According to Niti Aayog’s report, government would need about INR 1.4 lakh crore to achieve its target of laying 15,000 km of roads in India this fiscal year.
A report on targets of infrastructure sector in India for 2016-2017 says that INR 70,000 crore should be raised by means of Gross Budgetary Support (GBS) and Internal Extra Budgetary Resources (IEBS).
The road ministry targets to collect INR 33,000 through various cess, raise INR 8,000 from tolls and another INR 27,000 via private investments. The National Highways Authority of India (NHAI) has a target of building 8,000 km of roads this year while National Highways and Infrastructure Development Corporation Ltd. (NHIDL) will be responsible for the remaining 7,000 km.
The government also aims to award road projects for 25,000 km this year compared to 10,098 km worth projects awarded last year. If the 15,000 km road construction target for this year is achieved, it would boost the overall efficiency of road transport in the country considerably.
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India has the world’s second largest road network with a total road length of 5.23 million kilometres. About 65% of the freight and 80% of the passenger movements within India take place through the road network. Though the proportion national highways in the total road network is small, it handles about 40% of the traffic.