Roads

India has road network of over 4,236,000 Kilometres in 2011, the third largest road network int he world. Adjusted for its large population, India has less than 4 kilometre of roads per 1000 people including all its paved and unpaved roads.

As of December 2012, India had completed and placed in use over 19,200 kilometres of recently built 4 or 6 lane highways connecting many of its major manufacturing centres, commercial and cultural centres. Several global funds and equity investors are making beeline for investing in highway sector.

According to the recent studies, 18,637 kilometres of express ways are needed to be built by end of 13th five year plan which would require about INR 450,000 crores investment by 2022.

The government is also expected to aware road project of total length of 4000 kilometre under EPC model by 2013.

FDI up to 100 per cent under the automatic route is allowed for support services to land transport such as operation of highway bridges, toll roads, and vehicular tunnels. Such services also include services incidental to transport such as cargo handling, construction and maintenance of roads, bridges; and construction and maintenance of roads and highways offered on BOT basis, including collection of toll.

Highway widening projects will now qualify for the 10-year tax break under Section 80-IA of the Income-Tax Act. The Central Board of Direct Taxes (CBDT) has clarified that widening of existing roads by constructing additional lanes as a part of a highway project, by an undertaking, will be regarded as a new infrastructure facility.