV)
With a view to providing balanced and
equitable distribution of the improved/widened
highways network throughout the country, NHDP-IV
envisages upgradation of 20,000 kms of such
highways into two-lane highways, at an
indicative cost of Rs.25,000 crore. This will
ensure that their capacity, speed and safety
match minimum benchmarks for national
highways.
Six-laning
of 6,500 kms (NHDP-V)
Under NHDP-V, the Committee on Infrastructure
has approved the six-laning of the four-lane
highways comprising the Golden Quadrilateral
and certain other high density stretches,
through PPPs on BOT
basis. These corridors have been four-laned
under the first phase of NHDP, and the
programme for their six-laning will commence
in 2006, to be completed by 2012. Of the 6,500
kms proposed under NHDP-V, about 5,700 kms shall
be taken up in the GQ and the balance 800 kms
would be selected on the basis of approved
eligibility criteria.
Development
of 1000 km of expressways (NHDP-VI)
With the growing importance of certain urban
centres of India, particularly those located
within a few hundred kilometers of each other,
expressways would be both viable and
beneficial. The Committee on Infrastructure
has approved 1000 k.m. of expressways to be
developed on a BOT basis, at an indicative
cost of Rs.15,000 crore. These expressways
would be constructed on new alignments.
Other
Highway Projects (NHDP-VII)
The development of ring roads, byepasses, grade
separators and service roads is considered
necessary for full utilization of highway
capacity as well as for enhanced safety and
efficiency. For this, a programme for
development of such features at an indicative
cost of Rs.15,000 crore, has been mandated.
Accelerated
Road Development Programme for the North East
Region
The Accelerated North-East Road Development
Project is under consideration, which will
mainly provide connectivity to all the State
capitals and district headquarters in the
north-east. The proposal would include
upgrading other stretches on NH and state
highways considered critical for economic
development of the north-east region.
Institutional
Initiatives
Steps are being taken for restructuring
and strengthening of National Highways
Authority of India (NHAI), which is the
implementing agency for the National Highways
programme. Institutional mechanisms have been
established to address bottlenecks arising
from delays in environmental clearance, land
acquisition etc. A special focus is being
provided for traffic management and safety
related issues through the proposed
Directorate of Safety and Traffic Management.
It is expected that the sum total of these
initiatives should be able to deliver an
efficient and safe highway network across the
country.
In order to specify the policy and regulatory
framework on a fair and transparent basis, a
Model Concession Agreement(MCA) for PPPs in
national highways has been mandated. It is
expected that this common framework, based on
international best practices, will
significantly increase the pace of project
award as well as ensure an optimal balance of
risk and reward among all project
participants.
Size
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India
has an extensive road network of 3.3
million kms the second largest in the
world
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Roads
carry about 61% of the freight and 85%
of the passenger traffic
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Highways/Expressways
constitute about 66,000 kms (2% of all
roads) and carry 40% of the road traffic
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The
Government of India spends about
Rs.18000 crores (US $ 4
billion) annually on road development
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The
ambitious National Highway Development
Project (NHDP) of the Government is at
an advanced stage of implementation. Key
sub-projects under the NHDP include:
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The Golden Quadrilateral (GQ-5846 kms of
4 lane highways)
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North-South & East-West Corridors
(NSEW-7300 kms of 4 lane highways)
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Program
for 4-laning of about 14,000 km of
National Highways is underway
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Structure
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National Highways Authority of India (NHAI)
is the apex Government body for
implementing the NHDP. All contracts
whether for construction or BOT are
awarded through competitive bidding
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Private
sector participation is increasing, and
is through:
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Construction contracts
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BOT for some stretches based on
either the lowest annuity or the lowest
lumpsum payment from the Government
* BOT contracts permit
tolling on those stretches of the NHDP
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Policy
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100%
FDI under the automatic route is
permitted for all road development
projects
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Incentives:
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100% income tax exemption for a period
of 10 years
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NHAI agreeable to provide
grants/viability gap funding for
marginal projects
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Model Concession Agreement formulated
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The Golden Quadrilateral and NSEW projects
Opportunity
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development is a priority sector |
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Outlook
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Annual
growth projected at 12-15% for passenger
traffic, and 15-18% for cargo traffic
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Over
$5060 billion investment is required
over the next 5 years to improve road
infrastructure
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Potential
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Road
development is recognised as essential
to sustain Indias economic growth
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The Government is planning to increase
spends on road development substantially
with funding already in place based on a
cess on fuel
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A
large component of highways is to be
developed through public-private
partnerships
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Several high traffic stretches already
awarded to private companies on a BOT
basis
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Two successful BOT models are already in place
the annuity model and the upfront/lumpsum
payment model
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Investment
opportunities exist in a range of
projects being tendered by NHAI for
implementing the NHDP contracts are
for construction or BOT basis depending
on the section being tendered.
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A
Rs.41,200 crores (US $ 5 billion) project plans to lay 6 lane
roads over 6,500 kms of National Highways
on the Design Build Finance and Operate
(DBFO) basis in Golden Quadrilateral
and other high traffic stretches.
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India
has the second largest road network in the world
An
annual growth of 12-15% for passenger traffic has been projected
Top
For
additional information: Department of
Road Transport and Highways, Ministry of
Shipping, Road Transport and Highways (http://morth.nic.in),
National Highways Authority of India (http://www.nhai.org)
Information
Source: www.investmentcommission.in
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Report
of the
Inter-Ministerial
Committee
Restructuring of National Highways
Authority of India
Download
587 KB
PDF Format
Report
of the
Core Group
Financing of the National Highway
Development
Programme
(NHDP)
Download
609 KB,
PDF Format
Information
Brochure
Download
19.30 MB
PDF Format
Two-laning
of Highways through PPP
Manual of Specifications & Standards
Download
1.40 MB
PDF Format
Four-laning
of Highways through PPP
Manual of Specifications & Standards
Download
4.08 MB
PDF Format
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