But more importantly, the government said that this road construction project will generate 14.2 crore mandays of jobs in the country.
For funding of BMP, Rs.2,09,000 crore will be raised as debt from the market, Rs1,06,000 crore of private investments would be mobilized through PPP and Rs2,19,000 crore will be provided out of accruals to the Central Road Fund (CRF), toll-oparate-maintain-transfer monetisation proceeds and toll collections of NHAI.
Projects such as economic corridors and coastal roads and port connectivity, global connectivity, border roads, roads connecting economically important nodes, green field expresswayswill be brought under its aegis.
The programme includes the Bharatmala scheme, under which 34,800 km of highways would be constructed at the cost of Rs 5.35 lakh crore, Finance Secretary Ashok Lavasa said.
Work on the first set of projects under Bharatmala, one of the most ambitious highway development programmes of the current NDA government, will begin before the end of 2018, Union road transport and highways minister Nitin Gadkari said on Wednesday.
India's 100,000km of national highways, which constitute just 2% of total road network in the country bearing 40% of the traffic.
In other to push rural connectivity, Rs 88,185 crore will be spent by the Centre and the states over the next next years and 1,09,302 km of rural roads to be laid to cover 36,434 habitations. The finance ministry has committed to provide the fixed share of cess from fuel for highway projects irrespective of fluctuation in excise duty and there will also be at least 10% annual increase in budgetary support for the flagship scheme. Another Rs 1.06 lakh crore of private investments would be channelised from Public-Private Partnership financial model. The first bundle of nine highway stretches of 680.64 km has been put out to tender by NHAI with potential monetization value of Rs 6,258 crore. According to Manish B Agarwal, partner and leader, Infrastructure, PwC India, the programme with its focus on economic corridors would help ensure that investments are focussed on economic returns.
Meanwhile, to boost tourism and industrial development, 2,100 km of coastal roads have been planned.
The Government said Bharatmala works have been proposed for completion in five years by 2021-22 through NHAI, NHIDCL, MoRTH and state PWDs and substantial delegation of powers has been provided to NHAI, NHIDCL and the Ministry of Road Transport and Highways to enable speedy implementation.