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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-ChennaiKolkata, 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.
Size Structure Policy Opportunity Outlook Potential

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

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

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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

reward among all project participants.

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Size
India has an extensive road network of 3.3 million kms - the second largest in the world Roads carry about 61% of the freight and 85% of the passenger traffic Highways/Expressways constitute about 66,590 kms (2% of all roads) and carry 40% of the road traffic 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 Program for 6-laning of 6,500 km of National Highways under NHDP- V.
Top Two-laning of Highways through PPP Manual of Specifications & Standards Download 1.40 MB PDF Format

Structure
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 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
Top Four-laning of Highways through PPP Manual of Specifications & Standards Download 4.08 MB PDF Format

Policy
100% FDI under the automatic route is permitted for all road development projects 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

Road development is a priority sector

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Outlook

Annual growth projected at 12-15% for passenger traffic, and 15-18% for cargo traffic Investment in road sector during the Eleventh Plan is projected at $ 78.50 billion
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Potential
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 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 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. 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.

India has the second largest road network in the world

An annual growth of 12-15% for passenger traffic has been projected

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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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