2024-08-18 18:10:50
This marks a change from the current approach of the National Highways Authority of India, which previously focused only on the development of new highways and expressways under the Indian Road Transport Plan, while these projects were directly implemented by the Ministry of Road Transport and Highways.
ET has seen a copy of the directive.
A senior government official, who requested anonymity, said the finance ministry had put a hold on approvals for new road projects under India’s road reform programme due to high project costs and funding issues, so the focus has shifted to existing highways.
Experts say this could ease congestion on many highways while ensuring their maintenance. “National Highways (original) projects, unlike new construction, are more geared towards upgrading and maintenance. So the economic impact will be more on easing congestion,” said Jagannarayan Padmanabhan, global head of consulting at Crisil Market Intelligence and Analytics.
According to the directive of the National Highways Authority of India, the agency will undertake 79 National Highways (Original) projects with a total length of about 1,421 km at an estimated cost of INR 1,44,392 crore during the current financial year. The scheme has two categories of projects – NHO1 and NHO2 – which focus on the maintenance and upgrading of the existing national highway network. NHO1 projects involve maintenance, repair and minor upgrading of original national highways, while NHO2 projects generally involve more extensive upgrading and modernization of original national highways, aiming to increase the capacity and safety of highways, accommodate increased traffic and improve overall efficiency.
Of the Rs 1,44,392 crore, Rs 71,112 crore will be spent on NHO1 project and Rs 73,280 crore on NHO2 project.
According to the National Highways Authority of India’s Priority Plan 2024-25 (approved by the Ministry of Road Transport and Highways), 39 projects have been identified under NHO1 and 40 projects under NHO2.
“The transport ministry will take up these projects through the National Highways Authority after cabinet approval,” the official said. “However, this shift is likely to severely slow down the pace of new roads and highways construction this fiscal year.”
Bihar tops the list of national highways built by the National Highways Authority of India under the NH(O) scheme this year, followed by Karnataka, Andhra Pradesh, Maharashtra and Uttar Pradesh.
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