Road Construction nhdp 2014

NATIONAL HIGHWAYS
DEVELOPMENT PROJECT
1(c) 2014 IndiaTransportPortal.com & Abhishek Srivastava
GET
THE
FACTS

2
Methodology & liability
© 2014, IndiaTransportPortal.com
DATA USED
To draw up this document, India Transport Portal and Abhishek
Srivastava used publicly and freely available data (mainly from
the NHAI website).
Data used have been gathered in a document available on our
portal (Road Construction Data).
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 infographics.
LAST UPDATE
The last update was done on October 31, 2013. Regarding the
2nd part of this document, the NHDP road construction pace is
based on data gathered before December 2012.

3
WHAT IS NHDP?
49, 260 kms of roads and
highways work and construction in order to
boost economic development of the country
USD 71 billion have been
awarded to this project
NHDP has been implemented in 1998
It has 7phases and is led by the NHAI

I NHDP PHASES
AT A GLANCE
4

5
PHASE I
EAST-WEST corridor
Completed in Phase II (Porbandar to Sichar)
16 stretches 291 kms 1,006 rs cr
GOLDEN quadrilateral
Delhi – Mumbai – Chennai – Kolkata - Delhi
128 stretches 5,847 kms 24,893 rs cr
NORT-SOUTH corridor
Completed in Phase II (Srinagar to
Kanyakumari)
OTHERS
Including port connectivity
TOTAL 199 stretches 7,522 kms 32,014rs cr

6
PHASE I - Where do we stand?
NHAI has funded
42% of the Phase I
total length
44% of the Phase I
total funding
106 (1,5%)
7,415 (98,5%)
Kilometers under
implementation (5 stretches)
Kilometers completed

7
PHASE II
EAST-WEST corridor
291 kms, 1,006 rs cr were part of the Phase I
NORT-SOUTH corridor
189 kms, 1,510 rs cr were part of the Phase I
OTHERS 11 stretches 486 kms 3,002 rs cr
TOTAL 363 stretches 6,616 kms 52,977 rs cr

8
PHASE II – Where do we stand?
NHAI has funded
32% of the Phase
II total length
34% of the Phase
II total funding
4,504 (68%)
1,753 (26,5%)
359 (5,5%)
Kilometers under
implementation
Kilometers balanced for
award

9
Focus on EW-NS corridors
EAST-WEST corridor
(Phase I)
NORT-SOUTH corridor
(Phase II)
EAST-WEST corridor
(Phase II)
NORT-SOUTH corridor
(Phase I)
TOTAL EST-WEST 96 stretches 3,434 kms 23,710 rs cr
TOTAL NORTH-SOUTH 104 stretches 3,674 kms 28,779 rs cr
TOTAL CORRIDORS 200 stretches 7,108 kms 52,489 rs cr

5,013 (70,5%)
1,757 (24,7%)
338 (4,8%)
Kilometers under
implementation
award
10
Corridors - Where do we stand?
NHAI has funded
34% of the
corridors total
length
35% of the
corridors total
funding

11
PHASE III
PHASE III a 81 stretches 6,151 kms 36,566 rs cr
Phase III b 72 stretches 6,782 kms 48,126 rs cr
TOTAL 153 stretches 12,933 kms 84,692 rs cr
Phase III aims to build 4/6 lanes for the national highways that have high density corridor
between state capitals, tourist places and economically important areas.

2174 (16,8%)
8250,5 (63,8%)
2508 (19,4%)
Kilometers under
implementation
awards
NHAI has recently funded 1
stretch of 14 kms.
11% of the total length and
total funding are on annuity
scheme.
69% of the total length and
88% of the total funding
are on BOT scheme.
12
PHASE III – Where do we stand?

13
PHASE IV
PHASE IV
Under implementation
Phase IV aims to upgrade and strengthen single/intermediate/two lane national highways to two
lane with paved shoulders.
TOTAL PHASE IV
(Planned)
14,799 kms
(total length)
NHAI is in charge of 1% of the length and
0,5% of the total funding (for stretches
that are under implementation).
1% of the total length and more than
10% of the total funding are on annuity
scheme (for stretches under
implementation).
81% of the total length and more than
84% of the total funding are on BOT
scheme (for stretches under
implementation).

14
PHASE V
PHASE V 52 stretches 6,522 kms 42,985 rs cr
Phase IV includes 5,700 kms of golden quadrilateral and 1,800 kms of other selected stretches.
The aim is to turn existing 4 lane highways into six lane ones.
153 (2%)
2,441 (37,4%)
3,928 (60,2%)
Kilometers balance for award
Kilometers under
implementation
All stretches under implementation
are on a BOT scheme.

PHASE VI
It envisages the development of expressways to connect major commercial and industrial
townships (Chennai – Bangalore: 334 kms, Kolkata – Dhanbad: 277 kms, Vadodara –
Ahmedabad: 400 kms).
PHASE VII
It envisages the construction of 700 kms of ring roads, bypasses, grade separators, flyovers,
elevated roads, tunnels, road over bridges, underpasses, service roads etc. 2 stretches are
under implementation.
15

NHDP PHASES I - V*
16
18594,5 (38,5%)
14246 (29,4%)
15550 (32,1%)
Kilometers under implementation
Kilometers balanced for award
* This diagram supposes that Phase IV 10,242 kilometers,
which are not detailed in the NHAI website, are balanced for
award (as 4,557 kms are under implementation).

