The Great Indian Road Expansion: Modi’s Plan to Propel the Economy

The Indian government, led by Prime Minister Narendra Modi, has announced a massive highway plan with an investment of US$ 240 billion (approximately Rs. 20 lakh crore). This ambitious plan aims to transform India’s national highway network, focusing on enhancing travel speeds to nearly 90 km/h across the country. Key elements of the plan include the construction and expansion of around 41,000 km of national highways.

The plan is part of a broader push by the Modi government to boost infrastructure development in India. Over the past nine years, there has been a significant emphasis on improving infrastructure across various sectors. This push is aligned with the government’s vision of accelerating economic growth and development.

In addition to the highway expansion, the government is also introducing innovative policies and initiatives to support this infrastructure boom. One such policy is the ‘Tree Bank’ for Tree Cutting & Tree Transplantation, which requires authorities like the National Highways Authority of India (NHAI) and others to maintain a record of planting and felling trees during project development. This policy aims to balance infrastructure development with environmental conservation.

Moreover, the government is encouraging investment in these projects through investor-friendly products like InvIT, allowing retail investors to participate in the funding drive. These initiatives are designed to provide good annual returns, potentially more than fixed deposit rates. The focus is also on public-private partnerships (PPP), with India being ranked first in PPP operational maturity by the Asian Development Bank.

In the realm of sustainable development, the government is heavily promoting electric mobility, focusing on solar and wind energy-based charging mechanisms. Plans are in place for developing Electric Highways powered by solar energy, facilitating the charging of heavy-duty trucks and buses while in motion. There is also a significant push towards the development of Green Hydrogen under the National Hydrogen Mission, with incentives for production and transportation.

Overall, this highway plan is a part of India’s broader goal to become a 5 trillion dollar economy by 2025. The focus on infrastructure, especially the road sector, is crucial for this target, with the road sector accounting for 19% of the capital expenditure in the National Infrastructure Pipeline from 2019 to 2025.

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