India embraces PPP Model for high-quality highway construction

03 Oct 2023 CW Team

Under this new policy, the NHAI will invite bids for the majority of highway projects through PPP, marking the first time that the road wing of the highways ministry will collaborate with private investors on fresh projects. The decision to favour PPP models, specifically the build-operate-transfer (BOT) and hybrid annuity model (HAM), was made in light of the proven track record of higher quality and reduced maintenance costs associated with these projects.

According to Union road transport secretary Anurag Jain, major projects exceeding Rs 5 billion will preferably be executed under PPP mode. Private players involved in PPP projects are required to maintain the highways for 15-20 years, ensuring a higher standard of construction due to their long-term responsibility.

This strategic shift is exemplified by the immediate maintenance carried out by private entities, spending approximately Rs 1 billion on each of the five highway stretches acquired from NHAI, which were initially built using EPC methods. In contrast, the remaining five corridors, constructed under PPP, did not require immediate attention, showcasing the durability and reliability of the PPP approach.

Union road transport minister Nitin Gadkari emphasised the advantages of roads constructed under BOT and HAM modes, highlighting that private investors' awareness of their long-term maintenance responsibilities leads to better construction quality. Consequently, the government plans to expand the construction of roads under these modes significantly, ensuring the development of high-quality, enduring highway infrastructure.

The government's focus has shifted towards monetising completed highway projects, leading to a significant change in the construction approach for national highways (NHs). Instead of relying solely on government funding or engineering, procurement, and construction (EPC) methods, the National Highways Authority of India (NHAI) has embraced Public-Private Partnership (PPP) mode for nearly 85% of highway projects. This shift is motivated by the recognition that projects executed under PPP demonstrate superior quality and require less maintenance compared to government-funded initiatives. Under this new policy, the NHAI will invite bids for the majority of highway projects through PPP, marking the first time that the road wing of the highways ministry will collaborate with private investors on fresh projects. The decision to favour PPP models, specifically the build-operate-transfer (BOT) and hybrid annuity model (HAM), was made in light of the proven track record of higher quality and reduced maintenance costs associated with these projects. According to Union road transport secretary Anurag Jain, major projects exceeding Rs 5 billion will preferably be executed under PPP mode. Private players involved in PPP projects are required to maintain the highways for 15-20 years, ensuring a higher standard of construction due to their long-term responsibility. This strategic shift is exemplified by the immediate maintenance carried out by private entities, spending approximately Rs 1 billion on each of the five highway stretches acquired from NHAI, which were initially built using EPC methods. In contrast, the remaining five corridors, constructed under PPP, did not require immediate attention, showcasing the durability and reliability of the PPP approach. Union road transport minister Nitin Gadkari emphasised the advantages of roads constructed under BOT and HAM modes, highlighting that private investors' awareness of their long-term maintenance responsibilities leads to better construction quality. Consequently, the government plans to expand the construction of roads under these modes significantly, ensuring the development of high-quality, enduring highway infrastructure.

Equipment

12 May 2026

L&T Achieves Double Tunnel Breakthrough at Dibang

Larsen & Toubro (L&T) has achieved a historic double milestone at the Dibang Multipurpose Project (Lot-02) in Arunachal Pradesh. On 28 April 2026, its Heavy Civil Infrastructure team recorded simultaneous breakthroughs in Diversion Tunnel-4 and Diversion Tunnel-5, successfully coordinating two daylighting blasts on the same day amid the difficult geological and environmental conditions of the Lower Dibang Valley.With this, the project has now completed breakthroughs in three of the five diversion tunnels, following DT-3 in February. The 2880 MW Dibang Multipurpose Project is a critical..

Equipment

12 May 2026

ICEMA Reports Resilient CE Industry Amid Export Surge

India’s construction equipment (CE) industry reported a marginal decline of around 2 per cent in total equipment sales during FY2025–26, with overall sales falling to 136,995 units from 140,191 units in FY25. However, exports registered strong growth of 31.5 per cent, reinforcing India’s position as the world’s third-largest construction equipment market.According to ICEMA, domestic demand declined by around 7 per cent across most equipment categories due to slower infrastructure execution, project delays, land acquisition challenges and slower disbursement cycles. ICEMA said the secto..

Infrastructure Transport

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..