Now Reading: Poor data threatens India’s big highway building plans
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Poor data threatens India’s big highway building plans
India's ambitious highway expansion programme, aimed at boosting economic growth and reducing urban congestion and pollution, is being undermined by poor data and analysis, according to a report. The government is seeking…
India's ambitious highway expansion programme, aimed at boosting economic growth and reducing urban congestion and pollution, is being undermined by poor data and analysis, according to a report. The government is seeking to revive its preferred public-private partnership (PPP) funding model for the projects.
However, the lack of reliable traffic and revenue projections has made investors wary, risking the success of the build-out. The National Highways Authority of India (NHAI) has faced criticism for overestimating traffic volumes and toll revenues on several stretches, leading to financial stress for concessionaires.
The PPP model, which once drove highway construction, has declined in recent years due to these data issues. The government's push to expand the network to 200,000 km by 2025 may be jeopardised unless data collection and analysis are significantly improved, the report said.
Indian Opinion Analysis
India's highway push is central to its infrastructure-led growth strategy, but the PPP model's revival hinges on credible traffic data. Past NHAI projects, like the Mumbai-Delhi corridor, saw concessionaires struggle when actual traffic fell 30-40% below projections. The problem is structural: traffic counts rely on outdated manual methods, and economic modelling often ignores localised demand shocks. With Rs 15 lakh crore planned for national highways over five years, even a 10% revenue miss on PPP projects could deter private investment. The next test will be the government's response to the Kelkar committee's 2023 recommendation for an independent data validation agency, which remains unimplemented.
Source: asia.nikkei.com
This story was synthesised by AI from the source linked above.
