Initiatives
For
a country of India's size, an efficient
road network is necessary both for
national integration as well as for
socio-economic development. The National
Highways (NH), with a total length of
66,590 km, serve as the arterial network
across the country. The ongoing
programme of four-laning the 5846 km
long Golden Quadrilateral (GQ)
connecting Delhi, Mumbai, Chennai and
Kolkata is nearing completion. The
ongoing four-laning of the 7,142 km
North-South East-West (NSEW) corridor is
to be completed by December 2009. In its
third meeting held on 13 January, 2005,
the Committee on Infrastructure adopted
an Action Plan for development of the
National Highways network. An ambitious
National Highway Development Programme (NHDP),
involving a total investment of
Rs.2,20,000 crore upto 2012, has been
established. The main elements of the
programme are as follows:
Four-laning
of the Golden Quadrilateral and NS-EW
Corridors
(NHDP I & II)
The NHDP Phase I and Phase II comprise
of the Golden Quadrilateral (GQ) linking
the four metropolitan cities in India
i.e. Delhi-Mumbai-Chennai-Kolkata, the
North-South corridor connecting Srinagar
to Kanyakumari including the Kochi-Salem
spur and the East-West Corridor
connecting Silchar to Porbandar besides
port connectivity and some other
projects on National Highways. Four-laning
of the Golden Quadrilateral is nearing
completion. Four-laning of 7,166 km
under NHDP-I and 2,440 km under NHDP-II
has been completed upto December 2008.
Four-laning of 7,166km under NHDP-I and
2,440 km under NHDP-II has been
completed upto December 2008. The
contracts for projects forming part of
NS-EW corridors are being awarded
rapidly for completion by December 2009.
Four-laning
of 12,109 kms (NHDP-III)
The Union Cabinet has approved the four-laning
of 12,109 km of high density national
highways, through the Build, Operation
& Transfer (BOT) mode. The programme
consists of stretches of National
Highways carrying high volume of
traffic, connecting state capitals with
the NHDP Phases I and II network and
providing connectivity to places of
economic, commercial and tourist
importance. Up to December 2008, NHAI
has awarded contracts of 2,075 km.
Two
laning of 20,000 km (NHDP-IV)
With a view to providing balanced and
equitable distribution of the
improved/widened highways network
throughout the country, NHDP-IV
envisages upgradation of 20,000 kms of
such highways into two-lane highways, at
an indicative cost of Rs.27,800 crore.
This will ensure that their capacity,
speed and safety match minimum
benchmarks for national highways.
Six-laning
of 6,500 kms (NHDP-V)
Under NHDP-V, the Committee on
Infrastructure has approved the six-laning
of the four-lane highways comprising the
Golden Quadrilateral and certain other
high density stretches, through PPPs on
BOT basis. These corridors have been
four-laned under the first phase of NHDP,
and the programme for their six-laning
will be completed by 2012. NHAI has
already awarded contracts for 1,030 km
till December 2008.
Development
of 1000 km of expressways (NHDP-VI)
With the growing importance of certain
urban centres of India, particularly
those located within a few hundred
kilometers of each other, expressways
would be both viable and beneficial. The
Committee on Infrastructure has approved
1000 k.m. of expressways to be developed
on a BOT basis, at an indicative cost of
Rs.16,680 crore. These expressways would
be constructed on new alignments.
Other
Highway Projects (NHDP-VII)
The development of ring roads, byepasses,
grade separators and service roads is
considered necessary for full
utilization of highway capacity as well
as for enhanced safety and efficiency.
For this, a programme for development of
such features at an indicative cost of
Rs.16,680 crore, has been approved.
Accelerated
Road Development Programme for the North
East Region
The Accelerated North-East Road
Development Project has been approved,
which will mainly provide connectivity
to all the State capitals and district
headquarters in the north-east. The
proposal would include upgrading other
stretches on NH and state highways
considered critical for economic
development of the north-east region.
