The past year has reflected the country’s commitment to road modernisation. The Ministry of Road Transport and Highways (MoRTH) has implemented various reforms and measures to address long-standing issues. In addition to its continuing focus on expansion, it has also placed emphasis on road safety, asset quality and maintenance, and sustainability. Meanwhile, asset monetisation, particularly through infrastructure investment trusts (InvITs), has received significant attention. At the recent “India Today Infrastructure Conclave 2026”, Nitin Jairam Gadkari, Union Minister of Road Transport and Highways, talked about the ministry’s key priorities, the initiatives being taken for road safety and sustainability, sector challenges and innovative financing mechanisms. Edited excerpts…
Focus on institutional reforms and sustainable road construction
A key priority currently is reducing the cost of road construction while simultaneously improving its quality. My goal is to move road construction into factories via the use of precast technology. We have already started making precast elements mandatory across both road and building construction, as this approach is essential for faster and higher quality execution. Additionally, we need a permanent policy for technical and financial qualifications for different types of tunnels, bridges and road projects. This is very important. After 12 years of my experience in this ministry, I have come to the conclusion that performance audit is more important than financial audit.
In line with this, MoRTH will now review the existing provisions governing the subcontracting of highway works to ensure that contractual requirements are strictly adhered to and that responsibility for quality and timely execution remains clearly with the principal contractor. The ministry was already assessing contractors based on their performance and had begun extending the exercise to consultants preparing detailed project reports (DPRs), with tender eligibility proposed to be linked to such performance assessments.
Equally important is logistics costs, as our exports directly depend on this. Currently, our logistics costs stand at 14-16 per cent, compared to 8 per cent in China and around 12 per cent in European countries and the US. My aim is to bring this figure down to single digit. Research studies conducted by IIT Bangalore, IIT Kanpur and IIT Madras indicate that improved road quality has already reduced logistics costs by 5-6 per cent.
Pioneering the use of alternative fuels and converting waste to wealth
We are working on alternative fuels and biofuels. We have selected 10 national highways across different parts of the country for hydrogen pilot projects and have already commenced work. We have granted Rs 6 billion for the pilot projects to test hydrogen-powered trucks and buses on these 10 designated highway stretches, with major stakeholders including Reliance, Tata Motors, Ashok Leyland, Volvo, Indian Petrochemicals Corporation Limited and Hindustan Petroleum Corporation Limited.
Hydrogen is the fuel of the future, and my dream is to bring its cost down to $1 per kg by producing it from biomass and municipal organic waste. We have already used 8 million tonnes of municipal garbage in road construction, alongside reducing the height of the Ghazipur landfill by 7 metres. By segregating municipal waste into glass, metal, plastic and organic matter, we can feed the organic waste into biodigesters to generate biocompressed natural gas and hydrogen. The two key areas we are focusing on are the transportation of hydrogen and the establishment of hydrogen filling stations.
Currently, it costs Rs 60 million to build an engine system that delivers savings of Rs 60 million-Rs 70 million. Hence, it is crucial to focus on “Make in India” initiatives to reduce costs, while also solving the challenge of hydrogen transportation. For instance, my Toyota Innova runs on a flex engine using 100 per cent bioethanol. Compared to standard petrol, the equivalent cost comes down to just Rs 25 per litre with zero pollution because it is a green fuel. I will be meeting with tractor companies that have already manufactured flex-engine tractors. This transition will save farmers Rs 70,000-Rs 80,000 annually in fuel costs while eliminating diesel pollution. We aim to completely phase out diesel by transitioning construction and agricultural equipment to electric power, alternative fuels and biofuels.
I am a strong advocate for the environment and a dedicated supporter of green fuels and clean energy initiatives. As part of our sustainability efforts, we have successfully transplanted over 8.8 million trees along our highway networks. In addition to our green cover initiatives, we are actively transitioning towards eco-friendly construction materials such as bio-bitumen. We have already constructed our first pilot stretch using bio-bitumen on a 1 km section of the Nagpur-Jabalpur National Highway near Mansar.
Every initiative we undertake revolves around three core objectives: protecting the ecology and environment, accelerating infrastructure development, and creating millions of new jobs across the country. Beyond core infrastructure, we are turning agricultural waste – commonly known as parali or rice straw – into wealth. In Panipat, we have a project producing 100,000 litres of bioethanol daily from rice straw, along with 78,000 tonnes of sustainable aviation fuel annually and 150 tonnes of bio-bitumen per day. Similarly, in Numaligarh, Assam, we have a project manufacturing bioethanol from bamboo. Alternative fuels, biofuels, electric power and hydrogen represent the future of transportation, and that is precisely what we are building towards.
