India has the third-largest road network in the world spanning 4.69 million km, next in line only to the US and China. However, when it comes to the quality of roads, India lags far behind. Compared to the length of expressways in leading countries, China (84,946 km), the US (75,238 km), Canada (17,000 km), Spain (15,152 km) and Germany (12,800 km), India’s progress in the road sector seems dwarfed at just 200 km.

On an overall basis also, highways constitute only a 1.7 per cent share at 79,116 km.

Given the importance of expressways, the Government of India had approved the construction of 1,000 km of expressways under the National Highways Development Project (NHDP) Phase VI.

Besides, the ministry came up with a project report to formulate a master plan aiming to construct 15,600 km by 2022, marking the end of the 13th five year plan.

Given the current precarious economic conditions, constructing expressways through the EPC route seems to be the most pragmatic approach. The government can raise long-term debt through bonds or low-cost foreign loans from multi-lateral and bilateral institutions while revenue can be generated by charging tolls from vehicles at entry and exit points.

Also, as witnessed in other countries, state governments should be urged to increase contribution toward these projects, as they will be the key beneficiaries of expressways.

Another way to expedite the process could be that the government could develop the first 50–100 km of the expressway to attract private developers, a model being followed by Jaipur metro.

Once traffic picks up on the expressway, developers could construct the remaining length and be allowed to charge toll on the entire length.

If India needs to achieve the next level in highway development, it has to focus on transit efficiency. For this, the country will have to increase reliance on public funding and shift focus from PPP.

It could also opt for innovative financial models, as suggested above, to make expressway construction a viable business in the country.

Indian National Expressways Network
Existing
Expressways
Planned