Government of India has announced highway projects worth USD 93 billion for the next three years, thereby providing a huge opportunity of investors from around the world. India’s flagship road building program NHDP (National Highway Building Project) alone will account for USD 45 billion.
The NHDP program aims to develop existing National Highways (NH) into world class roads in a phased manner. The USD 45 billion will be spent on 20,000 km of NHs in a span of next three years. In addition to NHDP, 6,000 km NH project has also been announced under Bharat Mala (border and coastal roads) project with a value of USD 12 billion over the next two years.
About USD 15 billion will go into enhancing the connectivity of 123 district headquarters, USD 8 billion will be consumed in building 350 bridges across the country, another USD 8 billion for mountainous roads of 2,500 km under Char Dham scheme, and USD 5 billion for strengthening the road network in Northeastern part of the nation.
Government is intending to award projects for 10,000 km this year itself and is offering various financially attractive projects based on the investors’ risk/return appetite. National Highways Authority of India (NHAI) will be providing capital grant (Viability Gap Funding) of up to 40% of the project cost on case to case basis to improve the viability of the projects.
Such a huge PPP undertaking would not only improve the nation’s infrastructure significantly but would also go a long way in attracting investments from global players in construction industry.