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.
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