The government has provided various incentives for private and foreign investments in the roads sector. 100% FDI is allowed in the sectors of land transport to promote building of highway bridges, toll roads, and vehicular tunnels; services incidental to transport such as cargo handling is incidental to land transport; construction and maintenance of roads, bridges; and construction and maintenance of roads and highways offered on build-operate-transfer (BOT) basis, including collection of toll. A 10-year tax exemption under Section 80 IA has been granted to the highway building projects to attract private investors. The ministry has also framed a ‘Special Accelerated Road Development Programme in North Eastern Region' for improving road connectivity to remote places in this region. The estimated cost of the proposal is US$2.53 billion. The Union Budget 2012–13 proposed an increase of allocation of the Ministry of Road Transport and Highways by 14% to . The World Bank has approved a US$975 million loan for developing the first phase of the eastern arm of the US$17.21 billion Dedicated Freight Corridor Project in India. The Dedicated Freight Corridor Corporation of India Ltd. has tied up with the Japanese Bank of Industrial Cooperation for US$14.56 billion funding as loan for the first phase and it is likely to be commissioned in 2016. The
Prime Minister Gram Sadak Yojana (PMGSY) is a scheme for development of rural roads in India. The Construction of Rural Roads Project (CRRP) is another initiative focused on rural development.
National Green Highways Program Ministry of Transport and NHAI has launched the
green highways programme in 2016. == See also ==