The progress of developing 8,000 km of National Highway (NH) stretches under the government’s flagship programme is at a critical juncture. The finance ministry has directed the road ministry not to proceed with bidding these projects without fresh cabinet approval. This directive comes as the government has awarded only 2,595 km of NHs for construction and widening during April-October, a significant drop from 5,007 km during the same period last year. The road ministry has highlighted this 50% decrease in awards in its monthly report to the Cabinet, stressing the need for a decision on the proposal for approval of the revised Bharatmata Phase-1 or alternate programme to be made expeditiously to meet the year’s target for awards. If the target is not met, it will impact the construction progress in the fiscal year 2024-25.
Although the Bharatmala-1 comprising 34,800 km of NH was approved by the Cabinet in 2017 with an estimated investment of over Rs 5.3 lakh crore, contracts for around 26,500 km have been awarded so far at a doubled cost due to various factors, including changes in project composition and configuration such as the construction of more expressways and economic corridors. The finance ministry has informed the road ministry that since the cost has exceeded the approved amount, further projects can only be bid out after the Cabinet approves the revised estimate. The road ministry had circulated the revised estimated cost of Bharatmala-1 in 2020, and consultations are currently underway.
