The National Highways Authority of India (NHAI) has seen an increase of over 47 per cent in its land acquisition cost in the current financial year. The highways authority now plans to use about 70 per cent of the proceeds raised through Rs 10,000-crore tax-free bonds in acquiring land for various projects.

A senior NHAI official said land acquisition cost to build one km of road has increased from Rs 85 lakh to Rs 1.25 crore in the current year. "Land rates across the country have increased. Many states are compensating more than the circle rates.