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Government Involvement

Policy Initiatives
  • The Government has allowed 100 per cent FDI under the automatic route in all road development projects.
  • Investors in identified highway projects permitted to now recover investment by way of collection of tolls for specified sections and periods.
  • The government has also announced an increase from US$ 100 million to US$ 500 million in the overseas borrowing amount for the infrastructure sectors.
  • The Committee on Infrastructure (CoI), under the Chairmanship of the Prime Minister, was constituted on 31st August, 2004 which has been substituted by the Cabinet Committee on Infrastructure (CCI) on July 6, 2009 under the chairmanship of Prime Minister. CCI will approve and review policies and projects across infrastructure sectors.
  • NHAI / GOI to provide capital grant up to 40% of project cost to enhance viability on a case to case basis
  • 100% tax exemption for 5 years and 30% relief for next 5 years, which may be availed of in 20 years
  • In BOT projects entrepreneur are allowed to collect and retain tolls
  • Duty free import of specified modern high capacity equipment for highway construction




MORT&H Initiatives
In order to augment the resources the Ministry of Road Transport and Highways has also taken lead in Private sector participation in road infrastructure projects. At present 20 National Highway projects costing about Rs. 1000 crore are in different stages of construction or in operation. Model Concession Agreements (MCA) for large BOT Projects costing more than Rs. 100 crore, small BOT Projects costing up to Rs. 100 crore and annuity-based projects have been finalised. It is expected that in the coming years, private sector participation will grow.

The Ministry of Road Transport and Highways is the nodal Ministry in the country in the roads sector and is guiding different states for construction and maintenance of quality roads by issuing technical circulars related to different aspects of Highway Engineering and Practice. The Ministry of Road Transport and Highways has prepared specification for Road and Bridge Works, standard drawings for various types of bridges, culverts and junctions. The Indian Roads Congress (IRC), a premiere body of highway engineers in India, is formulating codes and standards for design, construction and maintenance of roads and bridges and for traffic operations.

The Central Government through the Ministry of Road Transport and Highways is also actively involved with International Organisations like World Bank, Asian Development Bank, Japan Bank for International Co-operation for upgradation of the technology and decision making process. The Central Government is also involved in active co-operation in the field of developing Highway linkages like Asian Highways. This requires continuous interaction with organisations like ESCAP, BIMSTEC etc. The Ministry of Road Transport and Highways has also signed Memorandum of Understanding with its counterparts in Malaysia and France for co-operation in the areas of Highway Engineering. In many cases, the Ministry of Road Transport and Highways is the nodal Ministry for India in the field of co-operation in Transport sector as a whole.

NHAI Mandate
National Highways Authority of India (NHAI) is mandated to implement National Highways Development Project (NHDP) which is
  • India 's Largest ever highways project
  • World class roads with uninterrupted traffic flow

The National Highways have a total length of 70548 km to serve as the arterial network of the country. The development of National Highways is the responsibility of the Government of India. The Government of India has launched major initiatives to upgrade and strengthen National Highways through various phases of National Highways Development project (NHDP), which are briefly as under:

NHDP Phase I : NHDP Phase I was approved by Cabinet Committee on Economic Affairs (CCEA) in December 2000 at an estimated cost of Rs.30,000 crore comprises mostly of GQ (5,846 km) and NS-EW Corridor (981km), port connectivity (356 km) and others (315 km).

NHDP Phase II : NHDP Phase II was approved by CCEA in December 2003 at an estimated cost of Rs.34,339 crore (2002 prices) comprises mostly NS-EW Corridor (6,161 km) and other National Highways of 486 km length, the total length being 6,647 km. The total length of Phase II is 6,647 km.

NHDP Phase-III: Government approved on 5.3.2005 upgradation and 4 laning of 4,035 km of National Highways on BOT basis at an estimated cost of Rs. 22,207 crores (2004 prices). Government approved in April 2007 upgradation and 4 laning at 8074 km at an estimated cost of Rs. 54,339 crore.

NHDP Phase V: CCEA has approved on 5.10.2006 six laning of 6,500 km of existing 4 lane highways under NHDP Phase V (on DBFO basis). Six laning of 6,500 km includes 5,700 km of GQ and other stretches.

NHDP Phase VI: CCEA has approved on November 2006 for 1000 km of expressways at an estimated cost of Rs. 16680 crs.

NHDP Phase VII: CCEA has approved on December 2007 for 700 km of Ring Roads, Bypasses and flyovers and selected stretches at an estimated cost of Rs. 16680 crs.