Bharatmala Pariyojana: Mega plan for building highways soon! New Vision 2047 scheme to replace Bharatmala Pariyojana | India Business News

India is likely to introduce a new mega highways construction program that aligns with the 2047 vision of the Narendra Modi-led NDA government. This program will replace the Bharatmala Pariyojana and aims to improve connectivity across the country. The proposed program will establish clear criteria for identifying roads of national importance and will also bring changes to the Model Concession Agreement to expedite infrastructure development and minimize contract disputes and litigation.
A senior government official told ET that future projects will be awarded under this new scheme, which will be different from Bharatmala.
In addition to the change in approach, modifications to the Model Concession Agreement are being made to reduce contract disputes and litigation associated with road building contracts. Lessons learned from previous court cases where the government faced difficulties with contractors have been taken into account. Provisions that were found to be unfavorable to the government and led to unnecessary litigation will be rectified. The aim is to strengthen the law to ensure better project implementation and the construction of high-quality roads, another official quoted by the financial daily said.

One proposal being considered suggests that arbitration will not be required for disputes involving claim values up to Rs 50 lakh. For cases involving higher amounts, neither the government nor the concessionaire will be entitled to any pre-reference or pendentelite interest. It has also been recommended that the insurance during the concession period, which compensates for project failures, should include the government arms as joint beneficiaries.
Since the launch of Bharatmala project in October 2017, India has been constructing over 10,000 kilometers of national highways annually, according to official data. The scheme aimed to build 74,942 kilometers of national highways, with 34,800 kilometers approved for development in the first phase until September 2022, involving an investment of Rs 5.35 lakh crore.

Contracts for 27,384 kilometers of highways have already been awarded under Bharatmala, and the constructed length currently stands at 15,045 kilometers. However, concerns have been raised about the escalating expenditure associated with the scheme.
Moving forward, it is expected that any remaining national highway contracts awarded this fiscal year will follow the Build Operate Transfer (BOT) model, which requires minimal financial outflow from the government. Around 11 stretches, totaling Rs 22,000 crore, have been put up for bids under this mode, according to Jagannarayan Padmanabhan, Senior Director of Transport Logistics and Mobility at CRISIL Ltd.

Experts in the sector believe that these BOT projects will help the government reach its target and expedite the construction of national highways.