Centre constructing 10,000 km greenfield expressways at Rs 6 lakh crore investment: Nitin Gadkari

Union Minister Nitin Gadkari during the Monsoon session of Parliament. (PTI Photo)

India is in the middle of constructing 25 new greenfield expressways covering 10,000 km at an estimated cost of Rs 6 lakh crore, Union Road Transport and Highways Minister Nitin Gadkari said on Thursday.

Speaking at the Annual Session of PHDCCI, Gadkari said the government’s expressway and corridor push has begun to cut logistics costs and reshape India’s road network.

“India's logistics cost will come down to 9 per cent by December, which will help India become more competitive,” Gadkari said.

He said the highways ministry will get Rs 15 lakh crore if it monetises its road projects. The road transport and highways minister also said that the construction of expressways and economic corridors has helped reduce the country's logistics costs to 10 per cent, from 16 per cent earlier.

Big picture

India’s highway expansion is central to the government’s goal of turning the country into a global manufacturing and logistics hub.

Gadkari said new infrastructure is already improving efficiency — India’s logistics costs, once among the world’s highest, are now comparable to those of China and the US.

“Logistics costs are 12 per cent in the US, 12 per cent in European countries and 8 to 10 per cent in China,” he said.

Zojila tunnel

Gadkari also said that 75–80% of work on the Zojila Tunnel — a key all-weather route connecting Ladakh with the rest of India — has been completed. The project is among the most strategic infrastructure undertakings in the Himalayas.

Automobile sector

India’s automobile industry, Gadkari said, is on track to become the world’s largest within five years.

“Within five years, our target is to make India's automobile industry the number 1 in the world,” he said.

“When I took charge as transport minister, the size of the Indian automobile industry was Rs 14 lakh crore. The size of the Indian automobile industry now is Rs 22 lakh crore.”

The sector currently employs around 4 lakh people and contributes the highest GST revenues to both the Centre and the states.

Gadkari warned that India’s dependence on fossil fuels remains a “serious economic and environmental burden,” costing Rs 22 lakh crore in annual imports. He emphasised a shift toward clean energy and biofuels.

He said farmers have earned Rs 45,000 crore in additional income by producing ethanol from corn.

“When we decided to make ethanol from corn, the corn's market price was Rs 1,200 per quintal, and MSP was Rs 1,800 per quintal. Following the government's decision to blend ethanol into petrol, corn prices increased to Rs 2,800 per quintal,” he said.

(With inputs from PTI)