Construction Mirror Article detail

The GoI has given a massive push to infrastructure by allocating about $1.4 Tn for infrastructure to be invested until 2025. The market for roads and highways in India is projected to exhibit a CAGR of 36.16% during 2016-2025, on account of growing government initiatives to improve transportation infrastructure in the country.

With a projected global infrastructure funding requirement of USD 3.7 trillion annually to keep pace with GDP growth, the significance of continued expansion and strengthening of India’s road network remains paramount. The highways sector in India has been at the forefront of performance and innovation. The government has successfully rolled out over 60 road projects in India worth over $10 Bn based on the Hybrid Annuity Model (HAM). HAM has balanced risk appropriately between private and public partners and boosted PPP activity in the sector. Asset recycling, through the toll-operatetransfer (ToT) model, has been taken up by the National Highways Authority of India (NHAI) for 100 highways. The first two bundles of 9 highways each were monetized successfully for an investment of over $2 Bn. NHAI has created Guinness World Record by constructing 75 km continuous Single Lane Bituminous Concrete Road in record time of 105 hours 33 minutes, between Amravati and Akola on NH 53 in Maharashtra. NHAI along with Maha Metro achieved the Guinness World Record by constructing the longest Double Decker Viaduct (3.14 km) with Highway Flyover & Metro Rail supported on single column in between 3 metro stations in Nagpur. As one of the biggest reforms in the road transportation industry in India, the NHAI has gone ‘Fully Digital’, with the launch of a unique cloud-based and Artificial Intelligence-powered Big Data Analytics platform – Data Lake and Project Management Software. The entire project management work flow of NHAI is transformed from manual to online portal based, wherein the complete project execution operations including ‘workflow with time lines’ and ‘alert mechanism’ have been configured. All project documentation, contractual decisions and approvals are now being done through the portal only.

Summary India has the second largest road network in the world of about 63.32 lakh km. The implementation agencies of the Ministry of Road Transport and Highways include: • National Highways Authority of India • State/Union Territories Public Works Departments • National Highway and Infrastructure Development Corporation Limited • Border Roads Organization • Indian Academy of Highway Engineers (IAHE) 

Reasons to Invest •As part of Phase-I of the Bharatmala Pariyojana programme, 27 Greenfield corridors are planned with an overall length of 9,000+ kms. •The government has taken many e-initiatives such as Bhoomi Rashi Portal, Enterprise Resource Planning (ERP) Project-eDISHA, E-tolling to simplify the processes in the roads and highways sector and bring transparency to it. •The State of Uttar Pradesh has sanctioned 1,255 Km road length for construction using Full Depth Reclamation Technology, which will not only save cost and time in a big way, but also conserve natural resources and reduce carbon footprint. •Development work of 6-Lane access-controlled Spur to Haridwar from Delhi – Saharanpur – Dehradun Economic corridor on Hybrid Annuity Mode under INR 2095.21 Crores in Uttar Pradesh and Uttarakhand. •50 – 70 Vehicle Scrapping Facilities and 75 Automated Testing Stations to be set up across the country in the next 5 years.

Key Achievements • The Ministry of Road Transport and Highways (MoRTH) is undertaking developmental projects worth INR 1,30,000 crore in Jammu and Kashmir to enhance the travel experience of pilgrims visiting the Shri Mata Vaishno Devi shrine. • The daily revenue collected from tolls through the use of FASTag has reached an all-time high, of over INR 193 cr. • NHs length of about 1,41,190 km has been GIS mapped on the PM Gati Shakti NMP Portal. • New Guinness World Record created by NHAI in laying 75 km of bituminous concrete in a single lane on NH53 in 105 hours and 33 minutes.* • 42 bus drivers were presented with Safety Awards for their exemplary and faultless services.

