NHAI spent US$ 20.4 billion (Rs. 1.7 lakh crore) on land acquisition for national highways in last 5 years

Over the past five years, the National Highways Authority of India (NHAI) allocated approximately US$ 20.4 billion (Rs. 1.7 lakh crore) for land acquisition for national highways. Additionally, state governments contributed US$ 1.7 billion (Rs. 13,908 crore) towards sharing the land acquisition costs. NHAI's data, provided in response to a question in the Rajya Sabha, reveals the highest disbursements to landowners in Maharashtra US$ 3.3 billion (Rs. 27,568 crore), followed by Uttar Pradesh US$ 2.8 billion (Rs. 23,134 crore), and Kerala US$ 2.7 billion (Rs. 22,119 crore).

NHAI has appealed to states for financial contributions to cover land acquisition costs and support the implementation of more projects. Notably, in Kerala, while the amount of land acquired may be comparatively less than in other states, the total compensation is substantial due to elevated land prices resulting from increased urbanization. The Kerala government has emerged as the leading contributor, disbursing US$ 670.8 million (Rs. 5,580 crore), constituting nearly 40% of the total amount spent by all states combined.

The average land acquisition cost, comprising approximately 20% of overall expenses for highway projects (with a higher proportion for expressways), has seen notable figures in states like Punjab, Haryana, and Gujarat. NHAI has spent around US$ 1.6 billion (Rs. 13,000 crore) each in Punjab and Haryana, and approximately US$ 1.4 billion (Rs. 11,700 crore) in Gujarat, where new expressways such as the Delhi-Mumbai and Delhi-Amritsar-Katra are in progress. The amendment of the law in 2013 has significantly increased land acquisition costs, resulting in a rise in both the quantity of acquired land and the average construction pace over the past five years. The average construction speed for NH has surged from 13 km/day (2009-10 to 2013-14) to 30 km/day (2018-19 to 2022-23).

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