GAMMON INDIA LIMITED

Indian Road Network Kilometers (approximate)
Rural and other roads ................................................... 2,650,000
Total length ................................................................ 3,320,000 (approximate)
Source: NHAI Website: www.nhai.org
Roads form the most common mode of transportation and are the main arteries for traveling across India.
This share has improved significantly from 32.00% of passenger traffic and 12.00% of freight as of 1950-
51. The National Highways, which account for less than 2.00% of the total road network in India, carry
nearly 40.00% of the total road traffic. Vehicle numbers have been growing at an average of 10.20% per
annum over the last five years. (Source: http://nhai.org/roadnetwork.htm)
Out of 66,590 kilometers of the National Highways network, only 10.00% of the total length consists of
roads with at least four-lanes, 55.00% of the total length consists of roads with two-lanes and 35.00% of the
total length consists of roads with a single/intermediate lane only. The need for expansion and improvement
of roads in India is widely recognized due to the usage cost for vehicles (including fuel and maintenance)
which is 20.00% higher on average than in most countries due to poor road conditions. In addition, the
average distance covered on highways per day in India is significantly lower than in developed countries. A
large number of traffic deaths each year are attributable to poor road conditions. (Source:
http://nhai.org/roadnetwork.htm)
The following table shows the length of the National Highway network from 1962 to 2009:
(Kms)
80,000
60,000
40,000
20,000
Source: Planning Commission
0
0.43
National Highway Network
0.95
1.96
Private participation for National Highway Development Projects
The National Highway Authority of India has offered projects on a BOT basis to developers to promote
private investments in roads and highways. Under such contracts, the developer invests in building the road
and maintaining it for up to 30 years, and then transfers it back to the NHAI at zero cost. A BOT project
may be of one of the following three kinds:
Toll-based: The developer recovers its costs and earns its revenues by collecting tolls on the route. The
developer takes the risk of traffic volume and toll rates and its returns are linked to such toll collections. The
developer can either opt for a positive grant from NHAI (which is currently capped at up to 40.00% of
project cost as estimated by NHAI) or bid for a negative grant. The bidding variable for such projects is the
grant amount (either positive or negative).
56
4.91
4.61 4.31
1962 1977 1992 2007 2008 2009
Length in Kms Kms per day added
(Kms/Day)
6
5
4
3
2
1
0