Gadkari Unveils Rs 10 Lakh Crore Plan To Widen Two-Lane National Highways Into Four-Lane Roads

Union Minister Nitin Gadkari on Thursday (8 May) announced a transformative plan to upgrade 25,000 to 30,000 km of two-lane highways into four-lane corridors in India.

According to PTI report, the project is expected to involve an investment of Rs 8–10 lakh crore.

“To make India a strong economic power, infrastructure is key... We have taken a decision to convert 25,000-30,000 km two-lane highways in the country into four lanes for Rs 8-10 lakh crore,” Gadkari stated at an event.

He described the move as a bold step in reshaping India’s road infrastructure to meet future demands and accelerate economic development.

The Minister of Road Transport and Highways (MoRTH) also declared that the government would actively promote the Infrastructure Investment Trust (InvIT) model to raise capital for highway projects from Indian investors.

InvITs are similar to mutual funds, pooling resources into revenue-generating infrastructure assets. Looking ahead, Gadkari shared his aspiration of executing road projects worth Rs 5-6 lakh crore annually.

The current national highway development programmes operate under various financial frameworks such as Build-Operate-Transfer (BOT– toll and annuity), Engineering, Procurement and Construction (EPC), InvIT, and the Hybrid Annuity Model.

Gadkari revealed a major revision in the BOT (annuity) model. "We will construct highways under the BOT model but for 15 years tolls will be collected by the government and we will give money to them (concessionaires) on an annuity basis. And maintenance of highways for 15 years will be done by contractors," he said.

The minister was candid in stating, “The quality of highways constructed under the EPC model is not good when compared to highways constructed under the BOT model.”

Commenting on toll regulation, Gadkari added that there is no problem if the toll increases by 10 per cent. However if it (toll) goes beyond 10 per cent the concessionaires must share 50 per cent of the additional with the government.

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