Roads have played an important role in transportation and also enhancing trade. India is the second largest country among largest road network countries in the world with a length of approximately 3.3 million kilometers. The government has taken initiatives to improve the network of National Highways, State Highways and the roads in major districts and rural areas.
In India, road traffic is growing at a considerable pace. According to estimates, traffic on roads is growing at a rate of 7 to 10 per cent per annum. The growth in the number of vehicles has been around 12 per cent per annum. The Indian road network is divided into three main categories:
• National highways covering over approximately 58,000 kilometers.
• State highways covering approximately 200,000 kilometers.
• Rural or urban roads covering nearly 3 million kilometers.
Policy initiatives in Roads sector
FDI up to 100% under automatic route is permitted in projects for construction and maintenance of roads, highways, vehicular bridges, toll roads.
Private sector participation in the highways sector is under the Build Operate and Transfer (BOT) concept.
A concession agreement for BOT projects under annuity payment scheme has been finalized.
Amendment of National Highway Act for expeditious land acquisition, procedural change for environmental clearance, enhanced delegation of power to Ministry for expeditious clearance of the projects.
Projects for widening of existing National Highways have been exempted from environmental and forest clearances.
Thrust to accelerate implementation of Prime Minister’s National Highways Development Project (NHDP) from petrol and diesel cess and additional fund raising measures for NHAI.
Phase I of the National Highways program to be substantially completed by December 2003.