NHAI plans to establish OFC network along major highways

The National Highways Authority of India (NHAI) is set to establish its own optical fibre cable (OFC) network along major highways through a public-private partnership model. This initiative aims to enhance infrastructure for barrier-free tolling and smart highways, while also allowing for the leasing of excess network capacity for commercial purposes.

With a vast highway network stretching 0.146 million kilometres, NHAI’s OFC infrastructure is expected to surpass similar networks established by RailTel Corporation of India Limited and Power Grid Corporation of India Limited (PGCIL) in both scale and capability, addressing the increasing data demands in the country.

However, the precise cost of this OFC network is yet to be finalised. The estimates suggest that converting the entire existing NHAI network to digital formats could require over Rs 350 billion in investments.

The proposed OFC network will be developed on a Build Operate Transfer (BoT) basis, with the rollout occurring in phases. Bids will be solicited in packages, and separate concession agreements will be established with each successful bidder. The National Highways Logistics Management Ltd (NHLML), a subsidiary of NHAI, will oversee the implementation of this program.

Consultants have been invited to assist throughout the bidding and awarding process by providing financial and legal advice as well as modelling and structuring support for these projects. The deadline for submitting bids from consultants is set for December.

Previously, NHAI announced plans for approximately 10,000 km of OFC infrastructure nationwide. Specific pilot routes have been identified, around 1,367 km on the Delhi-Mumbai expressway and 512 km on the Hyderabad-Bangalore corridor. Newer highways and expressways are designed with dedicated utility corridors for laying OFCs, which will serve as a foundational element for the rollout of 5G networks in those areas.

Furthermore, RailTel has laid approximately 62,000 route kilometres of OFC using railway tracks, while PGCIL operates an overhead optical fibre network via optic ground wire on power transmission lines. Both entities began their OFC ventures two decades ago. In contrast, NHAI’s new initiative will facilitate broader access to broadband and telecom services across more regions of India.