Statistics • The National Highways/ Expressways measure 1,44,955 km and State Highways measure 1,67,079 km and Other Roads measure 60,19,757 km as of FY 2022-23. • Target of 12,200 km set for construction of National Highways (NHs) in the country during 2022-23. • Overall road projects exceeding 65,000 km in length, costing more than INR 11 lakh crore, are in progress, of which work in respect of projects of more than 39,000 km length has been completed and in balance length of more than 26,000 km works are in progress. Growth Drivers • The Ministry of Road Transport and Highways has set a target of developing 40 km of National Highways and Expressways per day across the country for FY 2023-24. • MoRTH is constructing 27 Greenfield corridors, spanning a total length of 9,860 km, with a combined capital cost of INR 4,08,437 crore. • National Highways Logistics Management Limited (NHLML), 100% owned SPV of NHAI has completed detailed feasibility studies for 8 projects for implementation of ropeways in India. • To improve the highway network, NHAI is developing world-class ‘Wayside Amenities (WSA)’ at more than 600 locations along the National Highways. • Works costing INR 15,400 cr have been awarded for a length of 777 kms across 27 projects. Two Multimodal Logistics Parks (MMLPs) have been sanctioned in Visakhapatnam and Anantapur at a cost of INR 1,797 cr. These MMLPs will serve as a key hub for centralizing freight cargo consolidation in the region. • Provision of Advanced Traffic Management System (ATMS) is envisaged in high traffic density corridors which may help in speedy identification of incidents on the highway stretches and thereby improving the response time of the on-site assistance.

Shri Nitin Gadkari inaugurates and lays foundation stone for 26 National Highway Projects worth Rs.17,500 Crore in Guwahati, Assam The Union Minister for Roads Transport and Highways, Shri Nitin Gadkari inaugurated and laid the foundation stone for 26 National Highway Projects with an investment of more than Rs. 17,500 Crore in Guwahati, Assam today. The Union Minister of State for Roads Transport and Highways, General Shri VK Singh, the Chief Minister of Assam, Shri Himanta Biswa Sarma, State Cabinet Ministers, Member of Parliaments, MLAs, and NHIDCL officials were also present on the occasion. The Dibrugarh-Tinsukia-Ledo project aims to enhance interstate connectivity between Upper Assam and Arunachal Pradesh, boost strategic presence, and promote trade and tourism. The Silchar to Lailapur section will connect the Barak Valley with Mizoram, fostering socio-economic growth. NH-515 in Dhemaji District will improve connectivity between North Assam and Arunachal Pradesh. NH-137 will enhance connectivity in the Dima Hasao Region and provide an alternate route to Western Manipur. The Paikan to Guwahati Airport section will facilitate the Multi-Modal Logistics Park in Jogighopa. Additionally, the construction of new bridges will alleviate congestion and enhance trade, tourism, and socio-economic progress in the region.

Construction of Four and Six Lane National Highway in the Country The state-wise details of four/six lane works undertaken by National Highways of Authority (NHAI) are annexed. The projects in the NorthEastern States are generally taken up by the Ministry through its other executing agencies such as National Highways & Infrastructure Development Corporation Limited (NHIDCL), Border Roads Organization (BRO) and various State Public Works Departments (PWDs). In the State of Tripura, one work of around 25 km length with total capital cost of Rs. 2026 crore is under implementation by NHIDCL. The Ministry keeps on receiving proposals from various State Governments /UTs, for declaration / upgradation of State Roads, including State Highways (SHs), as new NHs. State roads, including State Highways (SHs), are declared as National Highways (NHs) from time to time on the basis of well-established principles. The important criteria for declaration of NHs include the following: i. Roads running through the length / breadth of the country. ii. Connecting adjacent countries, National Capitals with State Capitals / mutually the State Capitals, major ports, non-major ports, large industrial centers or tourist centers. iii. Roads having important strategic requirements in hilly and isolated areas. iv. Arterial roads which enable sizable reduction in travel distance and achieve substantial economic growth. v. Roads which help in opening up large tracts of backward areas and hilly