Your SlideShare is downloading. ×

Transport policy in india


Published on

Published in: Education

  • Be the first to comment

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Name: Marieum.S.FakhriRoll No: 09Class: M.Com-1Subject: Economics and BusinessPoliciesUniversity: SNDT Women’s UniversitySubmitted to: Prakash Parkhe SirTopic: Transport Policy in India (Semester – 2) 1
  • 2. Transport Policy In India Relating toRailways RoadwaysWaterways Airways 2
  • 3. Preface: I‘m glad to present this project to Prakash Parkhe Sir.This project is about Transport Policies in India. This includespolicies relating to Railways, Roadways, Waterways and the lastAirways. This project reflects the different Transport Policies forbetterment of the country and people. It also reflects IndianGovernment efforts in framing these policies which has led to thebetterment of Railways, Roadways, Waterways and Airways. This project is prepared by Miss Marieum.S.Fakhrias Economics Project for the subject Economics and Business Policiesfor Semester - 2 which was given as a class project work. 3
  • 4. Acknowledgment: I am very thankful to everyone who all supported me, for I havecompleted my project effectively and moreover on time. I would like to express my special thanks of gratitude to my Sir‘Prakash Parkhe Sir‘ who gave me the golden opportunity to do thiswonderful project on the topic of ‗Transport Policy In India‘ whichalso helped me in doing a lot of Research and I came to know about somany new things Last but not the least, I would like to thank my parents who helpedme a lot by comprising with me at home and not disturbing me, while Iwas doing this project. I am making this project not only for marks but to also increase myknowledge. 4
  • 5. Table of Contents:Sr Particulars Pg NoNo1 Introduction 6-92 National Urban Policy 9-133 Railways 14-264 Roadways 26-375 Waterways 38-426 Airways 43-457 Conclusion 46&478 Weblography & 48 Bibliography 5
  • 6. Introduction: Transport is a key element in the infrastructure. It provides services essential for promoting development. It plays a significant role in influencing the pattern of distribution of economic activity and improving productivity. It acts as a life-line linking markets, educational and health institutions. Above all, it connects the mosaic of cities, towns & villages of this vast country, thereby underpinning its unity and integration. The transport system comprises a number of modes. The capacity of each has to be developed to meet its specific demand within the requirements of the transport system as a whole. The system has to be viewed at each step as an integrated structure, keeping in mind the relationship between different transport services. In spite of impressive achievements in the last 65 years, our transport system remains deficient in several respects. Worldwide transport growth has been consistently higher than the economic growth due to specialization, sourcing of material on a wider scale, the use of just-in-time strategies, further increase and dispersal of retail and wholesale activities etc. Prices of transport services have been falling as a result of increased productivity due to competition among suppliers of transport services as well as pressure from users who face relentless pressure from global competition in their own markets. The liberalization of our economy has brought home the urgency of recognizing that an efficient transportation system is necessary for increasing productivity and enabling the country to compete effectively in the world market. Adequacy and reliability of transport infrastructure and services are important factors, which contribute towards the ability of the country to compete in the field of international trade and attract foreign direct investment. The Government cannot but play a role in this sphere. Even in a market economy, the framework that national governments provide for the transport sector largely determines the level of cost and transport operations. It is, therefore, necessary to create a policy environment that encourages competitive pricing and coordination between alternative modes in order to provide an integrated transport system that assures the mobility of goods and people at maximum efficiency and minimum cost. It is with this objective in view that the Integrated Transport Policy document has been prepared. Transport system in India comprises a number of distinct modes and services,notably railways, roads, road transport, ports, inland water transport, coastal shipping,airports and airlines. Railways and roads are the dominant means of transport carrying 6
  • 7. more than 95% of total traffic generated in the country. Although other modes likecoastal shipping and inland water transport would play a greater role, the railways androads would continue to dominate the transport landscape in the foreseeable future. Forpurposes of policy planning, the transport system must be viewed as an integratedstructure in which various modes complement each other, interface appropriately andwhere possible provide healthy competition to each other. This competition must beconducted within the framework in which each mode is able to operate on a ―level playingfield‖ so that in comparative advantages and economic efficiencies are properlyreflected in the costs to the users. India‘s transport sector is large and diverse; it caters to the needs of 1.1 billionpeople. In 2007, the sector contributed about 5.5 percent to the nation‘s GDP, with roadtransportation contributing the lion‘s share. Good physical connectivity in the urban andrural areas is essential for economic growth. Since the early 1990s, India‘s growingeconomy has witnessed a rise in demand for transport infrastructure and services. Indian Railways is one of the largest railways under single management. It carriessome 17 million passengers and 2 million tons of freight a day in year 2007 and is one ofthe world‘s largest employers. The railways play a leading role in carrying passengers andcargo across India‘s vast territory. However, most of its major corridors have capacityconstraint requiring capacity enhancement plans.Roads Roads are the dominant mode of transportation in Indiatoday. They carry almost 90 percent of the country‘s passengertraffic and 65 percent of its freight. The density of India‘shighway network – at 0.66 km of highway per square kilometer of land – is similar to thatof the United States (0.65) and much greater than China‘s (0.16) or Brazil‘s (0.20).However, most highways in India are narrow and congested with poor surface quality,and 40 percent of India‘s villages do not have access to all-weather roads.Rural Roads- A Lifeline for Villages in India: Connecting Hinterland to Social Servicesand markets 7
