Government Unveils Ambitious ₹10 Lakh Crore Green Highways & Smart Cities Connect Plan; New Land Pooling Act to Fast-Track Projects

New Delhi, 15th May 2024 – In a transformative push to redefine India’s infrastructure landscape and accelerate sustainable development, the Union Government today unveiled a colossal ₹10 lakh crore "National Green Highways and Smart Cities Connect Initiative," coupled with the groundbreaking "National Land Pooling for Public Projects Act." This twin-pronged policy aims to construct 25,000 kilometres of eco-friendly highways and seamlessly integrate the nation's 100 designated smart cities over the next five years, promising to unlock unprecedented economic growth, generate millions of jobs, and champion environmental stewardship.

Key points

* **Massive Investment:** ₹10 lakh crore allocated for the initiative over five years.

* **Extensive Network:** Construction of 25,000 km of green highways, enhancing national connectivity.

* **Smart City Integration:** Direct linking of 100 smart cities to boost urban-rural economic synergy.

* **New Land Law:** "National Land Pooling for Public Projects Act" to streamline land acquisition, promoting voluntary land aggregation.

* **Sustainable Focus:** Emphasis on indigenous, recyclable materials, extensive afforestation along highways, and reduced carbon footprint.

* **Job Creation:** Projected creation of over 10 million direct and indirect jobs across various sectors.

The initiative, spearheaded jointly by the Ministry of Road Transport and Highways and the Ministry of Urban Development, represents one of the largest infrastructure investments in India's recent history.

Union Minister for Road Transport and Highways, Shri Nitin Gadkari, addressing a press conference in the capital, termed the policy a "game-changer" for India's aspirations of becoming a developed nation by 2047.

"Our vision is clear: build world-class infrastructure that is not only robust and efficient but also environmentally responsible," stated Minister Gadkari. "The National Green Highways component will see us planting 10 trees for every kilometre of road built, utilising advanced waste-to-wealth technologies, and prioritising local, sustainable materials.

This isn't just about roads; it's about green corridors of prosperity that will enhance biodiversity and local ecosystems."

The 25,000 km network will focus on connecting Tier-2 and Tier-3 cities more effectively with existing national highways, improving last-mile connectivity for agricultural produce, industrial goods, and passenger movement.

A significant portion of these new arteries will be 'access-controlled' expressways, designed for higher speeds and enhanced safety standards.

Each new highway segment will be equipped with provisions for electric vehicle charging stations, optical fibre cables for digital connectivity, and dedicated lanes for public transport where feasible.

Crucially, the "National Land Pooling for Public Projects Act" seeks to overhaul the often contentious and time-consuming process of land acquisition.

Instead of traditional compulsory acquisition, the Act introduces a voluntary land pooling mechanism where landowners surrender their plots for public projects and receive a developed plot in return, potentially with enhanced value due to the new infrastructure.

Farmers and landowners will also be offered a choice of annuity payments or developed land parcels, along with a share of the value appreciation of the reconstituted land.

"This Act is designed to be a win-win for both the government and the citizens," explained Shri Rajesh Singh, Secretary, Ministry of Rural Development. "It eliminates forced acquisition, promotes collaborative development, and ensures that the original landowners become partners in progress, benefiting directly from the increased land value and development spurred by these projects.

Transparency and fair compensation are its cornerstones, aiming to reduce disputes and speed up project execution."

**Shri Nitin Gadkari, Union Minister for Road Transport and Highways:** "This initiative is not merely about laying asphalt; it's about laying the foundation for a greener, more connected, and economically vibrant India.

The Green Highways will be biodiversity corridors, and the Smart City connections will truly bridge the urban-rural divide, fostering inclusive growth."

**Dr.

Rakesh Kumar, Director, Centre for Policy Research in Infrastructure:** "This dual approach is pragmatic and ambitious.

India desperately needs to modernize its infrastructure, and addressing land acquisition challenges head-on through a progressive land pooling model is critical.

The sheer scale, ₹10 lakh crore, suggests a serious commitment, though execution will be the ultimate test.

Integrating green principles from the outset is a forward-looking step that aligns with India's climate commitments and global best practices."

**Ms.

Anjali Sharma, President, Federation of Indian Chambers of Commerce and Industry (FICCI):** "The industry welcomes this landmark policy.

Enhanced connectivity, especially green highways, will dramatically reduce logistics costs, improve supply chain efficiency, and attract further investment in manufacturing and services.

The clarity on land acquisition through the pooling act will de-risk projects, making them more attractive for private sector participation.

This is a powerful stimulus for economic growth and employment generation."

**Mr.

Anil Gupta, a farmer from Uttar Pradesh, who previously faced land acquisition issues:** "We have heard promises before.

If this new law genuinely involves us, gives fair compensation, and shares the future value, then it could be a good step.

But the devil is always in the details of implementation at the ground level, and we hope safeguards are strong."

Official Data and Numbers

* **Total Outlay:** ₹10,00,000 crore (₹10 lakh crore) over five years (FY 2024-25 to FY 2028-29).

* **Highway Length:** 25,000 kilometres of new 'Green Highways' and upgraded corridors.

* **Afforestation Target:** Over 250 million trees to be planted along the new highway stretches.

* **Job Creation:** Estimated 10-12 million direct and indirect jobs across construction, logistics, and allied sectors.

