Gadkari unveils ₹10 lakh crore plan to upgrade 30,000 km of highways

Union Minister Nitin Gadkari has launched a ₹10 lakh crore plan to upgrade 25,000-30,000 km of highways, hoping to boost connectivity, attract investment, and move India towards a $5 trillion economy.

Union Minister Nitin Gadkari emphasised the critical importance of infrastructure development in strengthening India’s economy, unveiling a game-changing plan to convert 25,000-30,000 kilometres of two-lane highways into four-lane roadways. The ambitious program will require an expenditure of ₹8-10 lakh crore and promises to considerably boost connectivity across the country.

During a ceremony in New Delhi, Gadkari announced that the Ministry of Road Transport and Highways (MoRTH) aims to complete highway projects worth ₹5-6 lakh crore annually.  As part of a strategy shift, the government would promote the Infrastructure Investment Trust (InvIT) model to attract local investors. InvITs, structured similarly to mutual funds, allow for pooled investments in revenue-generating infrastructure assets, providing long-term cash flows.

Gadkari further stated that the Build-Operate-Transfer (BOT) annuity model will be revised in order to improve financial sustainability and reduce government burden. According to the proposed amendment, the government will collect toll revenue for 15 years while paying concessionaires via annuity payments.  Contractors will also be in charge of highway maintenance during this time, assuring accountability and consistent quality.

While emphasising the benefits of the BOT model, Gadkari criticised the quality of roadways built under the Engineering, Procurement, and Construction (EPC) model, noting inferior results when compared to BOT projects.  He emphasised the importance of long-term private-sector involvement in maintaining high construction standards.

To ensure toll costs are fair, the minister proposed a clause requiring concessionaires to split 50% of the additional money with the government if toll rates rise by more than ten percent.  This strikes a balance between profitability for investors and affordability for motorists.

 Gadkari also issued a strong warning against cartelisation in highway project bidding, saying such activities would not be permitted.  His words highlight the ministry’s emphasis on transparency, quality, and strong financial models in infrastructure implementation.

India’s efforts to modernise its highway network are intended to improve transportation efficiency and economic growth and create a more appealing investment environment through improved models such as InvIT and BOT. The breadth and scope of these developments demonstrate the government’s determination to transform India into a $5 trillion economy supported by world-class infrastructure.