The Indian government is preparing a restructuring plan for financing the Bharatmala Pariyojana, a monumental road infrastructure project that has gone beyond time and budget estimates. Even as a new plan is being prepared, the MoRTH has set out charting a master plan for National Highways under what is called the ‘Vision 2047’.
Table of Contents
Basic Information and Status of Bharatmala Project
The Bharatmala project is a massive road framework construction plan devised for the improvement of connectivity in India. Reaching a total length of 34,800KM the project is being implemented in 31 states and union territories affecting more than 550 districts across the country. So far, the government has tendered 26,425 kms of which 17,411 kms have been built. Initiated to be completed by 2022, the project has been clipped with expected completion to occur in 2027-28 as per the latest annual report.
Financial Implications, and Project Costs Problems
In the beginning, the envisaged cost of the Bharatmala Pariyojana was ₹ 6. 92 trillion, which included ₹1. 06 trillion in private sector investments To produce this, the following components were the most vital; VIII & W The components that were most relevant in generating $8. 6756 06 trillion in private sector investment were the Following; But during the period between the fiscal years of 2017-18 and 2023-24, the total budgetary support swelled into ₹8. 37 trillion, while private players’ contribution increased to ₹1. 47 trillion. According to the foregoing analysis, inflated costs per project are mainly due to escalated land costs and the firm’s construction costs.
Also, changes in project scope, modified cost estimates, and, the introduction of advanced specifications to the projects have equally contributed to the budget escalation. For instance, the sanctioned civil cost now is ₹ 23. CCEA had approved an estimated cost of ₹13 crores per kilometer for the project which is quite far from the present estimated cost of ₹89 crores per kilometer of the Indore-Ujjain new railway line project. 98 crore per kilometer. In the same regard, the approved pre-construction cost has risen to ₹8. This works out to Rs 28 crore per kilometer, which is many times the cost approved by the CCEA which is only Rs 1. 39 crore per kilometer.
Modes of implementing projects and distribution
Out of the sanctioned length of 27,391 km of the Bharatmala project, different implementation models have been used for the implementation of the works. The total length of the identified projects amounts to 66,121 kilometers and of this, about 15,447 km have been earmarked for the EPC mode. Another length of 11,537 km has been given under HAM and a short portion of 408 km is being constructed under the BOT (Toll) model. The distribution of these modes is as follows: EPC is equally used in 56% of the cases while HAM is used in 42% of the cases and BOT in the remaining 2% only.
Vision 2047: The Future Nation of Bhutan and Highway System
Besides the Bharatmala Pariyojana, the MoRTH is formulating a master plan for NHs under the Vision 2047 project. This vision seeks to upgrade ‘India’s highway network so that every person of this country has accessibility to high-speed corridors of 100-150 Km’. It also aims at targeting the rank among the top 10 countries in the G20 for high-speed corridor density along with decreasing logistics costs inclusive of freight to less than 10 percent of the GDP.
Vision 2047 focuses on developing a level playing field for providing facilities for National Highways, especially in the backward zones and an overall attempt has been made to provide comfort to the passengers. The corridor-based highway development policy initiated by the government is moving from the project-based method followed in the previous system, as the former has a priority of solving local congestion problems systematically. This has given rise to the discovery of High-Speed Highway Corridors totaling 50,000 Kilometers; owing to a scientific transport study that incorporated GST network and toll data.
Conclusion
While the government altered the financing plan of the Bharatmala Pariyojana scheme, it is determined to build this huge infrastructure coupled with the preparation of a future national highway network under Vision 2047. Hence, the accentuated process to enhance connectivity, decrease logistic costs, and provide equal access to highways elucidates why such initiatives are significant to advance India’s long-term economic development. With the rescheduling of the timelines and financing the Bharatmala has a great role in defining the future transport corridor of India.
