Economic Evaluation and Feasibility Studies at Indoli Junction (km. 704/200 of New NH-48) Before and After Construction of Flyover

Huge investments are being made in road improvements as part of India’s development activity. Because resources are scarce and demand from various sectors is high, the economic evaluation of projects provides a solid foundation for investment decisions. Because of modern vehicle technology, mixed traffic, and fluctuating highway conditions, there is a need to analyse vehicle operating costs, which should be assessed and renovated on a regular basis to adequately represent the new conditions. For a proper review of the economics of road projects, it is thought prudent to create a long-term approach to economic evaluation based on practical cost–benefit calculations. Economic evaluation is a required component of highway feasibility studies; therefore, vehicle operating costs (VOCs) must be calculated. It is projected that the construction of the Flyover/Vehicular Underpass (VUP) will reduce congestion and lower the vehicle operating costs of the affected road users. VOC levels are affected by a number of factors, including pavement condition, road geometry, and many others. The primary goals of this research are to measure VOCs from various vehicle types for varying traffic conditions to be utilized as representative values in economic analyses of highway projects. The results show that constructing a flyover at Indoli Junction is a more economically feasible option than continuing to use the existing road because the total percentage of VOC savings after comparing the VOC amounts for both cases will be 30.68% by the end of 2040, and the internal rate of return after comparing the VOCs for both cases is 13.51%, which is higher than the 12% recommended by NITI Aayog (Murty et al., in, Reassessment of National Parameters for project appraisal in India the study was sponsored with financial support of NITI Aayog, Government of India and conducted by, Institute of Economic growth Delhi, 2018), Government of India, for project appraisal.