Govt directs NHAI to focus on upgrading existing national highways

New Delhi: The government has directed the National Highways Authority of India (NHAI) to focus on upgrading the existing national highways, amid increasing concerns over their maintenance and upkeep.

It marks a shift from the current practice of the NHAI focusing solely on the development of new highways and expressways under the Bharatmala Pariyojana and the road transport and highways ministry directly implementing these projects.

ET has seen a copy of the directive.


The focus has shifted to the existing highways because the finance ministry has paused sanction of new road projects under the Bharatmala Pariyojana due to high project cost and fund issues, said a senior government official, who did not wish to be identified.

Experts said this could ease congestion on many highways while ensuring their upkeep. "National Highways (Original) projects are more bent towards upgradation and maintenance unlike greenfield ones. Hence, the economic impact will be more on ease of congestion," said Jagannarayan Padmanabhan, global head of consulting, Crisil Market Intelligence and Analytics.

As per the NHAI directive, the authority will take up 79 National Highways (Original) projects spanning about 1,421 km at an estimated cost of ₹1,44,392 crore in this financial year.

The scheme has two categories of projects - NHO1 and NHO2 - focused on the maintenance and upgrade of the existing national highways network.

NHO1 projects involve maintenance, repair and minor upgrades of the original national highways, while NHO2 projects often include more extensive upgrades and modernisation of the original national highways, aimed at enhancing the capacity and safety of the highways, accommodating increased traffic and improving overall efficiency.

Of the ₹1,44,392 crore, ₹71,112 crore is to be spent on NHO1 projects and ₹73,280 crore on NHO2 projects.

As per the prioritised plan of the NHAI for 2024-25, approved by the road transport and highways ministry, 39 projects have been identified under NHO1 and 40 projects under NHO2.

"The ministry will now undertake these projects through the NHAI after cabinet approval," the official said. "However, this shift could significantly slow the creation of new greenfield highways and expressways in the current financial year."

Bihar leads the list of states in the number of national highways to be undertaken by the NHAI this year under the NH (O) scheme, followed by Karnataka, Andhra Pradesh, Maharashtra and Uttar Pradesh.