Roads have emerged as the dominant part of the transport system in India. However, if one goes to the rural and hilly regions of India, the road conditions are still pathetic. Therefore, to improve the conditions of roads in the country, the Road Transport and Highways Ministry has set an aspiring target of laying more than 40 km of roads in 2016-17. At current, they are laying about 20 km of roads per day.
Last year, the Ministry had awarded 10,000 km of roads, however this year, the Ministry has targeted to award 25,000 km of roads. Out of 25,000 km of targeted roads, the National Highways Authority of India (NHAI) will be awarded with the major chunk, i.e., 15,000 km and the remaining 10,000 km will be awarded to the National Highways and Infrastructure Development Corporation (NHIDCL).
However, for the current FY2016-17, the Finance Minister, in the recent Budget, has set the construction target at 10,000 km worth Rs 1 lakh crore. In the current budget, the Road Ministry has got an allocation of Rs 57,000 crore and NHAI has been allowed to raise tax-free bonds of Rs 15,000 crore.
The Ministry is also considering other options—like EPFO and LIC and by leasing out existing projects on toll-operate-transfer (TOT) model—to raise funds.