Big boost for highways sector in Budget with 30% hike in outlay expected

The forthcoming union budget 2022-23 is likely to propose a near 30 per cent hike in central government spending for the development of roads and highways across the country.

Sources have told Business Today TV that the Ministry of Road Transport and Highways is likely to be allocated Rs 1.8 lakh crore as central budgetary support for the next fiscal year. Once announced, this would be the highest ever central budgetary allocation to date for the highways sector.

This overall allocation is expected to include a provision of Rs 40,000 crore for the National Highways Authority of India (NHAI), with the stipulation that it keep market borrowings in check next year.

The enhanced funding is envisaged with the idea of augmenting the transportation infrastructure and boost economic growth, a government official said. The construction of some important projects including ones like the Delhi-Mumbai expressway would also be expedited as a result.

Road transport and highways minister Nitin Gadkari had recently announced that he was aiming to construct 60,000 km of world-class highways across the nation by 2024, at a rate of at least 40 km per day.

With a 30 per cent increase in budgetary allocation, the ministry hopes to further enhance the target of 50 km per day of road construction.

Ever since it came to power, the Narendra Modi government has focused on enhancing India’s national highway network. Consequently, the highway network has grown from 91,287 km in April 2014 to 141,000 km at present. Similarly, the speed of construction has grown significantly - from 14 km per day in 2014-15 to 37 km per day at present.