Highlights

  • Capital expenditure by the Ministry has grown at a CAGR of 33% from 2012-13 to 2026-27.

  • Share of private sector in road construction has declined from 51% in 2014-15 to about 15% in 2023-24.

  • Outstanding debt of NHAI has come down from 3.48 lakh crore in 2021-22 to Rs 2.4 lakh crore in November 2025.

The Ministry of Road Transport and Highways formulates and administers policies for road transport, and transport research.  It is also involved in the construction and maintenance of National Highways (NHs) through the National Highways Authority of India (NHAI), and the National Highway and Infrastructure Development Corporation Limited (NHIDCL).  It deals with matters relating to road transport, safety, and vehicle standards, through the implementation of the Motor Vehicles Act, 1988.  This note looks at the proposed expenditure of the Ministry for 2026-27, and key issues in the sector.

Overview of finances

In 2026-27, the Ministry has been allocated Rs 3,09,875 crore, an 8% increase over the revised estimates for 2025-26.[1]  This is 6% of the total estimated expenditure (Rs 53,47,314 crore) of the government in 2026-27.1  Major allocations are towards NHAI and expenditure on roads and bridges (see Table 1).

Table 1: Allocation for the Ministry of Road Transport and Highways (in Rs crore)

 

2024-25

2025-26 RE

2026-27 BE

% Change

Total

2,99,460

2,87,142

3,09,875

8%

Of which:

 

 

 

 

NHAI

1,68,602

1,70,266

1,87,293

10%

Roads and Bridges

1,30,965

1,16,337

1,21,999

5%

Road transport and safety

254

360

400

11%

Note: RE is revised estimates, BE is budget estimates, % change from 2025-26 RE to 2026-27 BE.  NHAI is National Highways Authority of India.
Sources: Union Budget Documents 2026-27; PRS.

Capital expenditure by the Ministry has increased significantly, from Rs 5,471 crore in 2012-13 to Rs 2,94,167 crore in 2026-27.  Between 2012-2026, capital expenditure has grown at an annual CAGR of about 33%.  Over the same time, revenue expenditure has been about Rs 13,307 crore on an average (see Figure 1).

Union Budget Announcement 2026-27

The central government announced the development of a new freight corridor from Dakuni (West Bengal) to Surat (Gujarat), for sustainable movement of cargo.  A new East Coast Industrial Corridor will be developed, with a well-connected node at Durgapur.

Figure 1: Revenue vs Capital expenditure (in Rs crore)

Note: Revised estimates of 2025-26 taken as actuals.
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Trends in Utilisation

Over the last few years, the Ministry has been consistently spending more than the budget estimates (see Figure 2).

Figure 2: 100% utilisation of funds by the Ministry in the past few years (in Rs crore)

Note: Revised estimates of 2025-26 taken as actuals.
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Allocation to NHAI

NHAI is responsible for the development and maintenance of national highways.[2]  For 2026-27, Rs 1,87,293 crore (60% of the Ministry’s budget) has been allocated to NHAI.1  This is 10% higher than the revised estimates for 2025-26.  Budgetary support towards NHAI is used for upgradation of highway network under the Bharatmala Pariyojana.[3]  The Union government approved Bharatmala Pariyojana in 2017, an umbrella programme covering a road length of 34,800 km, of which NHAI is responsible for development of 30,464 km.17  It aims to reduce the cost of logistics and improve connectivity in the country.[4]

Figure 3: Utilisation of funds by NHAI (in Rs crore)

Note: Revised estimates of 2025-26 taken as actuals.
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Allocation to Roads and Bridges

In 2026-27, Rs 1,21,999 crore has been allocated towards roads and bridges.1  This is 5% higher than the revised estimates for 2025-26.  Expenditure under roads and bridges includes: (i) development of NHs, (ii) projects related to expressways, (iii) increasing the number of lanes under various projects, and (iv) development of road connectivity in left-wing extremism affected areas. 

Figure 4: Allocation to Roads and Bridges (in Rs crore)

Note: Revised estimates of 2025-26 taken as actuals.     
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Allocation to Road Transport and Safety

In 2026-27, road transport and safety has been allocated Rs 400 crore, an 11% increase over the revised estimates of 2025-26.1  On an average, utilisation has been about 63% between 2017-26. 

Figure 5: Allocation to Road Transport and Safety (in Rs crore)

Note: Revised estimates of 2025-26 taken as actuals.     
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Funds Managed by the Ministry

The Ministry manages various funds to finance road infrastructure projects.  These are the: (i) Central Road and Infrastructure Fund (CRIF), (ii) Permanent Bridge Fees Fund (PBFF), (iii) Monetisation of National Highways Fund (NHMF), and (iv) National Investment Fund (NIF). 

