Govt, NHAI should plan road projects based on a 'corridor approach': Report

Even as the Ministry of Road Transport and Highways and the National Highways Authority of India (NHAI) plan new projects to boost economic activity, land acquisition continues to be a challenge for these projects. Completing the acquisition process before awarding projects is a major financial hurdle for the government.

An internal report of the road ministry, prepared by global management firm AT Kearney, suggested the government and the NHAI should plan road projects based on a “corridor approach”. This means projects should be planned keeping economic activity and financial benefits they would provide.

For instance, the report suggested, the government should abstain from the earlier practice of executing highway projects to connect two or more cities. Instead, it should focus on connecting two industrial towns.

“Even though this is a more methodical approach, the land acquisition challenges increase,” said a road ministry official who did not want to be named. He added land had to be acquired before awarding greenfield projects. “As a result, projects are frontloaded,” he said.

Till now, only one corridor project, between Mumbai and Delhi, has been planned and work has started, the official added. The allied infrastructure essential to improve the overall efficiency of the corridor is also being planned.

The AT Kearney report also suggested setting up of a dedicated corridor-management agency, preferably within the NHAI, to ensure consistent development and management of the corridors and the allied infrastructure.

“A special purpose vehicle (SPV) with participation from the NHAI and a concessionaire can be developed for execution and monetisation of the corridors,” it said. Both these proposals are yet to attain fruition.

According to an expert, building a greenfield project on this approach becomes an expensive proposition for the government as the entire land acquisition process along with the due compensation has to be complete before inviting bids. Else, the contract would not generate enough interest amongst highway developers.

Road Minister Nitin Gadkari had earlier said a new road alignment for the Delhi-Mumbai expressway that connects some of the most backward areas in five states will save the government Rs 16,000 crore in land acquisition.

The cost has been reduced to Rs 80 lakh per hectare from Rs 7 crore per hectare. This is because land is available cheaply in the hinterland.

The new alignment for Delhi-Mumbai express highway passes through Gurugram, Jaipur, Sawai Madhopur in Rajasthan and Ratlam and Vadodra in Madhya Pradesh and Gujarat, respectively.

Which Offers What 

• Existing city-based approach
• Logistics parks, transport facilities 
• Wayside amenities are rarely developed independently 
• It leads to poor access to facilities from the national highways
• Limited focus on technology adoption and road safety initiatives

Corridor-based approach
 

• Existing infrastructure will be connected to corridors
• New infrastructure will be created along the corridors
• Wayside amenities every 150 km
• Ambulance at every 80 km to ensure immediate response