Bharatmala Phase-1: Deadline Extended | 04 Jan 2024

Source: FE

Why in News?

Recently, the Government has extended the deadline for completion of the flagship highway development project Bharatmala Pariyojana Phase-I to 2027-28.

• The move follows an over 100% increase in the estimated cost of the mega project and reflects the slowing of implementation, and financial constraints.

What is Bharatmala Pariyojana?

• About
  • Bharatmala Pariyojana is an umbrella programme launched under the Ministry of Road Transport and Highways.
  • The first-phase of Bharatmala was announced in 2017 and was to be completed by 2022.
• Sailent Features:
  • Bharatmala focuses on enhanced effectiveness of already built infrastructure, multi-modal integration, bridging infrastructure gaps for seamless movement and integrating National and Economic Corridors. There are six key features of the programme:
    • Economic Corridors: Integrating the economic corridors facilitates larger connectedness between economically important production and consumption centers.
    • Inter-corridor and Feeder routes: This would ensure first mile and last mile connectivity.
    • National Corridor Efficiency Improvement: Through this, the greater actionable goal is to undertake lane expansion and decongestion of existing National Corridors.
    • Border and International Connectivity roads: Better border road infrastructure would ensure greater maneuverability, while also boosting trade with neighboring countries.
    • Coastal and Port connectivity roads: Port-led economic development is further boosted through connectivity to coastal areas, encouraging both tourism and industrial development.
    • Green-field Expressways: Expressways have higher traffic configuration and choke points would benefit from green-field expressways.
• Status:
  • Till November 2023, 15,045 km or 42% of the project has been completed.
• Challenges:
  • Cost of raw material, Increased land acquisition cost, Construction of high speed corridors and increase in Goods and Services Tax rates.

Way Forward

• Examine strategic procurement methods to acquire raw materials at competitive prices. Participate in negotiations with suppliers to ensure favorable rates, particularly during market fluctuations.
• Implement efficient and transparent land acquisition practices to minimize compensation disputes. Explore alternatives such as land pooling and community engagement to streamline the process.
• Conduct thorough feasibility studies before incorporating high-speed corridors. Optimize corridor designs to balance functionality with cost-effectiveness.
• Advocate for stable and predictable GST policies to minimize uncertainties. Engage with government authorities to provide industry insights on the impact of tax rate changes.