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Road & Highways

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Consultants for Investment in Roads Sector in India

Road & Highways

India has the one of largest road networks across the world, spanning over a total of approx six million KM. This road and highway network transports 64.5 percent of all goods in the country and 90 percent of India’s total passenger traffic uses the road network to commute. Highways & Road transportation movement increased in the last few years with the development in connectivity between villages, cities and towns in the country. Therefore, sales of automobiles and movement of freight by roads is growing at a rapid rate.

Advantage India and Market size

  • Robust Demand

    – Production of two wheelers, passenger vehicles, commercial vehicles & three wheelers reached approx 35 million, commands stronger road network in India.

  • Attractive Opportunities

    – In next 5 years, national Highway Authority of India will able to generate Rs 1 lakh crore (USD 14.30 billion) annually from toll and other sources.

  • Higher Investments

    – Transferred to National Investment Fund was Rs 6070 crore (USD 870 million) for 2019-20. The total amount of investments are estimated to reach Rs 81000 crore (USD 11.59 billion) in FY20.

 

  • Policy Support

    – 100% FDI is allowed under automatic route subject applicable laws and regulations.

Key Investments/Developments

The Government Ministry of State for Road, Transport and Shipping has stated that the Government aims to vision corporate investment in roads, highways and shipping sector, along with introducing best business-friendly strategies that will increase profitability with effective project execution.

 

According to data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), construction development including Townships, housing, built-up infrastructure and construction-development projects attracted Foreign Direct Investment (FDI) inflows.

Government Initiatives

Some of the recent government initiatives are as follows:

 

  • The Union Minister of Road Transport & Highways is expected to award road projects with a overall length of around 4,500 km worth Rs 50,000 crore (US$ 7.15 billion) in 2020.
  • To built, widen and revamp of approximately 1.25-lakh km of roads government of India has approved budgets for the launch of Phase-III of its rural road programme that is Pradhan Mantri Gram Sadak Yojana (PMGSY).
  •  Under the Union Budget 2020-21, the Government of India has allocated Rs 91,823 crore (US$ 13.14 billion) under the Ministry of Road Transport and Highways.
  •  For 2019-20, the Ministry of Road Transport and Highways had total expenditure of Rs 83,016 crore (US$ 118.4 billion).
  •  30,000 kms of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.
  • The Government of India as a part of 100-day plan has given the target to the authorities to complete one road projects every two days.

Achievements

Following are the achievements of the government in the past four years:

 

  • As on December 2019, 824 projects were recommended for development by the Public Private Partnership Appraisal Committee (PPPAC).
  • A total of 65 thousand km of roads and highways are to be constructed under assignment – “Bharatmala Pariyojana”.

Road Ahead

The government, through a exhaustive series of initiatives, is working on policies to attract investor interest. It is expected to complete 200,000 kilometers of national highways by 2022.

 

Over the next five years, the National Highway Authority of India (NHAI) will be able to generate Rs 1 lakh crore (US $ 14.30 billion) annually from headlines and other sources.

 

The Department of Roads and Highways intends to focus on providing 15,000 km of construction and the construction of 10,000 km of national highways in FY19. About 295 major projects including bridges and roads are expected to be completed in the same period.

SM Management Road & Highways Services

Our team of Road & Highways consultants in India helps clients in increasing customer value and focusing on profitable growth both at strategic and operational levels.

 

India Entry Services For The Road & Highways Sector Include:

  • Providing strategic planning.
  • Identifying trends, opportunities and competition for current products.
  • Expanding by identifying new growth avenues and markets.
  • Growing through Joint Ventures/ Acquisitions.
  • Establishing and monitoring performance of networks.
  • Identifying the right customer segments and deciphering their needs and preferences.
  • Tying-up with the right partner.
  • Setting up a production facility.
  • Assessing technology and market trends.

For regular updates, you can visit our Twitter page:  India Entry Services

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