Indian government to build 40km of new roads every day in 2016-17

Encouraged by the relatively speedy construction of new roads in 2015-16, Nitin Gadkari, minister of Road Transport & Highways, has fixed a 2.5 times increase in the target for award and construction of National Highways for the year 2016-17.

The minister has set a target of 25,000km of National Highways to be awarded in 2016- 17 as against the 10,000km awarded in 2015-16. The construction target has been set at 15,000km (or 41km a day) as against the 6,000km (16.5km a day) constructed last year.

Of the total length of National Highways set to be built, 15,000km would fall under the target of National Highways Authority of India (NHAI) and 10,000km under the target of the Ministry and National Highways and Infrastructure Development Corporation (NHIDCL).

NHAI’s target for construction has been fixed at 8,000km while for the Ministry and NHIDCL, the target is 7,000km. 

2015-16 turned out to be successful one for the Ministry of Road Transport & Highways (MoRTH). Works on a length of more than 10,000km were awarded for the very first time. The completion of construction of 6000 km marked a year-over-year increase of nearly 36 percent.

The speeding up of road projects has been made possible due to several policy interventions which include the Ministry being empowered to decide mode of delivery, increased threshold for project approval, enhanced inter-ministerial coordination Exit Policy, promoting innovative project implementation models like Hybrid Annuity Model, amendments to the Model Concession Agreement for BOT projects, segregation of civil cost from capital cost for NH projects for appraisal and approval, rationalised compensation to concessionaires for languishing NH projects in BOT mode for delays not attributable to them, delegation of powers to chief engineers regarding periodic renewal, delegation of powers to MoRTH ROs regarding utility shifting and delegation of powers to evaluate and award tenders of up to Rs 300 crore.