Highways as vehicles of committed investment

The Assam government’s initiative to attract investment paid rich dividends, with Advantage Assam 2.0 becoming a grand success in showcasing the state as an ideal place for investment. The Assam government securing an investment commitment of Rs 5.18 lakh crore through the signing of a Memorandum of Understanding at the two-day business summit has laid the foundation of a developed Assam. For the committed investments to bear fruit, the state having key infrastructural supports like world-class highways, railways and seamless and adequate electricity will be crucial. National highways, railways, airports, and waterways come under the purview of the central government, while the state government’s role is limited in land acquisition and handing it over to the concerned central government department and agencies. National Highways remaining in shambles in various stretches in Assam despite substantial allocation by the central government, as highlighted in Friday’s edition of this newspaper, speaks volumes about the challenges that lie ahead in translating the investment commitments into reality. The Ministry of Road Transport and Highways allocating Rs 5239 crore in 2024-25 for the development and maintenance of NH in Assam shows that there is no dearth of funds for the development of this key infrastructure. Failure to utilise funds allocated and released in time is a pointer of a serious gap in the execution of NH projects in the state. The National Highway Authority of India (NHAI) and National Highway Infrastructure Development Corporation Limited (NHIDCL) have been mandated to undertake construction and maintain the highways. If NHAI and NHIDCL can build world-class highways in other states at record speed, why have the same organisations failed to deliver in the state? Ironically, such a pathetic condition continues to prevail even after the Union Minister for Road Transport and Highways Nitin Gadkari took review meetings on ongoing projects and announced new NH projects in the state and the region. This is indicative of the gap in the system for monitoring and inspection of ongoing projects and periodic review of financial and physical progress when it comes to project execution in the state. Apart from the delay in the construction of new NH, the dilapidated condition of existing highways for want of regular and timely maintenance is a serious bottleneck in road connectivity for the movement of goods and passengers. Without robust connectivity, industrial investment cannot be commercially viable. The problem of poor maintenance of NH stretches stems from insufficient allocation. The Union Transport Minister informed the Lok Sabha on Thursday that all the under-construction NH projects in the states of Assam, Arunachal Pradesh, Nagaland, Manipur and Tripura are scheduled to be completed by 2028. He, however, flagged the issues of availability of encumbrance-free land, forest clearance, environment clearance, utility shifting, working season, contractor’s financial position, etc., for completion of NH projects in the region. These issues of land availability and forest clearance are encountered in other states too, but the working season window being comparatively smaller in the region due to the monsoon season is a genuine issue. However, as this anticipated problem is considered at the time of compilation of the Detailed Project Report and feasibility studies, project execution missing target deadlines in the state points towards a gap in monitoring and inspection of progress. The annual outlay in the Union Budget for maintenance of NH barely meets 40% of the fund requirement, due to which maintenance work gets delayed. As the central government has fully backed the state government’s efforts to attract huge, committed investment, the NHAI and NHIDCL expediting NH construction and prioritising maintenance will significantly boost the confidence of investors to fast-track the MoUs signed. Highways being connected with a strong and efficient network of state highways are crucial for seamless connectivity between industrial units and markets, farm gates, and downstream industries within the state. The proposed investment has unlocked the aspirational dreams of the state to capitalise on core advantages of geographical proximity to vibrant ASEAN nations, markets in neighbouring countries in South Asia, and incentives under industrial policy to fast-track the progress of the state economy. Huge employment opportunities will be generated after the proposed investments bring about the desired transformation in the industrial landscape in manufacturing, the services sector, tourism and the farm sector. Assam will be on the cusp of a new economic transition with commitments of big-ticket investment. One of the major investment commitments has started becoming a reality as India’s first semiconductor plant in the electronic city at Jagiroad has attracted the attention of investors across the globe. The state government must continue to impress upon the central government to improve performance on NHAI and NHIDCL in the state for fast-tracking NH construction and maintenance to sustain the momentum. The state creating its own pool of skilled professionals and workers, which is another crucial factor for investors for expediting their MoUs, also needs to give policy push along with strengthening the NH network in the state.