The policy shift emerged from a high-level highways sector review chaired by the prime minister and directed the transport ministry to prepare a framework by the end of July that reduces reliance on reclassification of state highways as national highways.
Over the past 11 years nearly 55,000 kilometres of state highways were reclassified as national highways, expanding the national network from about 91,300 kilometres in 2014 to roughly 0.146 million (mn) kilometres today, an increase of around 60 per cent. The conversions were part of an aggressive expansion drive that emphasised extending the national grid of roads across states, but officials now judge that further mileage additions should be guided by economic returns and freight movement patterns.
The transport ministry has been asked to design detailed criteria and dashboard metrics to assess which state highways merit national status and which can be upgraded under state or regional programmes. The framework is expected to include freight tonnage thresholds, connectivity to industrial estates and ports, projected traffic growth and cost benefit benchmarks to prioritise projects. Emphasis will be placed on developing greenfield expressways and dedicated freight corridors to reduce transit times and enhance supply chain reliability.
States will need to align their project pipelines and funding requests with the new economy-driven priorities and demonstrate how proposed conversions will support manufacturing, exports or major logistics nodes. The centre may continue selective conversions where strategic national connectivity is demonstrably justified, but the broad presumption in favour of automatic nationalisation of state highways has been abandoned. The transport ministry will present the framework and implementation plan by the stated deadline.