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

  • Work commencing on key Indian highway project
    December 12, 2012
    In India work is commencing on a new highway project that will boost transportation in the country. The US$135 million project is for a 193km highway linking Malavalli and Pavagada. The World Bank has provided some of the funding through the Karnataka State Highways Improvement Project (KSHIP). The work will be carried out by the Sadbhav-GKC consortium and will take some 30 months. The deal is being offered as a 10 year concession package, under the design, build finance, operate, maintain and transfer (DBF
    Read More
  • Moscow city government to build relief roads and highways
    June 6, 2016
    Moscow’s congestion problems need addressing but there are different solutions that could provide the answer – Eugene Gerden writes Moscow’s city government is considering building relief roads to ease congestion on the city’s key roads and highways. This plan has been revealed by recent statements from Marat Khusnullin, deputy mayor for urban policy and construction of the Moscow city government.
    Read More
  • Australia highway projects being planned
    November 24, 2015
    Key highway projects are progressing in Australia. In the state of Victoria, the authorities are planning a road widening project for the Monash Freeway that will cost an estimated US$289.54 million (A$400 million). The project calls for the route to be widened to five lanes in either direction for the stretch between the EastLink and the South Gippsland Highway.
    Read More
  • Nepal’s Kathmandu-Terai Fast Track road to be built under annuity model?
    March 31, 2014
    India's Infrastructure Leasing & Financial Services (IL&FS) has offered to build the 76km, US$1.01 billion Kathmandu-Terai Fast Track road in Nepal under an annuity model, proposing that the government issue a global tender. This model is suitable as investors, including IL&FS and other Indian firms Reliance Infrastructure and Larsen & Toubro, have proved unwilling to undertake the project under a BOOT system. The Kathmandu-Terai Fast Track road will carry an estimated 3,000 vehicles a day.
    Read More

Highlighted Content