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India's vast and diverse landscape is undergoing a quiet yet monumental transformation, one that is profoundly shaping the nation's future. This transformation, largely hidden from the glamour of urban megaprojects, is happening on its expansive road network. With a history steeped in tradition, India's roads are now on a modern trajectory, catalyzing economic growth, connectivity, and social inclusion like never before.

The Road to Progress

India boasts the second-longest road network in the world, second only to the United States. Over the past few decades, it has expanded at an astonishing pace. The Compound Annual Growth Rate (CAGR) of road length from 1991 to 2019 was 3.64%, with a total addition of about 40 lakh kilometres, outpacing the growth of the earlier 40 years. This remarkable feat is attributed to a series of factors, including organizational innovations, evolving technologies, and a significant shift in approach.

Changing the Game

While the early years of road development were characterized by labour-intensive methods, the late '90s witnessed a transformation. The introduction of capital-intensive high-tech road-making equipment marked a paradigm shift. This change allowed for not just quantity but quality, leading to better speeds and all-weather connectivity.

The inception of the National Highways Authority of India (NHAI) in 1995 was a watershed moment. It shifted the responsibility of National Highways (NH) development and maintenance from the states to the central government. This transition was monumental, as it allowed for a more systematic and cohesive approach to NH development, which now carries 40% of India's traffic.

Public-Private Partnerships (PPPs)

Bringing the private sector into road development was a significant milestone. Although the initial concession agreements were loaded in favour of the government, PPPs gained momentum, especially in areas with lower traffic risks. This approach was a game-changer, leading to the involvement of private players in financing, building, and maintaining road projects.

State-Level Initiatives

States, recognizing the potential in better organizational forms, set up their own road development corporations, promoting both state involvement and PPPs. Maharashtra was a pioneer, establishing the Maharashtra State Road Development Corporation Limited (MSRDCL) in 1996. Today, other states have followed suit, fostering faster development of road infrastructure.

The National Highways Development Project (NHDP)

The NHDP, launched in 1998, evolved through seven phases, encompassing nearly 49,260 kilometres of road. Phase 1 introduced the four-laned Golden Quadrilateral (GQ), connecting India's four major metropolitan cities. Phase 2 extended the reach, connecting the north-south and east-west corridors, covering the nation from Kashmir to Kanyakumari and Saurashtra to Silchar. In 2018, the remaining NHDP works were incorporated into the ambitious Bharatmala Pariyojana.

Rural Roads and Pradhan Mantri Gram Sadak Yojana (PMGSY)

The PMGSY, initiated in 2001, brought all-weather roads to rural India. By focusing on objective criteria for village connectivity, overseeing the projects independently, and involving the Ministry of Rural Development, it has enhanced access and consequent development in rural areas. Rural roads now constitute over 70% of India's total road length, exemplifying their pivotal role in economic development and social inclusion.

Expressways: The Fast Lane to the Future

India's first access-controlled expressway between Mumbai and Pune opened in 2002, marking a new era in streamlined and rapid road transport. While the construction of expressways had a slow start, the past decade has seen significant progress. As of August 2023, India boasts approximately 5000 kilometres of operational expressways, with another 9000 kilometres under construction and proposals for an additional 20,000 kilometres. These expressways are essential for faster and more efficient transportation, connecting the nation like never before.

New Contracting Models and Asset Monetization

In addition to traditional tendering through Engineering, Procurement, and Construction (EPC) and PPPs, the Hybrid Annuity Model (HAM) and Toll, Operate, and Transfer (TOT) have emerged. These models offer more efficient risk allocation, capital support, and an opportunity for asset monetization through Infrastructure Investment Trusts (InVIT). The road construction landscape has seen a transformation with the rise of HAM, constituting a substantial 65% share of NHAI's total projects. HAM is essentially a fusion of the EPC and BOT (toll) models, offering a secure payment structure and the potential for increased profits. This model has gained popularity among companies for its financial stability. However, it's important to note that firms with weaker balance sheets might encounter difficulties in securing the necessary funding to participate in HAM projects. Despite this, HAM stands as a compelling option for both road development and private sector investment.

Focussed Organizations

Apart from the NHAI, organizations have been created for specific objectives. In December 2012, the Indian Highways Management Company Limited (IHMCL) was set up to carry out electronic tolling. This was followed by the National Highways and Infrastructure Development Corporation Limited (NHIDCL) to carry out road development projects in the border states. The National Highways Logistics Management Limited (NHLML) was set up in 2020 for developing Multi Modal Logistics Parks (MMLPs) and the first/last mile port connectivity projects.

Road-Making Technologies

During the implementation of the National Highways Development Project (NHDP), the import of road construction equipment was simplified through open general licenses. Encouragement was given to the domestic manufacturing of such equipment via technology transfer. Initially, for the Golden Quadrilateral (GQ) tenders, it was mandatory for bidders to form partnerships with both Indian and foreign companies to facilitate knowledge exchange from other nations. However, this requirement has since become optional. Over time, we have honed our skills in expediting road surface construction, achieving milestones like the record-setting Samruddhi Expressway. We've also become more proficient in building cost-effective bridges and creating tunnels through challenging terrains such as mountains and environmentally sensitive areas. Additionally, we've been exploring and utilizing novel environmentally sustainable materials wherever feasible.

Electronic Toll Collection (ETC)

With the proliferation of toll plazas, Electronic Toll Collection (ETC) emerged as a vital solution to streamline toll payment and reduce waiting times. ETC initially faced slow adoption, with just 5% penetration by March 31, 2017. However, significant progress has been made, with ETC achieving a remarkable 96% penetration by March 31, 2022.

During the fiscal year 2021-22, daily ETC transactions averaged Rs 90 crore through 55 lakh transactions, with an average cost of just over Rs 160 per transaction. While this represents significant progress, there is room for further improvement. India can look to developed countries where ETC systems have evolved to enable vehicles to make electronic payments seamlessly without slowing down, even at high speeds.

The Path Forward

While India's road development story is remarkable, challenges persist. Road safety remains a significant concern, and the design and construction of roads must evolve to keep up with the aspirations of a nation on the move. Urban roads, often neglected, need attention to improve connectivity, reduce congestion, and support efficient goods movement. The importance of focusing on lane kilometers over road kilometers and gathering Origin to Destination (OD) data for future planning is evident. Better coordination with PPP players is essential to prevent disputes that can delay critical projects.

India's journey of road development is far from over, but its progress is awe-inspiring. As we navigate the twists and turns of modernization, ensuring that roads are not just built but built to last and built with safety in mind is crucial. By addressing these challenges head-on and nurturing the momentum gained, India's roads are destined to be the lifelines of a burgeoning nation, connecting aspirations and driving progress.

In this contemporary age, as India's road infrastructure continues to evolve, it stands as a testament to the nation's vision and determination, connecting its past to an exciting future.