NHAI aims to construct 23 new highways by 2025
Real Estate

NHAI aims to construct 23 new highways by 2025

In order to ensure uninterrupted and efficient movement of people and cargo, the National Highways Authority of India (NHAI) has announced the construction of 23 new highways, including a network of expressways and economic corridors, scheduled for completion by March 2025. Of these four expressways, namely Delhi-Mumbai, Ahmedabad-Dholera, Ambala-Kotpulli, and Amritsar-Jamnagar will be ready by March 2023. Nine others will be constructed by March 2024. The remaining nine greenfield highways will be completed by March 2025.

It was reported, projects having deadlines as 2023 and 2024 will be bid out by 2021. Spread across 7800 km, the project would require an investment of approximately Rs 3.3 lakh crore in a span of 5 years. The network of expressways will be connecting Surat, Solapur, Lucknow, Vizag, Chennai, Bengaluru, Vijayawada, Raipur, Kota, Kharagpur, and Siliguri. These mega projects will accelerate the sluggish economy by giving rise to numerous employment opportunities while boosting material demand.

In order to fast-track the Delhi-Mumbai Expressway project, the NHAI has formed a special purpose vehicle (SPV). The SPV is registered as ‘DME Development Ltd' and is owned by NHAI. This will lead to easy financing at cheaper rates, including pension and insurance funds. NHAI has a sovereign guarantee, being a statutory entity, thus investors face zero risks. The SPV will also facilitate the financing, construction, and operation of the Greenfield expressway. The primary aim of the NHAI behind floating SPV to a specific corridor is to develop a sustainable and self-liquidating approach to raise finance and diversify its resource base. Spanning 1275 km, the Delhi-Mumbai expressway is an eight-lane expressway, with a design speed of around 120 km/hour. With a provision to expand to 12 lanes in the future. It will be India's longest 'Greenfield Expressway'.

Currently, cargo in India cover about 400 km per day, which is 50 per cent of the global standards. Thus, we have an abundant scope to reduce the cost and time by 50 per cent. In order to recover all the investment in this project, a model called the trade operate and transfer (TOT) has been designed, wherein auctioning will be held for tolling rights for 15-20 years to a private entity to receive the money upfront. If the model turns out to be successful, it will be utilised for other major expressway projects as well.

Major reforms in National Highways Authority of India (NHAI) are being undertaken in terms of decentralisation of work and division of power by the Ministry of Road Transport and Highways.

IRB Westcoast Tollway, another SPV which in February commissioned its 189.6 km Goa-Karnataka border-Kundapur four-laning highway project, now opened for the vehicular traffic. Built at Rs 34.47 billion, the project has a concession life of 28 years.

In order to ensure uninterrupted and efficient movement of people and cargo, the National Highways Authority of India (NHAI) has announced the construction of 23 new highways, including a network of expressways and economic corridors, scheduled for completion by March 2025. Of these four expressways, namely Delhi-Mumbai, Ahmedabad-Dholera, Ambala-Kotpulli, and Amritsar-Jamnagar will be ready by March 2023. Nine others will be constructed by March 2024. The remaining nine greenfield highways will be completed by March 2025.It was reported, projects having deadlines as 2023 and 2024 will be bid out by 2021. Spread across 7800 km, the project would require an investment of approximately Rs 3.3 lakh crore in a span of 5 years. The network of expressways will be connecting Surat, Solapur, Lucknow, Vizag, Chennai, Bengaluru, Vijayawada, Raipur, Kota, Kharagpur, and Siliguri. These mega projects will accelerate the sluggish economy by giving rise to numerous employment opportunities while boosting material demand.In order to fast-track the Delhi-Mumbai Expressway project, the NHAI has formed a special purpose vehicle (SPV). The SPV is registered as ‘DME Development Ltd' and is owned by NHAI. This will lead to easy financing at cheaper rates, including pension and insurance funds. NHAI has a sovereign guarantee, being a statutory entity, thus investors face zero risks. The SPV will also facilitate the financing, construction, and operation of the Greenfield expressway. The primary aim of the NHAI behind floating SPV to a specific corridor is to develop a sustainable and self-liquidating approach to raise finance and diversify its resource base. Spanning 1275 km, the Delhi-Mumbai expressway is an eight-lane expressway, with a design speed of around 120 km/hour. With a provision to expand to 12 lanes in the future. It will be India's longest 'Greenfield Expressway'.Currently, cargo in India cover about 400 km per day, which is 50 per cent of the global standards. Thus, we have an abundant scope to reduce the cost and time by 50 per cent. In order to recover all the investment in this project, a model called the trade operate and transfer (TOT) has been designed, wherein auctioning will be held for tolling rights for 15-20 years to a private entity to receive the money upfront. If the model turns out to be successful, it will be utilised for other major expressway projects as well.Major reforms in National Highways Authority of India (NHAI) are being undertaken in terms of decentralisation of work and division of power by the Ministry of Road Transport and Highways.IRB Westcoast Tollway, another SPV which in February commissioned its 189.6 km Goa-Karnataka border-Kundapur four-laning highway project, now opened for the vehicular traffic. Built at Rs 34.47 billion, the project has a concession life of 28 years.

Next Story
Infrastructure Energy

Centre suggests states to list power firms

Power Minister Manohar Lal urged states and union territories to consider listing their power generation, transmission, and distribution companies on stock exchanges to attract investment and improve operational efficiency. Addressing the media, after a conference of power ministers, Lal highlighted the need for increased capital inflows to meet India’s rising power demand, which has placed added strain on the sector. “With the growing power demand, there is a growing need for investment in the sector and improving operational efficiencies. States may identify and take up utilities for lis..

Next Story
Infrastructure Transport

Metro on backburner as Tricity set to get new e-buses circuit

To boost connectivity for the commuters of the Tricity, a new circuit-cum-network of electric buses (e-buses) is all set to come up that will cover Chandigarh, Panchkula, and Mohali. The move comes days after Union Minister for Housing and Urban Affairs Manohar Lal Khattar said that in Chandigarh the ridership is not according to the criteria set for operating a Metro. He had also said that the option of a pod taxi can also be explored as it will not impact the heritage of the Union Territory (UT).Officials stated that the e-buses decision intends to provide an eco-friendly public transportati..

Next Story
Infrastructure Energy

Rajasthan government plans to develop hi-tech city near Jaipur

On the lines of Gujarat International Finance Tech (GIFT) City and Hyderabad Information Technology and Engineering Consultancy (HITEC) City, Raj govt is gearing up to develop a "hi-tech city" close to Jaipur. Recently, Boston Consulting Group – a multinational consulting firm – gave a presentation on the concept of hi-tech cities, follwing which the state govt has started looking for suitable land on outskirts of Jaipur. "We are going to construct a hi-tech city on the outskirts of Jaipur. We are trying to ascertain the amount of land required for core areas of the city and for areas wh..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000