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• MoRT&H issued an Urban Decongestion Policy on 29 May 2026 requiring all future NH bypass and ring road projects in urban areas to be fully access-controlled, minimum 4-lane corridors with closed tolling and design speeds of 100–120 kmph replacing the non-access-controlled model that has repeatedly led to fresh ribbon development along existing corridors.
• State governments must mandatorily participate in project financing through one of four approved models: land acquisition cost-sharing, GST and royalty reimbursement, land pooling, or value capture financing over 15 years.
• Of 83 cities assessed for NH congestion, 80 recorded speed drops exceeding 10 per cent on urban highway stretches; interventions are underway in 32 cities, with 48 remaining to be addressed under this policy.
The Ministry of Road Transport and Highways (MoRT&H) issued a formal policy circular on 29 May 2026 addressed to all state chief secretaries, public works department heads, NHAI, NHIDCL, and the Director General of Border Roads, establishing a comprehensive framework for the decongestion of national highways in and around urban areas. The policy, signed by Director (Highways) Harleen Kaur with the approval of the Competent Authority, is titled the Urban Decongestion Policy and sets out mandatory design, land use, financial, and governance standards for all future NH ring road and bypass projects in urban agglomerations.
The policy's primary trigger is the growing mismatch between the long-distance freight and passenger function of national highways and the local commuter traffic that has built up around urban stretches of the NH network over the past decade. Rapid urbanisation has caused cities and towns to expand into the highway corridor, resulting in ribbon development that has negated the traffic relief provided by earlier bypass and ring road investments. Of 83 cities with populations exceeding 5 lakh that were assessed for NH congestion, 80 were found to have average speed drops of more than 10 per cent on NH stretches passing through the urban area compared to sections outside. Bypass or ring road interventions are underway in 32 of those cities; the remaining 48 are now to be prioritised under this policy.
The central design requirement of the policy is that all future NH decongestion projects whether ring roads, bypasses, or elevated corridors must be developed as fully access-controlled corridors of minimum 4-lane configuration with closed tolling, ensuring design speeds of 100 to 120 kmph. Non-access-controlled bypasses, which the policy identifies as the primary cause of fresh ribbon development along existing corridors, will no longer be permitted. Access through interchanges or slip roads will be restricted to national highways, state highways, city arterial roads, and major district roads as approved in the notified master plan, with interchanges spaced at intervals of not less than 5 km. All project alignments must be planned with a horizon of up to 50 years.
The policy also establishes corridor-level land use controls. A prohibited development zone of 15 m on either side of the bypass or ring road is to be notified as a green zone under state town planning laws, where no development is permitted except public transport infrastructure, utilities, or green zone infrastructure. Beyond this, a Regulated Development Zone of up to 2 km on either side may be designated by the state government for residential, commercial, industrial, and institutional development. Right of Way acquisition is set at a minimum of 60 to 75 m for cities with populations over 5 lakh and state capitals, and 45 to 60 m for towns and district headquarters with populations between 1 lakh and 5 lakh.
Source: Ministry of Road Transport and Highways
5th Jun, 2025
25th May, 2023
11th May, 2023
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