India Road & Highways Sector Opportunity Analysis
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India’s road network at a primary level includes national highways while the secondary system is made up of state highways and major district roads. Extending the road system further are the rural and other roads apart from expressways. Of these the National Highways (NH) are handled by the central government while the state highways (SH) are in the hands of the state government. Other types of roads include the major district roads (MDR) and other district roads & rural roads that are handled by the state and local government respectively. In terms of ownership and construction the roads in India can be classified as Maintained by PWD, panchayat raj roads, JRY and PMGSY Roads, urban roads and project roads.
As of March 2015, India’s network of National Highways/Expressway was about 96,214 km. The network of state highways stretched 1,47,800 km, while other roads were about 44,55,000 km out of a total of 46,99,014 km of roads and highways. National highways thus make about 2% of the total road length, the state highways about 3% with the other roads making up nearly 95%. The roads sector saw significant investment growth during the 11th FYP. Overall investment grew by 3.5 times compared to the 10th FYP, reaching INR 5.16 Lakh Crore. Roads made up about 20% of overall infrastructure investments in the 11th FYP, growing 8% from the numbers in the 10th FYP. The actual investment in roads during the 11th FYP was 10% higher than planned, due to an increase in central-government spending on rural road programs (Pradhan Mantri Gram Sadak Yojana) and state investments.
The 12th five year plan serves as the reference point for the growth in the market and projections about it with respect to road infrastructure. The 12th plan has the objective of improving mobility and accessibility while reducing the cost of transportation. The main target of the 12th five year plan is the completion of the ongoing phases of NHDP-I, II, III and V involving upgradation to 4 or more lanes of about 32,750 km. This includes overlapping length of about 5,850 km under GQ and NHDP-V, in a time bound manner within the plan period. About 10,000 km of roads are to be added to the national highways during the twelfth plan so that the total length of the highways becomes 91,200 km.
The government has plans to attract funding from the private sector for infrastructure projects to reduce strains on the budget. In this respect the PPP model has emerged as a preferred one for private sector participation in road projects and there have been about 100 completed PPP projects and 165 PPP projects that are in progress. For national highways that are not viable on Public-Private Partnership (PPP) basis the Ministry of Road Transport and Highways has decided to adopt the Engineering Procurement and Construction (EPC) mode. About 20,000 km of 2-lane National Highways projects are to be constructed through EPC mode in the Twelfth Five Year Plan.
“India Road & Highway Sector Investment Opportunity Analysis” Report Highlights
India’s road network at a primary level includes national highways while the secondary system is made up of state highways and major district roads. Extending the road system further are the rural and other roads apart from expressways. Of these the National Highways (NH) are handled by the central government while the state highways (SH) are in the hands of the state government. Other types of roads include the major district roads (MDR) and other district roads & rural roads that are handled by the state and local government respectively. In terms of ownership and construction the roads in India can be classified as Maintained by PWD, panchayat raj roads, JRY and PMGSY Roads, urban roads and project roads.
As of March 2015, India’s network of National Highways/Expressway was about 96,214 km. The network of state highways stretched 1,47,800 km, while other roads were about 44,55,000 km out of a total of 46,99,014 km of roads and highways. National highways thus make about 2% of the total road length, the state highways about 3% with the other roads making up nearly 95%. The roads sector saw significant investment growth during the 11th FYP. Overall investment grew by 3.5 times compared to the 10th FYP, reaching INR 5.16 Lakh Crore. Roads made up about 20% of overall infrastructure investments in the 11th FYP, growing 8% from the numbers in the 10th FYP. The actual investment in roads during the 11th FYP was 10% higher than planned, due to an increase in central-government spending on rural road programs (Pradhan Mantri Gram Sadak Yojana) and state investments.
The 12th five year plan serves as the reference point for the growth in the market and projections about it with respect to road infrastructure. The 12th plan has the objective of improving mobility and accessibility while reducing the cost of transportation. The main target of the 12th five year plan is the completion of the ongoing phases of NHDP-I, II, III and V involving upgradation to 4 or more lanes of about 32,750 km. This includes overlapping length of about 5,850 km under GQ and NHDP-V, in a time bound manner within the plan period. About 10,000 km of roads are to be added to the national highways during the twelfth plan so that the total length of the highways becomes 91,200 km.
