Investment in Road Infrastructure in India: I001-Akshaya I005 - Harsh Bharwani I008 - Khemal Desai I020 - Uday Pancholi

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Investment in road Infrastructure in

India

I001- Akshaya
I005- Harsh Bharwani
I008- Khemal Desai
I020- Uday Pancholi
INTRODUCTION
• India has the second largest road
network in the world,spaning about
5.89 million kilometres.
• The road transports 64.5%of all the
goods
• In India, automobiles and
movement of freight by roads is
growing at a rapid rate.
Statement of
Problem

1) Slow development of road


infrastructure
2)Low engagement of private sector in
the investments and developments of
road
OBJECTIVES

To analyse slow To study about To understand


development investments Trends
METHODOLOGY

Graphical RegressionMo Case Studies


Analysis del
Past Trends
Investment in road infrastructure
• Consistent increase in the
investment

• Investment in project roads


is the highest.

• Consistent increase in the


construction of National
Highways
Road Length Analysis

• Consistent increase in the


length of roads constructed

• Length of surfaced roads is


quite less

• quality of roads built are not


up to the mark
State-wise road length per 1000 people
• The road per 1000 ppl is maximum
in Arunachal Pradesh

• Smaller population and larger road


length

• Good amount of investment in road


infrastructure for Arunachal Pradesh
CAGR% of Road Networks

• The total length of roads in the country has increased


consistently growing at a (CAGR) of 4.1%.
Income Sources

Sate allocation and


CRF Public Investors Private Investors
expenditure
State-wise Allocation of Funds
State-wise Expenditure of Funds
Allocation and release under CRF

• Central Road Funds are collected from


taxes

• No consistent increase in the


allocations and release of funds

• reason for the poor development of


roads
Regression Analysis
Simple linear Regression Model
Y=βo+β1x

Multiple linear Regression Model


Y=βo+β1 u+ β2 x+ β3 y+ β4 z
Simple liner regression
• Y=βo+β1x

• The length of the road and the investment in road infrastructure is in a positive
relation.
Multiple liner regression
Y=βo+β1 u+ β2 x+ β3 y+ β4 z

• The length of the road and the GDP, GNP, Per capita income, Inflation rate is in
positive relation
Trends in Public and Private Investment in Road Infrastructure
Private Investment under PPP Models
Private and Public Investment (in Percentage)
Case Studies
To understand impediments faced by private
sector

Termination of Termination of Termination of Termination of


Raipur Bilaspur Six Lane Narnaul Patiala Bathinda
Highway Gundugolanu to Bhiwani 4 Lane 4 Lane Road
Project Rajahmundry Road Project Project
Road Project
Findings

Slow development
1 Five year Plan

2 Lack of skilled manpower

3 Need to import aggregates


Findings

GDP is affected 1 Creates Job opportunities


positively by
2 Benefits industrial sector
investment in
infrastructure 3 Promotes tourism
Findings

Expenditure and 1 Increase in total fund allocated


sources of income
2 Increase in Release of funds

3 Adoption of invIT's
Findings
Public sector is 1 Adequate funding not available
majorly more
2
Land aquisition process is lengthy
involved than
private 3 Difficulty in acquiring environmental
clearances
Recommendations
• Bring more transparency
• Reduce corruption and bribery
• Stricter regulations and procedures for efficient maintenance
• Short term bonds
• Issue ipo’s and stocks
Current and future projects
• Delhi–Mumbai Expressway
• Total Estimated Cost:
INR 1,00,000 crores (1 lakh crore)
• Project’sTotal Length: 1350 km
• Lanes: 8 (expandable to 12)
• Speed Limit: 120 Kmph
• Scheduled Opening / Deadline:
January 26, 2023
• Owner: NHAI Credit image: IndiaTV News

• Delhi – Vadodara Project Model: EPC


2. Dwarka Expressway
• Total Estimated Cost: INR 8,662 crores
• Length: 29.10 km
• Lanes: 8 lanes + local lanes
• Status: Under Construction
• Completion Deadline: 2022

Credit image: Construction Week India


3. Mumbai-Nagpur Expressway
• Length: 701 km
• Highway system: Expressways of India
• West end: Amane village, Thane district
• Major cities: Kalyan, Nagpur, Jalna,
Aurangabad, Nashik, Shirdi, Wardha,
Bhiwandi
• Total Estimated Cost: INR 55,000 crores
• Lanes: 6 lanes
• Status: Under Construction
• Completion Deadline: December 2021 Credit image: India TV
Conclusion
• Examined and analysed the trends and causes behind the sector's sluggish growth.

• Regression model analysis to draw the conclusion that infrastructure has a favourable impact
on the economic progress of the nation.

• The allocation and release of government spending has also been researched.

• It has been noted from several sources that there is very little private industry involvement in
road projects.

• Several suggestions have been mentioned that can help spur the development of India's
infrastructure and increase private organisations' participation.

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