The infrastructure sector has been a key driver of the economy, significantly contributing to rapid economic growth and development. Thus, it is no surprise that India has concentrated on developing its infrastructure in recent years. Special attention has been given to roadways, which are crucial for connecting every corner of the country.
The budget allocation of the Ministry of Road Transport & Highways has seen significant increase in the past few years. As per the date provided by the government in December 2023, the ministry’s budgetary allocation increased from approximately Rs 31,130 crore in 2013-14 to Rs 2,70,435 crore in 2023-24. Capital expenditure on National Highways rose significantly from about Rs 51,000 crore in 2013-14 to over Rs. 2,40,000 crore in 2022-23.
Such an increase in allocation drove the expansion of the National Highways network from about 91,287 km in March, 2014 to about 1,46,145 km till December 2023, the ministry had said in a release.
More budget allocation expected for roadways
During the Interim Budget, Finance Minister Nirmala Sitharaman announced a marginal increase in the allocation for roadways. The government allocated Rs 2,78,000 crore to the Ministry of Road Transport and Highways, marking a 2.7% increase from the Rs 2,70,434 crore allocated in 2023-24. However, the revised allocation for the ministry for the fiscal year 2023-24 was Rs 2,76,351.45 crore, making the new allocation just 0.5% higher by comparison.
However, considering the ongoing projects in the country, it is expected that the allocation will be much higher as seen in the previous years.
The benefits of a high budgetary allocation are multifold. In the past, such high allocations led to the length of 4 Lane plus NH network including High Speed Corridors increasing by more than 250% from about 18,371 km in March, 2014 to about 46,179 km till December 2023.
India has been able to decrease the length of less than 2 Lane NHs from about 27,517 km in March, 2014 to about 14,870 km, as per December 2023 data, which made up only about 10% of the NH network.
Project implementation commenced on 21 greenfield access-controlled corridors, including expressways, with approximately 3,336 km of work already completed by 2023, the ministry had revealed earlier.
Some of the latest developments in the roadways sector are as follows:
- The National Highways Authority of India (NHAI) plans to offer 15 road projects worth Rs 44,000 crore, covering 900 kilometres, for bids under the build-operate-transfer (BOT) mode in FY25. If successful, this could signal the revival of public-private partnership projects in the highway sector.
- The NHAI will soon commence work on the Rs 4,000-crore Chattergala tunnel to ensure all-weather road connectivity between the Kathua and Doda districts of Jammu and Kashmir, Union Minister for Road Transport and Highways Nitin Gadkari said in Srinagar on June 17.
- The NHAI is collaborating with IIT Delhi to employ artificial intelligence-based solutions for improvement in the availability of road signs on the national highways.