Funding of Roads

Funding of Roads in NER


1. Roads are one of the single most important development demands from the NE States. Density of roads in NER is far less than the national average.


NER Vision 2020 and XIth Five Year Plan also emphasise criticality of expansion, maintenance and improvement of the road network at all levels from NH to rural roads and even porter tracks to provide the essential basis for trade and economic development. Even though the road network per capita is significantly higher in NER related to the rest of the country, the road length per unit area is low.


Therefore, construction of roads at all levels in NER is of the highest priority to the Central and State Governments. A massive programme of road construction and improvement has been taken up by the Government for NER from different sources.


Estimated allocation for road sector in NER


2. A rough estimate of the funds that are likely to be spent on Transport sector during the XIth Five Year Plan has been made. It includes the following:

  1. The Plan allocation made by the 8 States of the North East India for the Transport sector;
  2. The Plan allocation for the North Eastern Region by the Department of Road Transport and Highways;
  3. The total Plan allocation for the North Eastern Region by the Department of Rural Development on roads;
  4. As advised by the Planning commission, 90% of the allocation on the Transport sector of the State Government has been taken as for roads;
  5. It includes approximately Rs.2000 crore each that might be contributed by BRO, NEC and Ministry of DONER.
  6. The amount allocated for the XIth Five Year Plan for the Department of Road Transport and Highways and the Department of Rural Development has been estimated at 10% for the North Eastern States.

3. Taking all the above parameters into consideration, rough estimates indicate that the likely allocation on the construction of roads in the 8 States of the NE India may vary between Rs.26,000 crore to Rs.31,000 crore

(letter of Dr.(Smt.) I.K. Barthakur, Member, NEC No.NEC/MEM(I)/NH/2005 dated 2.4.2008 to Hon'ble Minister, DONER, Shri Mani Shankar Aiyar)


4. Roads are funded at different levels and by a plethora of Departments and Ministries of State and Central Government for NER. The various categories of roads are:

  1. National Highway
  2. State Highway
  3. Major District Roads
  4. Other District Roads
  5. Rural Roads
  6. Forest Roads
  7. Urban Roads
  8. Border Roads
  9. General Staff (GS) Roads
  10. Strategic Roads

5. The organizations that are involved in funding/constructing/ maintaining roads are numerous as are the schemes and projects under which these are done. Some of these schemes are:


Under Ministry of Road Transport and Highways


  • National Highway (Original)
  • Maintenance &Repairs of NH
  • Central Road Fund for State Roads
  • Inter State Connectivity
  • Roads of Economic Importance
  • Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE)
  • Arunachal Package of Roads

Under Ministry of Rural Development


  • Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGA)
  • Pradhan Mantri Gram Sadak Yojana (PMGSY)
  • Roads funded by NABARD
  • Agriculture Link Roads

Under Ministry of DONER


  • North Eastern Council (NEC)
  • Non-Lapsable Central Pool of Resources (NLCPR)

Under Ministry of Urban Development


  • Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
  • Urban infrastructure Development Scheme for Small & Medium Towns
  • Integrated Development of Small & Medium Towns (IDSMT)
  • Lumpsum Provision for the Projects/Schemes for the Benefit of North Eastern Region and Sikkim

Planning Commission


  • Additional/Central Assistance
  • Special Packages for different areas
  • Roads from State Government's own budget
  • Roads being constructed by Autonomous District Councils, Zila Parishads

Ministry of Defence


  • Strategic Roads by BRO

Ministry of Home Affairs


  • Border Area Development Project (BADP)
  • Hill Area Development Project (HADP)
  • Border Roads

Ministry of Panchayati Raj


  • Backward Region Grant Fund (BRGF)

Multi-lateral and bi-lateral funding agencies


  • World Bank
  • ADB
  • Others

6. In addition, there would be other organizations/Ministries/Departments who may be funding roads as part of projects. It is apparent that there is a convergence of large sums being invested on roads in NER and a plethora of schemes and organizations involved in the road sector.

Page Maintained By: 
Infrastructure, Director