The government has earmarked Rs 98,000 crore (Rs 980 billion) for upgradation of national highways within 5-6 years, Minister for Road Transport and Highways B C Khanduri said on Saturday.
This includes the ambitious Rs 58,000 crore (Rs 580 billion) National Highway Development Project, following which a Rs 40,000 crore (Rs 400 billion) project has been launched to connect all major cities by four-lane highways, Khanduri said at a seminar organised by the Federation of Automobile Dealers Association.
The new project code-named Pradhan Mantri Bharat Jodo Pariyojana or PM-BJP involves four-laning of 10,000 km of roads, which were not covered under NHDP, by 2008.
Khanduri said the World Bank has estimated the four/six laning of 5,846 km of highways under the NHDP would save Rs 8,000 crore (Rs 80 billion) per year through savings in time and fuel consumption.
"The automobile industry is benefiting from surging economic growth. The future of international activity is in the manufacturing sector. If we can get in there, all our problems of unemployment and foreign exchange reserves will be solved," the minister said.
Also, speaking at the session, President of Society of Indian Automobile Manufacturers Jagdish Khattar said the local industry was buoyant due to the current 'feel-good factor' but added that it was lacking in high volumes, which was critical to achieve global standards of cost and quality.
Khattar, who is also the Managing Director of Maruti Udyog, said the Indian auto industry, which would export 100,000 cars this fiscal, has the potential to become a global hub for small cars.