India Maps ₹2 Trillion Highway Bypass Plan Covering 500 Cities by FY31

Written by: Team Angel OneUpdated on: 27 Jun 2026, 8:23 pm IST
The Centre is to develop 10,000 km of bypasses and ring roads across 500 cities under a ₹2 trillion plan to improve highway traffic flow.
India Maps ₹2 Trillion Highway Bypass Plan
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The Centre is working on a ₹2 trillion road infrastructure programme to build around 10,000 km of bypasses and ring roads across nearly 500 cities and towns by FY31, according to a Live Mint report citing people aware of the proposal.  

The plan is intended to reduce congestion on national highways that pass through urban areas and improve the movement of long-distance traffic. 

The proposal expands an earlier plan that covered around 50 cities with populations of more than one million. It will now include Tier II and Tier III cities with populations of at least 100,000, where traffic on highways has increased over the years. 

Highways to Bypass City Centres 

The Ministry of Road Transport and Highways (MoRTH) is expected to study traffic patterns and identify locations where bypasses or ring roads are required.  

The objective is to divert vehicles that are travelling between cities instead of routing them through crowded town centres. All proposed roads will have a minimum four-lane, access-controlled design.  

The aim is to maintain highway speeds of 100-120 kmph, which are often affected when national highways pass through markets, junctions and built-up areas. 

Construction Models Identified 

The projects are likely to be awarded through a mix of Engineering, Procurement and Construction (EPC), Hybrid Annuity Model (HAM), and Build-Operate-Transfer (BOT) models. The choice of model will depend on traffic volumes and project viability. 

The proposal also includes a 15-metre development control zone on both sides of the bypasses and ring roads. State governments are expected to notify these stretches as green zones, where construction will remain restricted except for public transport requirements. 

Next Stage of Highway Expansion 

India's national highway network has grown by 61% since 2014 to around 146,572 km. However, average travel speeds remain close to 50 kmph, mainly because highways pass through expanding cities and towns. 

Government estimates show logistics costs have fallen from 13-14% of GDP before FY24 to around 8%, supported by highway expansion, GST, FASTag, e-way bills and the PM Gati Shakti programme.  

Industry executives have said bypasses could improve freight movement, while transport experts have also pointed to the need for better public transport and traffic management in urban areas. 

Read MoreIndian Startup Funding Hits $1.1 Billion This Week, Led by CRED! 

Conclusion 

The proposed programme shifts attention from building new highways to improving traffic flow on existing routes. By creating bypasses around growing cities, the government aims to reduce delays on national highways while improving freight and passenger movement. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jun 27, 2026, 2:53 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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