India's road sector may require an investment of Rs 87,440 crore (Rs 874.40 billion) by 2012 to achieve high growth rate, a latest study of the World Bank said.
The study titled "India's Road Construction Industry: Capacity Issues, Constraints and Recommendations", released on Monday said industry capacity to build roads will have to gear up to respond to the increase in demand.
The World Bank report said the sector will require an investment of Rs 30,130 crore (Rs 301.30 billion) by 2011-12 if roads are built at a slow pace and Rs 44,640 crore (Rs 446.40 billion) if it witnesses medium growth.
The World Bank has also recommended the government to establish a road user board, which will act as a quasi-regulator and advisor for the sector.
Among other short-term measures, the Bank suggested steps to attract foreign road contractors to India and establishment of a road appellate tribunal for arbitration of disputes and incentives for early completion of project.
The lending agency has also asked the government to set up a task force to assess the recommendations and submit its report within two months.
On availability of skilled manpower in the road sector, the World Bank study said supply of human resources would fall short by 55-64 per cent over the next eight years.
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