II NHDP ROAD
CONSTRUCTION PACE:
Phase III-V
17

18
PHASE III
From January to December 2012,
1577 kilometers have been constructed
What has been done
Hyderabad - Vijayawad
Fastest construction pace
(whole phase III since beginning)
5,63 kms per month Soma - NCC - Maytas (JV)
Slowest construction pace
(whole phase III since beginning)
0,24 kms per month
Kudapa - Mydukur-Kurnool
Fastest phase III construction pace (whole 2012)
7,12 kms per month Aurang - Raipur
Slowest phase III construction pace (whole 2012)
0,09 kms per month
4,3 kms per day
12,2 months
Average delay for the 28 completed stretches
Bijapur - Hungund Section has been completed
11 months ahead of the deadline.
11,41 months (land acquisition hurdles, environmental
clearances and consulting failures)
Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches)
It took 25 months for the Pune - Sholapur Pkg-II stretch.

19
PHASE IV
Only 5 stretches are under implementation (5 stretches). 23
are awaiting implementation (23 stretches)
What has been done
Nagpur - Betul
Fastest construction pace (whole phase IV)
36 kms in December 2012
Only 2 stretches are in progress (62 kilometers from January
to December 2012) = 0,2 kms per day
13,8 months
Average time between LOA and the start of implementation
It took 23 months for the 2-Laning of Agra - Aligarh stretch and
19 months for the 2-Laning of Raibariely to Allahabad.
JMC Projects (8 kilometers
in december 2012)
Fastest contractor
JMC Projects was also one
of the fastest Phase III
contractor

20
PHASE V
From January to December 2012,
566,92 kilometers have been constructed
What has been done
Krishnagiri - Walajhapet
Fastest Phase V construction pace (whole 2012)
7,42 kms per month
0,7 kms per day
13,8 months
It took 23 months for the 2-Laning of Agra - Aligarh stretch and
19 months for the 2-Laning of Raibariely to Allahabad
Varanasi - Aurangabad
Slowest Phase V construction pace (whole 2012)
0,17 kms per month
Nellore-Chilkaluripet
Fastest construction pace
(whole Phase V since beginning)
6,45 kms per month Chennai - Tada
Slowest construction pace
(whole Phase V since beginning)
0,28 kms per month
20
1,6 months
Average delay for the 3 completed stretches
12 months (land acquisition hurdles, environmental
clearances and consulting failures)
Average time between LOA and the start of implementation (note that there was not such a delay for the NHAI funded stretches)
It took 20 months for the Chandikhol – Jagatpur -
Bhubaneswar stretch.

21
III NHDP PROCESS

22
From Central road fund to PPP…
Because of the traffic increase, the traditional system of financing road projects
through budgetary allocation has become inadequate to fit the NHDP. So India
decided to enforce road construction through PPP. NHAI is the apex Government
body for implementing the NHDP. All contracts whether for construction or BOT
are awarded through competitive bidding (ownership of land for roads is public in
India).
Private Public
Partnership:
In this scheme, a private entity, the concessionaire, receives a concession from
the public sector to finance, design, construct and operate the road or highway.
The private entity recovers the upfront cost with the interest and a return of
investment because the traffic as well as toll collection risks are borne by the
concessionaire.
Build Operate
Transfer
Toll scheme
In this scheme, the concessionaire is required to meet the entire upfront cost. It
recovers the investment and a predetermined cost of return out of annuity payable
by the client who processes to the tolling.
Build Operate
Transfer
Annuity scheme
It has been established by the Parliament in order to fund the development and
maintenance of National and State highways and rural roads. The fund comes
from cess collection of petrol and diesel.
Central Road
Fund

23
But after 15 years of partnership, the government failed to get an
encouraging response from the private sector. On January 2013, C. P. Joshi
said that India was not able to construct 20 kilometers per day because of
the lack of bidders due to unfavorable economic environment. Indeed,
bankers had become very cautious in lending to such project.
PPP failure
So, and even if that does not mean the end of PPP, the
government decided to award road projects (5,000
kms) under the Engineering Procurement and
Construction model (EPC) from now on.
Under the EPC model, 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.
Issues around road projects are worth RS 17,000 crores involved in arbitration and litigation cases.
The private sector is asking for a road regulator to address these issues so NHAI would not play
various roles anymore.
…To EPC…
EPC:

24
GROWING POPULATION
• India is the second most populous country, growing at 18 million per year and will
overcome China by 2030,
• India has 65% of the population below 35, 50% below 25 and 33% below 15,
• The Indian middle class is 250-300 million and will reach 600 million by 2030.
…To tackle great challenges
INCREASE IN TRANSPORTATION NEEDS
• New truck sales will grow by an extra 60% for the current decade (300,000 per year),
• India’s truck fleet number will reach 8 million by 2020,
• 1000 billion tons for the current decade (to be reached in 2020),
• Growing number of personal vehicles.
BLATANT NEED OF TRANSPORTATION INFRASTRUCTURE
• Roads carry 90% of passenger traffic,
• Roads carry 65% of freight traffic.

25
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Road Construction nhdp 2014

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