States to receive central funds for road development; Maintenance responsibilities to stay with state governments
New Delhi:
In a significant shift in India’s infrastructure development strategy, the central government is set to slow the conversion of state highways into national highways (NH). Instead, the Centre will provide direct financial support to state governments for upgrading their own road networks, while retaining a sharper focus on constructing greenfield highways and expressways across the country.
According to official sources, this decision marks a strategic pivot aimed at optimizing resource allocation. Prime Minister Narendra Modi has reportedly instructed the Ministry of Road Transport and Highways to develop a new framework by the end of July that minimizes the need for elevating state highways to national highway status. The emphasis will now be on integrating state roads with smaller ports and improving existing connectivity rather than expanding the NH network.
Shift in Road Development Strategy
Over the past 11 years, the Centre has transformed nearly 55,000 kilometers of state highways into national highways, increasing the total NH network to 1.46 lakh kilometers. However, with the total length of India’s road network now surpassing 6.3 million kilometers as of March 2025, the government sees greater value in enhancing existing infrastructure rather than widening the NH designation indiscriminately.
Instead of expanding the NH network further, the government is prioritizing the widening, strengthening, and modernization of current roads to meet rising traffic demands and ensure better connectivity.
States to Receive Funding and Responsibility
Under the new model, state governments will continue to own and maintain upgraded roads, even after improvements are made with central funds. This allows the Centre to concentrate its efforts on long-distance road infrastructure such as expressways and greenfield highways, which are vital for economic corridors, logistics, and national mobility.
Reports suggest that the Centre may allocate lump-sum funds to states, empowering them to upgrade highways based on local priorities, traffic patterns, and regional requirements. This also grants states more autonomy in planning and executing road projects tailored to their unique geographic and developmental contexts.
Previous Approach to NH Conversion
Until now, the process of upgrading roads to national highways was largely proposal-driven. State governments would submit requests to the Centre to convert key regional roads into NHs. These proposals were evaluated by the Ministry based on criteria such as strategic importance, traffic volume, and inter-state connectivity. Once approved, the responsibility for construction, maintenance, and funding of these roads was transferred to the central government.
The new approach aims to streamline this process, reduce administrative burden, and ensure a more efficient allocation of national resources.