Institutional
Initiatives
Steps have been taken for restructuring
and strengthening of National Highways
Authority of India (NHAI), which is the
implementing agency for the National
Highways programme. Institutional
mechanisms have been established to
address bottlenecks arising from delays
in environmental clearance, land
acquisition etc. A special focus is
being provided for traffic management
and safety related issues through the
proposed Directorate of Safety and
Traffic Management. It is expected that
the sum total of these initiatives
should be able to deliver an efficient
and safe highway network across the
country.
In
order to specify the policy and
regulatory framework on a fair and
transparent basis, a Model Concession
Agreement(MCA) for PPPs in national
highways has been mandated. It is
expected that this common framework,
based on international best practices,
will significantly increase the pace of
project award as well as ensure an
optimal balance of risk and reward among
all project participants.
Size
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India
has an extensive road network of 3.3
million kms - the second largest in the
world
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Roads
carry about 61% of the freight and 85%
of the passenger traffic
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Highways/Expressways
constitute about 66,590 kms (2% of all
roads) and carry 40% of the road traffic
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The
ambitious National Highway Development
Project (NHDP) of the Government is at
an advanced stage of implementation. Key
sub-projects under the NHDP include:
- The Golden Quadrilateral (GQ-5846 kms
of 4 lane highways)
- North-South & East-West Corridors
(NSEW-7142 kms of 4 lane
highways)
- Four-laning of 12,109 km under NHDP-III
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Program
for 6-laning of 6,500 km of National
Highways under NHDP- V.
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Structure
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National
Highways Authority of India (NHAI) is
the apex Government body for
implementing the NHDP. All contracts
whether for construction or BOT are
awarded through competitive bidding
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Private
sector participation is increasing, and
is through:
- Construction contracts
- BOT for some stretches - based on
either the lowest annuity or the lowest
lumpsum payment from the Government
* BOT contracts permit tolling on those
stretches of the NHDP
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Policy
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100%
FDI under the automatic route is
permitted for all road development
projects
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Incentives:
- 100% income tax exemption for a period
of 10 years
- NHAI agreeable to provide
grants/viability gap funding for
marginal projects
- Model Concession Agreement formulated
- IIFCL to provide funding upto 20% of
project cost
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The Golden Quadrilateral and NSEW projects
Opportunity
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development is a priority sector |
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Outlook
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Annual
growth projected at 12-15% for passenger
traffic, and 15-18% for cargo traffic
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Investment
in road sector during the Eleventh Plan
is projected at $ 78.50 billion
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Potential
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Road
development is recognised as essential
to sustain India's economic growth
- The Government is planning to increase
spends on road development substantially
with funding already in place based on a
cess on fuel
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A
large component of highways is to be
developed through public-private
partnerships
- Several high traffic stretches already
awarded to private companies on a BOT
basis
- Two successful BOT models are already
in place - the annuity model and the
upfront/lumpsum payment model
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Investment
opportunities exist in a range of
projects being tendered by NHAI for
implementing the NHDP - contracts are
for construction or BOT basis depending
on the section being tendered.
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A
Rs.41,200 crores (US $ 5 billion)
project plans to lay 6 lane roads over
6,500 kms of National Highways on the
Design Build Finance and Operate (DBFO)
basis - in Golden Quadrilateral and
other high traffic stretches.
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India
has the second largest road network in the world
An
annual growth of 12-15% for passenger traffic has been projected
Top
For
additional information: Department of
Road Transport and Highways, Ministry of
Shipping, Road Transport and Highways (http://morth.nic.in),
National Highways Authority of India (http://www.nhai.org)
Information
Source: www.investmentcommission.in
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Report
of the
Committee
Road Safety and Traffic Management
Download
1.34 MB
PDF Format
Report
of the
Committee of Secretaries
Review of
Toll Policy for
National Highways
Download
2.79 MB
PDF Format
Report
of the
Inter-Ministerial
Committee
Restructuring of National Highways
Authority of India
Download
587 KB
PDF Format
Report
of the
Core Group
Financing of the National Highway
Development
Programme
(NHDP)
Download
609 KB,
PDF Format
Information
Brochure
Download
19.30 MB
PDF Format
Two-laning
of Highways through PPP
Manual of Specifications & Standards
Download
1.40 MB
PDF Format
Four-laning
of Highways through PPP
Manual of Specifications & Standards
Download
4.08 MB
PDF Format
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