These funds are financed through methods such as: (i) levy of a specific cess, (ii) collection of tolls, (iii) monetisation of highways and (iv) proceeds from the disinvestment of public companies.  Allocations to the Ministry from these funds are used for highway development, building road infrastructure in states and UTs, safety and maintenance expenditure, construction of other roads and bridges, and repayment of debt. 

Central Road and Infrastructure Fund (CRIF)

The CRIF is a non-lapsable fund created to service infrastructure projects.[5]  CRIF is funded by a cess levied on petrol and diesel called the Road and Infrastructure Development Cess.  This amount is eventually released to the NHAI, and to the state/UT governments for the development of infrastructure sectors such as transport, energy, water, sanitation, and others.5  In 2026-27, Rs 46,930 crore is estimated to be collected as road and infrastructure cess, an increase of 3% from the revised estimates of 2025-26 (Rs 45,780 crore).[6]  Rs 44,675 crore was collected in 2024-25.

Allocation to NHAI from CRIF

NHAI increased market borrowings from 2017-18 to fund Bharatmala Pariyojana.[7],[8]  Due to rising debt obligations, central government halted NHAI’s market borrowing since 2022-23, and increased budgetary support (see Figure 6).8  NHAI’s debt peaked in 2021-22, at Rs 3.48 lakh crore.[9]  As of November 2025, the total outstanding debt of the NHAI stood at Rs 2,39,818 crore.[10]   No allocation to NHAI is being financed from the CRIF in 2026-27.1  Since 2023-24, share of transfers from CRIF has come down (see Figure 7).  The reduction in transfers from CRIF is being compensated by gross budgetary support.

Figure 6: NHAI borrowing has stopped since 2022-23 (in Rs crore)

Note: IEBR is Internal and Extra Budgetary Resources.
Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Figure 7: Share of transfers to NHAI from CRIF (in Rs crore)

Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Schemes of states and UTs met from CRIF

In 2026-27, Rs 10,430 crore is estimated to be utilised for states and UTs from the CRIF.1  This is 5% more than the revised estimates for 2025-26. 

Figure 8: CRIF allocation towards States and UTs (in Rs crore)

Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Permanent Bridge Fees Fund (PBFF) 

The PBFF is funded by revenue collected by the government through: (i) fees levied for the use of certain permanent bridges on NHs by motor vehicles, (ii) toll on NHs, and (iii) share of government revenue received on some Public-Private Partnership (PPP) projects.  These funds are released to NHAI for the development of NHs entrusted to it.  In 2026-27, Rs 35,027 crore has been allocated from the PBFF.1  This is 6% more than the revised estimates of 2025-26.

Figure 9:  Allocations to NHAI from PBFF (in Rs crore)

Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

National Investment Fund (NIF) 

The NIF was created in 2005 and receives proceeds from disinvestments of public sector enterprises.[11]  The fund is also used to finance the Special Accelerated Road Development Programme in North East (SARDP-NE).11  In 2026-27, Rs 18,361 crore is budgeted to be transferred from the NIF.1  This is 84% higher than the revised estimates for 2025-26.  The entire amount will be spent on SARDP-NE.

The Ministry develops road network in north-eastern states under the SARDP-NE programme.[12]  The programme seeks to provide connectivity to backward and remote areas and ensure that headquarters in the northeastern region seek to be connected by at least two-lane highway standards.12  The program was started in 2005.  The Standing Committee on Transport (2022) had observed that Phase-A of the project, scheduled to be completed by March 2014, was delayed till 2023-24 due to:  (i) land acquisition, (ii) less working season, (iii) non-availability of local agencies, (iv) scarcity of good quality quarry materials, and (v) poor performance of contractors.[13]  The total length of works sanctioned under SARDP-NE was 5,998 km (original 6,418 km).[14]  Of this, 5,714 km length (95% of sanctioned length) had been completed by December 2024.14

Figure 10: NIF Allocation towards roads and bridges (in Rs crore)

Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Monetisation of National Highways Fund (NHF) 

The NHF is financed by monetising certain public-funded national highway projects.[15]  This includes transferring maintenance of certain stretches to private contractors on a long-term basis.15  The fund is being used for repayment of NHAI’s debt obligations.  In 2026- 27, Rs 30,000 crore is expected to be utilised from the NHF, an 11% decrease from the revised estimates of 2025-26.

