National Highways Development Project: Get The Fact is the 3th edition of India Transport Portal. How the highway construction pace has changed over last few years? Where do we stand?

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INDIA TRANSPORT PORTAL March 2016
National Highways
Development Project:
Get The Fact

2. National Highways Development Project: Get The Fact2
Research StudyGathering experts to improve transportation in India
INDIA TRANSPORT PORTAL March 2016
Table of contents:
I. Overview of NHDP
- What is NHDP?
- NHDP in figures
II. NHAI data
III. Analysis of the 2015 situation
- Average construction speed so far
- Average construction speed and the total
length to build by state
- Status of contract by state
- Construction completed by June 2015 for
each state
- Construction completed each year for different
contractor
IV. NHDP challenges
- What lessons can we draw from this study?
- Government difficulties
- An improving trend
- EPC focus
- Conclusion

3. National Highways Development Project: Get The Fact3
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INDIA TRANSPORT PORTAL March 2016
Methodology & liability
DATA USED:
To draw up this document, India Transport
Portal and Abhishek Srivastava used publicly
and freely available data (mainly from the NHAI
website).
LIABILITY:
Neither India Transport Portal nor Abhishek
Srivastava should be held responsible for any
methodological bias, omission or calculation
errors.
The only goal of this document is to create an
easy to understand road construction infogra-
phics.
LAST UPDATE:
The last update was done on June 2015.

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I. Overview of NHDP
- What is NHDP?
In order to give boost to the economic deve-
lopment of the country, the Government has
embarked upon a massive National Highways
Development Project (NHDP) in the country.
The National Highways Development Project
is a project to upgrade, rehabilitate and widen
major highways in India to a higher standard.
The NHDP is the largest highway project ever
undertaken in the country. The NHDP is being
implemented by National Highways Authority
of India (NHAI) under the Ministry of Road,
Transport and Highways.
- NHDP in figures:
49,260 Kms of roads and highways work and
construction in order to boost economic deve-
lopment of the country.
USD 71 Billion have been awarded to this
project.
It has 7 Phases and is led by the NHAI.

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II. NHAI Data
According to NHAI, National Highways Development Project is being implemented in all phases except
phase VI at present. The present phases would improve more than 49,260 km of arterial routes of NH
Network to international standards. The project-wise details NHDP all Phases as below.
Source: NHAI

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III. Analysis of 2015 situation
- Average construction speed so far:
Which state is the most efficient?
This map shows what is really completed in June 2015 for each state in relation with total length to
build.
Rajasthan seems to be the most efficient state if we look at the average of construction speed just
in front of Uttar Pradesh.

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INDIA TRANSPORT PORTAL March 2016
- Average construction speed and the total length to build by state
The following graph shows more precisely the average construction speed and the total length to
build per region.
WB: West Bengal
Arunachal Pradesh
AP: Andhra Pradesh
UT: Uttarakhand
JH: Jharkhand
HP: Himachal Pradesh
GO: Goa
KL: Kerala
RJ : Rajasthan
UP : Uttar Pradesh
BH : Bihar
TN : Tamil Nadu
GJ : Gujarat
MH: Maharashtra
OR: Odisha
HR: Haryana

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- Status of contract by state:
This map gives us a clearer view of progress of road construction. Contract by states are divided into
three categories: completed, letter of award and under implementation.
States like Rajasthan or Uttar Pradesh have a lot of contract under implementation (more than 50
per cent) while Maharashtra construction are more advanced (almost a quarter is completed).

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- Construction completed by June 2015 for each state
This graph shows what is really completed in June 2015 for each state in relation with total
length to build.
In most cases, less than fifty per cent of roads are completed.

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- Construction completed each year for different contractor:
This graph shows the evolution of completed construction for different contractors.
Looking specifically at contractors, the gap between completed roads and total length to build is
large.

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What lessons can we draw from this study?
The pace of construction plummeted from just
above 5 km per day in 2012 to 2.5 km/day in
2014.
The pace is marginally up to 3.27 km/day in the
first 6 months of 2015, but far below the 10 years
average of 5 km/day, let alone government stated
goal of 20 km/day.
Abhishek Srivastava analysis shows that highway
construction pace is up to 10 km/day. The claim
may be technically correct, but the catch is that
most of that number is 2-laning. It seems that 4/6
laning work on national highways is done by NHAI,
the rest of it is 2-laning.
IV. NHDP challenges
Headline numbers on 4/6 laning of national highways (in km):
What are the Government difficulties?
A lot of contracts had to be cancelled before
they could be re-bid. This takes time, as the
process often has to go through litigation.
A few contracts have been cancelled in last 12
months.
Land acquisition had to catch-up with contract
award and progress has been made on this
front.

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An improving trend:
New life had to be breathed back into contract
award process and there is progress on this as
well. Government is giving out a lot more work
on EPC basis, and private sector is feeling more
confident about bidding on Build Operate Transfer
(BOT) projects as well. Acceleration in contract
award should translate into faster construction
pace down the line.
EPC focus:
Under Engineering Procurement and Construction
model (EPC), the government funds the entire
project and the contractor will accept the risk
and responsibility for both the design and the
construction of the work. Of course, NHAI still
acquires the land for the project.
Conclusion:
So in all, there is certainly progress, and signs
are pointing towards further acceleration as time
goes on. Furthermore, we cannot get carried away
and start believing government numbers blindly.
If the government can increase the 4/6-laning
pace to 5km per day by the end of this year, that
would be progress. That’s the average pace for
last 12 years or so.
Does India’s current institutional mechanism sup-
port a pace of more than 10 km per day?
If we get there by the end of next year, it will be a
great accomplishment.

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