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Published:Wednesday, February 06, 2019 11:36 AM

Indian Roads Budget – Rising Trend

road budget

 For the financial year 2019-20 interim budget was presented by current Hon'ble Union Finance Minister Sh. Piyush Goyal in the absence of Mr. Arun Jaitley on 1st Feb 2019 in the parliament, Hon’ble finance minister was talking about ease of doing business in India and how government is planning to make new India by 2022 , with the higher GDP growth rate India is now 6th largest economy, he spoke about how ministry has reduce fiscal deficit by 3.4 percent and maintained lower inflation rate by 4.6 percent. The budget was mainly focused on agriculture, ease of doing business, rural development, railways and defense.

Key Highlights of Union Budget (2018-19) - Roads Infrastructure:

  •  Road ministry managed to achieve 27km/day highway construction in current fiscal and targeted for 41km/day
  •  Under the Pradhan Mantri Gram Sadak Yojana, construction of rural roads has tripled
  •  15.80 lakh habitations out of a total of 17.84 lakh habitations have already linked to permanent roads and work is going on to complete the rest very soon
  • For the development of rural road in 2019-20 INR 19,000 Crore has been proposed against 15,500 Crore in RE 2018-19
  • With focus to north east region of the country, allocation has been increased by 21 percent
  • India is poised to become 5 trillion-dollar economy in next five year and 10 trillion-dollar economy in next eight years

As many parts of north east states are still untouched, so allocation for the north eastern areas is increased by 21% to INR 58,166 crore in 2019-20 BE over INR 2018-19 BE. Total expenditure rises from INR 24,57,235 crore in 2018-19 RE to INR 27,84,200 crore in 2019-20 BE, a rise of INR 3,26,965 crore or approximately 13.30%.

Overall minister recalled all last year achievement of the government in the speech and in term of infrastructure strengthen focused on rural area as India is one of fastest highway developer in the world and rural areas have high investment potential. Domestic passenger traffic doubled in last five years which is a proof that Infrastructure is the backbone of any nation’s development and quality of life whether it is highways, railways or airways. 

Major Objective for Road Development in the country to be achieved by 2022-23

  • Rise connectivity by increasing the road network
  • By 2021-22, Bharatmala Phase-I target to be achieved by completing 24,800 km road , including 2,000 km of coastal and port connectivity roads.
  • Completion of Phase I Pradhan Mantri Gram Sadak Yojana (PMGSY) with quality monitoring at every stage.
  • Twice the length of national highways (NHs) to 2 lakh km by 2022-23 from the existing 1.31 lakh km.
  • Widen single/intermediate lane NHs and reduce the length of single/intermediate NHs to less than 10 per cent of total length by 2022-23 from the present 26.46 per cent.

India is fastest growing economy in the world and relation with neighbor countries are very much important to grow our network and connectivity with them, also to improve road safety and use of Intelligent transport system we are ready to implement latest technologies in our transportation by signing agreement with developed nations. Below are some commendable move with respect to above statements. 

International Cooperation

  •  MoU with London for transport
  •  2 meetings of India-Nepal Cross Border Transport Facilitation Working Group
  •  Bus trial run across Bangladesh, India and Nepal
  •  First Working Group Meeting of BIMSTEC
  •  MoU between India and Uganda
  •  65th India-Japan Joint Working Group Meeting in the Roads and Road Transport Sector
  •  MoU of India with Russia

In 2018-19 the total expenditure, the highest allocation is towards road works at 58% (Rs 40,881 crore). This is followed by allocation towards the National Highways Authority of India (NHAI) at 42% (Rs 29,663 crore)

Year

Budget Estimate (INR Billion)

Actual Expenditure (INR Billion)

Actual/Budget (in %)

2010-11

241

244

1.3

2011-12

264

261

-1.4

2012-13

308

225

-26.8

2013-14

313

284

-9.3

2014-15

343

330

-3.8

2015-16

458

469

2.5

2016-17

580

524

-9.5

2017-18

610

610

-

2018-19

786

-

-

2019-20

830

-

-

Length of road constructed under PMGSY (KM)

 

Under the Pradhan Mantri Gram Sadak Yojana, construction of rural roads has been tripled and for the development of rural road in 2019-20 INR 19,000 Crore has been proposed against 15,500 crore in RE 2018-19 which is remarkable move.

 

Year

Target length

Completed length

Completed length (%)

2005-06

28,744

21,101

73%

2006-07

45,395

25,142

55%

2007-08

55,020

34,125

62%

2008-09

64,440

50,183

78%

2009-10

55,000

55,259

100%

2010-11

34,090

46,784

137%

2011-12

30,566

31,615

103%

2012-13

30,000

27,802

93%

2013-14

26,950

27.330

101%

2014-15

21,775

38,057

175%

2015-16

33,649

35,155

104%

2016-17

48,812

47,447

97%

2017-18

51,000

28,844

57%

Total

5,25,471

4,68,844

89%

For ensuring durability of roads built under Pradham Mantri Gram Sadak Yojna, each contractor must be accountable for:

(i)                  Defect liability for five years

(ii)                Routine check after completion of work

As per report 21% of the completed work under PMGSY was not properly maintained and only 15 states formulated Rural Roads Maintenance Policy. But with allocation of INR 19,000 crore which is highest ever allocation we can expect speedy development of rural roads in the country. As general election is pending in early FY20 more projects especially the ones awarded in FY16 and FY17 expected to be completed by end of FY19.

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