Nitin Gadkari’s Return as Road Transport Minister Promises Continued Highway Development in India

Nagpur, India – June 10, 2024 – Nitin Gadkari, the Bharatiya Janata Party (BJP) Member of Parliament from Nagpur, has been reappointed as the Minister for Road Transport and Highways, marking his third consecutive term in the position. This move underscores the Modi government’s commitment to sustaining the rapid pace of highway and expressway development across India.

At 67, Gadkari has been instrumental in driving Prime Minister Narendra Modi’s economic vision, significantly contributing to India’s rise from the “fragile five” to one of the top five global economies. His leadership in the ministry has ensured unprecedented progress in national infrastructure, a key factor in India’s GDP growth.

Official data highlights a 60% expansion in the national highway network, which grew from 91,287 km in 2014 to 1,46,145 km in 2023. Over the past decade, Gadkari’s ministry has constructed an impressive 54,860 km of national highways, setting new benchmarks in infrastructure development.

Looking ahead, India plans to maintain its rapid road construction pace, with an estimated addition of up to 13,000 km of highways in the financial year 2024-25. This projection, reported by rating agency ICRA, suggests a 5 to 8% increase over the previous year’s achievements.

The Ministry of Road Transport and Highways has been allocated Rs 2.78 lakh crore in the Interim Budget for 2024-25, a nearly 3% increase from the previous year’s Rs 2.7 lakh crore. This funding boost is expected to further enhance the country’s infrastructure development.

Gadkari has also announced initiatives to attract more private investment in highway projects, aiming to accelerate development and generate employment. Of the 176 projects tendered in FY 2023-24, only one was a Build-Operate-Transfer (BOT) project. However, 53 BOT (Toll) projects, covering 5,200 km and worth Rs 2.1 lakh crore, have been identified. Bids for seven projects, spanning 387 km and valued at Rs 27,000 crore, are set to be invited soon.

Under the BOT (Toll) model, contractors bear construction costs and recoup their investments through toll rights over a specified period, incentivizing efficiency and long-term project viability.

As part of the Government’s ‘Vision 2047’ Plan, numerous high-speed corridors are slated for development. Gadkari’s extensive experience and proven track record in the sector are expected to play a crucial role in realizing these ambitious infrastructure goals.

Nitin Gadkari’s reappointment signals continuity and stability in India’s infrastructure policies, ensuring that the nation remains on the fast track to economic growth and development.