Home > Infrastructure, Roads > Roads Target Set Lower Than Last Year

Roads Target Set Lower Than Last Year

A road network of 2,008 km was added during FY10. The Planning Commission announced its plans of building new highways totaling 2,500km in the year April-March 2010-11. This target is way below the 7,000km (20km per day) target set by roads minister Kamal Nath.

In April, Nath lowered National Highways Authority of India’s (NHAI) target to around 12-13 km per day for 2010-11 from the earlier 20 km per day. He cited lack of adequate infrastructure and technology as the main reasons for this.

Construction Monitorable Targets and Milestones for 201011 (In Km)
  Q1 Q2 Q3 Q4 Total for 2010-11
NHDP‐I GQ & Others

42.86

48.89

73.92

94.18

94.18

NHDP‐II NS‐EW & Others

342.24

376.16

644.63

1,142.74

1,142.74

NHDP‐IIIA

301.81

393.74

522.07

984.68

984.68

NHDP‐V

78.00

128.60

193.40

278.4

278.40

Total 764.91

947.39

1,434.02

2,500.00

2,500.00

Source: Planning Commission

The Centre’s spending on roads in the current fiscal is pegged at Rs 35,680 crore, as per a document (Monitorable Targets and Milestones for 2010-11) released by the Planning Commission. The private sector is targeted to contribute about 60% of the total expenditure on construction.

While the Planning Commission plans to introduce a quarterly assessment of projects, this will not be sufficient to encourage higher capex. There are other problems like land acquisition and hesitation by banks to finance long-gestation projects.

To attract international and domestic insurance and pension funds to the sector, the panel also plans to set up $11 billion infrastructure debt fund.

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Categories: Infrastructure, Roads
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