New highway development plan to be part of stimulus package?

NEW DELHI: Will the Bharatmala highway development programme and other projects involving nearly Rs 7 lakh crore be announced as a part of the government's stimulus package?

Since at least 70% of the works will be undertaken with government funding mode, this programme is being seen as a fresh avenue for high public spending to push economic activities and for creating jobs.

The Public Investment Board (PIB) has already approved the programme and the funding pattern. Sources said even Prime Minister Narendra Modi has gone through the programme, which will be the biggest ever highway development scheme.

Road construction is a major employment generator. According to government estimates, construction of 10,000 km of highways annually has the potential of generating four crore mandays and this can be used to counter the allegation that the government has failed to create employment opportunities.

Creating jobs and growth are the two major challenges before the government. Even the PM's economic panel has highlighted this requirement.

Sources said around 40,000 km of highways will be expanded till 2022, which includes about 24,800 km covered under Bharatmala involving Rs 3,85 lakh crore. The highways ministry has already informed the South Block that the sector can push its expenditure by Rs15,000 crore during this financial year.

TOI has learnt that including the announcement of the mammoth highway development programme will help government put a big number as a part of its stimulous plan, which is still in the works.

Though the Bharatmala scheme has been sent to the Cabinet for its approval, it's yet to be cleared.

Meanwhile, National Highways Authority of India (NHAI) has started preparing the detailed project reports (DPRs) for about 10,000 km of the identified network. "Once the DPR and estimates are ready we will be in a position to roll out the tenders quickly. We are ensuring the DPRs are of high quality for better and quicker completion," an official said.