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India's Road Infrastructure To Get Rs 22 Lakh Crore Boost
The Ministry of Road Transport and Highways in India is seeking Cabinet approval for a massive investment of Rs 22 lakh crore (approximately $293 billion) to expedite infrastructure development. The investment aims to construct around 30,600 kilometers of highways under the Highway Development Plan by the fiscal year 2031-32.
This plan includes the construction of 18,000 kilometers of expressways and high-speed corridors, the decongestion of 4,000 kilometers of national highways around cities, and the construction of strategic and international roads. The private sector is expected to contribute about 35% of the total investment.
The master plan for highway development has been proposed in two phases. The Ministry of Road Transport and Highways plans to tender all phase-1 projects by 2028-29 and complete them by 2031-32. The estimated cost of Rs 22 lakh crore refers to the first phase of the project.
The ministry has also requested a 10% annual increase in budgetary allocation for project implementation. In the interim budget, the government allocated Rs 2,78,000 crore to the ministry, a 2.7% increase from the previous fiscal year.
The financial estimate for the second phase, which involves the development of an additional 28,400 kilometers, will be decided at a later date. According to the plan, the sanction and awarding of routes for phase 2 will be completed by 2033-34, with construction work finishing by 2036-37.
The Ministry of Road Transport and Highways has based its development plans on an analysis of GSTN data, which includes information on goods transported from one point to another. The ministry has also taken into account rail transportation of goods.
The analysis revealed that in the year 2021-22, approximately 73% of freight transport will be carried out by road, while rail will account for around 23%. For goods transported over distances less than 350 kilometers, 82% were transported by road, while for distances over 600 kilometers, 62% were transported by road.
Once the project is completed, the average speed of trucks on the national highway network is expected to increase from the current 47 kmph to 85 kmph. This improvement in speed is crucial for reducing logistics costs and achieving the government's target of bringing it down to 9-10% of GDP. The United States has an average highway speed of over 100 kmph, while China's average speed is 90 kmph.
The massive investment in highway development will significantly enhance India's infrastructure and contribute to economic growth. It will improve connectivity, reduce congestion, and facilitate faster movement of goods and people across the country.
The government's focus on expanding and modernizing the highway network reflects its commitment to building a robust transportation system that supports India's development goals.
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