Union Minister Nitin Gadkari recently announced the government's goal to clear INR 2 lakh crore worth of highway projects by December 2024, despite the National Highways Authority of India's (NHAI) rising debt and reliance on budgetary funds. Projects worth INR 51,000 crore have already been approved, with additional projects under review. To address funding, the government will utilize alternatives like toll-operate-transfer (TOT) and infrastructure investment trusts (InvITs). While the Bharatmala Pariyojana project won't receive new approvals in 2024-25, the remaining 8,375 kilometers will be integrated into Vision 2047. Gadkari also discussed future satellite-based tolling systems.
Union Minister for Road Transport and Highways, Nitin Gadkari recently announced that the government aims to clear INR 2 lakh crore worth of highway projects by December 2024. This comes despite the National Highways Authority of India's (NHAI) significant debt and its growing dependence on budgetary funds for project financing. Gadkari highlighted the government's commitment to maintaining the pace of highway construction, with several projects already in the pipeline. Following a series of infrastructure initiatives, including highways and railways, approved by the Narendra Modi 3.0 government, more projects are expected to be sanctioned soon.
Speaking at the Indian Express Idea Exchange, Gadkari emphasized that the Prime Minister's Vision 2047 is driving these clearances. He noted that in the previous month, the Cabinet approved INR 51,000 crore in projects, while an additional INR 40,000-50,000 crore worth of projects are under review. By the end of the year, the total value of cleared projects is expected to reach INR 2 lakh crore.
Gadkari reassured citizens that funding will not be a challenge, as adequate resources are available for highway development. The ministry has set a target to build 10,421 kilometers of highways in the current fiscal year, which is 15% lower than the previous year. For 2024-25, the capital expenditure target stands at INR 2.72 lakh crore, a 2.9% increase from the previous fiscal year.
Despite NHAI's debt, project funding will also come from alternative sources, including monetization models like toll-operate-transfer (TOT) and infrastructure investment trusts (InvITs). In November, the Department of Expenditure instructed the Ministry of Road Transport and Highways to halt the approval of new works or the awarding of contracts under the Bharatmala Pariyojana unless the revised costs of projects were approved. Consequently, no new projects under Bharatmala will be sanctioned in 2024-25.
The Bharatmala project, launched in 2017, aimed to build 34,800 kilometers of highways across 31 states and Union Territories. Of this, 26,425 kilometers have been awarded, and 17,411 kilometers have been constructed. The remaining 8,375 kilometers will now be integrated into Vision 2047.
Gadkari also discussed satellite-based tolling using the Global Navigation Satellite System (GNSS), citing five successful pilot projects for electronic toll collection. He proposed a model where toll collection agencies would give the government an additional 2% of revenue instead of charging a collection fee. This proposal is currently under discussion, with potential joint ventures between technology providers and bankers being explored for GNSS implementation.
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