Bharatmala Project: The Backbone of India’s Logistics Future

The Bharatmala Project is a landmark initiative by the Indian government designed to revolutionise the country’s road infrastructure. This project seeks to establish a modern and extensive network of highways and roads to enhance connectivity among cities, towns, and rural areas. By improving the transportation network, the Bharatmala Project seeks to drive economic growth, reduce travel times, and simplify logistics, ultimately supporting India’s development and boosting its efficiency in moving goods and people. This article discusses this critical project in detail.

Bharatmala Project Explained

The Bharatmala Project, initiated by the Union government in 2015, is a transformative step towards upgrading India’s road network. Under the Ministry of Road Transport and Highways, this project aims to develop 83,677 km of highways and roads with an estimated investment of RS 7 lakh crore. The first phase focuses on constructing 34,800 km of highways at a cost of RS 5.35 lakh crore.

This ambitious project seeks to enhance connectivity across the country by building border and international connectivity roads, coastal and port connectivity roads, and improving national and economic corridors. These developments aim to make the movement of goods and people faster and more efficient. Indian roads already form a vast network, and the Bharatmala Project intends to strengthen this network further, improving trade and transportation.

Bharatmala is one of India’s most extensive highway development projects, surpassing the earlier National Highways Development Project. It plays a vital role in the National Logistics Policy, which aims to reduce logistics costs from 18% to 6% by improving the country’s transportation efficiency. The construction of 9,000 km of economic corridors is expected to connect manufacturing hubs, ports, and agricultural zones, boosting trade and economic growth.

The project also includes 2,000 km of border roads, enhancing trade and strategic mobility. By making the movement of goods cheaper and faster, Bharatmala has the potential to fuel India’s economic growth and increase its global competitiveness. The government aims to complete this extensive road development plan within five years. While funding from the government is a significant source, the Ministry also relies on alternative financing to complete the project. Dividing the construction into categories has been a strategic move to ensure effective execution across various regions.

The Bharatmala Road Map: Key Phases and Milestones

The Bharatmala project is pivotal for India’s road infrastructure. By breaking down this massive initiative into phases, the government aims to ensure smoother execution and faster results, particularly where needed.

Breaking Down the Project Phases

Large-scale projects like Bharatmala require careful planning and execution, rolled out in stages. Phase 1 is the focal point, targeting construction and upgrading 34,800 km of highways—almost the same distance as driving around the Earth’s equator.

This phased approach allows the project to tackle the most critical routes first. This way, some benefits, such as quicker travel times and enhanced trade, are realised even while other areas are still under development. The flexibility built into this strategy means the project can adapt to new needs and priorities.

Phase 1 highlights include:

• 9,000 km of economic corridors designed to strengthen significant trade routes.
• Development of new expressways for faster travel over long distances.
• Better connectivity, including links to border regions, to promote both domestic and international trade.
• The Cabinet Committee on Economic Affairs (CCEA) approved the Bharatmala project in 2017, aiming to develop a total of 74,942 km of national highways. As of September 2022, the first phase included 34,800 km of this development, with an investment outlay of ₹6,92,324 crore.
• This phase was slated for completion in 2022. However, with the pandemic in 2020 and ongoing challenges, the project’s first phase is expected to be completed by 2027-28. The government is funding the project through four main channels:
  • Borrowing from markets.
  • Central road fund.
  • Monetising existing road assets.
  • Budgetary allocation.

Bharatmala Phase I Key milestones

The Bharatmala Pariyojana was launched to enhance India’s highway infrastructure, and significant progress has been seen under Phase I. The central government primarily funds the projects, while the Ministry of Road Transport and Highways manages resource mobilisation.

• 34,800 km Planned: Phase I of the Bharatmala Pariyojana initially aimed to develop 34,800 km of National Highway length.
• 76% of Target Awarded: As of December 2023, 26,418 km (76% of the target) had been awarded for construction.
• 15,549 km Completed: Out of the awarded projects, 15,549 km of highways have already been constructed.
• In Telangana, the Ministry has identified 1,719 km of corridors for development under Phase I, with 1,026 km already awarded for construction. Detailed Project Reports (DPR) are being prepared for the remaining sections.

Current Challenges in Implementing the Bharatmala Project

1. Project Delay: The Bharatmala Pariyojana, launched in 2017 and aimed for completion by 2022, is significantly delayed.
2. Increased Costs: Rising land costs and a higher estimated budget have slowed progress.
3. Funding Shortfall: To cover the budget gap, the central government seeks additional investments from the market and private sectors. Additionally, the revised estimated costs need to be approved by the Cabinet ministers. If the budget shortfall isn’t resolved, the government may auction completed highway projects or explore foreign loans and bonds. 

