India accelerates road innovation with satellite tolling by 2024. Challenges in highway projects amid slowed bidding and project approvals.
Minister for Road Transport and Highways, Nitin Gadkari, revealed that India’s national highways are set to embrace satellite-based tolling systems.
The National Highways Authority of India (NHAI) is gearing up to implement this futuristic tolling system by March 2024, as disclosed during a session in the Rajya Sabha, according to a TOI report.
The country has informed the World Bank about its efforts to reduce waiting times at toll plazas and streamline export processes at land ports. Thanks to the introduction of FASTag, the average wait time at toll plazas has drastically dropped to just 47 seconds, a remarkable improvement from the previous average of 714 seconds. During discussions with World Bank representatives, the government laid out its ambitious plans to further elevate the nation’s infrastructure.
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Despite this progress, the construction and expansion of national highways have faced challenges. Between April and November of the current fiscal year, there was a 10 percent increase compared to the same period between 2011 and 2023. However, the allocation of new construction projects has dipped by 52 percent this year, posing a hurdle to achieving the government’s target of constructing and expanding approximately 12,000 km of highways.
Adding to the concerns is the significant slowdown in bidding for new projects. Last year, agencies bid for 5,382 km of work between April and November, whereas this year, the figure has only reached 2,815 km.
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Delays in approving the revised Bharatmala Phase-1 program or alternate initiatives have raised concerns about the impact on project bidding. The finance ministry’s directive to halt new projects under Bharatmala without fresh Cabinet approval has affected the development of over 8,000 km of national highway stretches under the government’s flagship program. This decision may have repercussions on the progress of construction in the fiscal year 2024-25.
