In a significant shift in highway policy, the Centre has decided to discontinue the practice of converting State Highways (SHs) into National Highways (NHs), with future road development to be driven by economic priorities rather than network expansion alone.
The decision was conveyed during a recent review of the highway sector chaired by Prime Minister Narendra Modi, sources told The Times of India. The move marks a departure from the government’s earlier strategy that saw a sharp expansion of the national highway network—from about 91,300 km in March 2014 to nearly 1.5 lakh km at present, an increase of around 60%.
Under the revised approach, state governments will retain responsibility for the maintenance and development of their highways, while the Centre may focus on framing quality control standards and providing technical guidance. Officials said the practice of states seeking conversion of SHs into NHs—largely due to funding constraints—has placed a growing maintenance burden on the central government, as responsibility shifts to the Centre immediately after notification.
“The ministry and its agencies have now been asked to prioritise greenfield expressways and economic corridors that enable faster and more efficient movement of freight,” a senior official said. The emphasis will be on strengthening connectivity between key economic centres, industrial clusters, ports, and logistics hubs.
Recognising the role of highways as catalysts for economic development, the government has also directed the road transport ministry to explore acquisition of additional land along select corridors with potential to evolve into future economic hubs. Such planning is expected to support industrial growth, logistics efficiency, and regional development over the long term.
Officials indicated that the new strategy aims to balance rapid infrastructure creation with fiscal discipline, while ensuring that highway development directly supports India’s economic and trade objectives.
