Doubled road investment to increase jobs three-fold

NEW DELHI: The road ministry may rework the target to award projects over 10,000 km worth Rs 1.1 lakh crore during this fiscal so that it can be a force multiplier by creating more jobs and giving the much needed push to the overall economic growth. According to an estimate by the road transport ministry, the two-fold increase in spending can generate almost three times more employment.

A report prepared by the ministry has pegged the total employment likely to be generated at around 214 crore man-days against 89.67 crore during 2014-15. According to US Federal Highway Administration, highway projects can generate more indirect and induced jobs over and above the direct jobs. An IIT, Kanpur study assumes that for every one km highway project around 36,500 man-days are created.

"FM Arun Jaitley has requested us to increase our targets to award Rs 3.5 lakh crore highway projects in the next six months. Given the huge projects in road, transport, highways and shipping sectors, we are confident that in two years' time we will be able to create 25 lakh new jobs," said road transport minister Nitin Gadkari.

The road ministry targets to more than double the investment, including government expenditure, from last year's Rs 46,000 crore. "Investment in highways not only generates direct jobs for workers at the site, but you have indirect jobs held by workers in industries that supply materials and other inputs. Then you have induced jobs too," said joint secretary (highways) Rohit Kumar Singh.

Ministry sources said countries including United States and Germany had made huge investment in road sector to come out of depression.