India’s massive plans for highway development

The Indian Government has set out plans to award highway projects worth at least US$8.84 billion during the next fiscal year. These projects will be offered under the hybrid annuity model, according to a report in the Economic Times. KPMG has stated that some 21 projects for a total of 1,500km and worth close to a third of that sum will be granted by the Indian Government in the current fiscal year.
February 10, 2016 Read time: 2 mins
The Indian Government has set out plans to award highway projects worth at least US$8.84 billion during the next fiscal year. These projects will be offered under the hybrid annuity model, according to a report in the Economic Times. KPMG has stated that some 21 projects for a total of 1,500km and worth close to a third of that sum will be granted by the Indian Government in the current fiscal year.

India’s Ministry of Road Transport and Highways has sought budgetary support from the Ministry of Finance and will grant a major tranche of highway projects in the next fiscal year. Under the new model, around 6,000km of highway projects will be granted by the Indian Government.

In India’s Karnataka State, work is due to commence on the upgrade of a highway connecting Mysuru and Bengaluru to six lanes. Construction work is expected to start and should be complete by 2018, with an estimated cost of US$515.65 million. This will most likely be carried out under a build-own-operate-transfer (BOOT) basis. The work on the 117km route will cut congestion and help reduce travel times.
Road Structures Finance & Funding

Related Content

  • Rotenberg’s Mostotrest to fight for $5 billion Russia’s road-building contract
    December 2, 2013
    Interest is strong in one of Russia’s premier projects for road infrastructure - Eugene Gerden reports The State Company Russian Highways (Avtodor) has officially announced a tender for the construction of the sixth - and longest - section of the Moscow - St Petersburg highway. Avtodor is Russia’s leading company in the field of development of national road infrastructure, while this is one of the largest and most controversial projects in Russian road building in recent years. The 6th section of the
    Read More
  • National Highway Authority of India (NHAI) rolls out new PPP regime
    January 11, 2016
    Financially delinquent contractors working on Indian projects will, from now on, find they are labelled a “non-performer” and barred from further work until they remedy their cash flow. The move by the National Highway Authority of India (NHAI) is an attempt to speed up site work and complete public-private partnership road projects on time. Under the new policies, firms that delay construction or fail to inject their share of capital into their projects will be barred from participating in fresh bids un
    Read More
  • Moscow to invest $20 billion in massive road-building by 2015
    March 28, 2014
    A huge investment in road building will expand Moscow’s network – Eugene Gerden reports The government of Moscow plans to invest more than RUB 640 billion (US$20 billion) during the period of 2014-2015 .in a massive investment of road building in the city. This is expected to be part of Moscow city’s Master Plan, which is designed until 2025. Building of new roads is crucial for Moscow and should help the city to solve the problem of traffic jams. Despite all the efforts made by the city’s authorities in re
    Read More
  • Goldman Sachs buys into infrastructure business Essel Highways
    August 16, 2016
    A consortium of investors led by Goldman Sachs has agreed to invest US$220 million in Essel Highways, part of the Essel Group. This is the US private investment firm’s first foray into India’s road infrastructure market, according to India’s financial media reports. Essel Highways, a subsidiary of Essel Infraprojects, constructs, develops and operates national and state highways. Essel Highways, set up in 2007, boasts road assets valued at around $2 billion. It has a road development portfolio of 1
    Read More

Highlighted Content