A New Era for Indian Roads: 30,000 KM of 4-Lane Highways

Union Minister for Road Transport and Highways, Nitin Gadkari, has announced a major infrastructure initiative aimed at upgrading 25,000 to 30,000 km of existing two-lane highways into four-lane corridors. The estimated investment for this massive expansion stands at Rs 10 lakh crore.

Speaking at a recent event, the Minister highlighted the crucial role of infrastructure in national development. To finance the project, the Ministry of Road Transport and Highways (MoRTH) will actively promote the Infrastructure Investment Trust (InvIT) model, encouraging Indian investors to fund infrastructure projects that offer stable, long-term returns.

“We will construct highways under the BOT model, but for the first 15 years, the government will collect tolls and compensate concessionaires on an annuity basis,” Gadkari explained. The InvIT model, akin to mutual funds, pools capital from investors to support infrastructure projects that generate reliable cash flows over time.

By focusing on domestic investment, the government aims to reduce reliance on foreign capital and reinforce economic self-sufficiency. Efforts are also underway to revise the existing Build-Operate-Transfer (BOT) model—particularly the annuity-based version—to make it more efficient and appealing to private sector developers.

News by Rahul Yelligetti.