Parliamentary panel urges dual-track strategy for NHAI challenges

A parliamentary committee has raised concerns about funding cuts that could hinder highway projects in India. The National Highway Authority of India (NHAI) is facing a reduction of ₹ 17,537 crore from a planned budget of ₹ 1,87,803 crore. This reduction could lead to significant delays in key highway expansions and land acquisition processes. The report, presented to Parliament, states that funding issues are not the only problem. Delays in obtaining necessary approvals from government agencies also cause project delays and cost increases. To tackle these issues, the committee recommended a "dual-track approach." The first recommendation is to analyze all NHAI projects to find those that will suffer most from funding delays. These projects should be prioritized for resource allocation. The second suggestion is to set up a central unit that can expedite approvals across different government departments, especially for projects that are essential for economic growth. Additionally, the committee emphasized the need for traffic modeling and virtual testing before implementing infrastructure changes. This would help optimize projects in advance. They encouraged the Ministry of Road Transport and Highways (MoRTH) to move to data-driven, simulation-based planning to prepare for increased travel demands in the future. To ensure infrastructure investments deliver maximum benefit, the committee advised conducting thorough cost-benefit analyses. This includes considering both direct economic gains and indirect improvements, such as better access to healthcare and education. To close the funding gap, MoRTH should look into alternative financing and procurement methods while examining why Public-Private Partnerships (PPPs) have not been widely adopted. The committee also noted the importance of a coordinated approach to developing road networks in northeastern India, linking it to the PM-DevINE scheme. Lastly, they warned that reduced maintenance funding could lead to higher reconstruction costs over time.