Figure 11: NHF Allocation towards NHAI (in Rs crore)

Sources: Demand for grants of the Ministry of Road Transport and Highways for various years; PRS.

Issues and analysis

Road Network

India has the second largest road network in the world, of about 64 lakh km.[16]  This includes NHs, expressways, state highways, district roads, and village roads (see table 2).  NHs constitute 2% of the road network but cater to 40% of traffic.[17]

Table 2: Road network in India (in km)

Road category

Length

% share

National Highway

1,32,995

2.1%

State Highway

1,78,749

2.8%

District Road

6,16,964

9.7%

Rural Roads*

44,95,948

70.7%

Urban Roads

5,48,394

8.6%

Project Roads

3,86,954

6.1%

Total

63,60,004

100%

Note: Data as of March 31, 2020. *Rural roads include 9 lakh km of roads constructed under Jawahar Rozgar Yojana.
Sources: Annual Report, Ministry of Road Transport and Highways, 2024-25; PRS.

Total road length increased from 4 lakh km in 1951 to 64 lakh km in 2020.16  Road length recorded a CAGR of 3.3% between 2010-20.16  Length of high-speed corridors expanded from 93 km in 2014 to 2,474 km in 2024.16  Length of four lane and above NHs increased from 18,278 km in 2014 to 45,947 km in 2024.16

Figure 12: National highway network (in km)

Sources: Annual Report, Ministry of Road Transport and Highways, 2024-25; PRS.

Barring 2021-23, pace of target completion has improved since 2014, exceeding 150% in 2024-25.

Figure 13: NH awarded vs completed (in km)

Sources: Report no. 367, Standing Committee on Transport, Rajya Sabha, 2024; PRS.

Pace of construction has seen an uptick from 12 km/day in 2014-15 to 29 km/day in 2024-25 (see Figure 14).

Figure 14: Pace of construction (km/day)

Sources: Starred question 75, Lok Sabha, July 24, 2025; PRS.

Road density is defined as average road length per square km.  It is a measure of road quality and connectivity.  Overall road density improved from 1.42 km per square kilometre in 2011-12 to 1.92 km per square kilometre in 2018-19. [18]  As of 2018-19, rural road density is 1.46 km per square kilometre, and urban road density is 5.3 km per square kilometre.

Under Bharatmala Pariyojana, 82% (21,783 km) of the awarded projects had been completed until December, 2025 (see table 3).4  The programme deadlines have been revised from 2022 to 2027-28.

Table 3: Progress under Bharatmala Pariyojana as of December 2024 (in km)

Component

Awarded

(km)

Completed (km)

% Completed

Economic Corridors

8,737

6,896

79%

Inter Corridors Roads

2,889

2,397

83%

Feeder Roads

973

702

72%

National Corridors

1,777

1,516

85%

National Corridor Efficiency Improvement

824

767

93%

Expressways

2,422

1,994

82%

Border Roads & International Connectivity Roads

1,619

1,466

91%

Coastal Roads

77

72

94%

Port Connectivity Roads

348

154

44%

Balance Road Works under NHDP

6,758

5,633

83%

Total

26,425

21,597

82%

Note: As of December 31, 2024.
Sources: Year End Review, Ministry of Road Transport and Highways, Press Information Bureau, December 2025; PRS.

Delay in completion

Land acquisition is often cited as a challenge that causes delays in road construction projects.  It leads to long gestation periods and cost overruns. According to NHAI, delays occur as there are no fixed timelines for declaring project awards.17  The Committee on Estimates (2024) noted delay in: (i) 189 projects due to land acquisition issues and (ii) 64 projects due to environmental clearance issues.[19] 

Delays in land acquisition

The implementation of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCTLARR), 2013 increased the average cost of land acquisition for NHAI.[20],[21]  The Ministry (2018) had observed that land acquisition cost increased from about Rs 80 lakh per hectare before 2015 to about Rs 3.6 crore per hectare.20  For the development of NHs, NHAI spent about Rs 1.7 lakh crore on land acquisition across 23 states, between 2018-23.[22]

Table 4: Expenditure by NHAI on land acquisition (in Rs crore)

Year

Possession of land (Ha)

Expenditure on acquisition

Expenditure per hectare

2011-12

9,802

4,507

0.46

2012-13

6,762

5,404

0.80

2013-14

8,465

7,794

0.92

2014-15

6,733

9,098

1.35

2015-16

9,285

21,934

2.36

2016-17

7,491

17,823

2.38

2017-18

9,494

32,143

3.39

2018-19

18,850

36,048

1.91

2019-20

12,092

29,226

2.42

2020-21

20,038

35,858

1.79

2021-22

14,844

35,885

2.42

2022-23

17,568

39,836

2.27

Sources: NHAI Annual Reports of various years; PRS.

