India's Vision 2047 Spurs "Mega Highways Construction Programme"

11 Jan 2024 CW Team

India is on the brink of a transformative overhaul in its infrastructure landscape with the imminent launch of a "Mega Highways Construction Programme" aligned with the ambitious Vision 2047 set by the Bharatiya Janata Party (BJP)-led NDA government. This initiative, slated to replace the ongoing Bharatmala Pariyojana, is anticipated to revolutionize the country's connectivity network on an unprecedented scale.

The new Mega Highways Construction Programme aims to establish stringent criteria for identifying roads as national priorities, alongside crucial modifications to the Model Concession Agreement (MCA). These strategic adjustments seek to streamline infrastructure development processes and minimize potential contract disputes and litigation, fostering a more efficient framework for national growth.

Under the proposed modifications to the MCA, disputes concerning claims valued up to Rs 50 lakh will no longer undergo arbitration. Additionally, cases involving higher claim amounts will witness revised procedures, eliminating pre-reference or pendent elite interest for both the government and concessionaires. Furthermore, the concession period's insurance coverage will now include government entities as joint beneficiaries, ensuring project failure compensation.

Despite Bharatmala's significant strides in national highway construction, concerns have emerged regarding escalating project expenditures. Official data highlights India's consistent construction of over 10,000 kilometers of national highways annually since the Bharatmala launch in October 2017.

The project aimed to develop a total of 74,942 kilometers of national highways, with 34,800 kilometers earmarked for the initial phase until September 2022, involving an investment of Rs 5.35 trillion. While contracts for 27,384 kilometers have been awarded, the actual constructed length stands at 15,045 kilometers.

Looking ahead, the transition toward the "build operate transfer" (BOT) model for remaining national highway contracts this fiscal year is anticipated. This model will require minimal financial outlay from the exchequer. Currently, approximately 11 stretches, valued at Rs 22,000 crore, have been put up for bids, propelling momentum in BOT projects. These endeavors are expected to play a pivotal role in achieving the goal of awarding 10,000 kilometers of national highways in the ongoing fiscal year, symbolizing a significant step towards the nation's enhanced connectivity vision.

India is on the brink of a transformative overhaul in its infrastructure landscape with the imminent launch of a Mega Highways Construction Programme aligned with the ambitious Vision 2047 set by the Bharatiya Janata Party (BJP)-led NDA government. This initiative, slated to replace the ongoing Bharatmala Pariyojana, is anticipated to revolutionize the country's connectivity network on an unprecedented scale. The new Mega Highways Construction Programme aims to establish stringent criteria for identifying roads as national priorities, alongside crucial modifications to the Model Concession Agreement (MCA). These strategic adjustments seek to streamline infrastructure development processes and minimize potential contract disputes and litigation, fostering a more efficient framework for national growth. Under the proposed modifications to the MCA, disputes concerning claims valued up to Rs 50 lakh will no longer undergo arbitration. Additionally, cases involving higher claim amounts will witness revised procedures, eliminating pre-reference or pendent elite interest for both the government and concessionaires. Furthermore, the concession period's insurance coverage will now include government entities as joint beneficiaries, ensuring project failure compensation. Despite Bharatmala's significant strides in national highway construction, concerns have emerged regarding escalating project expenditures. Official data highlights India's consistent construction of over 10,000 kilometers of national highways annually since the Bharatmala launch in October 2017. The project aimed to develop a total of 74,942 kilometers of national highways, with 34,800 kilometers earmarked for the initial phase until September 2022, involving an investment of Rs 5.35 trillion. While contracts for 27,384 kilometers have been awarded, the actual constructed length stands at 15,045 kilometers. Looking ahead, the transition toward the build operate transfer (BOT) model for remaining national highway contracts this fiscal year is anticipated. This model will require minimal financial outlay from the exchequer. Currently, approximately 11 stretches, valued at Rs 22,000 crore, have been put up for bids, propelling momentum in BOT projects. These endeavors are expected to play a pivotal role in achieving the goal of awarding 10,000 kilometers of national highways in the ongoing fiscal year, symbolizing a significant step towards the nation's enhanced connectivity vision.