NHAI plans to build 23 new Expressways & Highways in five years

EDITOR: The National Highways Authority of India (NHAI), the nodal agency to build highways, plans to construct 23 new expressways and economic corridors across the country. As per a status report on highways works prepared by the NHAI, in the next five years total 7,800 km expressways will be built with the investment of Rs 3.3 lakh crore. This network of expressways is spread across the country connecting- Surat, Solapur, Lucknow, Vizag, Chennai, Bengaluru, 

Vijywada, Raipur, Kota, Kharagpur and Siliguri.

TIMELINE

Of the proposed total 23 expressways and economic corridors,

4 will be completed by 2023,

10 will be 2024 and

9 will be completed by 2025.

MAIN AIM

The move is aimed at ensuring the seamless movement of people and cargo, including heavy vehicles. Currently, cargo vehicles in India cover about 400 km per day, which is at least 50% less than the global standard. There is scope to reduce the cost and time by up to 50%.

WHY THIS IS IMPORTANT?

The massive development of new expressways is a major departure from 

the conventional mode of widening the existing highways.

FUNDING?

To ensure there is no fund crunch, NHAI will set up Special Purpose vehicles (SPVs) to fund these projects. Since the SPV will be fully owned by NHAI, it would be easy to get the loan at a cheaper rate from financial institutions.

SPV for Delhi-Mumbai expressway has 

already been given the go-ahead.

DELHI – MUMBAI EXPRESSWAY

Delhi – Mumbai greenfield expressway is being developed with an 8-lane configuration With provision to expand to 12-lanes in the future, with a design speed of 120 km/hr. A network of 75-way side amenities has also been planned on either side of the expressways at an interval of 50 km.

RECOVERY?

The investment made in the project would be recovered from toll collections, which includes auctioning the tolling right for 15-20 years to a private entity to get the money upfront. This model is known as Toll Operate and Transfer (TOT). “If this model becomes successful, we will adopt this for other major highway projects,” NHAI chairman S S Sandhu said.

NHAI was created through the promulgation of the National Highways Authority of India Act, 1988. February 1995, NHAI came into operations and was formally made an autonomous body under the Ministry of road transport. It is responsible for the development, maintenance and management of National Highways.