The National Highways Authority of India’s (NHAI) ambitious plans to develop approximately 10,000 kilometers of Optic Fibre Cables (OFC) infrastructure, commonly referred to as “digital highways,” across the country by 2024-25 have faced setbacks. According to several officials familiar with the matter, the Authority’s efforts have been hindered as it has struggled to procure cables from the market over the past year.
“Procurement of OFC has been limited so far, with the NHAI cancelling three tenders since April 2023,” disclosed a senior government official. The latest tender for OFC procurement, opened in March 2024, was also cancelled due to low industry participation. “Only two players submitted bids, both of which were significantly higher than the NHAI’s evaluation,” the official added. Despite attempts to seek clarification, emails to the NHAI and Ministry of Road Transport and Highways of India went unanswered at the time of publication.
Initiatives for Future Procurement
In light of the cancellations, the NHAI is now engaging in consultations with OFC manufacturers such as HFCL and Aksh OptiFibre Ltd, with plans to launch a new tender valued at Rs 3,000 crore soon. “Efforts are underway to finalize the procurement models. While a capex model was initially considered, the NHAI is now exploring PPP and build–own–operate–transfer (BOOT) models. Industry consultations are expected to commence shortly,” shared a senior industry executive familiar with the developments.
Implications for Digital Highways
The Ministry of Road Transport and Highways has been striving to introduce “digital highways” in India since 2022, identifying approximately 1,367 kilometers on the Delhi-Mumbai Expressway and 512 kilometers on the Hyderabad-Bengaluru corridor as pilot routes for development. However, progress has been impeded by the NHAI’s procurement challenges.
The NHAI intends to utilize OFC to enhance telecommunications connectivity along these routes, facilitating the establishment of tower relays by mobile network operators and extending coverage. These fiber cable networks will also serve as critical infrastructure for supporting 5G mobile telephone services.
Aligned with the National Broadband Mission (NBM), launched in December 2019, the government aims to achieve 70 percent fiberization and expand India’s fiber footprint to 5.5 million kilometers by 2024. However, the country has yet to reach the 50 percent milestone in OFC deployment.
This project is also a key component of Prime Minister Narendra Modi’s flagship Gati Shakti program, which seeks to streamline logistics projects by providing a unified platform to address bureaucratic hurdles. A senior official from the road ministry noted that the government has held numerous discussions with the Department of Telecommunications regarding the project’s progress.
