Govt to approve Rs 2 lakh cr for transport infrastructure

The government has committed to advancing transport infrastructure projects amounting to Rs 2 lakh crore this year, demonstrating the sector’s vital importance to the economy. This fiscal year, the Ministry for Road Transport and Highways aims to build 10,421 km of highways. The government is also focused on expanding EV charging infrastructure, with over 12,000 public stations, aiming to integrate renewable energy sources.

The government is maintaining a strong focus on highway construction, with plans to approve further projects that will raise the total cost of cleared projects to Rs 2 lakh crore by December-end, according to Union Minister for Road Transport and Highways Nitin Gadkari. 

Speaking at The Indian Express Idea Exchange, Mr. Gadkari emphasized that infrastructure project approvals are progressing smoothly under the Modi 3.0 government, particularly in highways and railways.

He informed, “Approval of infrastructure projects (by the new government) has started. As per the Prime Minister’s 2047 vision, we are clearing the projects tender-wise. Last month, the Cabinet approved Rs 51,000 crore worth of projects and another Rs 40,000-50,000 crore worth of projects are under process. By December, projects with the total cost of Rs 2 trillion will be cleared.”

Despite the significant debt of the National Highways Authority of India (NHAI) and a growing dependence on budgetary funds, the pace of highway development remains steady. The ministry plans to build 10,421 km of highways this fiscal year, slightly lower than last year’s target. 

For 2024-25, the capital expenditure is projected to be Rs 2.72 lakh crore (US$ 24 billion), a modest increase from the previous fiscal. Financing for projects is also being supplemented through monetization methods such as the toll-operate-transfer (TOT) model and infrastructure investment trusts (InvITs).

However, the Bharatmala Pariyojana, a major highway development program launched in 2017, is undergoing changes. Of the planned 34,800 km of highways, 26,425 km have been awarded, and 17,411 km constructed. The remaining 8,375 km will be integrated into Vision 2047, signaling a shift in long-term planning.

Mr. Gadkari also discussed a revised approach to satellite-based tolling systems, emphasizing a model that would reduce toll collection costs while increasing government revenue. He highlighted how agencies operating toll plazas could retain tolls for 15 days, generating returns from that money and providing the government with an additional 2% revenue.

During another address at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Mr. Gadkari stated that India’s automotive electrification is set to accelerate, with EV sales projected to reach 1 crore (10 million) annually by 2030, a six-fold jump from FY24. This growth could create 5 crore jobs and generate a market worth Rs 20 lakh crore, he noted.

Current EV adoption stands at 7%, with two-wheelers dominating sales. Affordability and limited charging infrastructure remain key challenges, though declining battery costs and localization are expected to improve affordability. The government is also focused on expanding EV charging infrastructure, with over 12,000 public stations, aiming to integrate renewable energy sources, he added.