According to a CAG audit (2024), the four laning project of Patna-Buxar stretch covering 124 km, was ultimately called off due to (i) problems in acquiring land, and (ii) almost threefold increase in land compensation costs.[23]  Additionally, the Audit reported NHAI’s failure to pursue refund of Rs 533 crore paid as land compensation and contingency charges to Bihar government.

Forest and environmental clearance

CAG observed right of way issues in other projects.  Many projects under phase I of Bharatmala Pariyojana were taken up without first obtaining the required environmental clearances. [24]  The Bihar-Jharkhand border (Chordaha)-Gorhar six-laning project, awarded in January 2018, achieved only 62% progress by March 2023.24  The Barhi-Koderma stretch in Jharkhand, awarded in 2018, achieved 76% progress till March 2023.24 Similarly, the Purulia-Balrampur-Chandil (West Bengal-Jharkhand border) project, awarded in March 2018, reached about 70% progress till March 2023.24

Toll collection

According to the Ministry, total amount of user fee collected at NH toll plazas between 2022-25 was Rs 1.6 lakh crores.[25]  Maharashtra, Rajasthan and Uttar Pradesh generated the highest share across all three years (see Table 11 in Annexure).

Table 5: Toll collected (in Rs crore)

Year

User fee collection

2019-20

27,504

2020-21

27,927

2021-22

33,929

2022-23

48,032

2023-24

55,882

Sources: Unstarred question 1061, Rajya Sabha, December 4, 2024; PRS.

The Committee on Estimates (2025) noted several issues in toll collection and operationalisation: (i) tolls are collected despite ongoing maintenance work, (ii) lack of a mechanism to evaluate if toll charges justify operation and maintenance costs, and (iii) inadequate FASTag scanners resulting in long vehicle queues.[26]  The Committee urged the Ministry to: (i) revise the toll fee framework, including base rate and inflation indexing, (ii) establish a toll refund mechanism in cases of incomplete and unfit to use highways, and (iii) improve the FASTag system to improve traffic flow and queue lengths.   

NHAI mandated toll payment using FASTag in February 2021.23  Users with invalid FASTag are subject to a penal charge, resulting in payment of a double toll.  NHAI and concessionaires collect and retain the normal toll rate, and the double toll is deposited in the Consolidated Fund of India.  CAG Audit (2024) observed NHAI’s failure to recover double toll from concessionaires, resulting in loss of Rs 21 crore to Consolidated Fund of India.23  It also noted Rs 63 crore pending from other toll collection contractors (see table 6).

Table 6: Details of region-wise dues as of November 2022 (in Rs crore)

Regional Office

Total dues

Due from concessionaries

Gandhinagar

31

16

Mumbai

37

5

Nagpur

16

0

Total

84

21

Sources: Report no. 12 of 2024, CAG; PRS.

Asset monetisation

The government announced the National Monetisation Pipeline (NMP) in the 2021-22 Union Budget.[27]  Under this programme, core brownfield assets, such as operational highways, railway stations, and airports would be monetised up to a value of six lakh crore rupees, between 2021-22 and 2024-25.27  This is carried out by transferring the responsibility of asset maintenance to private sector, in exchange for a right to collect fees.27  Monetisation of assets in the road sector is being carried out through: (i) Toll Operate Transfer (ToT) model, (ii) Infrastructure Investment Trusts (InvIT), and (iii) Securitisation through SPVs.  As of November 2025, the Ministry had monetised Rs 1.5 lakh crore worth of assets.[28]  This is 95% of the proposed monetisation target of Rs 1.6 lakh crore by 2024-25.[29]

Table 7: Monetisation targets achieved as of July 24, 2025 (in Rs crore)

Mode

Monetisation

Toll Operate Transfer

58,265

InvIT

43,638

SPV Model

50,125

Total

1,52,028

Sources: Unstarred question 720, Lok Sabha, July 24, 2025; PRS.

Challenges to private sector participation

There are different modes of executing road projects.  These are: (i) Engineering Procurement Construction (EPC), (ii) Build Operate Transfer (Toll), (iii) Build Operate Transfer (Annuity) and (iv) Hybrid Annuity Model.[30] (see Annexure)

Figure 15: 56% of Bharatmala projects are awarded through EPC (in km)

Sources: Annual Report 2024-25, Ministry of Road Transport and Highways; PRS.

