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NHAI has accomplished the highest ever highway construction of 3,979 km of national highways in FY20.

Road Infrastructure in India

Latest update: March, 2020

Growth

 

 

Last Updated: March, 2020

Indian Road Industry Report  (Size: 540.71 KB ) (March, 2020)

Introduction

India has the one of largest road network across the world, spanning over a total of 5.89 million km. This road network transports 64.5 per cent of all goods in the country and 90 per cent of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with the improvement in connectivity between cities, towns and villages in the country.

The Indian roads carry almost 90 per cent of the country’s passenger traffic. In India sales of automobiles and movement of freight by roads is growing at a rapid rate.

Market size

The construction of highways reached 9,829 km during FY18 which was constructed at an average of 26.93 km per day. The Government of India has set a target for construction of 10,000 km national highway in FY19.  The length of national highways constructed reached 6,715 km at a pace of 24.42 kms per day between April-December 2018. As of March 01, 2019, the total length of National Highways in India stood at 132,500 km.

Total length of roads constructed under Prime Minister’s Gram Sadak Yojana (PMGSY) was 47,447 km in 2017-18.

Huge investments have been made in the sector with total investment increasing more than three times from Rs 51,914 crore (US$ 7.43 billion) in 2014-15 to Rs 158,839 crore (US$ 22.73 billion) in 2018-19.

Key Investments/Developments

The Union Minister of State for Road, Transport and Shipping has stated that the Government aims to boost

 corporate investment in roads and shipping sector, along with introducing business-friendly strategies that will balance profitability with effective project execution. According to data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction development including Townships, housing, built-up infrastructure and construction-development projects attracted Foreign Direct Investment (FDI) inflows worth US$ 25.12 billion were recorded in the construction development^ sector between April 2000 and June 2019.

Some of the key investments and developments in the Indian roads sector are as follows: 

  • A total of 892 km and 2,345 km national highway projects were awarded and constructed, respectively between April–August 2018.
  • In March 2019, National Highway projects worth Rs 1,10,154 crore (US$ 15.99 billion) were inaugurated.
  • As on September 2019, the total amount of investments is estimated to reach Rs 81,000 crore (US$ 11.59 billion).

 

Government Initiatives

Some of the recent government initiatives are as follows:

  • The Ministry of Road Transport & Highways is expected to award road projects with a total length of around 4,500 km worth Rs 50,000 crore (US$ 7.15 billion) in 2020.
  • To widen and revamp 1.25-lakh km of roads government of India has approved the launch of Phase-III of its rural road programme Pradhan Mantri Gram Sadak Yojana (PMGSY).
  • Under the Union Budget 2020-21, the Government of India has allocated Rs 91,823 crore (US$ 13.14 billion) under the Ministry of Road Transport and Highways.
  • For 2019-20, the Ministry of Road Transport and Highways is estimated the total expenditure of Rs 83,016 crore (US$ 118.4 billion).
  • 30,000 kms of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.
  • The Government of India has set a target to complete one road projects every two days as a part of 100-day plan.

Achievements

Following are the achievements of the government in the past four years:

  • As on December 2019, 824 projects were recommended for development by the Public Private Partnership Appraisal Committee (PPPAC).
  • A total of 65,000 km of roads and highways are to be constructed under Bharatmala Pariyojana.
  • In the month of December 2018, the Ministry of Road Transport and Highways (MoRTH) touched a record 31.87 kilometre per day average of national highway construction.
  • The total national highways length increased to 122,434 kms in FY19 from 92,851 kms in FY14.
  • The length of national highways awarded increased to 51,073 kms between FY15-FY18 from 25,158 kms in FY11-FY14.
  • The construction of national highways increased to 28,531 kms between FY15-FY18 from 16,505 kms between FY11-FY14.
  • The construction of national highway per day increased to 26.9 kms per day in FY18 from 11.6 kms per day in FY14.

Road Ahead

The government, through a series of initiatives, is working on policies to attract significant investor interest. A total of 200,000 km national highways is expected to be completed by 2022.

In next five years, National Highway Authority of India (NHAI) will able to generate Rs 1 lakh crore (US$ 14.30 billion) annually from toll and other sources.

The Ministry of Road Transport and Highways has fixed an overall target to award 15,000 km projects and construction of 10,000 km national highways in FY19. A total of about 295 major projects including bridges and roads are expected to be completed during the same period.

Note: Conversion rate used as on January 2020, Re 1 = US$ 0.01402

References: Media Reports, Press Releases, Ministry of Road Transport and Highways, NHAI website, Press Information Bureau (PIB)

Notes: ^FDI in construction development Includes: Townships, housing, built-up infrastructure and construction-development projects

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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