regions. vi. Roads contributing towards the achievement of the National Highways grid of 100 km. vii. Synergy with PM Gati Shakti National Master Plan (NMP) Shri Nitin Gadkari launches Bharat NCAP(New Car Assessment Programme) This is a landmark step towards empowering our consumers for being able to make a better choice for buying safer cars: Shri Gadkari The new safety regime under BHARAT NCAP and AIS-197 is a mutual win-win for manufacturers and consumers: Shri Gadkari The program was commenced from 1st October Union Minister of Road Transport and Highways Shri Nitin Gadkari launched the Bharat New Car Assessment Programme (Bharat NCAP) today in New Delhi aiming to enhance road safety by elevating vehicle safety standards for up to 3.5-tonne vehicles in India. Addressing the gathering he said this is a landmark step towards empowering our consumers to be able to make a better choice for buying safer cars. Shri Gadkari said BHARAT NCAP will also greatly push the safety and quality of the vehicles in India, while simultaneously promoting a healthy competition among OEMs to manufacture safer vehicles. He said the new safety regime under BHARAT NCAP and AIS-197 is a mutual winwin for manufacturers and consumers and an instrumental step towards safeguarding lives of our citizens and making our Automobile Industry the number one auto manufacturing hub in the world. The Program is applicable to type approved motor vehicles of M1 category less. than 3.5T GVW. This is a voluntary program in which the base variants of a given model shall be tested. This program will commence from 1st Oct 2023 and will be based on Automotive Industry Standard (AIS) 197. Program aims to create an ecosystem of competitive safety enhancements leading to increased awareness among consumers. Consumers can take an informed decision by making a comparative assessment on vehicle performance under crash test conditions. NCAP brings the opportunity to the OEMs to manufacture vehicles of global safety standards. Program will be anchored by Central Institute of Road Transport (CIRT) .

This program has been evolved based on stakeholder consultations . The Highlights of the Recent Major Developments in Roads & Highways! Connecting roadways: India’s road network is now second largest in the world, grows 59% in last 9 years Greenfield Expressway: Nitin Gadkari announces Rs 4.5 lakh cr projects, to stretch across 10,000 km Union Minister Nitin Gadkari said that the government is erecting a number of greenfield expressway projects adding upto 10,000 km across India at a budget of Rs 4.5 lakh crore, PTI report said. The minister mentioned that all the road network has been constructed under the Bharatmala Pariyojana. More than Rs 70, 000 crore has been created through several means of financing by the National Highway Authority of India (NHAI) and the funds generated through this will be used in building highway projects, he stated. While making a speech at an event arranged by IIM Kozhikode on ‘Management Development Program on Infrastructure Financing’, the minister said, ”The government has conceived Bharatmala Pariyojna of developing 65,00 km highways covering all over the country. We are building 10,000 km of greenfield expressway which will amount to Rs 4.5 lakh crore and phase one road network consists of 34, 800 km,” as reported by PTI. NHAI’s several measures to modernize National Highways. The road, transport and highways minister mentioned there is a whopping shoot up to near about 1.45 lakh km at present comparable to 91,000 km in India’s total National Highway network. The minister said NHAI is adopting several methods of monetization of national highways assets such as project based financing ,ToT (toll-operate-transfer)and InVIT (Infrastructure Investment Trusts). Asset monetization plays a pivotal role in generating investment for infrastructure. NHAI is utilizing many innovative financing techniques and has created more than Rs 70,000 crore. Around Rs 34,000 crore has been generated through securitization via SPVs, Rs 26,000 crore is raised through ToT model and Rs 10,000 crore by NHAI InVIT (National Highways Infra Trust). With the conception of PM Gati Shakti National master plan and national infrastructure pipeline, the government has given an immense boost to the economy, the Union Minister added. The new infra projects which will come under these plans will help in connecting the remotest of India and will corroborate in integrated and overall development across the country by reducing