NHAI Highway Projects in Gujarat Attract Strong Bidding Interest

The projects were approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi in February 2026.

The National Highways Authority of India (NHAI) has received strong participation from infrastructure developers for two major highway expansion projects in Gujarat, reflecting robust investor confidence in India’s road infrastructure sector.

The projects involve the four-laning of two sections of National Highway-56 (NH-56)—the 47.46 km Dhamasiya–Bitada/Movi stretch and the 60.21 km Nasarpore–Malotha stretch—to be implemented under the Hybrid Annuity Model (HAM).

₹4,583 Crore Highway Upgrade

The projects were approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi in February 2026.

Together, the two highway sections cover a total length of 107.6 km and involve a capital investment of ₹4,583.6 crore.

When bids were invited by NHAI, both projects attracted multiple offers from developers:

• Six bids were received for the Dhamasiya–Bitada/Movi section

• Seven bids were received for the Nasarpore–Malotha section

The strong response highlights the growing interest of private developers in India’s highway development programme. The contracts are expected to be awarded during the current financial year.

Faster Travel and Reduced Congestion

The upgraded highway sections will be designed for a speed of 100 km per hour, enabling an average travel speed of around 70 km per hour.

As a result, travel time along the corridor is expected to reduce by about 40%, cutting the journey from 2.5 hours to around 1.5 hours.

Once completed, the projects will provide continuous four-lane connectivity from Bodeli to Malotha, significantly easing congestion on NH-56.

Major Employment Generation

The highway development programme is also expected to generate significant employment.

According to project estimates:

• 19.38 lakh man-days of direct employment will be created

• 22.82 lakh man-days of indirect employment will be generated

Additional employment opportunities are likely to emerge due to increased economic activity along the highway corridor.

Improved Connectivity for Tribal Regions

The projects pass through Narmada district, one of India’s Aspirational Districts, and will significantly improve connectivity for tribal areas across:

• Dahod

• Chhota Udepur

• Tapi

• Bharuch

Improved transportation links are expected to support regional economic development, improve access to markets, and strengthen local infrastructure.

Boost to Tourism at Statue of Unity

The upgraded highway will also enhance connectivity to the Statue of Unity, one of India’s major tourist attractions located in Kevadia village, approximately 11 km from NH-56.

Better road infrastructure is expected to increase tourist inflow to the region and support hospitality and tourism-related businesses.

Strengthening National Highway Network

The completed project will also strengthen connectivity between key national corridors, linking NH-56 with:

• NH-53

• NH-48

• Delhi–Mumbai Expressway

Officials say the improved connectivity will support regional economic growth, logistics efficiency and smoother transport across western India.