3.1. Government Initiatives

In the Union Budget 2018-19, the Government of India has allotted Rs. 83,374 crore to NHAI for roads and highways.

The government has fixed the national highways project award target at 20,000 km for the current fiscal (2018-19), up 25 per cent over the previous year (2017-18). Some of the recent developments are as follows:

♤ The Government of India plans to introduce a new framework on renegotiation of Public Private Partnership (PPP) contracts, which will allow renegotiations based on sector- specific issues, especially for national highways and ports, and provide greater flexibility to the parties involved.

♤ The National Highways Authority of India (NHAI) seeks to improve execution of highway projects by delegating powers to its Regional Officers (RO) for hiring of equipment and laborers to demolish structures falling within the project, which will enable NHAI to make encumbrance free land available more speedily to the concessionaire/contractors.

♤ The Ministry of Road Transport and Highways plans to set up Land Acquisition (LA) cells across the country, which will work towards resolving issues related to land acquisition and ensure speedy compensation disbursal by the state governments.

♤ The Ministry of Road Transport and Highways plans to build five more green-field expressways across the country, which are expected to reduce travel time and propel economic growth.

♤ The Cabinet Committee on Economic Affairs (CCEA) has approved a hybrid annuity model for implementing highway projects, which adopts a more rational approach to allocation of risks between the government and the private developer, and is hence expected to revive highway projects construction in India.

♤ With the objective of reviving private investment in the roads sector, the Ministry of Roads and Highways is now working on two more models for attracting capital. One model proposes allowing bidding of a road project on the basis of the least present value, and the other envisages selling off road projects that have been built using government funds.

♤ NHAI has signed a Memorandum of Understanding (MoU) with the National Remote Sensing Centre (NRSC) under Indian Space Research Organisation (ISRO) and North East Centre for Technology Application and Research (NECTAR) to use spatial technology such as satellite data to monitor and manage National Highways.

♤ The Union Budget 2017-18 accorded thrust to multi-modal transport planning and synergizing investments in railways, roads, waterways and civil aviation.

♤ Tax exemption is given on Masala Bonds to help mobilize more investments.

♤ The Government has constituted the National Road Safety Council as the apex body to take policy decisions in matters of road safety.

♤ Under the World Bank Technical Assistance program, the Ministry of Road Transport and Highways got a study conducted on Logistics Efficiency Enhancement. The Study Report has made several recommendations including, inter-alia, development of Economic Corridors, feeder routes and removal of choke points, along with development of Logistics Parks on National Highways. The recommendations have been accepted and the work of developing Logistics Parks at identified locations in partnership with State Governments and other stakeholders in a phased manner, has been entrusted to the National Highways Authority of India (NHAI).

♤ The Government has launched Indian Bridge Management System (IBMS) for carrying out inventory and condition assessment of all the existing bridges on National Highways.

♤ Construction of India’s longest highways tunnel - the Chenani- Nashri tunnel in Jammu & Kashmir.