time and cost. Highway Monetisation | Rs 70,000 crore raised so far: Gadkari The government has raised Rs 70,000 crore so far from monetisation of highway projects and these funds will be utilized for further development of highways, Minister for Road and Highways Nitin Gadkari said on Monday. “Around Rs 26,000 crore has been raised through Toll Operate Transfer (TOT) model, Rs 10,000 crore through InvIT and `34,000 crore through Special Purpose for identified projects. These funds will be used for further development of highways,” the minister said at the ‘Management Development Program on Infrastructure Financing’ organized by IIM Kozhikode. “Asset monetization holds the key to infrastructure investment. National Highways Authority of India has the share of 27% under the national monetization pipeline,” Gadkari said. He said the government is constructing several greenfield expressway projects totalling 10,000 km across the country at a cost of Rs 4.5 trillion under Bharatmala Programme. “The government has conceptualized Bharatmala Pariyojna of 65,000 km of highway development across the country. The phase 1 road network is 34,800 km… We are constructing 10,000 km of greenfield expressways at a cost of `4.5 trillion,” he said. According to the minister, India’s total National Highway (NH) network has increased from 91,000 km in 2014 to nearly 1.45 lakh km at present. Gadkari further said the government has given a massive push to the economy through the national infrastructure pipeline and PM Gati Shakti National master plan. He said the government is building 335 multimodal logistics parks with an investment of `2 trillion and 1,200 km of ropeways for Rs 1.3 trillion. These programs will ensure integrated and holistic development in the country saving cost and time as these new infra projects will connect remote areas in the country. NHAI to stick to HAM, EPC for highways awards Actual construction target for the year is 5,060 km but the Ministry of Road Transport and Highways has prodded it to increase it further. New target may be set at 6,000 km. The Build Operate Transfer (Toll) mode of highway construction is expected to languish this year too with National Highways Authority of India deciding to stick to proven models of Hybrid Annuity Model (HAM) and Engineering Procurement and Construction to complete its targets. For this year the NHAI is expecting to award 65% of the projects under HAM and 35% under EPC. This is a change from the mix seen in awarding projects under Bharatmala so far with EPC accounting for 46.9% and HAM 51.7% and BOT 1.4%. The initial target was to award 60% projects under HAM, 30% under EPC and 10% under BOT. “NHAI may not be able to experiment much this year (with the mix),” an official who did not wish to be named said. In 2023-24, the NHAI aims to award highway projects of 6,036 kilometers, up from 6,003 km awarded in the previous financial year, the official said. Its actual construction target for the year is 5,060 km but the Ministry of Road Transport and Highways has prodded it to increase it further. New target may be set at 6,000 km. According to analysts, with the next general election process expected to start from the fourth quarter, the pace of awarding of new projects may slow down. Keeping the scheduled elections in mind, the ministry has started its capital expenditure programme for the year on a high note. In the first two months of the financial year it has spent 22% of the outlay for the year or `57,380 crore out of `2.58 trillion. As compared to last year it has shown a growth of 42%. The ministry has set the target of utilizing 91% of its capital budget by December-end. During April-May various highway building arms of the ministry have constructed 1,465 km of highways as compared to 1,307 km in the same period last year. Contracts were awarded for 382 km of highways in the first two months of the financial year compared to 496 km in the same period last year. The analysts have, however, predicted 75% of the projects that will be awarded for the highway development this year will be through EPC. The government has repeatedly said that it wants to bring back BOT and has made several changes in rules to make it more attractive. Between 2007 and 2014, only BOT was used to build highways before it came to a grinding halt. In 2018-19 and 2019-20 no projects were awarded on BOT. Connecting roadways: India’s road network is now second largest in the world, grows 59% in last 9 years The Union Minister stated that the country’s