Size

• India has an extensive road network of 3.3 million km - the second largest in the world.
• Roads carry about 70% of the freight and 85% of the passenger traffic.
• Program for 4- laning of about 14000 km of National Highway is underway.

Structure

• The National Highways Authority Of India (NHAI) is the apex Government body for construction or BOT are awarded through competitive bidding. Private sectors participation is on a rise.

Incentive

• 100% income tax exemption for a period of 10 years.
• NHAI agreeable to provide grants /viability gap funding for marginal projects.
• Model concession agreements formulated.

Outlook & Potential

• Over $ 50-60 billion investment is required over the next 5 years to improve road infrastructure as the annual growth projected at 12-15% for passenger traffic, and 15-18% for cargo traffic.
• Road development is recognized as essential to sustain India's economic growth.
• A large component of highways is to be developed through public- private partnership. Several high traffic stretches already awarded to private companies on a BOT basis.