The government has plans to attract funding from the private sector for infrastructure projects to reduce strains on the budget. In this respect the PPP model has emerged as a preferred one for private sector participation in road projects and there have been about 100 completed PPP projects and 165 PPP projects that are in progress. For national highways that are not viable on Public-Private Partnership (PPP) basis the Ministry of Road Transport and Highways has decided to adopt the Engineering Procurement and Construction (EPC) mode. About 20,000 km of 2-lane National Highways projects are to be constructed through EPC mode in the Twelfth Five Year Plan.
“India Road & Highway Sector Investment Opportunity Analysis” Report Highlights
- India Road & Highway Sector Overview & Network Analysis
- Planned & Under Construction Highway & Expressway Infrastructure
- Toll Collection Mechanism: Opportunities & Challenges
- India Road & Highway Sector Investment Scenario
- FDI Policy & Government Initiatives
- PPP in Roads & Highway Infrastructure Development
- Project Sourcing & Financing
1. INDIA ROAD & HIGHWAY SECTOR OVERVIEW
1.1 Road Infrastructure
1.2 Highway Infrastructure
1.3 Expressways
1.4 Intra-City Expressways
2. ROAD & HIGHWAY NETWORK SIZE AND GROWTH
2.1 National Level
2.2 State Level
2.3 Single & Multiple Lane
3. PLANNED & UNDER CONSTRUCTION HIGHWAY & EXPRESSWAY INFRASTRUCTURE
3.1 Planned
3.2 Under Construction
4. INDIA ROAD & HIGHWAY TRAFFIC TRENDS
4.1 Cargo Movement
4.2 Passenger Travel
5. TOLL COLLECTION MECHANISM: OPPORTUNITIES & CHALLENGES
6. ELECTRONIC TOLL COLLECTION
7. INDIA ROAD & HIGHWAY SECTOR INVESTMENT SCENARIO
7.1 Government Financial Support
7.2 Private Sector Investments
8. ROAD & HIGHWAY SECTOR FDI POLICY
9. GOVERNMENT POLICY & INITIATIVES
9.1 Policy & Regulatory Framework
9.2 Key Announcements & Recent Policy Initiatives
9.3 Likely Impact on the Sector
9.4 Proposed Plans
10. EPC AND ROAD PROJECTS
10.1 Introduction to EPC
10.2 Relevance of EPC
10.3 NHDP Projects
10.4 State Highway Projects
11. PPP IN ROADS & HIGHWAY INFRASTRUCTURE DEVELOPMENT
11.1 PPP & NHDP
11.2 Project Pipeline
11.3 Issues & Challenges in PPP
12. MARKET AND PROJECT IN DETAIL
12.1 Market Segmentation
12.2 Market in Value terms
12.3 Market Projections
12.4 Analysis of Projects Performance
12.5 Cost and Time Overruns
13. INDIA ROAD & HIGHWAY SECTOR DYNAMICS
13.1 Growth Drivers
13.2 Future Outlook & Opportunities
13.3 Issues, Challenges and Concerns
14. PROJECT SOURCING & FINANCING
14.1 Financing Sources
14.2 Financing Trends
14.3 Recent Initiatives in Financing
14.4 Investment Estimates
14.5 Opportunities for Financial Investors
15. COMPETITIVE LANDSCAPE
15.1 Ashoka Buildcon
15.2 Gayatri Projects
15.3 GMR Infrastructure
15.4 TATA Projects
15.5 Hindustan Construction Company
15.6 IL&FS Transportation Networks
15.7 IRB Infrastructure Developers
15.8 Jaypee Infratech
15.9 KMC Constructions
15.10 Larsen & Toubro
15.11 Navayuga Engineering Company
15.12 NCC
15.13 Reliance Infrastructure
1.1 Road Infrastructure
1.2 Highway Infrastructure
1.3 Expressways
1.4 Intra-City Expressways
2. ROAD & HIGHWAY NETWORK SIZE AND GROWTH
2.1 National Level
2.2 State Level
2.3 Single & Multiple Lane
3. PLANNED & UNDER CONSTRUCTION HIGHWAY & EXPRESSWAY INFRASTRUCTURE
3.1 Planned
3.2 Under Construction
4. INDIA ROAD & HIGHWAY TRAFFIC TRENDS
4.1 Cargo Movement