Government funded road projects are undertaken through Engineering Procurement Construction (EPC) contracts.30  Projects that involve private developers are undertaken through PPP mode.  In PPP projects, risk is shared between the government and private developer.30  These may involve: (i) financial risks related to construction of the road, (ii) traffic generation risk to ensure adequate toll collection and (iii) responsibility of road maintenance after construction.30

Table 8: Risks taken by government and private developer in different construction models

Model

Financing

Traffic

Maintenance

EPC/ Item Rate

Government

Government

Government

BOT (Toll)

Private

Private

Private

BOT (Annuity)

Private

Government

Private

HAM

Both

Government

Private

Sources: Report No. 296, Role of Highways in Nation Building, Standing Committee on Transport, Rajya Sabha, 2021; PRS.

Private sector can bring in additional funding and contribute to increased capital expenditure.  However, the share of private sector investment in national highway development projects has seen a decline.  In 2014-15, private sector accounted for 51% of financing and 40% was financed through budgetary support by the government.[31]  9% of the finances were raised through market borrowings.31  As of 2023-24, 75% of the financing was carried out through budgetary support, 15% through private sector investment, and 10% through monetisation of NHs.31  No amount was financed through market borrowings.31 

Figure 16: Budgetary support, borrowing and private investment in roads (in Rs crore)

Sources: Annual Report 2023-24, Ministry of Road Transport and Highways; PRS.

As per RBI data on industry wise deployment of gross bank credit, share of roads in infrastructure has been about 22% between 2019-25 (see Table 9).  According to the old format of the series, bank credit to roads was about 17% in March 2008 (see Table 12 in Annexure for details).  This has increased to about 24% in March 2025.

Table 9: Industry wise deployment of gross bank credit - % of roads in infrastructure (in Rs crore)

Outstanding as on last Friday in March

Infrastructure

% share of roads

2019

10,44,199

17%

2020

10,83,656

17%

2021

11,11,675

21%

2022

12,12,648

23%

2023

12,23,105

25%

2024

13,26,852

24%

2025

13,64,369

24%

Note: New format of RBI series: Industry wise deployment of gross bank credit.
Sources: Database on Indian Economy, Reserve Bank of India, as accessed on February 18, 2026; PRS.

Earlier NITI Aayog reports noted slowdown in private investments from 2012-13.[32]  Slowdown in investments was across new projects and already awarded projects.  The Economic Survey (2014-15) identified issues in PPP contracts including: (i) focus on minimising costs than providing efficient services, (ii) risks not allocated to the party that is best suited to manage them, and (iii) no clear rules for revising contracts when problems arise.[33]  Latest editions of the Economic Survey (2024-25 and 2025-26) highlight the importance of private funding for infrastructure.[34],[35]  They reiterate the role of private participation in PPPs, for financing and delivery of projects.

Poor allocation towards maintenance

The Standing Committee on Transport (2023) noted a pattern of under-allocation as compared to the Ministry’s demand for ‘Maintenance of NHs - financed from CRIF’ between 2015-22.[36]  Although budgeted allocation for maintenance of national highways has seen a decline, actual expenditure towards maintenance of national highways, including expenditure undertaken by NHAI and NHIDCL has increased (Figure 17).  Further, the Committee observed spending of Rs 4,490 crore on maintaining 25,000 km of NHs in 2023 was inadequate.  This was about 17% of India’s NH network.  It recommended the Ministry to request for increased allocation in the subsequent years.

Figure 17: Allocation and expenditure on NHs (in Rs crore)

Sources: Report No. 342, Demand for Grants, Standing Committee on Transport, Rajya Sabha, 2023; PRS.

Maintenance of national highway stretches is handled by contractors during the Defect Liability Period (DLP) in EPC projects.[37]  It is undertaken by concessionaires for stretches under concession models (including asset monetisation).  As of 2025, only about 38% (55,448 km) of the 1.46 lakh km NH network was under DLP or concession period.37  The remaining network is maintained by the Ministry through performance-based maintenance contracts (PBMC) and short-term maintenance contracts (STMC).