road network currently stands at 1,45,240 km compared to 91,287 km in 2013-14. Transport and Highways Minister Nitin Gadkari on Tuesday (June 27) claimed that the road network in the country grew by 59 per cent in the last nine years to become the second-largest road network in the world. The Union Minister stated that the country’s road network currently stands at 1,45,240 km compared to 91,287 km in 2013-14. Nitin Gadkari said that the country had made seven world records in the sector in the last 9 years. “India’s road network is the second largest in the world after the US,” Gadkari added. Gadkari highlighted the work of the government towards the development of roads while addressing a conference on ‘9 years achievements of government’ in Delhi, which was also attended by NHAI Chairman Santosh Kumar Yadav and MoRTH Secretary Anurag Jain. He added that the increase in 4 lane NH rose about two times in the last nine years. Gadkari stated that the length of 4-lane NH was 18,371 km in 2013-14 which has increased to 44,654 km in the last nine years. ‘FASTag revolutionized concept of tolls’ While speaking to the reporters at the conference, Gadkari also stated that with the introduction of FASTag, there is a significant jump in toll collection. Gadkari informed that the revenues from tolls rose from Rs 4,770 crore in 2013-14 to Rs 41,342 crore in FY23. The minister further stated that the Government aims to increase the toll revenue to Rs 1,30,000 crore by 2030. The Transport and Highways Minister said that the usage of FASTag has helped in reducing the waiting time at the toll plazas to 47 seconds. “In 2014, the waiting time at the toll plazas was 734 seconds, whereas in 2023 this was reduced to 47 seconds. We are hopeful that we will bring it down to 30 second soon,” he said. The minister also added that FASTag has revolutionized the concept of toll payments in India by eliminating the need for cash transactions. “This breakthrough has saved approximately Rs 70,000 crore in wasted fuel expenses caused by waiting at the toll plazas,” Gadkari claimed. Special emphasis on North East region Special emphasis is being laid on the expansion of the road highway network in the North-East region of the country, said the Union Minister. He further stated that projects worth more than Rs 2 lakh crore are being carried out in the region. Additionally, the government is also developing 670 roadside facilities in the region to ensure a pleasant experience along the National Highways. Green Initiatives by Transport and Highways Ministry While highlighting the green initiatives taken by the National Highways Authority of India (NHAI), Gadkari said that the authority has transplanted more than 68,000 trees while it planted 3.86 crore trees during the last nine years. Gadkari also stated that the authority has taken on various water rejuvenation initiatives and has developed more than 15,00 Amrit Sarovars along the highways. Furthermore, the ministry has also utilized 30 lakh tons of garbage in road construction for the Delhi Ring Road project. This shows governments’ proactive approach towards waste management and sustainable infrastructure development, he said. The Minister also pointed out that the ministry has been taking innovative measures like the introduction of bamboo crash barriers which not only provides enhanced strength and durability but also generates employment opportunities and promotes environmental sustainability. Highway construction target to be raised to 38 km/day for FY24 The government is planning to raise the highway construction target for the current financial year, and it may now be pegged higher at about 14,000 km, up from 12,500 km set at the start of the year. “The pace of highway construction has gone up from 11.6 km per day (in UPA regime) to 30 km a day now. We are trying to increase it further,” the minister of road transport and highways Nitin Gadkari said at a press conference listing out the achievements of his ministry during the nine years of the Narendra Modi government. In 2020-21, the pandemic years, the pace of highway construction touched a high of 37 km per day, the highest achieved so far. In that year 13,327 km of highways were built, he said. The plan is to raise the target to a similar level (38 km/day) for the current fiscal. Last year, highway stretches of 10,331 km (28 km/day) were built. With the pure-play BOT model yet to gain currency, the highway agencies mostly resort to the EPC and hybrid annuity models to build highways. 