I always say that innovation, entrepreneurship, science, technology, research, skill and successful practices together constitute knowledge – and converting that knowledge into wealth is our future.
Unlocking capital via innovative financing methods
Today, our pace of construction is very fast, and we have no financial constraints whatsoever. In fact, my real challenge is increasing our pace of expenditure. We currently have an annual budget of Rs 3.2 trillion, and at any given time I can monetise our existing road projects to raise up to Rs 15 trillion from the market. As an example, when we listed our InvIT on the Bombay Stock Exchange, the issue was open for seven days, but it was fully subscribed seven times over within just seven hours on the first day. We offer an 8.05 per cent interest rate with monthly payouts deposited directly into your account. Furthermore, the share value of the InvIT has appreciated by 40 per cent, bringing the total effective return to around 16-17 per cent.
In terms of innovative infrastructure financing, I have another successful story. I was actually the first to introduce the build-operate-transfer model to the road sector in India. When I was serving in Mumbai, I was tasked with constructing the Mumbai-Pune Expressway, the Bandra-Worli Sea Link and 55 flyovers across the city, and at the time, I had a total budget of just Rs 50 million. I went on to raise Rs 12 billion directly from the capital market and successfully completed those projects. Today, funding is not an issue. The NHAI faces no resource constraints whatsoever. My primary focus now is pushing our execution capacity so we can achieve an annual expenditure of Rs 10 trillion.
Transforming toll operations and commuter experience
We have now completely transitioned to barrier-free tolling, allowing drivers to pass through smoothly at speeds of up to 80 km per hour without needing to stop. Additionally, we are offering a monthly pass for Rs 3,000 that allows up to 200 toll-free entries, making the effective cost per trip negligible. We are also phasing out physical money entirely. Now, there are zero cash transactions across our toll network. Every vehicle will be required to pay electronically. We have expanded the payment options so commuters can use Visa, Mastercard or government-approved UPI systems alongside FASTag. For drivers who attempt to pass through without any valid payment method, strict protocols are being put in place.
At the same time, we are focusing heavily on developing high quality roadside amenities. I have issued strict instructions that every facility must include dedicated, well-maintained toilets for both men and women, staffed by dedicated sanitation workers to ensure continuous cleanliness. We will implement a rating system for these facilities because, as a service provider, our goal is to deliver world-class services to citizens travelling on our highways. Although we already have numerous roadside amenities across the country, I am still not fully satisfied, and we are actively working to expand and elevate these standards further. It is our moral responsibility as a service provider to deliver top quality facilities. We are now designing these spaces to include electric vehicle charging stations, well-maintained gardens, ample parking, high quality restaurants, retail malls and markets selling local fruits and vegetables. We are also providing dedicated shops for regional handlooms and handicrafts, turning these stops into vibrant centres that showcase local heritage.
Spotlight on safety
Road accidents remain the darkest area of the ministry’s performance. For the past 12 years, I have been working on this issue with absolute seriousness, yet we have not achieved the level of success we need. Every year, India sees 500,000 road accidents, resulting in 180,000 deaths. Tragically, many of these fatalities are entirely preventable: 30,000 deaths occur because riders do not wear helmets, 20,000 occur because drivers are on their phones while operating two-wheelers or four-wheelers, and another 30,000 occur because occupants fail to wear seat belts.
Road engineering is another major factor, which is why we have identified hazardous spots across the network and are spending Rs 400 billion to rectify them. Under our updated policy, every new DPR must incorporate comprehensive preventive safety measures right from the design stage. In automobile engineering, our Bharat New Car Assessment Programme crash testing system has gained tremendous credibility. To further enhance vehicle safety across all segments, we have mandated six airbags in automobiles, as well as in trucks and buses.
Overcoming long-standing challenges
Landslides present a major annual challenge on India’s hilly roads. To address this, we have identified 350 high-risk landslide spots across the network and are collaborating closely with Swiss companies that specialise in advanced technologies. Additionally, we are now utilising technology that alerts our department up to 15 days in advance about potential landslide risks at specific locations. This foresight allows us to take immediate preventive measures to mitigate the threat before a disaster occurs. We are actively deploying these systems, and out of the 350 identified hazard spots, work has already commenced at approximately 230 locations.
“Alternative fuels, biofuels, electric power and hydrogen represent the future of transportation, and that is precisely what we are building towards.”
