Policy support for the road sector is evident when you look at budgetary allocations. The infrastructure capex of Rs 10 trillion in 2023-24 represents a 33 per cent increase over the budgeted expenditure of Rs 7.5 trillion in 2022-23 and a 130 per cent increase over the actual expenditure of Rs 4.26 trillion in 2020-21.
In the road sector, developers have to tap multiple sources of funding, apart from investing their own equity. Traditionally, the biggest lenders have been the banks, but they have turned cautious. So, in addition to banks, players have availed of a wide variety of sources. These include external commercial borrowings, private equity, foreign direct investment (FDI) and infrastructure investment trusts. They have also explored asset monetisation via different routes, to turn investments around quickly.
In terms of technology, road, bridge and tunnel construction have seen enormous developments, which have made processes more efficient and more sustainable. Digitalisation, computer modelling and the use of geolocational tools have been combined with greater mechanisation of equipment and better use of materials, as well as the use of drones to monitor assets. This has made the sector more dependent on skilled labour. But it has cut time, lowered costs, enhanced safety, and reduced repair and maintenance needs.
The sector has seen the induction of drones, GIS mapping, satellite imagery, smart lighting, variable LED signages, adaptive traffic control systems, speed limit enforcers, lane driving systems and electric vehicle charging facilities.
The Ministry of Road Transport and Highways is promoting green technology. This includes the use of waste materials, by-products and organic materials such as fly ash, slag, crumb rubber, modified bitumen, waste plastic, recycled aggregates, geosynthetics, jute and coir.
Apart from requiring skill upgrades, this approach also creates a big opportunity for equipment manufacturers since the demand for sophisticated machines has increased manyfold. Bridging and tunnelling also require engineers to upgrade their learnings to adopt new modes. This is an ongoing process and it necessitates collaboration, innovation and policy commitment to encourage the establishment of local manufacturing and training.
Nagpur has installed “Intelligent Solutions for Road Safety through Technology and Engineering (iRASTE)”, enabling an innovative AI solution to reduce accidents. NHAI is implementing the advanced traffic management system on national highways and expressways to manage crashes and enforce speed limits.
Construction equipment recorded a growth of 26 per cent in sales volumes in 2022-23. Total equipment sales crossed the 0.1 million mark for the first time. Growth has been powered by a 29 per cent rise in domestic sales and a 3 per cent growth in exports.
There has been steady progress on Bharatmala Pariyojana Phase I, under which around 14,300 km of roads have been constructed. The programme is expected to lead to increased average speeds on national highways, improved connectivity, lower pollution levels, and fewer accidents. The aim is to connect 550 districts (from the current 300) through national highway linkages.
Numerous challenges are still visible. Inflation is pushing up costs. Given the increasing inflationary pressures, land acquisition is more expensive. Delayed clearances also lead to cost escalations. Financing constraints remain. Disputes are hard to resolve legally.
However, given policy will and two decades of experience, stakeholders have learnt to navigate most of these issues. Improved road capacities will inevitably lead to better multimodal logistics and enable development across the rural hinterland.