Learning from the mixed experience of the the National Highways Development Programme (NHDP), a need was felt to redefine road development and take a macro approach while planning the expansion of the national highways network. In order to meet this requirement, the Bharatmala Pariyojana was launched. The programme adopted a corridor approach in place of the earlier package-based approach that had, in many cases, resulted in skewed development.
Focus areas
In October 2017, the Bharatmala Pariyojana was launched with the aim of optimising efficiency of freight and passenger movement across the country by bridging the critical infrastructure gaps through effective interventions like development of economic corridors, inter-corridors and feeder routes, efficiency improvement on national corridors, and development of border and international connectivity roads, coastal and port connectivity roads and greenfield expressways. Multimodal integration has also been built into the programme. Besides, special attention has been paid to fulfilling the connectivity needs of backward and tribal areas, areas of economic activity, places of religious and tourist interest, border areas, coastal areas and trade routes with neighbouring countries. The National Highways Authority of India (NHAI), National Highways and Infrastructure Development Corporation Limited (NHIDCL) and state public work departments have been entrusted with the road stretches envisaged for development under this programme.
Programme update
Phase I of the Bharatmala Pariyojana entails construction of 24,800 km of road length and an additional 10,000 km of balance road works under the NHDP, taking the total to 34,800 km at an estimated cost of Rs 5.35 trillion. When the programme was initially launched in 2017, this phase was proposed to be implemented over a period of five years, from 2017-18 to 2021-22. However, it is now expected to be completed by 2023-24, owing to issues in land acquisition being faced by NHAI.
Phase I involves road projects spanning economic corridors (9,000 km), inter-corridors and feeder routes (6,000 km), national corridor efficiency improvements (5,000 km), border and international connectivity roads (2,000 km), coastal and port connectivity roads (2,000 km) and greenfield expressways (800 km), besides the road works planned under the NHDP. Of the total road length covered under Phase I of the programme, about 92 per cent is being implemented by NHAI, 7.94 per cent by NHIDCL and the rest by the Ministry of Road Transport and Highways (MoRTH). State-wise, the largest road network is proposed to be developed in Maharashtra (8,340 km), followed by Madhya Pradesh (5,850 km), Rajasthan (5,500 km) and Uttar Pradesh (4,800 km).
As of July 2019, a total of 8,502 km of road length has been awarded under the Bharatmala Pariyojana, including balance road works under the NHDP. Category-wise, economic corridors spanning 2,232 km have been awarded, while 1,608 km of road length has been awarded under national corridor efficiency enhancement. Besides, border and international connectivity roads (1,041 km), inter-corridor and feeder routes (654 km), expressways (394 km) and coastal and port connectivity roads (168 km) have been awarded under the programme. Apart from this, roads covering 2,405 km have been awarded under the balance works of NHDP.
Of the projects that have been appraised but are yet to be awarded, the total road length under the programme has reached 9,635 km. Of the approved investment outlay of Rs 5.35 trillion for projects spanning 34,800 km, projects with a total capital cost commitment of about Rs 2.07 trillion have been awarded. Besides, a network of 35 multimodal logistics parks had been identified for development in Phase I of the programme. As of March 2019, availability of the land parcels for the development of these logistics parks has been confirmed at seven locations and detailed project reports (DPRs) have been initiated for all of them.
Funding scenario
Phase I of the programme was initially proposed to be completed at an estimated cost of Rs 5.35 trillion. However, there has been a substantial increase in the cost, owing to an increase in the cost of land acquisition. To fund the ambitious programme, the MoRTH has delineated a broad financing plan. While around Rs 2.37 trillion will be allocated under the Central Road Fund earmarked for national highways, Rs 2.09 trillion will come from market borrowings, Rs 1.06 trillion from private investments through public-
private partnerships, Rs 460.48 billion from the Permanent Bridge Fee Fund (toll collections of NHAI) and Rs 340 billion from the expected monetisation of assets. More recently, NHAI has issued bids for Bundle III of the toll-operate-transfer (TOT) model spanning about 566 km, seeking to raise funds worth Rs 49.95 billion through the monetisation of road assets. Further, Bundle IV of TOT is expected to be an-nounced soon. The authority is also planning to set up an infrastructure investment trust by December 2019 to sell its road projects to private investors through a special purpose vehicle.
The road ahead
As a result of the likely delays in project implementation, the cost of the programme is expected to escalate considerably. This is a critical challenge that needs to be addressed. The cost escalation is even more significant given the funding constraints being faced by the authority. Disputes are another important issue that hamper timely project implementation.
The ministry has taken numerous steps to ensure the success of the ambitious programme. It has been regularly monitoring the progress of projects being implemented under Bharatmala to ensure timely completion of DPRs/feasibility studies and civil works for the projects. Further, use of the latest technologies such as LiDAR (light detection and ranging) surveys, drone imaging and satellite imaging, among others has been ensured for expeditious implementation of projects. Besides, there has been further delegation of powers for Phase I of the programme to ensure speedy implementation of projects. With the expensive land acquisition becoming an enormous challenge, the government has proposed funding states to lay state roads under Phase II of the Bharatmala Pariyojana, which envisages around 48,000 km of road network across the country by 2024. With regard to efficient dispute resolution, NHAI has constituted two independent committees to settle disputes, and these have received an encouraging response.
However, despite the efforts taken by the MoRTH to expedite project implementation under the programme, there has been a drastic reduction in road length awarded in 2017-18. The key reason for this is a conscious approach adopted by NHAI to award a project only after acquiring at least 80 per cent of the land required for the project. Continuing at the current pace, it will be hard to achieve the Phase I completion target of the programme by 2022, which is now expected to be completed by 2023-24.