Union Minister Nitin Gadkari announced that the government plans to clear highway projects worth Rs 2 lakh crore by December 2024. Despite the National Highways Authority of India’s (NHAI) large debt and reliance on budgetary funds, the government remains committed to infrastructure development under the Prime Minister’s 2047 vision.
Highway Projects to Reach Rs 2 Lakh Crore
Union Road Transport and Highways Minister Nitin Gadkari revealed that the government is poised to clear infrastructure projects worth Rs 2 lakh crore by December 2024. During The Indian Express Idea Exchange, Gadkari said, “Approval of infrastructure projects has started, with Rs 51,000 crore worth of projects cleared last month, and another Rs 40,000-50,000 crore in progress.”
This follows the Narendra Modi 3.0 government’s rapid approval of infrastructure projects, including highway and railway developments, aligning with the Prime Minister’s 2047 vision. These initiatives are aimed at improving the nation’s infrastructure network and boosting economic growth.
Funding Challenges and Solutions
Despite NHAI’s large debt, Gadkari emphasized that funds will not be a barrier to development. The ministry is raising funds through multiple avenues, including the monetization of projects through Toll-Operate-Transfer (TOT) models and Infrastructure Investment Trusts (InvITs). In addition, for the fiscal year 2024-25, the ministry has a capital expenditure target of Rs 2.72 lakh crore.
Gadkari also mentioned that despite the ministry’s reliance on budgetary allocations, it is exploring innovative approaches to improve efficiency in financing infrastructure projects, including satellite-based toll collection systems.
Satellite-Based Toll Collection Pilot
Gadkari discussed the government’s plans to implement Global Navigation Satellite System (GNSS)–based electronic toll collection (ETC) across national highways. The GNSS-based toll collection system has been successfully tested in five pilot projects. Gadkari is in favor of this system, which he believes will reduce toll collection costs and increase revenue for the government.
By leveraging GNSS technology, the government aims to streamline toll collection and reduce the 14% collection cost. Under the proposed model, toll collection companies will contribute 2% of toll revenues to the government, instead of charging for collection services.
Looking Ahead
The government’s push to clear Rs 2 lakh crore worth of highway projects by December 2024 demonstrates its commitment to infrastructure development. With innovative solutions like GNSS-based tolling and diverse funding strategies, India’s road infrastructure is set to witness significant advancements.
