Showcasing the country's highways sector as a golden opportunity for international investors, the government has recently rolled out highway projects worth $93 billion, including the $45 billion flagship road building program under the National Highways Building Project (NHDP), said transport ministry sources, claiming that the investment opportunities include new models being rolled out, both for Greenfield (hybrid annuity) and Brownfield projects that relates to monetization of road projects. As a matter of fact, the government is opening up 20,000 kms of road building process under the NHDP at an estimated investment of $45 billion over the next three years. In this connection, government is releasing a document on the highway sector comprising the Bharat Mala project of $12 billion, which involve providing connectivity to 123 district headquarters for $15 billion and the construction of 350 bridges/ROBs in two years at an investment worth $8 billion.
Apart from this, it includes Char Dham's connectivity of 2,500 kms in mountainous terrains for $8 billion and a strong network of roads in the North-East and Border areas for $5 billion and that it has also targeted to award projects for the construction of 10,000 kms this year alone. About creating financially attractive projects to investors, the government said that it is based on their risk and return appetite. About fiscal incentives, it said, right of way (ROW) for project land is being made available to concessionaires, free from all encumbrances, while the National Highways Authority of India (NHAI) is providing capital grant (Viability Gap Funding) of up to 40% of the project cost to enhance viability but it will be decided on a case-to-case basis. In addition, government measures include regulatory clearances to 80 stuck projects and railway clearances for 85 projects with railway over-bridges, golden handshake with developers for 34 projects worth $5.5 billion and fast-track disputes resolution, which resulted in reduction of disputes from $2.3 billion to $0.2 billion, they added.