MoRTH proposes franchise-based model for wayside amenities on private land

Time of India

2 days ago

The
Ministry of Road Transport and Highways
has proposed a policy shift to allow the development of
wayside amenities
(WSAs) on
private land
along
national highways
and expressways through the
franchise model
of the
National Highways Logistics Management Ltd
(
NHLML
), citing the need to scale up such facilities to meet growing demand,
according to
The Economic Times
.
Currently, most WSAs are being developed on government land, but the draft policy—issued on Wednesday—marks a shift in strategy. The ministry has invited stakeholder comments before finalising the proposal.
900 WSAs in pipeline, demand estimated at 5,000
The ministry stated that NHLML is in the process of establishing around 900 WSAs on land owned by the government across national highways (NHs) and expressways (NEs). However, to ensure basic facilities every 30–40 km on either side of highways with at least two lanes and paved shoulders, around 5,000 WSAs would be needed.
'Therefore, private sector participation in the establishment of WSAs on the standard template including in the provision of land for the purpose and for the operations and management of the WSA as a franchisee of NHLML would need to be encouraged,' the draft policy states.
Under the proposed model, NHLML would serve as the nodal agency and invite expressions of interest (EoIs) from private landowners for
WSA development
.
Facilities and financial terms
Mandatory facilities at WSAs would include food courts and restaurants, convenience stores, toilets, drinking water, parking areas for cars, buses and trucks, first-aid medical facilities, affordable eateries for truckers, rest and dormitory space for drivers, baby care rooms, and washing facilities for vehicles.
Permissible add-ons include fuel stations, EV charging stations, ATMs, self-laundry and cooking areas for truckers, vehicle repair shops, tourist desks, telecom towers, and open gyms.
The franchisee will finance and manage the WSA. A nominal monthly franchise fee of ₹100 will be levied for the first three years after commissioning, rising to ₹25,000 from the fourth year onward, with annual indexing based on 70 per cent weightage to the Wholesale Price Index (WPI) and 30 per cent to the Consumer Price Index (CPI).
The draft adds, 'However, if the franchisee company operates and manages the truckers' facility along with the WSA in accordance with affordability and quality performance indicators specified by NHLML from time to time, a discount of 25 per cent shall be provided on the monthly franchise concession fee.'
If private landowners do not wish to develop and operate the WSA, they may lease their land to NHLML for 30 years. In such cases, NHLML will appoint another entity to develop the site.
The push for a wider network of WSAs comes amid the government's ongoing expansion of India's
road infrastructure
. Over the past few years, expressway and national highway construction has accelerated, but the supporting ecosystem—especially facilities for truck drivers and long-distance travellers—has lagged behind. The ministry sees increased private participation as a way to bridge this gap.