Opportunity Overview on NHAI Wayside Amenities (WSA) initiative
By Vishnu Sultania and Avinash Singh
Introduction
As a part of its endeavour to provide world class infrastructure and related services for the highway network, NHAI (National Highway Authority of India) intends to develop commercial spaces, logistic parks, traveller facilities such as wayside amenities (WSA) etc. at properties owned by NHAI. WSA aims to provide world-class facilities on highways, distributed geographically, to millions of highway commuters as a national initiative to ensure safe travel and ample rest opportunities.
The development of WSA has been entrusted by NHAI to its wholly owned subsidiary, National Highways Logistics Management Limited (NHLML). The initiative aims to establish over 1000 WSA at strategic locations along National Expressways and Highways, spaced approximately every 40 to 60 km, to enhance the travel experience.
OVERVIEW/CURRENT STATUS
STRUCTURE
Wayside amenities (WSA) facilities include amenities for passengers: Food Courts, Garages and Minor repair workshops, 24×7 medical clinics, Restrooms, Babycare room, dormitories for drivers, fuel stations, EV charging stations, parking for cars, buses and trucks etc., and amenities for Truckers: Dormitories, Dhabas, Shops, Toilets, Drinking water, Truck Parking, Self-Laundry, Cooking facilities, Vehicle repair shops etc.
Permissible Uses for all Sites:
Mandatory facilities for all Sites:
Figure: An indicative view of Approved Master plan of wayside Amenty (WSA) at Delhi-Mumbai Express way.
Proposed Sites
Initiative aims to develop wayside amenities (WSA) at 1000 sites. DME encompasses approx. 94 sites alone.
| Region | States | Sites* |
| North | Haryana, Jammu & Kashmir, Punjab, Uttar Pradesh | 69 |
| East | Odisha, Jharkhand, Assam, West Bengal, Bihar | 40 |
| West | Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Chhattisgarh | 23 |
| South | Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Telangana | 44 |
| Delhi Mumbai Expressway | Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Haryana | 94 |
| Greenfield Expressways/ Highways | Andhra Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal | 376 |
* More sites to be added… (detailed list of sites can be found at https://nhai.gov.in)
Opportunity
Business Model
WSA will be developed under a lease-based Public-Private Partnership (PPP) model. NHAI will oversee land acquisition and necessary permissions, while the private partner will be responsible for development, operation, and maintenance for 15-30 years.
Role of NHAI: NHAI identifies locations for wayside amenities and develops the necessary infrastructure. Lease Agreement: NHAI leases the developed sites to private entities for a specified period, typically ranging from 15 to 30 years.
Private Sector Role: Private partners (often businesses or operators) manage and operate the wayside amenities, providing services like food, beverages, restrooms, and fuel. The private entity invests in setting up the facilities and maintaining them throughout the lease term.
Revenue Generation: The private operator generates revenue through the sale of goods and services at the amenities. They may also pay a fixed lease amount or a percentage of revenue to NHAI as part of the agreement
Estimated Investments & Returns
The government believes that these WSAs will present significant opportunities for investors, developers, operators, and retailers, with estimated returns ranging from 15-30% (estimated lessee returns) on an average capital investment of Rs 1-10 crore. However, returns and capital investment may vary depending on the site.
Bidding Eligibility Criteria
Financial Eligibility – Net worth of atleast Rs. 10 Lacs (Varies as per individual sites);
Technical Eligibility – Waived off
Bid Parameters
Bidding parameters vary depending on the sites and can be of two types: Lease rental and/or Revenue Share.
Conclusion
In conclusion, the NHAI’s Wayside Amenities (WSA) initiative offers a compelling opportunity for private businesses to invest in a growing sector with significant returns. By participating in this lease-based PPP model, companies can leverage the increasing demand for quality roadside facilities while contributing to enhanced travel experiences. This initiative not only promises substantial economic benefits but also positions businesses at the forefront of infrastructure development in India’s expanding highway network.
ABOUT THE AUTHOR (S)
Vishnu Sultania is the Managing Director at AKMV Consultants, and a financial advisor to United Nations UNDP; Avinash Singh is a qualified Chartered Accountant and serving as a Finance Analyst at AKMV Consultants.
