An efficient system of roadways is a pre-requisite for overall sustained development of a nation. It is a key infrastructural unit which promotes trade and commerce by facilitating the movement of men and material throughout the country. It integrates the whole nation by linking the backward and inaccessible regions with the mainstream economy. A well-planned road network provides linkages to other modes like railways, airways, ports, inland waterways, etc and thus complements the efforts of meeting the requirement of a sound transportation system.

For a vast economy like India, rapid expansion and strengthening of such a road network is particularly imperative for an all round progress. India is having one of the largest road networks in the world (3.32 million km), consisting of National Highways/Expressways (66590 km); State highways (128000 km); Major and other district roads (470000 km); and Rural roads (2650000 km). About 65 per cent of freight and 86.7 per cent of passenger traffic is carried by the roads. Although, National Highways constitute only about 2 per cent of the road network, it carries 40 per cent of the total road traffic.

In India, the Department of Road Transport and Highways, under the Ministry of Shipping, Road Transport and Highways, is the nodal agency for development of roadways. It is entrusted with the functions of construction and maintenance of National Highways (NHs) and administration of Motor Vehicles Act and Central Motor Vehicles Rules. It also formulates broad policies relating to road transport, environmental issues, automotive norms, etc. along with making arrangements for movement of vehicular traffic with the neighbouring countries. It has also taken several initiative for encouraging investments into the roads sector.

Traditionally, the road projects were fully financed and controlled by the Government. But the increasing pressure of traffic and the resulting demand for road infrastructure had made it imperative to attract private investments into the road sector. Hence, National Highways Act (NH Act) 1956 was amended in June 1995 and private persons were allowed to invest in the NH projects; levy, collect and retain fee from users; etc. The beginning of significant private participation in roadways was made with the launching of India's largest road project called as the 'National Highways Development Project (NHDP)'. The NHDP is a massive project taken up for the improvement and development of National Highways in the country and is being implemented in a phased manner by the 'National Highways Authority of India (NHAI)'.

In addition to these initiatives, the department has also announced the 'National Road Transport Policy', which aims at facilitating an efficient and safe road transportation system for improving the quality of life. Thus, all such efforts by the Government for augmenting and streamlining the road network in the country provide several opportunities for investment in the sector.

For more details visit our Section on 'Infrastructure'

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