* **Logistics Cost Reduction:** Projected 1.5-2.0% reduction in national logistics costs as a percentage of GDP over the next decade.

* **Carbon Footprint:** Aim to reduce infrastructure-related carbon emissions by 15% through sustainable practices and materials.

* **Completion Target:** Significant operationalisation by end of FY 2028-29.

Background

India’s rapid economic growth has consistently outpaced its infrastructure development, leading to bottlenecks in logistics, higher transportation costs, and slower movement of goods and people.

Despite significant investments in recent years, land acquisition has remained a persistent challenge, often delaying projects by years and escalating costs.

The existing Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, while well-intentioned, has faced implementation hurdles, particularly concerning rehabilitation and resettlement aspects, and sometimes proving cumbersome for large-scale projects.

Simultaneously, India has committed to ambitious climate action goals, including achieving net-zero emissions by 2070 and reducing the emissions intensity of its GDP by 45% by 2030.

Integrating green principles into infrastructure development is crucial to meet these targets.

The previous 'Green Highways (Plantation, Transplantation, Beautification & Maintenance) Policy – 2015' laid some groundwork, but this new initiative significantly broadens the scope and financial commitment.

The push for Smart Cities, launched in 2015, aimed to make urban centres more sustainable and livable, but often lacked seamless integration with inter-city connectivity.

This new policy bridges that gap, aiming for holistic development.

What it means

This policy marks a pivotal shift in India's approach to infrastructure development, promising multifaceted impacts:

* **Economic Impetus:** The ₹10 lakh crore investment will act as a major economic stimulus, driving demand for construction materials, machinery, and skilled labour.

Reduced logistics costs will make Indian industries more competitive globally, fostering exports and domestic consumption.

* **Rural-Urban Linkage:** Improved connectivity will facilitate better market access for rural produce, promote decentralised industrial growth, and potentially reduce migration pressures on megacities by strengthening Tier-2 and Tier-3 urban centres with better opportunities.

* **Environmental Benefits:** The emphasis on green construction, extensive afforestation, and sustainable materials positions India as a leader in eco-friendly infrastructure.

The planned tree plantation will contribute significantly to carbon sequestration and local ecological balance, improving air quality.

* **Governance Reform:** The Land Pooling Act, if implemented effectively, could become a model for future public-private partnerships and large-scale development projects, minimizing social friction and litigation associated with land acquisition, thereby accelerating project delivery.

* **Technological Adoption:** Integration of smart technologies will modernize India's transport network, enhancing safety, efficiency, and real-time management capabilities, setting new benchmarks for intelligent infrastructure.

* **Regional Equity:** By focusing on connecting a wider array of cities and regions, the initiative has the potential to foster more balanced regional development, rather than concentrating growth solely in metropolitan hubs, distributing prosperity more evenly.

Reactions

Initial reactions to the policy have been largely positive, albeit with calls for robust implementation mechanisms and transparency.

* **Industry:** The Confederation of Indian Industry (CII) and FICCI have hailed the policy as a "visionary step" that will provide a much-needed boost to the economy. "The clarity provided by the Land Pooling Act is particularly encouraging for private sector investment, which often shies away from projects bogged down by land disputes," said Mr.

Vivek Puri, CEO of a leading infrastructure firm, emphasizing the de-risking aspect.

* **Environmental Groups:** While welcoming the 'green' aspects, groups like the 'Forum for Environmental Justice' have urged caution, emphasizing that "mere tree planting isn't enough; comprehensive environmental impact assessments and protection of existing biodiversity hotspots are paramount." They called for independent monitoring of green targets and adherence to ecological norms.

* **Opposition Parties:** The primary opposition party, while acknowledging the need for infrastructure, questioned the feasibility and transparency of the land pooling model.

A spokesperson stated, "While the intent might be good, previous such schemes have left farmers vulnerable.

The government must ensure that the Act provides iron-clad guarantees for fair value and recourse for landowners, without becoming a tool for land grab under another name." They also called for greater parliamentary oversight and public consultation.

* **Farmers' Unions:** Some farmers' unions expressed a "wait and watch" approach. "We appreciate the shift from forced acquisition, but the terms of land pooling must be genuinely beneficial and equitable for small and marginal farmers, not just large landowners," said Mr.

Suresh Patil, President of the Akhil Bharatiya Kisan Sabha, highlighting concerns about potential imbalances.

What happens next

The "National Land Pooling for Public Projects Act" will now be introduced in Parliament for debate and approval, a process anticipated to be robust given its significant implications for land governance.

Concurrently, the Ministry of Road Transport and Highways will begin preparing detailed project reports (DPRs) for the initial phase of the Green Highways, identifying specific corridors and conducting comprehensive feasibility studies.

State governments will play a crucial role in the implementation of both components, particularly in facilitating land aggregation under the new Act and coordinating urban development aspects with the Smart Cities Connect initiative.

A high-level, multi-ministerial task force is expected to be constituted to oversee inter-agency coordination, resolve bottlenecks, and ensure stringent project monitoring.

Bidding processes for construction companies are expected to commence by late 2024, with groundwork for several key projects projected to begin in early 2025.

The success of this ambitious policy hinges on meticulous planning, transparent execution, and continuous engagement with all stakeholders, from state authorities to local communities.