Build-own-transfer to be priority for highway projects in FY27: Nitin Gadkari

Nagpur: The government will enhance highway construction through public-private partnerships in 2026-27, prioritising the build-own-transfer model for projects and asset monetisation, according to road transport and highways minister Nitin Gadkari.

The budget has earmarked ₹2.94 lakh crore for the ministry of road transport and highways, up from ₹2.72 lakh crore in 2025-26. Of this, the capital allocation to National Highways Authority of India (NHAI) stands at ₹1.87 lakh crore, up from ₹1.70 lakh crore in 2025-26.

"Build-own-transfer will be our first priority. Where that is not possible, we will go for the hybrid annuity model," Gadkari said, adding that existing highways will also be monetised through toll-operate-transfer bundles and infrastructure investment trusts.


India's national highway network has expanded by about 61% since 2014 to 146,560 km, as of end of December 2025, according to official estimates.

"We want to become the world's third-largest economy and infrastructure creation is the priority," Gadkari said, adding that model concession agreements for PPP-BOT projects have been revamped to improve investor participation.

The minister also flagged the rapid shift in India's automobile sector toward decarbonisation, noting that electric vehicles are gaining traction as lithium-ion battery costs fall to about $55 per kilowatt hour from $150 earlier.

Addressing speculation around a blanket ban on internal combustion engine vehicles in the national capital, Gadkari said no such decision has been taken, though electric vehicles are becoming more viable for consumers.

He said a formal proposal on corporate average fuel efficiency norms for smaller ICE vehicles is yet to be moved, and any decision will be taken after building consensus.

Speaking at the 'Advantage Vidarbha' investment summit in Nagpur, Gadkari said the government is investing about ₹40,000 crore in a highway that will connect Gadchiroli to Visakhapatnam, creating a new export corridor on the east coast. The project will allow easier exports from eastern Maharashtra through ports in Andhra Pradesh, he said.