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ROADS AND HIGHWAYS

FDI In Roads & Highways Sectors

The transport infrastructure sector is the fastest expanding component of the country's infrastructure sector. India has the one of largest road network across the world, spanning over a total of 5.5 million km. This road network transports 64.5% of all goods in the country and 90% of India’s total passenger traffic uses road network to commute. Road transportation has gradually increased over the years with the improvement in connectivity between cities, towns and villages in the country.

The Government of India (GoI) is planning to expand the national highway network to over 200,000 km. The Government launched the Bharatmala Pariyojana, which aims to build 66,100 km of economic corridors, border and coastal roads, and expressways to boost the highway network. It is envisaged that the programme will provide 4-lane connectivity to 550 districts, increase the vehicular speed by 20-25% and reduce the supply chain costs by 5-6%. The first phase of the programme will bring in $82 bn investments by 2022 for the development of 34,800 km of highways.

According to FDI policies for roads-highways sector, 100% FDI for roads and highways allowed under the automatic route.

 

 

  • 1

    $82 bn to be invested by 2022 under Bharatmala Pariyojana

  • 2

    Highest ever construction of 133 km per day of rural roads in 2016-17

  • 3

    National highways construction in India is targeted at 40 km a day in 2018-19

95% of the total share of this length is covered under District and Rural roads. State highways cover close to 3% of the road length while the remaining 2% comes under National Highways

The construction of highways reached 9,829 km during FY18 which was constructed at an average of 26.93 km per day. The Government of India has set a target for construction of 10,000 km national highway in FY19

The GoI has given a massive push to infrastructure by allocating about $100 bn for infrastructure in the Union Budget 2018-19

The government plans on investing $22.4 bn towards road framework in the North-East region of India during 2018-2020

The highways sector in India has been at the forefront of performance and innovation. The government has successfully rolled out over 60 projects worth over $10 bn based on the Hybrid Annuity Model (HAM)

  • Massive infrastructure push

    $ 100 bn allotted for infrastructure in budget 2018-19
  • NH expansion

    Length of national highways to reach 200,000 km
  • Growing demand

    Production of all vehicle segments reached 26 mn
  • Policy support

    Standardized process for bidding and tolling
  1. Apr 2019: National investment and Infrastructure Fund (NIIF) and Canadian PSP Investment's wholly owned subsidiary Roadis have announced a platform that will invest up to $2 bn of equity in road projects in India.
  2. Aug 2018: A total of 892 km and 2,345 km national highway projects were awarded and constructed, respectively between April – August 2018.
  3. May 2018: The first phase of construction work of Mumbai's 29.2 km long coastal road is expected to begin in May 2018.
  4. March 2018: IRB Infrastructure Developers has bagged a $511 mn road project from the NHAI in Uttar Pradesh to be developed on build, operate and transfer basis.
  5. March 2018: Sydney based infrastructure asset management company, Macquarie won the rights to manage 648 km of national highways for $1.45 bn.

  • 6.36% Share of FDI during April 2000 – March 2019 for construction development: townships, housing, built-up infrastructure and construction-development projects.
  • $6 mn FDI equity inflows (in USD) from March 2018 – March 2019 for Construction development: Townships, housing, built-up infrastructure and construction-development projects.
  • $213 bn FDI inflows (in USD) during April 2000 - March 2019 for Construction development: Townships, housing, built-up infrastructure and construction-development projects.

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Videos

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24 October , 2019

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