Context: The government has recently extended the deadline for completion of the highway development project Bharatmala Phase-I to 2027-28.

• The first phase of Bharatmala was announced in 2017 and was to be completed by 2022.

About First-phase of Bharatmala Pariyojana

• Bharatmala Pariyojana is a centrally-sponsored project, approved by Cabinet Committee on Economic Affairs (CCEA) in 2017.

• Nodal Ministry: Ministry of Road Transport and Highway

• Implementing Agencies: National Highways Authority of India (NHAI), National Highways and Infrastructure Development Corporation Limited (NHIDCL), and State Public Works Department.  

• Funding Mechanism: The project will be funded through, Cess collected from Petrol & Diesel (as per Central Road & Infrastructure Fund Act, 2000) ;Toll Tax ;Monetisation of National Highways through TOT (Toll-Operate-Transfer) ;Internal & Extra Budgetary Resources (IEBR) ; Private Sector Investment.

• It was to be completed by 2022.

• Estimated Cost: The Cabinet Committee on Economic Affairs (CCEA) approved the first phase of Bharatmala Pariyojana with an estimated cost of  Rs 5.35 trillion.

• Cost overrun: There was a 100% increase in the estimated cost of the project which was appraised by the Public Investment Board (under Department of Expenditure, Ministry of Finance) at Rs 10.95 trillion. 

• The per km cost of the project increased from Rs 14 crore to Rs 24 crore as per CAG report.

• Time overrun: Till November end, only  76% (24,416km) of the total length of 34,800 km have been awarded with only  42%( 15,045 km) of the project completed.

• Aim: To enhance road connectivity and facilitate economic growth by constructing and upgrading highways across India.

• It emphasized a “corridor-based National Highway development” to ensure infrastructure symmetry and consistent road user experience.

• It aimed to bridge critical infrastructure gaps through development of 34,800 km of National Highways and 26,000 km of Economic Corridors.

• 27 Greenfield corridors are planned with an overall length of 9,000+ km.

• Greenfield corridors refer to the development of new infrastructure projects on previously unused or undeveloped land.

• Along with economic corridors, the Golden Quadrilateral (GQ) and North-South and East-West (NS-EW) Corridors will carry a majority of the Freight Traffic on roads.

• It also includes the development of tunnels, bridges, elevated corridors, flyovers, overpasses, interchanges, bypasses, ring roads, etc.

• It will provide the shortest, jam-free, and optimized connectivity to multiple places.

• It will subsume all existing Highway Projects including the flagship National Highways Development Project (NHDP), launched in 1998.

Key components of the Pariyojana

• Economic Corridors development,

• Inter-corridor and feeder routes development,

• National Corridors Efficiency Improvement,

• Border and International Connectivity Roads, and

• Coastal and Port Connectivity Roads and Expressways.

Impact

• Raise 6 National corridors to 50 corridors (6 National and 44 Economic).

• Raise 40% freight to 80% freight on National Highways.

• Raise 300 districts to 550 districts connected by minimum 4-lane highways.

Extension of Bharatmala Project Phase – I

• By 2023, 15,045 km (42%) of the project has been completed, with 26,418 km (76%) of highway stretches awarded.

• The revised schedule aims to expedite approvals for the remaining 40,412 km, addressing financial constraints and implementation challenges.

Causes of Delay in Project Completion

• Land acquisition issues,

• Delays in project approvals, and

• Impact of the COVID-19 pandemic on construction activities.

• The extension provides the necessary flexibility to ensure the successful completion of the project without compromising on quality and adherence to regulations.

• Absence of a systematic prioritization method and no clear completion timelines (as per CAG report).

• Increase in Goods and Services Tax rates.