Union Minister Nitin Gadkari has emphasized the importance of quality roads and urged highway agencies to refrain from charging tolls for subpar infrastructure. He also advocated for a flexible Hybrid Annuity Model (HAM) where contractors can invest more in infrastructure projects. The government plans to implement a GNSS-based electronic toll collection system, aiming to increase toll revenue significantly.
India’s rapid pace of highway construction may be slowing down. After reaching a peak in 2020-21, the construction rate has declined due to factors such as delayed project approvals, execution issues, and a shift away from traditional construction models. While government funding has increased, a significant portion goes towards repaying the National Highway Authority of India’s debt, limiting its ability to invest in new projects. As a result, the construction rate is projected to fall in the current fiscal year and remain lower in the near term.