The targets for National Highways Authority of India (NHAI) may be raised to 6,000 km, roads wing of the ministry may chip in with another 6,000 km while National Highways & Infrastructure Development Corporation (NHIDCL) will do around 1,500-2,000 km, Anurag Jain, secretary in the ministry, said. He said that discussions on new targets are still on and close to finalization. According to an official, there are many highway stretches that are in final stages of completion but are stuck due to various factors. These stretches may get added to this year’s targets. The ministry counts only completed projects while setting targets and measuring achievements. According to some estimates, these stretches could total 1,500-2,000 km. As of February 2023, 1,486 National Highways projects with a cumulative length of about 38,000 km and cost of about Rs 8.24 trillion are at under-construction stage under various implementing agencies. NHAI, the main highway builder in the country, had earlier set a target of building 5,060 km this year, up from 4,882 km in 2022-23. NHIDCL’s task is to develop highways in the North-East and strategic areas of the country along international borders. The road wing of the ministry executes projects related to expressways, six laning of crowded stretches of Golden Quadrilateral and two laning of highways under National Highway Development Projects. It also works on a special programme of development of road connectivity in naxalite affected areas and providing last-mile connectivity. Projects of the road wing are executed by the public works department of the states and Union territories on an agency basis, by the NHAI and NHIDCL. Gadkari said the road network of the country has increased 59% in the last nine years to 1.45 lakh km from 91,287 km earlier. During that period, earnings from toll increased from Rs 4,770 crore to Rs 41,342 crore, he said. The earnings include money raised through asset monetisation. “Total earnings from highways (toll and asset monetisation) would touch Rs 1.3 trillion before 2030,” Gadkari said. National Highways Authority of India to build 5,060-km highway stretches in FY24 The National Highways Authority of India has set a target to construct highway stretches with a combined length of 5,060 kilometers in the current financial year, up from a record 4,882 km built last year. “The pace of construction increased by 13% in 2022-23. The target for this year has been set even higher,” a senior official said. Similarly, the NHAI aims to award highway projects of 6036 kilometers, up from 6003 km awarded in the previous financial year. In 2022-23, National Highways Authority of India (NHAI) also launched 167 projects with a total length of 5,213 km. In all, 55,000 km of roads are under various stages of execution, according to an ICRA report. In the first two months of this financial year, the NHAI has constructed 655.31 km of highways and awarded only one project of 22.42 km. In the first two months of this financial year, the NHAI has constructed 655.31 km of highways and awarded only one project of 22.42 km. Capital expenditure by the NHAI for the development of the national highway infrastructure touched an all-time high of Rs 1.74 trillion in FY23, significantly more than Rs 1.58 trillion provided by the government. The extra of around Rs 15,000 crore came from project-based financing.

crore through private financing via special purpose vehicles for identified projects. Total capital expenditure of the ministry of road transport and highways has been kept at Rs 2.58 trillion for FY24, up from the Rs 2.06 trillion spent last year. Taken together with other models of financing highways apart from engineering, procurement and construction (EPC), where the NHAI spends all money, much more resources will be available for the highway construction this financial year. Other modes of highway construction are hybrid annuity model (HAM) and build operate transfer (BOT). In hybrid, concessionaires are paid by the NHAI in installments, and in BOT, private developer pays the cost of construction and recovers his investment through toll. Between 2007 and 2014, only BOT was used to build highways before it came to a grinding halt. In 2018-19 and 2019-20, no projects were awarded on BOT. Its share in total highway construction has gone down to less than 5% and the government wants to increase it to 10%. The EPC is expected to remain the mainstay of highway construction this year too with a total share of 70-75% of total awards, according to the ICRA report. Let’s Explore the facts that are shaping the future of Roads & Highways ! The allocation to the National Highways Authority of India (NHAI) has been increased to Rs 1.62 lakh crore for 2023-24, up from last year’s revised allocation of Rs 1.42 lakh crore. Just like last year, Nirmala Sitharaman’s fifth budget has a lot of infrastructure spending. Presenting the last full budget before a decisive election in 2024, the finance minister has kept to Prime Minister Narendra Modi’s tried and tested formula of increased spending towards the country’s key infrastructure sector, including roads, railways and airports. The benefit of that is fairly simple, especially as the global economy stares at a sharp recession: Increased government spending means job creation in addition to stimulating private consumption and investment spending. To start with, Sitharaman has allocated Rs 2.4 lakh crore towards Indian Railways capital expenditure this year, nine times higher than the amount in the financial year 2013-14. The funds will mostly be spent on building tracks, new coaches, electrification, and developing facilities at stations. The railway is in the midst of transformation, with the government looking to replace some of the existing trains with the Vande Bharat trains. Last year, the government had announced plans to roll out 400 Vande Bharat trains by 2025. Additionally, over 1,000 coaches of trains including Rajdhani, Shatabdi, Duronto, Humsafar and Tejas will be refurbished. The railways is likely to use the funds for track expansion and electrification in addition to newer coaches and trains. The key aspects are increase in capital outlays for railways to an all-time high, along with additional focus on logistics that will impact the overall cost of business and possibly address the larger issue of higher trade costs within the country. While the hard numbers are welcome, the more nuanced push for better development across cities by focusing on urban planning reforms is welcome. The government has now identified one hundred critical transport infrastructure projects for last- and first-mile connectivity for the ports, coal, steel, fertilizer, and food grains sectors, where it intends to ramp up investments. “They will be taken up on priority with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources,” Sitharaman said in her speech. The government has also decided to raise the allocation towards the roads ministry by some 36 percent to Rs 2.7 lakh crore for 2023-24.

