As a fresh model emerges for developing India’s highways, Rebecca Abraham uses a hypothetical case study to assess what’s new

India’s infrastructure needs are well documented. While some of these are being addressed, the challenges of upgrading and developing much-needed highways across India continue to be complex.

Presenting the budget on 29 February, the finance minister spoke of 70 projects – 8,300 kilometres of roads – that had been “languishing … due to legacy factors” at the beginning of the 2015-16 financial year. While 85% of these projects are said to be back on track, the government aims to approve the development of nearly 10,000 kilometres of national highways in the current financial year. In addition, nearly 50,000 kilometres of state highways are to be upgraded as national highways.

Renewed vigour

While between 13 and 17 kilometres of highways a day were being constructed over the past two years, in September 2015 the government set itself the ambitious target of building 30 kilometres of highways a day.

Then on 27 January the Cabinet Committee on Economic Affairs approved a new structure under which public-private partnership (PPP) projects are to be executed in the highways sector – the so-called hybrid annuity model.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.



Discussions with Anjan Dasgupta at HSA Advocates, Akshay Jaitly at Trilegal and Qais Jamal at AZB & Partners were useful in the compilation of this hypothetical case study.

Practitioner’s perspectives
Sumeet Kachwaha and Dharmendra Rautray at Kachwaha & Partners n
PPP problems
Sumeet Kachwaha and Dharmendra Rautray at Kachwaha & Partners