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In India, road infrastructure is used to transport 64.5% of total goods and almost 90% of total passenger traffic^25 {.is-info}
Disproportionate Costs - Where is the money going?
Only 7.7% rise in National Highways network per year -vs- 1780% increase in Debt, despite 770% rise in toll income {.is-warning}
| Parameter | Before 2014 | After 2014 | Comments |
|---|---|---|---|
| NH^*^ length | 92,851 Kms^2 | 1,45,155 km^8 (Mar 2023) |
53,306 km SH^+^ taken over as NH^*^ (April 2014 to Mar 2023)^8 |
| Avg Highway built per year | 6500 km | 7000 km | Only 7.7% Rise |
| Debt | 0.23796 lakh crores^13 (Mar 2014) |
3.48 lakh crores^13 (Mar 2023) |
1780% increase in Debt |
| Toll Collection | Rs 4,770 crore^19 (2014) |
Rs 41,342 crore^19 (2023) |
770% extra burden on public |
^*^ NH = National Highways ^+^ SH = State Highways
Bharatmala Project^37
The Centre's much publicised Project
-- Cost Doubled: 5.35 lakh crore to 10.63 lakh crore, poised to see another 15-20% increase -- Delayed by 6 years: from FY22 to FY28 {.is-warning}
- First announced in July 2015
- The project was to develop 24,800 km of national highways & a residual 10,000 km of highways pending under the erstwhile National Highway Development Programme
- Originally estimated to cost Rs 5.35 lakh crore & completed by FY22
India’s Roads are the Deadliest in the World, more than 900,000 deaths & injuries a year^20 {.is-danger}
-- With only 1% of world’s vehicles, India accounts for almost 10% of all crash related deaths^21 -- The National Highways with only 2.1% of total roads accounted for 30.3% of total road accidents^22 {.is-warning}
“Maintenance is a subject that makes everyone — politicians to officials and contractors — happy" - Nitin Gadkari himself acknowledged road quality issues on 24 August 2022^29
-- A consortium led by Adani Transport was awarded the Suryapet and Khammam project though it didn’t have the requisite construction work experience^18 -- One firm with alleged BJP links, and four companies that donated in crores to the BJP have been awarded road construction projects, CAG found irregularities in the awardments to all these companies^18 {.is-warning}
‘Sone Ki Sadak’^35
CAG flagged the Dwarka Expressway project project is being developed at a cost of Rs.251 crore/km that is nearly ‘14 times’ the amount that was originally approved {.is-warning}
- October 2022: A part of 22,500 crore 341-km Purvanchal Expressway caved-in^33
- July 2022: Days After Inauguration By PM, Parts Of UP's ₹8,000 core Bundelkhand Expressway Damaged in Rain
Transferred CAG officer in-charge of Bharatmala Cost Irregularities report^36 {.is-danger}
Public gets charged High Taxes on Vehicles, Road Taxes and then Toll Taxes over it {.is-warning}
GST^38
| Vehicle | GST | Cess | Total |
|---|---|---|---|
| 2W/3W | 28% | 0-3% | 28-31% |
| 4W Petrol Upto 4m & 1200cc | 28% | 1% | 29% |
| 4W Deisel Upto 4m & 1500cc | 28% | 3% | 31% |
| 4W upto 1500cc | 28% | 17% | 45% |
| 4W > 1500cc | 28% | 20% | 48% |
| SUVs > 1500cc | 28% | 22% | 50% |
Road Tax
This is state specific tax ranging from minimum 6% to 16%, on an average ~10% {.is-info}
All these taxes brings the total out-of-door tax up to over 60% {.is-warning}
Running costs
- The running costs are also high, with toll taxes of about Rs 1.2 per kilometer and fuel taxes of 200%
References: