+
Bharatmala highways project plagued by cost, time escalation
ROADS & HIGHWAYS

Bharatmala highways project plagued by cost, time escalation

The Union government’s slow-moving Bharatmala Project - a plan to develop over 30,000 km of national highways - is seeing completion times and costs escalate, according to a new report from ICRA.

The report says the project is likely to be complete in FY28, a six-year delay from the original timeline. The cost of the project has already risen by 99% to Rs 10,630 billion and is poised to see another 15-20% increase.

First announced in July 2015, the project was originally estimated to cost the country Rs 5,350 billion to develop 24,800 km of national highways and another 10,000 km of highways pending under the erstwhile National Highway Development Programme by FY22. Calculations made in 2015 pegged the project cost at Rs 155.20 million crore per km.

ICRA's findings point to land acquisition as being a major problem area for the project. Funding is also a likely roadblock, with costs almost doubling since 2015. Highways Minister Nitin Gadkari has hinted at that the National Highways Authority of India (NHAI) may raise additional debt.

The Bharatmala Project is being undertaken by NHAI, the Union Road Transport and Highways Ministry, and the National Highways and Infrastructure Development Corporation, with the bulk of the project under NHAI.

See also:
CM commends NHAI for Amravati Highway
Tiruninravur-Tiruvallur high road will shortly be widened


The Union government’s slow-moving Bharatmala Project - a plan to develop over 30,000 km of national highways - is seeing completion times and costs escalate, according to a new report from ICRA. The report says the project is likely to be complete in FY28, a six-year delay from the original timeline. The cost of the project has already risen by 99% to Rs 10,630 billion and is poised to see another 15-20% increase. First announced in July 2015, the project was originally estimated to cost the country Rs 5,350 billion to develop 24,800 km of national highways and another 10,000 km of highways pending under the erstwhile National Highway Development Programme by FY22. Calculations made in 2015 pegged the project cost at Rs 155.20 million crore per km. ICRA's findings point to land acquisition as being a major problem area for the project. Funding is also a likely roadblock, with costs almost doubling since 2015. Highways Minister Nitin Gadkari has hinted at that the National Highways Authority of India (NHAI) may raise additional debt. The Bharatmala Project is being undertaken by NHAI, the Union Road Transport and Highways Ministry, and the National Highways and Infrastructure Development Corporation, with the bulk of the project under NHAI.See also: CM commends NHAI for Amravati Highway Tiruninravur-Tiruvallur high road will shortly be widened

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Annette Gregg Named WTCA’s First Female CEO

World Trade Centers Association (WTCA) has appointed Annette Gregg as Chief Executive Officer, making her the first woman to lead the organisation in its 57-year history.Gregg assumed the role from October 5 and will lead WTCA from its recently established global headquarters at One World Trade Center in New York City. The association connects more than 300 World Trade Center locations across nearly 100 countries and territories.As CEO, Gregg will provide strategic leadership to WTCA and its global staff, working with the Board of Directors and members to advance business priorities, strengthe..

Next Story
Resources

Isprava Appoints Sanjay Sethi as Strategic Advisor

Isprava Group has appointed Dr Sanjay Sethi as Strategic Advisor to the business, with a focus on Lohono Stays and Isprava Hospitality.Sethi brings more than 37 years of experience across hospitality operations, development, ownership, strategic growth and capital markets. He will work closely with the Group on strategy, growth and the development of its hospitality business.The appointment comes as Isprava Group expands its integrated ecosystem spanning luxury homes, hospitality, private membership and end-to-end homeowner services.Nibhrant Shah, Managing Director & Co-CEO, Isprava Group, sai..

Next Story
Infrastructure Energy

SunBridge BioEnergy Starts Ethanol Production in Seoni

SunBridge BioEnergy, the bioenergy arm of SunBridge Group, has commenced commercial production at its grain-based fuel-grade ethanol manufacturing facility in Seoni, Madhya Pradesh. The Seoni plant has a production capacity of 300 kilolitres per day and a storage capacity of 11,000 kilolitres. Spread across approximately 117,560 sq m, the facility marks SunBridge BioEnergy’s entry into commercial ethanol production. The company is also expanding its ethanol portfolio with a 400 KLD facility in Raipur, Chhattisgarh, which is expected to become operational soon. Once commissioned, SunBridge ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code