India Eyes National Highways Act Shake-up to Unlock Stalled Road Projects

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AuthorVihaan Mehta|Published at:
India Eyes National Highways Act Shake-up to Unlock Stalled Road Projects
Overview

The Indian government is planning significant amendments to the National Highways Act, 1956, to expedite crucial road projects. The proposed changes, likely to be introduced in the upcoming Budget Session, focus on overhauling the land acquisition process, aiming to resolve disputes and cut lengthy litigation that have historically delayed infrastructure development.

Overhauling the Highway Act

The government is preparing to introduce amendments to the National Highways Act, 1956, in a bid to accelerate the pace of road project execution. Sources indicate the move is part of a broader strategy to dismantle barriers hindering infrastructure development across India.

Land Acquisition Bottlenecks

One of the primary targets for reform is the land acquisition process, a notorious bottleneck for the National Highways Authority of India (NHAI). Frequent delays, disputes over compensation packages, and protracted legal battles have stalled numerous highway projects, driving up costs and extending completion timelines significantly.

Proposed Reforms

The proposed amendments seek to simplify land acquisition procedures and inject greater clarity. Key proposals include returning land acquired for highway projects but left unused for over five years back to its original owners. Additionally, the draft legislation aims to introduce defined time limits for challenging compensation awards, a measure designed to curb prolonged litigation that halts on-ground work.

Accelerating Infrastructure Pipeline

These changes are anticipated to unlock stalled projects and enhance the efficiency of the government's infrastructure pipeline. Road development remains a cornerstone of India's economic growth strategy and its capital expenditure push. The government aims to infuse new momentum into the sector.

Budget Session Timeline

The upcoming Budget Session of Parliament is scheduled to commence on January 28. The first phase will run until February 13, followed by a recess. Parliament will reconvene on March 9, with the session concluding on April 2. This period is expected to see the tabling of these critical legislative changes.

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