The central government is reportedly considering a policy shift regarding the declaration of state highways as National Highways. This potential change involves a move towards providing financial assistance to states for upgrading their existing highways instead of automatically designating them as National Highways. Prime Minister Modi has instructed the road transport ministry to formulate a new model for this initiative by the end of July.
The reasons behind this shift are multifaceted. One key factor is the financial burden associated with maintaining and upgrading National Highways. When a state highway is declared a National Highway, the responsibility for its upkeep and development falls on the central government. This can strain the central government's resources, especially with the increasing demand for better infrastructure across the country.
Another reason is to empower states to manage their own infrastructure development based on their specific needs and priorities. By providing financial assistance, the central government can enable states to upgrade their highways according to their own requirements, fostering a sense of ownership and accountability. This approach could also lead to more efficient and targeted infrastructure development, as states are better positioned to assess and address their unique challenges.
Furthermore, the pace of National Highway construction has slowed down recently. Construction of new highways slowed down in the first nine months of the financial year 2024-25. A total of 5,853 km of national highways were built between April 2024 to December 2024. This was 5.83% slower than last year's 6,215 km during the same period last year. The slowdown in awarding new highway projects is attributed to government directives restricting fresh approvals under the 'Bharatmala' programme. Additionally, no new highway development initiatives have been introduced.
The new policy could potentially address these challenges by streamlining the process of highway development and promoting greater collaboration between the center and the states.
The potential impact of this policy shift could be significant. States would have greater autonomy in managing their highway infrastructure, potentially leading to more efficient and responsive development. The central government could focus its resources on strategic National Highway projects of national importance. However, it is crucial to ensure that the financial assistance provided to states is adequate and effectively utilized. There also needs to be a mechanism for monitoring the quality and standards of highway development undertaken by the states.
It is important to note that the government still aims to improve all National Highways as per the traffic requirement but minimum Two Lane with paved shoulders standards except for ecologically sensitive Himalayan region where development plan is finalised considering the geological, environmental factors etc. The government has also decided to focus on development of Access controlled High Speed Corridors (HSC) / Expressways for improving the logistics efficiency of the country.
The criteria for declaring a state highway as a National Highway include factors such as connecting adjacent countries, national capitals with state capitals, major ports, industrial centers, and tourist centers. Roads with strategic importance in hilly and isolated areas, arterial roads reducing travel distance and promoting economic growth, and roads opening up backward areas are also considered. The new policy may lead to a revision of these criteria, with a greater emphasis on the strategic importance of the highway and the state's capacity to manage its development.