4.2 Passenger Travel
5. TOLL COLLECTION MECHANISM: OPPORTUNITIES & CHALLENGES
6. ELECTRONIC TOLL COLLECTION
7. INDIA ROAD & HIGHWAY SECTOR INVESTMENT SCENARIO
7.1 Government Financial Support
7.2 Private Sector Investments
8. ROAD & HIGHWAY SECTOR FDI POLICY
9. GOVERNMENT POLICY & INITIATIVES
9.1 Policy & Regulatory Framework
9.2 Key Announcements & Recent Policy Initiatives
9.3 Likely Impact on the Sector
9.4 Proposed Plans
10. EPC AND ROAD PROJECTS
10.1 Introduction to EPC
10.2 Relevance of EPC
10.3 NHDP Projects
10.4 State Highway Projects
11. PPP IN ROADS & HIGHWAY INFRASTRUCTURE DEVELOPMENT
11.1 PPP & NHDP
11.2 Project Pipeline
11.3 Issues & Challenges in PPP
12. MARKET AND PROJECT IN DETAIL
12.1 Market Segmentation
12.2 Market in Value terms
12.3 Market Projections
12.4 Analysis of Projects Performance
12.5 Cost and Time Overruns
13. INDIA ROAD & HIGHWAY SECTOR DYNAMICS
13.1 Growth Drivers
13.2 Future Outlook & Opportunities
13.3 Issues, Challenges and Concerns
14. PROJECT SOURCING & FINANCING
14.1 Financing Sources
14.2 Financing Trends
14.3 Recent Initiatives in Financing
14.4 Investment Estimates
14.5 Opportunities for Financial Investors
15. COMPETITIVE LANDSCAPE
15.1 Ashoka Buildcon
15.2 Gayatri Projects
15.3 GMR Infrastructure
15.4 TATA Projects
15.5 Hindustan Construction Company
15.6 IL&FS Transportation Networks
15.7 IRB Infrastructure Developers
15.8 Jaypee Infratech
15.9 KMC Constructions
15.10 Larsen & Toubro
15.11 Navayuga Engineering Company
15.12 NCC
15.13 Reliance Infrastructure
LIST OF FIGURES
Figure 1-1: Proportion of Types of Roads & Highways, (%), March’2015
Figure 1-2: Plan-Wise Addition of Highways, (Km), Ist till XIIth Plan
Figure 1-3: Plan-Wise Addition of Highways, (Km), 1951-2011
Figure 2-1: Total & Surface Road Length in India, (Km Lakhs), 1951-2011
Figure 2-2: National Highway Expansion during Five-Year Plans, (Km), 1947-2012
Figure 2-3: State Highway Expansion, (Km), 1971-2012
Figure 2-4: Highway by Lane Width, (%), 2014
Figure 3-1: Budgetary Support for Roads & Highways (INR Crore), FY’2014 & FY’2015
Figure 4-1: Proportion of Freight Transported by Roads, (%), FY’2001 & FY’2015
Figure 4-2: Total Freight Transported by Roads, (Billion Tonnes Kilometers), FY’2005 – FY’2012
Figure 4-3: Proportion of Passenger Transported by Roads, (%),FY’2005-FY’2012
Figure 4-4: Total Passenger Transported by Roads, FY’2005-FY’2012 (Billion Passenger Kilometers)
Figure 7-1: Government Financial Support for Roads, (INR. Billion), 10,11 & 12 Financial Plan
Figure 7-2: Budgetary Outlay for Roads, (US$ Billion), 2009-2015
Figure 7-3: Private Investments in Roads, (INR Cr), FY 2004-2012
Figure 11-1: PPP Share and NHDP Project Phases, (%), Sep 2001-Dec 2014
Figure 11-2: Funding Modes and NHDP Projects (%), FY‘2005-FY’2010
Figure 12-1: Types of Roads and Highways, (Km), 2015
Figure 12-2: Types of Roads in India, 2001-2011 (%)
Figure 12-3: Roads Density & Highways Proportion, 2015
Figure 12-4: Roads Sector Investment, (INR ‘000 Crore), 2012-17 and 2017-22
Figure 12-5: Roads Sector Investment, (INR ‘000 Crore), FY ’09 to FY ‘17
Figure 12-6: Performance of Road Sector, FY’2011 & FY’2016
Figure 12-7: Performance of Road Sector, (Km of Project), 2014
Figure 14-1: Roads & Highways Budget Allocation, (INR Crore), 12th FY Plan and FY’2012
Figure 14-2: PPP Investment Opportunities, (US$ Billion), 2012-17
Figure 15-1: Major Projects Completed
Figure 1-1: Proportion of Types of Roads & Highways, (%), March’2015
Figure 1-2: Plan-Wise Addition of Highways, (Km), Ist till XIIth Plan
Figure 1-3: Plan-Wise Addition of Highways, (Km), 1951-2011
Figure 2-1: Total & Surface Road Length in India, (Km Lakhs), 1951-2011
Figure 2-2: National Highway Expansion during Five-Year Plans, (Km), 1947-2012
Figure 2-3: State Highway Expansion, (Km), 1971-2012
Figure 2-4: Highway by Lane Width, (%), 2014
Figure 3-1: Budgetary Support for Roads & Highways (INR Crore), FY’2014 & FY’2015
Figure 4-1: Proportion of Freight Transported by Roads, (%), FY’2001 & FY’2015
Figure 4-2: Total Freight Transported by Roads, (Billion Tonnes Kilometers), FY’2005 – FY’2012
Figure 4-3: Proportion of Passenger Transported by Roads, (%),FY’2005-FY’2012
Figure 4-4: Total Passenger Transported by Roads, FY’2005-FY’2012 (Billion Passenger Kilometers)
Figure 7-1: Government Financial Support for Roads, (INR. Billion), 10,11 & 12 Financial Plan
Figure 7-2: Budgetary Outlay for Roads, (US$ Billion), 2009-2015
Figure 7-3: Private Investments in Roads, (INR Cr), FY 2004-2012
Figure 11-1: PPP Share and NHDP Project Phases, (%), Sep 2001-Dec 2014
Figure 11-2: Funding Modes and NHDP Projects (%), FY‘2005-FY’2010
Figure 12-1: Types of Roads and Highways, (Km), 2015
Figure 12-2: Types of Roads in India, 2001-2011 (%)
Figure 12-3: Roads Density & Highways Proportion, 2015
Figure 12-4: Roads Sector Investment, (INR ‘000 Crore), 2012-17 and 2017-22
Figure 12-5: Roads Sector Investment, (INR ‘000 Crore), FY ’09 to FY ‘17
Figure 12-6: Performance of Road Sector, FY’2011 & FY’2016
Figure 12-7: Performance of Road Sector, (Km of Project), 2014
Figure 14-1: Roads & Highways Budget Allocation, (INR Crore), 12th FY Plan and FY’2012
Figure 14-2: PPP Investment Opportunities, (US$ Billion), 2012-17
Figure 15-1: Major Projects Completed
LIST OF TABLES
Table 1-1: Major Expressways in India
Table 1-2: Planned Expressways
Table 2-1: State Wise Distribution of National Highways, (Km), 2015
Table 3-1: Planned Highway Projects and Costs, (INR)
Table 3-2: Highway Projects under Construction (May’2015)
Table 3-3: Highway Projects under Construction (May’2015)
Table 3-4: Highway Projects under Construction (May’2015)
Table 3-5: Highway Projects under Construction (May’2015)
Table 3-6: Highway Projects under Construction (May’2015)
Table 6-1: List of Electronic Toll Collection Systems in India, December’2014
Table 7-1: Budgetary Allocation for Highways, (INR Crore), FY’2013
Table 7-2: Budgetary Allocation for Highways, (INR Crore), FY’2015
Table 7-3: Gross Budgetary Financial Support, (INR Crore), FY’2016
Table 7-4: CRF Expenses & Allocation, (INR Cr), FY 2013-2015
Table 7-5: Highway Project Allocation and Private Investment, (INR Cr), FY’2013- FY’2015
Table 7-6: NHDP Funding Sources, (INR Cr) 2012-17
Table 10-1: NHDP Projects, 2000 to 2014
Table 10-2: Highway Funding & Sources, (INR Cr), Dec ‘2014
Table 10-3: Phases & Sub-Phases of NHDP Project, Dec’2000-Dec’2014
Table 10-4: NHDP Project Update, May’2015
Table 11-1: Various modes of PPP
Table 11-2: State PPP Investment in State Highways, (INR Cr), Nov 2011
Table 11-3: Recent PPP Projects
Table 11-4: EPC and BOT Projects, (Km), FY’2015 & FY’2016
Table 11-5: Recent PPP Projects
Table 12-1: Efficiency Parameters and Achievement
