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Road Infrastructure in India

January, 2013

Introduction

Efficient and integrated road connectivity is a must to spur any sort of growth in any country. Similarly, India's road network forms the country's blood-lines that allows free flow and movement of goods and services across the nation.

India has the second largest road network in the world with a road length of 4.24 million km. Also, India's road density is among the highest in the world with 1.29 km of roads per sq. km of area. India's national highways and expressways constitute about 1.67 per cent of the road length, and the percentage of paved roads is only 49.3 per cent. Moreover, India's road freight volumes are increasing at a compounded annual growth rate (CAGR) of 9.08 per cent coupled with the boost in the population of vehicles (all types) at a CAGR of 10.76 per cent while the road length is increasing at a CAGR of 4.01 per cent.

Owing to burgeoning motorisation and urbanisation, the Indian Government is leaving no stone unturned to enhance the road network. As a result of the initiatives taken, the total road length in India has increased eight times over the past four decades.

Key Developments and Investments

  • Satellite Navigation systems are getting popular on Indian roads as they guide to driver to the desired destination, thereby avoiding any unnecessary delays and traffic. Increase in the number of routes and roads is the main driver behind the development of the market for satellite navigation systems. Companies like Garmin have made their presence felt in India with devices like Nuvi 215, Nuvi 40LM and Nuvi 50LM. Also, the company was able to reach out to a lot of consumers as it has provided Hindi as an option for its navigation system.
    Such features help individuals to get accustomed to using such devices. Comprehensive mapping of Indian roads would facilitate widespread use of satellite navigation systems by Indian drivers
  • Ramky Infrastructure Ltd has attained financial closure for its Agra Etawah Road Toll-way Project to be developed in Uttar Pradesh. A group of bankers lead by Oriental Bank of Commerce and other participants including Union Bank of India, India Infrastructure Finance Company Ltd, Central Bank of India, State Bank of Patiala and Axis Bank have agreed to meet the debt syndication of Rs 1,225 crore (US$ 227.55 million) to execute the project.
    The scope of the project, awarded by the National Highways Authority of India (NHAI) under the National Highway Development Project (NHDP) Phase V, includes six-laning of the road on the NH-2 between 199 km and 323 km stretch. It is to be executed on build, operate and transfer (BOT) basis
  • IVRCL Ltd has inked a memorandum of understanding (MoU) with the Haryana Government for the development of Rai Malikapur-Kharak road corridor. With an aim to enhance the north-south connectivity, the Rs 1,605-crore (US$ 298.14 million) project corridor will cover a stretch of 151 km of Rai Malikapur close to the Rajasthan border up to Kharak corridor.
    The project is expected to achieve financial closure by July 2013 and it will take around 30 months to be executed
  • The United Kingdom (UK)-based Serco Group has bagged a Rs 115 crore (US$ 21.36 million)-contract to operate and maintain the new Bus Rapid Transit System (BRTS), 11.5 km dedicated bus corridor, of Indore in Madhya Pradesh. The contract spans for the period of six years from January 2013, when the passenger services on the BRT are planned to commence