India to Upgrade 30,000 Km Highways with Rs 10 Trillion Plan

15 May 2025 CW Team

The Ministry of Road Transport and Highways has announced plans to convert twenty-five thousand to thirty thousand kilometres of two-lane highways into four-lane roads. With a proposed investment of Rs 10 trillion, the project is expected to enhance logistics, reduce travel time, and support long-term economic growth.

Union Minister Nitin Gadkari highlighted the initiative as central to improving national connectivity. The plan aims to complete road projects worth Rs five to six trillion annually, contributing to a seamless transportation corridor for trade and mobility.

To fund the expansion, the government will adopt the Infrastructure Investment Trust model, pooling capital from domestic investors. Similar to mutual funds, InvIT aims to attract long-term private investments into road development.

Projects will be executed under multiple models: Build–Operate–Transfer, BOT (Annuity), Engineering, Procurement and Construction, and Hybrid Annuity. Under the revised BOT (Annuity) model, the government will collect tolls for up to fifteen years, compensating concessionaires on an annuity basis.

Toll increases above ten per cent must be shared equally with the government. Gadkari reaffirmed strict opposition to collusion and stressed transparency in bidding. The programme also emphasises eco-friendly infrastructure, reducing carbon emissions and supporting India’s manufacturing and export goals.

Source:UrbanNews

Infrastructure Urban

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