How is Bharatmala Going to Impact India’s Road Development and Logistics?

Bharatmala is more than just a road-building effort; it’s a comprehensive plan to upgrade India’s transport network. Each part of the project serves a distinct purpose:

1. Faster Travel

Bharatmala aims to improve the quality of highways and expressways across India drastically. The plan will reduce travel times for trucks and other vehicles by upgrading these major routes. For example, journeys that once took several days may be completed in a fraction of the time. This will result in quicker deliveries of goods, reducing delays and improving the efficiency of the supply chain. As a result, businesses will be able to operate more smoothly, and customers will benefit from faster service.

2. Lower Costs

One of Bharatmala’s significant goals is to reduce logistics costs from the current 18% of GDP to just 6%. This cost reduction will be achieved through more efficient transport routes and improved infrastructure. Lower logistics costs mean that you can save money on transportation and storage. These savings can then be passed on to consumers, making Indian products more affordable within the country. Additionally, reduced costs make your goods more competitive in international markets, boosting exports and economic growth.

3. Improved Connectivity

Bharatmala will enhance connectivity between smaller towns, agricultural regions, and industrial clusters. Many of these areas are currently isolated or poorly connected to major markets. By building new roads and improving existing ones, Bharatmala will enable these regions to better integrate into the national economy. This enhanced connectivity will allow agricultural produce to reach markets more efficiently, help industries access resources and customers, and encourage economic development in previously underserved areas.

4. Sector-Wide Benefits

• Agriculture: Faster and more reliable transport will reduce the time perishable goods reach markets. This will lower the amount of spoilage and waste, which is crucial for fresh produce like fruits and vegetables. Farmers can sell their products at better prices due to improved logistics, and consumers will enjoy fresher food.
• Manufacturing: Bharatmala will help manufacturing industries operate more efficiently by lowering logistics costs. Reduced transportation and storage costs mean manufacturers can produce goods at a lower price, making their products more competitive in global markets.
• Small Towns: Improved road networks will provide smaller towns and local businesses better access to larger national markets. This increased connectivity will help these businesses grow, participate more actively in the economy, and contribute to regional development.

5. Upgrading Major Routes

Bharatmala will focus on enhancing critical national routes such as the Golden Quadrilateral and North-South and East-West corridors. This will involve several key actions:

• Addressing Congestion: Building elevated corridors and bypasses to reduce traffic jams and bottlenecks.
• Expanding Capacity: Widening lanes and constructing additional roads to accommodate increased traffic and improve flow.
• Developing Logistics Parks: Establishing logistics hubs at strategic points along these corridors to facilitate easier handling and distribution of goods.

6. Building Border Roads and Trade Routes

The project includes constructing key border roads and improving trade routes with neighbouring countries like Myanmar, Bangladesh, Bhutan, and Nepal. These enhancements will:

• Facilitate Trade: Improve the flow of goods across borders, making it easier for businesses to trade with neighbouring countries.
• Strengthen Regional Connectivity: Enhance economic ties with these countries and support regional economic integration.

7. Focusing on Key Freight Routes

Bharatmala has identified approximately 26,000 km of economic corridors that handle significant freight traffic. These routes will be upgraded to:

• Ensure Smooth Travel: Develop and maintain these key routes to handle heavy freight traffic more efficiently.
• Improve Standards: Ensure that these corridors meet high standards of quality and reliability.
• Address Infrastructure Gaps: Construct feeder routes to fill existing infrastructure gaps and improve connectivity to these significant corridors.

Bharatmala Project: Upcoming Plans and Developments

The Bharatmala Project is reshaping India’s infrastructure. New highways are being built, and regional connections are improving. We’re starting to see the benefits, but the most exciting changes are still to come.

As the project progresses, it will significantly impact industries that rely on smooth transportation. Businesses will grow, new opportunities will open up, and goods will be delivered to national and international markets more quickly and affordably.

Bharatmala is about more than just building roads. It’s about making India more connected and prosperous. Though the journey is ongoing, the rewards will be significant.

Conclusion

The Bharatmala Project has the potential to improve India’s road infrastructure and logistics significantly. The project aims to speed up travel, reduce transportation costs, and enhance connectivity between regions by building better and more extensive highways. These improvements are expected to benefit many sectors, from farming and manufacturing to retail and services.

If successful, the project will lead to smoother and more efficient transportation of goods and people, helping businesses reach new markets and supporting economic growth. It also promises to bring positive changes to less developed and remote areas. The Bharatmala Project is a crucial step towards transforming India’s road network, boosting economic development, and improving the quality of life for people nationwide.