Table 12-2: Efficiency Parameters and Achievement FY’2013 & FY’2014
Table 14-1: Roads and Highways Investment, (INR Cr), 2013-14
Table 14-2: Projected investments for Road infrastructure, (INR Billion), 2012-2017
Table 14-3: Projected investments for Road infrastructure, (INR Billion), 2017-2022
Table 14-4: Projected investments for Road infrastructure, (INR Billion), 2022-2027
Table 14-5: Projected investments for Road infrastructure, (INR Billion), 227-2032
Table 14-6: Projected investments for Road infrastructure, (INR Billion), 2012-2032
Table 15-1: ABL’s PPP (Public Private Partnership) Projects under Construction
Table 15-2: PPP Projects in Operation
Table 15-3: Major EPC Projects
COMPANIES
Ashoka Buildcon, Gayatri Projects, GMR Infrastructure, TATA Projects, Hindustan Construction Company, IL&FS Transportation Networks, IRB Infrastructure Developers, Jaypee Infratech, KMC Constructions, Larsen & Toubro, Navayuga Engineering Company, NCC, Reliance Infrastructure
Table 1-1: Major Expressways in India
Table 1-2: Planned Expressways
Table 2-1: State Wise Distribution of National Highways, (Km), 2015
Table 3-1: Planned Highway Projects and Costs, (INR)
Table 3-2: Highway Projects under Construction (May’2015)
Table 3-3: Highway Projects under Construction (May’2015)
Table 3-4: Highway Projects under Construction (May’2015)
Table 3-5: Highway Projects under Construction (May’2015)
Table 3-6: Highway Projects under Construction (May’2015)
Table 6-1: List of Electronic Toll Collection Systems in India, December’2014
Table 7-1: Budgetary Allocation for Highways, (INR Crore), FY’2013
Table 7-2: Budgetary Allocation for Highways, (INR Crore), FY’2015
Table 7-3: Gross Budgetary Financial Support, (INR Crore), FY’2016
Table 7-4: CRF Expenses & Allocation, (INR Cr), FY 2013-2015
Table 7-5: Highway Project Allocation and Private Investment, (INR Cr), FY’2013- FY’2015
Table 7-6: NHDP Funding Sources, (INR Cr) 2012-17
Table 10-1: NHDP Projects, 2000 to 2014
Table 10-2: Highway Funding & Sources, (INR Cr), Dec ‘2014
Table 10-3: Phases & Sub-Phases of NHDP Project, Dec’2000-Dec’2014
Table 10-4: NHDP Project Update, May’2015
Table 11-1: Various modes of PPP
Table 11-2: State PPP Investment in State Highways, (INR Cr), Nov 2011
Table 11-3: Recent PPP Projects
Table 11-4: EPC and BOT Projects, (Km), FY’2015 & FY’2016
Table 11-5: Recent PPP Projects
Table 12-1: Efficiency Parameters and Achievement
Table 12-2: Efficiency Parameters and Achievement FY’2013 & FY’2014
Table 14-1: Roads and Highways Investment, (INR Cr), 2013-14
Table 14-2: Projected investments for Road infrastructure, (INR Billion), 2012-2017
Table 14-3: Projected investments for Road infrastructure, (INR Billion), 2017-2022
Table 14-4: Projected investments for Road infrastructure, (INR Billion), 2022-2027
Table 14-5: Projected investments for Road infrastructure, (INR Billion), 227-2032
Table 14-6: Projected investments for Road infrastructure, (INR Billion), 2012-2032
Table 15-1: ABL’s PPP (Public Private Partnership) Projects under Construction
Table 15-2: PPP Projects in Operation
Table 15-3: Major EPC Projects
COMPANIES
Ashoka Buildcon, Gayatri Projects, GMR Infrastructure, TATA Projects, Hindustan Construction Company, IL&FS Transportation Networks, IRB Infrastructure Developers, Jaypee Infratech, KMC Constructions, Larsen & Toubro, Navayuga Engineering Company, NCC, Reliance Infrastructure