Road accidents and fatalities

Between 2012 and 2022, fatalities in accidents have grown at an annualised average rate of 2%.[38]  India contributes to about 10% of all road accident deaths worldwide, with just 1% of the world’s vehicles.[39],[40]   National Highways with share of 2.1% of total road network in the country accounted for 36.5% of total fatalities in 2023.  The Standing Committee on Transport (2023) urged the Ministry to target a quantifiable reduction of road accident fatalities in the ongoing decade.40

The Public Accounts Committee (2025) observed lack of public and stakeholder consultation during the preparation of detailed project reports.26  Several highway stretches collapsed due to failure to integrate site specific inputs.  The Committee also noted design oversight in highway construction resulting in repeated slope failure, pavement cracking and waterlogging issues.     

The Committee observed absence of an emergency mechanism alongside high-speed and remote highways.  In 2024, 4.8 lakh road accidents were recorded across all states (see Table 15 in Annexure).[41]  It also urged the Ministry to establish an emergency response system, integrated with GPS-enabled ambulances, highway patrol, and recovery vehicles for immediate trauma response.  

Clean Mobility

Total logistics cost for India in 2023-24 was Rs 24 lakh crore.[42]  Of this, cost of transportation amounted to Rs 10 lakh crore (42% of the total logistics cost).42

The bulk of India’s logistics is handled through road transport, about 70% of domestic freight demand in 2022.[43],44 NITI Aayog estimates that by 2050, the freight demand transported by road would grow to 9.6 trillion tonne kilometres.[44]  To handle the freight demand, the number of trucks on Indian roads is expected to grow from four million in 2022 to about 17 million in 2050.44 As of date, 92% of all goods vehicles in India are diesel powered.[45]  This is followed by CNG and petrol vehicles at 4% and 2% respectively.45  The share of electric goods vehicles is about 0.1%.45

The International Energy Agency (2022) estimated that about 12% of India’s energy related emissions come from the road sector.43  NITI Aayog (2022) observed that shifting the additional capacity to electric trucks, may be beneficial from both economic and environmental standpoints.44  This is due to: (i) lower tailpipe emissions of electric vehicles (EVs), and (ii) lower cost of electric power as compared to diesel. According to NITI Aayog, the transition to electric trucks can result in a 46% reduction in fuel costs, thereby bringing down transportation costs.  This has the estimated potential to reduce total logistics costs by about 17%.44

Shifting to electric vehicles has also been recommended for environmental considerations.  However, overall emissions of an EV depend on the source of electricity used to charge its battery.  As of 2023, coal was used to generate 74% of all electric power.[46]  Shifting to cleaner energy sources of fuel such as solar and wind energy may help address this issue.

Adoption of electric trucks would require a supportive policy environment.43  The Ministry of Road Transport and Highways has undertaken some measures to promote clean mobility.  These include: (i) waiver of road tax and registration fee for EVs, (ii) issuance of green licence plate for EVs for permit exemption, (iii) setting up EV charging infrastructure through highway wayside amenities, and (iv) strengthening of vehicle emissions norms.43,[47],[48],[49]  The Ministry is also implementing the Vehicle Scrapping Policy from 2022.43,[50]  This policy aims to phase out old and unfit vehicles that cause pollution.50  As of July 2024, 60 registered vehicle scrapping facilities and 75 automated testing stations are operational in India.50  A total of 96,980 unfit vehicles have been scrapped as of July 15, 2024.50

Annexure

Different modes of executing PPP Projects

  • Build Operate Transfer (Toll): The developer is responsible for designing and developing the project, and operation and maintenance (O&M) during the entire concession period.  The developer also has the right to collect toll during the specified period.  The concession period is typically 25 to 30 years.

  • Build Operate Transfer (Annuity): This model is the same as BOT (Toll), except that the developer receives payment in annuity (by the government) in return for developing and maintain a road.  The government has the right to collect toll, after a section is open for commercial operation.

  • Hybrid Annuity Model (HAM): Under this model, the government or its executing agency pays 40% of the project cost as a grant to the private developer.  The private developer invites bids for the remaining 60% of the investment in form of debt and equity.  The private developer is paid back the amount of 60% as of half-yearly annuities, interest, and O&M payments over a period of 15 years.  While the concessionaire is responsible for the maintenance and operation during this period, the traffic risk is taken by the government.  Toll collection is carried out by the government after declaration of commercial operation of the developed section.

  • Toll Operate Transfer (TOT):  Under this model, operational public funded highways are offered to a private concessionaire for operation and maintenance.  The concessionaire pays a lump sum amount to the government.  This sum is recovered through a right to collect toll for a pre-determined period. 

