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83000-km worth highway projects, including Bharatmala, get Cabinet nod

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8 years ago

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83000-km worth highway projects, including Bharatmala, get Cabinet nod

[vc_row][vc_column][vc_column_text]The Union Cabinet approved highway projects worth around Rs 7 trillion on Tuesday, Bharatmala project finally approved

In a move that paves the way for a major boost to India’s surface transport infrastructure, the Union Cabinet headed by Prime Minister Narendra Modi, on Tuesday, approved a slew of highway projects, including the ambitious over 20000-km-long Bharatmala.

The projects are collectively are pegged at an estimated cost of a staggering Rs7 trillion. These highway projects are to be executed within the next five years.

Aimed at pushing economic activity and generating at least 32 crore man days across the country in the next five years, this biggest ever highway development plan to be approved by the Modi Cabinet hopes to develop and expand approximately 83,000 km of roads at an investment of Rs 6.9 lakh crore (Rs 7 trillion) by 2022. The Bharatmala highway project alone is estimated to cover a vast network of 28,400 km – connecting border areas of the country.

The focus of the plan is to improve speed of traffic flow on key corridors by providing uniform four-lane roads between two identified points. Most of these corridors will be shorter and access-controlled for faster movement of cargo vehicles.

“The new highway development programme is both building roads and improving mobility to reduce logistic cost. Better road network and rolling out of smart-tag based tolling will transform the road transport sector”, a report in the Times of India said quoting an official privy to the Cabinet’s decision.

The development comes barely few months after Union minister for surface transport Nitin Gadkari declared that the central government will soon launch the first phase of the Bharatmala project. The Cabinet’s approval can also be seen as a personal victory for Gadkari, whose performance as the Union transport minister has been applauded within the BJP circles – and also by the Prime Minister – primarily because he has managed to carry out his mandate of developing India’s roads and highway infrastructure without attracting any controversies or being embroiled in scams. It was largely due to this performance record that Gadkari was tipped for a promotion as the Union railway minister in September this year – an offer he reportedly declined because he didn’t want any additional responsibilities.

Given that the Cabinet’s approval for the mega-infrastructure plan comes close on the heels of the high-stakes Assembly polls in Gujarat and Himachal Pradesh – both states where the Congress and BJP are in a direct contest – it is expected that Prime Minister Narendra Modi and his party will use the decision as an example of their commitment to development.

The Bharatmala project – a pet plan of the BJP government – is the second largest highways project after National Highways Development Project (NHDP) that saw development of about 50,000km. Detailed project reports of the Bharatmala project have been in the process of finalisation for over two years now.

News agency PTI quoted an official privy to the decision to outline that the Cabinet’s decision also includes economic corridor developments aimed at faster movement of cargo. The government had earlier planned to develop economic corridors with a length of about 21,000km besides 14,000km of feeder routes.

The corridors included Mumbai-Cochin-Kanyakumari, Bengaluru-Mangaluru, Hyderabad-Panaji and Sambalpur-Ranchi, to name a few. A study under the proposed Bharatmala project by global consultancy firm AT Kearney had identified 44 economic corridors. The Prime Minister’s Office, earlier this year, had asked for Public Investment Board’s (PIB) clearance to the first phase of the project.

With the Indian economy still reeling under slow growth and investor sentiment being severely dented in the aftermath of demonetisation and the rollout of the Goods and Services Tax regime, it is expected that 70 per cent of the sanctioned highway projects will be implemented through government funding. According to a report in the Times of India: “about one-third of the investment will come from fuel cess, over one-fourth from market borrowing and the rest from budgetary support, private investment and auctioning of completed highways.”

National Highways Authority of India(NHAI) has already prepared detailed project reports (DPRs) for about 10,000 km of the identified network, which will help faster roll out of projects.

What, however, remains unclear at the moment is how the Modi government plans to ensure that land acquisition for this mammoth and ambitious mega-project will be executed without attracted protests and controversies.[/vc_column_text][/vc_column][/vc_row]

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India and Russia vow to walk together against terrorism, reaffirm strategic partnership

PM Modi and President Putin reaffirm India-Russia unity against terrorism, deepen energy and trade cooperation, and discuss peace efforts amid the Ukraine conflict.

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2 hours ago

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December 5, 2025

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Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday underlined that India and Russia “walk together in the fight against terrorism,” reinforcing a decades-old strategic partnership that remains steady amid global geopolitical churn. The leaders issued the joint statement following talks at Hyderabad House in Delhi, where they also announced steps to boost trade, economic cooperation, and energy collaboration.

India-Russia stand firm on counter-terror cooperation

PM Modi described President Putin as a “dear friend” and highlighted Moscow’s consistent support to India on counter-terror efforts. Russia had earlier strongly condemned the terror attack in Jammu and Kashmir’s Pahalgam, allegedly linked to Pakistan-based Jaish-e-Mohammed, and reiterated solidarity with India’s fight against terrorism in all forms.

The joint remarks emphasized that the bilateral friendship, rooted in trust and mutual respect, has remained resilient for decades despite global challenges.

Focus on energy, trade and use of national currencies

A key highlight of the engagement was Russia reaffirming “uninterrupted shipments” of fuel to India. PM Modi expressed gratitude for Russia’s commitment, noting energy cooperation as a crucial pillar of the relationship. While he did not specifically mention oil purchases, given ongoing Western pressure, he emphasised cooperation in civil nuclear and clean energy.

The two countries also discussed expanding economic ties, including a possible free trade agreement. President Putin said bilateral trade was being targeted to reach USD 100 billion, and acknowledged progress toward using national currencies for payments — a remark expected to draw global attention.

Putin shares peace plan insights on Ukraine conflict

Putin briefed the Prime Minister on Russia’s perspective for a peaceful resolution to the ongoing Ukraine war and appreciated India’s continued role as a “champion of peace.” PM Modi reiterated India’s consistent position on dialogue and diplomacy.

Agreements across jobs, health, shipping and minerals

Officials exchanged multiple agreements covering employment mobility, health, shipping, chemicals and cooperation in critical minerals — further broadening the strategic footprint of the partnership.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

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7 hours ago

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December 5, 2025

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Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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India News

IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

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7 hours ago

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December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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