Gadkari announces Rs 10 lakh crore investment to convert 2-lane roads into four-lane highways

Addressing an event in New Delhi, the road transport and highways minister said the Ministry of Road Transport and Highways (MoRTH) would increasingly promote the Infrastructure Investment Trust (InvIT) model to raise capital from domestic investors for highway projects.

“To make India a strong economic power, infrastructure is key... We have taken a decision to convert 25,000-30,000 km two-lane highways in the country into four lanes for ₹8-10 lakh crore,” Gadkari said.

Gadkari said his vision is to execute road projects worth ₹5-6 lakh crore every year.

While explaining various modes used to build national highways—such as BOT (Toll), BOT (Annuity), EPC, InvIT, and the Hybrid Annuity Model—he reiterated his preference for BOT projects due to their higher quality standards.

He also disclosed plans to revise the BOT (annuity) model under which the government will collect toll for 15 years and compensate contractors through annuity payments.

Maintenance of these highways during that period will be handled by the contractors.

The minister said there’s no issue if toll rates rise by up to 10%, but if they exceed that threshold, concessionaires must share 50% of the additional revenue with the government.

He also issued a stern warning to contractors against cartelisation. “I will not tolerate contractors who form cartels to bag highway projects,” he said.

Gadkari, known for his outspoken remarks, said India’s infrastructure progress must be matched by reforms in project execution and funding to ensure quality and long-term returns.