The country, which currently has over 1.4 lakh km of highways, had planned to build 25,000 km last year. This year’s allocation is nearly a 10 percent jump over the budgetary allocation of Rs 1.99 lakh crore made for 2022-23. Last year, according to the economic survey, India built a little over 10,000 km. Of the total outlay of Rs 2.7 lakh crore, the National Highways Authority of India has been granted Rs 1.62 lakh crore, a 21 percent increase compared to 2022-2023. Giving a financial push to scrap old, polluting vehicles owned by the government, Finance Minister Nirmala Sitharaman said she has allocated adequate funds to scrap old vehicles owned by the central government, and states will also be supported in replacing old vehicles and ambulances. Recently, the Ministry of Road Transport and Highways had notified that starting April 1, government vehicles — of the Centre, states, PSUs and autonomous bodies — would be scrapped if they had completed 15 years. Union Road Transport Minister Nitin Gadkari had said an estimated 9 lakh vehicles, owned by central and state governments, transport corporations and public sector undertakings, would go off the road from April 1. Sitharaman said 100 critical transport infrastructure projects for first- and last-mile connectivity for coal, fertilizer and foodgrain sectors have been identified and would be taken up on priority basis, with investment of Rs 75,000 crore, including Rs 15,000 crore from private sources. Union Budget, Union Budget 2023, NHAI, National Highways Authority of India, Nirmala Sitharaman, Indian Express, India news, current affairsGiving a financial push to scrap old, polluting vehicles owned by the government, Finance Minister Nirmala Sitharaman said she has allocated adequate funds to scrap old vehicles owned by the central government, and states will also be supported in replacing old vehicles and ambulances. The allocation to the National Highways Authority of India (NHAI) has been increased to Rs 1.62 lakh crore for 2023-24, up from last year’s revised allocation of Rs 1.42 lakh crore. Of the total capital expenditure, the National Highways Authority of India (NHAI) was allocated around Rs 1.34 lakh for 2022-2023, reflecting a 75 percent jump compared to that of Rs 76,665 crore in 2021-2022. The Budget envisaged an expansion of 25,000 km in the highways network in the current fiscal. In 2021-22, the budgetary allocation for the ministry has seen a 30 percent increase to Rs 1.18 lakh crore against the revised estimate of Rs 1.01 lakh crore for 2020-21. The actual allocation for the ministry was Rs 99,159 crore in 2020-21. The Centre has included 1,537 projects under the ambitious Sagarmala Programme at a cost of Rs 6.5 lakh crore. The Ministry of Ports, Shipping and Waterways aims to complete projects worth Rs 2 lakh crore in the next financial year under the Sagarmala Programme. The ministry estimates  that the target of freight transportation of 340 million tonnes (MT) can be achieved through coastal shipping by FY 25. IN KEEPING with the infrastructure push, the government has increased the outlay for the highways sector to Rs 2.70 lakh crore, up by about Rs 70,000 crore. The allocation to the National Highways Authority of India (NHAI) has been increased to Rs 1.62 lakh crore for 2023-24, up from last year’s revised allocation of Rs 1.42 lakh crore Giving a financial push to scrap old, polluting vehicles owned by the government, Finance Minister Nirmala Sitharaman said she has allocated adequate funds to scrap old vehicles owned by the central government, and states will also be supported in replacing old vehicles and ambulances. Recently, the Ministry of Road Transport and Highways had notified that starting April 1, government vehicles — of the Centre, states, PSUs and autonomous bodies — would be scrapped if they had completed 15 years. Union Road Transport Minister Nitin Gadkari had said an estimated 9 lakh vehicles, owned by central and state governments, transport corporations and public sector undertakings, would go off the road from April 1. Sitharaman said 100 critical transport infrastructure projects for first- and last-mile connectivity for coal, fertilizer and foodgrain sectors have been identified and would be taken up on priority basis, with investment of Rs 75,000 