Table 10: State wise projects approved, awarded, completed and roads constructed (in km) till June 2025

State

Total Length (km)

Length Awarded (km)

Length Constructed till June 2025 (km)

Andhra Pradesh

2,525

1,936

1,234

Assam

433

431

349

Bihar

1,572

1,159

698

Chhattisgarh

571

471

344

Delhi

203

203

187

Goa

26

26

26

Gujarat

1,577

1,194

1,023

Haryana

1,058

1,058

977

Himachal Pradesh

167

167

115

Jammu & Kashmir

433

251

145

Jharkhand

1,000

801

508

Karnataka

2,059

1,603

1,156

Kerala

1,126

708

506

Madhya Pradesh

3,063

2,017

1,674

Maharashtra

3,029

2,174

1,944

Manipur

635

635

443

Meghalaya

170

170

118

Mizoram

593

593

493

Nagaland

208

208

153

Odisha

1,586

967

928

Punjab

1,764

1,553

714

Rajasthan

2,503

2,360

2,257

Tamil Nadu

2,414

1,476

1,265

Telangana

1,719

1,026

874

Tripura

94

94

64

Uttar Pradesh

3,126

2,495

2,061

Uttarakhand

273

264

174

West Bengal

874

385

339

Total

34,800

26,425

20,770

Sources: Unstarred question no. 3124, Lok Sabha, August 7, 2025; PRS.

Table 11: User fee collection (in Rs crore)

State

2022-23

2023-24

2024-25

Andhra Pradesh

3,274

3,502

3,719

Assam

466

486

548

Bihar

1,566

1,721

2,037

Chhattisgarh

866

1,010

1,147

Delhi

1,786

2,558

3,017

Gujarat

4,519

4,851

5,450

Haryana

1,519

2,072

1,956

Himachal Pradesh

56

114

171

Jammu & Kashmir

410

437

508

Jharkhand

607

818

895

Karnataka

3,517

4,086

4,320

Kerala

461

563

579

Madhya Pradesh

3,185

3,858

4,188

Maharashtra

4,660

5,353

6,103

Meghalaya

94

96

84

Odisha

1,274

1,745

1,856

Punjab

1,188

1,492

1,574

Rajasthan

5,054

5,697

6,289

Tamil Nadu

3,817

4,222

4,459

Telangana

1,826

2,098

2,311

Uttar Pradesh

4,811

5,774

6,574

Uttarakhand

458

534

582

West Bengal

2,619

2,795

3,043

Total

48,033

55,882

61,410

Sources: Starred question no. 54, Rajya Sabha, February 4, 2026; PRS.

Table 12: Industry wise deployment of gross bank credit - % of roads in infrastructure (in Rs crore)

Outstanding as on

Infrastructure

Roads

March 28, 2008

2,05,336

17%

March 27, 2009

2,69,972

17%

March 26, 2010

3,79,887

19%

March 25, 2011

5,21,393

17%

March 23, 2012

6,29,991

18%

March 22, 2013

7,29,721

18%

March 21, 2014

8,36,356

19%

March 20, 2015

9,24,531

18%

March 18, 2016

9,64,811

18%

March 31, 2017

9,06,394

20%

March 30, 2018

8,90,935

19%

March 29, 2019

10,55,921

18%

March 27, 2020

10,53,913

18%

Note: Old Format of RBI series: Industry wise deployment of gross bank credit
Sources: Database on Indian Economy, Reserve Bank of India, as accessed on February 18, 2026; PRS.

 

 

 

Table 13: Top 10 states in number of fatalities across NHs

States

2019

2020

2021

2022

2023

Uttar Pradesh

8,830

7,859

8,506

8,479

8,446

Tamil Nadu

6,661

5,454

5,263

5,978

6,258

Maharashtra

3,799

3,528

4,080

4,923

5,780

Madhya Pradesh

2,904

3,022

3,389

4,025

4,476

Karnataka

3,842

3,330

3,487

4,164

4,383

Rajasthan

3,870

3,320

3,829

4,156

4,172

Bihar

3,436

3,285

3,517

3,953

4,078

Andhra Pradesh

3,114

2,858

3,602

3,793

3,806

Telangana

2,491

2,620

2,735

3,010

3,058

Gujarat

1,898

1,797

2,077

2,109

2,233

Sources: Road Accidents in India, 2023, Ministry of Road Transport and Highways; PRS.

