Building the Backbone: India’s Ambitious Highway Transformation Plan

In a significant infrastructure push that reinforces the government’s commitment to fostering economic growth through enhanced connectivity, an ambitious initiative has been outlined to convert 25,000 to 30,000 kilometers of existing two-lane highways into four-lane corridors. This large-scale expansion, announced at the India Infrastructure Forum 2025, is expected to involve a capital investment of ₹8–10 lakh crore, making it one of the most extensive infrastructure upgrade efforts in the country’s recent history.

Underscoring the critical role of infrastructure in driving economic transformation, the leadership emphasized that strengthening road networks is essential for enhancing logistics efficiency, facilitating freight movement, and improving rural-urban connectivity. The proposed upgradation plan is being viewed not simply as a capacity expansion measure but as a strategic intervention aimed at fostering long-term economic resilience and inclusive development.

The plan also reflects a larger vision of executing road projects worth ₹5–6 lakh crore annually, signalling a shift from piecemeal improvements to a more comprehensive and systemic revamp of highway infrastructure.

A critical component of this transformation is the accelerated adoption of the Infrastructure Investment Trust (InvIT) model to mobilize domestic capital. The Ministry of Road Transport and Highways (MoRTH) is now actively encouraging fundraising through InvITs, with a particular focus on Indian investors. This move is aligned with the government’s broader strategy to deepen the involvement of capital markets in infrastructure financing and reduce dependency on conventional public funding. While InvITs are not new to the road sector, the renewed focus aims to expedite asset monetization, attract long-term investors, and create a more diversified funding ecosystem.

In parallel with the InvIT strategy, the MoRTH is also revisiting the Build-Operate-Transfer (BOT) model. Under the revised BOT framework, the government would manage toll collection for a fixed term of 15 years, during which concessionaires would receive annuity payments and be responsible for maintenance. The road infrastructure built under the BOT model has shown superior quality when compared with projects executed through the EPC route. This hybrid approach, combining the BOT model with annuity payments, seeks to balance risk-sharing between the public and private sectors while ensuring better long-term asset upkeep.

The proposed ₹10 lakh crore highway upgradation programme reflects the government’s long-term vision of infrastructure as the foundation of economic and social progress. By leveraging innovative financing models like the InvITs and refining execution frameworks such as the BOT model, MoRTH aims to reposition itself into a strategic architect of national growth.