crore, including Rs 15,000 crore from private sources. Among the marquee projects, the 1,350- km Delhi-Mumbai Expressway, with an estimated cost of about Rs 1 lakh crore, will be commissioned in phases this year. The 210- km Delhi-Dehradun Expressway is also under construction and will start getting commissioned in 2024. The Delhi-Amritsar-Katra Expressway, spanning 670 km, is also a signature project of the government with an estimated cost of about Rs 35,000 crore. Sitharaman also said that coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding. Then there is also the focus on reviving 50 additional airports, heliports, water aerodromes and advance landing groundings for improving regional air connectivity. On January 31, the economic survey had said the civil aviation sector “has great potential owing to growing demand from the middle class, growth in population and tourism, higher disposable incomes, favorable demographics, and greater penetration of aviation infrastructure.” That has meant the finance minister has also allocated Rs 3,113.36 crore to the civil aviation ministry this year. Much of that is also in line with the government’s plan to push for regional air connectivity through its flagship scheme, UDAN, which focuses on connectivity between Tier-2 and Tier-3 cities. In December, domestic air passenger traffic in the country stood at 12.9 million, the highest

since January 2020. Today, India’s domestic aviation market is led by low-cost carriers that control as much as 80 percent of the market, led by market leader IndiGo which corners nearly 60 percent. The government also reckons that the newlyestablished Infrastructure Finance Secretariat will be key to assisting all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power, which are predominantly dependent on public resources. Indian roads will be better than roads in USA by 2024-end: Transport Minister Nitin Gadkari The condition of the roads in India for the longest has not been up to par in terms of global competition, although in recent times the government of India has made some serious efforts to change this. The minister stated that the roads in India would be better than those in the United States of America by the end of 2024 under the Narendra Modi government. “We have decided that under the leadership of Prime Minister Narendra Modi, before the end of the year 2024, India’s road infrastructure will be better than that of America.” “American roads are not good because America is rich, but America is rich because American roads are good,” and said, “I’ve promised (UP CM) Yogi Ji that before the end of 2024, we’ll make the road infrastructure of Uttar Pradesh equivalent to that of the USA” He further stated that a total of Rs 5 lakh crore will be invested on roads in Uttar Pradesh before 2024. According to the minister, within two years in Uttar Pradesh, numerous projects will be completed. Some of the projects that he stated during IRC were 13 railway overbridges worth Rs 1,000 crore, the Shahabad bypass-Hardoi bypass for Rs 1,212 crore, the Shahjahanpur to Shahabad bypass worth Rs 950 crore, and a few others. Rising government initiatives towards better roads and highways infrastructure for freight and public transportation to drive India roads and highway sector through 2025. India has one of the largest road networks in the world, spanning over 5.8 million km. Of this, around 2% are National Highways, 3% are State Highways and the remaining belongs to district and rural road networks. Over 64.5% of all goods in the country are transported through roads, while 90% of the total passenger traffic uses the road network to commute. During the last five years there has been a significant growth in the road transportation network. The Government of India has allocated more than Rs 1.18 Lakh crore to the Ministry of Road Transport and Highways (MoRTH) as outlay for FY 2021-22. Further, the government has identified various economic corridors to play an enabling role in transforming India’s economy to grow to USD 5 trillion by 2025. Importance to the sector is also exhibited by the fact that it accounts for approximately 18% of the National Infrastructure Pipeline. Various state governments have also considered developing critical road corridors as a catalyst of economic development.