Table 14: Types of accidents in states and UTs in 2022

States/UT

Fatal Accidents

Grievous Injury Accidents

Minor Injury Accidents

Non-Injury Accidents

Total Accidents

Andhra Pradesh

7,688

4,306

8,010

1,245

21,249

Arunachal Pradesh

123

81

11

12

227

Assam

2,837

3,559

385

242

7,023

Bihar

8,242

2,065

127

367

10,801

Chhattisgarh

5,446

1,345

4,955

1,533

13,279

Goa

253

206

528

2,024

3,011

Gujarat

6,999

5,373

2,356

1,023

15,751

Haryana

4,593

1,799

3,659

378

10,429

Himachal Pradesh

864

809

772

152

2,597

Jharkhand

3,570

1,322

106

177

5,175

Karnataka

10,854

17,149

8,714

3,045

39,762

Kerala

4,104

31,584

6,674

1,548

43,910

Madhya Pradesh

12,183

4,928

32,214

5,107

54,432

Maharashtra

14,058

12,250

4,442

2,633

33,383

Manipur

109

114

277

8

508

Meghalaya

147

71

12

16

246

Mizoram

94

24

4

11

133

Nagaland

67

51

138

233

489

Odisha

5,140

4,310

1,771

442

11,663

Punjab

4,418

1,208

445

67

6,138

Rajasthan

10,061

3,741

9,065

747

23,614

Sikkim

58

81

57

15

211

Tamil Nadu

17,080

20,752

24,825

1,448

64,105

Telangana

7,057

2,581

9,744

2,237

21,619

Tripura

232

325

5

13

575

Uttarakhand

851

627

124

72

1,674

Uttar Pradesh

20,524

13,052

7,257

913

41,746

West Bengal

5,626

6,944

874

242

13,686

A & N Islands

19

54

43

25

141

Chandigarh

79

14

113

31

237

D & N Haveli

88

91

8

9

196

Daman & Diu

NA

NA

NA

NA

NA

Delhi

1,428

211

3,921

92

5,652

Jammu & Kashmir

654

1,723

3,109

606

6,092

Ladakh

60

21

245

48

374

Lakshadweep

-

3

-

-

3

Puducherry

175

600

370

36

1,181

Total

1,55,781

1,43,374

1,35,360

26,797

4,61,312

Sources: Road Accidents in India, Ministry of Road Transport and Highways, 2022; PRS.

Table 15: State wise road accidents

States/UT

2020

2021

2022

2023

2024

Andhra Pradesh

19,509

21,556

21,249

19,949

19557

Arunachal Pradesh

134

283

227

287

277

Assam

6,595

7,411

7,023

7,421

7848

Bihar

8,639

9,553

10,801

11,014

11610

Chhattisgarh

11,656

12,375

13,279

13,468

14857

Goa

2,375

2,849

3,011

2,846

2682

Gujarat

13,398

15,186

15,751

16,349

15588

Haryana

9,431

9,933

10,429

10,463

9806

Himachal Pradesh

2,239

2,404

2,597

2,253

2156

Jharkhand

4,405

4,728

5,175

5,315

5196

Karnataka

34,178

34,647

39,762

43,440

43062

Kerala

27,877

33,296

43,910

48,091

48834

Madhya Pradesh

45,266

48,877

54,432

55,327

56669

Maharashtra

24,971

29,477

33,383

35,243

36118

Manipur

432

366

508

398

299

Meghalaya

214

245

246

223

269

Mizoram

53

69

133

106

118

Nagaland

500

746

489

303

129

Odisha

9,817

10,983

11,663

11,992

12375

Punjab

5,203

5,871

6,138

6,269

6063

Rajasthan

19,114

20,951

23,614

24,694

24838

Sikkim

138

155

211

182

149

Tamil Nadu

49,844

55,682

64,105

67,213

67526

Telangana

19,172

21,315

21,619

22,903

25986

Tripura

466

479

575

577

578

Uttarakhand

1,041

1,405

1,674

1,691

1747

Uttar Pradesh

34,243

37,729

41,746

44,534

46052

West Bengal

10,863

11,937

13,686

13,795

13,700

Andaman & Nicobar Islands

141

115

141

143

135

Chandigarh

159

208

237

182

169

Dadra & Nagar Haveli and Daman & Diu

100

140

196

182

152

Delhi

4,178

4,720

5,652

5,834

5657

J & K

4,860

5,452

6,092

6,298

5808

Ladakh

NA

236

374

289

264

Lakshadweep

1

4

3

1

0

Puducherry

969

1,049

1,181

1,308

1431

Total

3,72,181

4,12,432

4,61,312

4,80,583

4,87,705

Sources: Road Accidents in India, 2023, Ministry of Road Transport and Highways; PRS

 

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