India To Spend Rs 11 Trillion On High-Speed Roads
ROADS & HIGHWAYS

India To Spend Rs 11 Trillion On High-Speed Roads

India is set to expand its high-speed road network nearly fivefold over the next decade with a planned investment of Rs 11 trillion (USD 125 billion) aimed at slashing logistics costs and modernising national infrastructure, according to sources familiar with the initiative.
The government plans to add 17,000 km of access-controlled expressways by 2033, significantly enhancing the current network of high-speed roads that presently covers only 4,500 km out of the 146,000 km national highway system. These new roads will support speeds of up to 120 km per hour, providing faster, safer, and more efficient movement compared to traditional highways.
Of the total proposed network, around 40 per cent is already under construction and is targeted for completion by 2030. Construction of the remaining corridors is expected to begin by 2028 and finish by 2033. The move aligns with global infrastructure trends, as seen in countries like China, which has over 180,000 km of expressways, and the United States, which maintains more than 75,000 km of interstate highways.
Financing Models to Attract Private Capital
India’s expressway initiative, though smaller in scale globally, is notable for its aggressive timeline and hybrid financing structure designed to incentivise private investment. Projects with expected returns above 15 per cent will be awarded under the Build-Operate-Transfer (BOT) model, enabling private companies to recoup investments via toll collection.
Lower-return corridors will follow the Hybrid Annuity Model (HAM), wherein the government provides 40 per cent of construction costs upfront, reducing initial risk for private developers. Most of the under-construction expressways currently fall under this model, though the government now seeks greater private participation going forward.
Record Investment and Growing Interest
The National Highways Authority of India (NHAI), which is spearheading the initiative, recorded capital expenditure of Rs 2.5 trillion in the fiscal year ending March 2025—a 21 per cent rise from the previous year. For FY26, the government has increased road and highway allocations to Rs 2.9 trillion.
Despite recent lukewarm private sector interest in the road sector, India’s broader infrastructure space has continued to attract major institutional investors. Entities like Brookfield Asset Management, Blackstone Inc., Macquarie Group, and Canada Pension Plan Investment Board have already committed significant funds. The Adani Group alone has announced plans to invest USD 18.4 billion across infrastructure, including roads.
Analysts at Deloitte India project that the country could see hundreds of billions of dollars in infrastructure investment over the next three years, propelled by favourable policies, rising demand, and the large scale of government-led infrastructure projects.

India is set to expand its high-speed road network nearly fivefold over the next decade with a planned investment of Rs 11 trillion (USD 125 billion) aimed at slashing logistics costs and modernising national infrastructure, according to sources familiar with the initiative.The government plans to add 17,000 km of access-controlled expressways by 2033, significantly enhancing the current network of high-speed roads that presently covers only 4,500 km out of the 146,000 km national highway system. These new roads will support speeds of up to 120 km per hour, providing faster, safer, and more efficient movement compared to traditional highways.Of the total proposed network, around 40 per cent is already under construction and is targeted for completion by 2030. Construction of the remaining corridors is expected to begin by 2028 and finish by 2033. The move aligns with global infrastructure trends, as seen in countries like China, which has over 180,000 km of expressways, and the United States, which maintains more than 75,000 km of interstate highways.Financing Models to Attract Private CapitalIndia’s expressway initiative, though smaller in scale globally, is notable for its aggressive timeline and hybrid financing structure designed to incentivise private investment. Projects with expected returns above 15 per cent will be awarded under the Build-Operate-Transfer (BOT) model, enabling private companies to recoup investments via toll collection.Lower-return corridors will follow the Hybrid Annuity Model (HAM), wherein the government provides 40 per cent of construction costs upfront, reducing initial risk for private developers. Most of the under-construction expressways currently fall under this model, though the government now seeks greater private participation going forward.Record Investment and Growing InterestThe National Highways Authority of India (NHAI), which is spearheading the initiative, recorded capital expenditure of Rs 2.5 trillion in the fiscal year ending March 2025—a 21 per cent rise from the previous year. For FY26, the government has increased road and highway allocations to Rs 2.9 trillion.Despite recent lukewarm private sector interest in the road sector, India’s broader infrastructure space has continued to attract major institutional investors. Entities like Brookfield Asset Management, Blackstone Inc., Macquarie Group, and Canada Pension Plan Investment Board have already committed significant funds. The Adani Group alone has announced plans to invest USD 18.4 billion across infrastructure, including roads. Analysts at Deloitte India project that the country could see hundreds of billions of dollars in infrastructure investment over the next three years, propelled by favourable policies, rising demand, and the large scale of government-led infrastructure projects.

Next Story
Infrastructure Energy

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Next Story
Real Estate

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world..

Next Story
Real Estate

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App