  • 8. Ports India has 12 major and 187 minor and intermediate ports along its more than7500 km long coastline. These ports serve the country‘s growing foreign trade inpetroleum products, iron ore, and coal, as well as the increasing movement of containers.Inland water transportation remains largely undeveloped despite India‘s 14,000kilometers of navigable rivers and canals.Aviation India has 125 airports, including 11 international airports. Indian airportshandled 96 million passengers and 1.5 million tons of cargo in year 2006-2007, anincrease of 31.4% for passenger and 10.6% for cargo traffic over previous year. Thedramatic increase in air traffic for both passengers and cargo in recent years has placeda heavy strain on the country‘s major airports. Passenger traffic has crossed 100 millionand cargo has crossed 3.3 million tons by year 2010. National Urban Transport Policy: 1. BACKGROUND1. India is poised for rapid economic growth. Such future growth will largely come fromthe secondary and tertiary sectors of the economy, i.e., the industrial and servicesectors. Since economic activities in these sectors primarily take place in urban areas,the state of our towns and cities is crucial to India‘s future growth. Further, India‘surban population is currently around 30% of its total population. Experience across theworld has been that as economies grow, rapid urbanization takes this proportion to over60% before it begins to stabilize. As such, it is projected that India‘s urban populationwould grow to about 473 million in 2021 and 820 million by 2051, as against only 285million in 2001. Hence, cities must not only meet the mobility needs of the currentpopulation but also provide for the needs of those yet to join the urban population. Inthis context, the Government of India has launched the National Urban RenewalMission(NURM) that inter-alia seeks to bring about comprehensive improvements inurban infrastructure, committing substantial funds for this purpose and requiring aseries of reforms that would make the investments sustainable. For urban areas to beable to support the required level of economic activity, they must provide for the easyand sustainable flow of goods and people. Unfortunately, however, such flow of goodsand people has been facing several problems. Most prominent among them have been the 8
  • 9. following: Accessing jobs, education, recreation and similar activities is becomingincreasingly time consuming. Billions of man hours are lost with people ―stuck in traffic‖.The primary reason for this has been the explosive growth in the number of motorvehicles, coupled with limitations on the amount of road space that can be provided. Forexample, on an average, while the population of India‘s six major metropolises increasedby about 1.9 times during 1981 to 2001, the number of motor vehicles went up by over7.75 times during the same period.2. The cost of travel, especially for the poor, has increased considerably. This is largelybecause the use of cheaper non-motorized modes like cycling and walking has becomeextremely risky, since these modes have to share the same right of way with motorizedmodes. Further, with population growth, cities have tended to sprawl and increasedtravel distances have made non-motorized modes impossible to use. This has madeaccess to livelihoods, particularly for the poor, far more difficult.3. Travel in the city has become more risky with accident rates having gone up from 1.6lakhs in 1981 to over 4.9 lakhs in 2010. The number of persons killed in road accidentshas also gone up from 28,400 to over 1, 00,000 during the same period. This again hastended to impact the poor more severely as many of those killed or injured tend to becyclists, pedestrians or pavement dwellers. Increased use of personal vehicles has led toincreased air pollution.4. Unless the above problems are remedied, poor mobility can become a major dampenerto economic growth and cause the quality of life to deteriorate. A policy is, therefore,needed on the approach to dealing with this rapidly growing problem as also offer a cleardirection and a framework for future action.2. OBJECTIVES:1. The objective of this policy is to ensure safe, affordable, quick, comfortable, reliableand sustainable access for the growing number of city residents to jobs, education,recreation and such other needs within our cities. This is sought to be achieved by:2. Incorporating urban transportation as an important parameter at the urban planningstage rather than being a consequential requirement3.Encouraging integrated land use and transport planning in all cities so that traveldistances are minimized and access to livelihoods, education, and other social needs,especially for the marginal segments of the urban population is improved4. Improving access of business to markets and the various factors of production. 9
  • 10. 5. Bringing about a more equitable allocation of road space with people, rather thanvehicles, as its main focus.6. Encourage greater use of public transport and non motorized modes by offeringCentral financial assistance for this purpose.7. Enabling the establishment of quality focused multi-modal public transport systemsthat are well integrated, providing seam less travel across modes8. Establishing effective regulatory and enforcement mechanisms that allow a levelplaying field for all operators of transport services and enhanced safety for thetransport system users9. Establishing institutional mechanisms for enhanced coordination in the planning andmanagement of transport systems10. Introducing Intelligent Transport Systems for traffic management11. Addressing concerns of road safety and trauma response12. Reducing pollution levels through changes in traveling practices, better enforcement,stricter norms, technological improvement.3. NEED FOR A NATIONAL TRANSPORT POLICY:Although the responsibility for management of urban areas (and thus urban transport)rests with the State governments, a Central policy is considered necessary as:1. Several key agencies that would play an important role in urban transport planningwork under the Central government, with no accountability to the State government.2. Several Acts and Rules, which have important implications in dealing with urbantransport issues, are administered by the Central Government3. A need exists to guide State level action plans within an overall framework.4. The launching of the NURM has provided a timely platform for providing significantfinancial support from the Central Government for investments in urban transportinfrastructure. As such, this offers an opportunity for a meaningful national policy thatwould guide Central financial assistance towards improving urban mobility. 10
  • 11. 5. A need exists to build capacity for urban transport planning as also develop it as aprofessional practice.6. A need exists to take up coordinated capacity building, research and informationdissemination to raise the overall level of awareness and skills.4. REALIZING THE POLICY OBJECTIVES:1. The objectives of this policy would be achieved through a multi-pronged approach thatwould revolve around the measures highlighted in the previous section. These arefurther elaborated in the sections that follow integrating land use and transportplanning2. Cities in India vary considerably in terms of their population, area, urban form,topography, economic activities, income levels, growth constraints, etc. Accordingly, thedesign of the transport system will have to depend on these city specific features.Further, transport planning is intrinsically linked to land use planning and both need to bedeveloped together in a manner that serves the entire population and yet minimizestravel needs. In short, an integrated master plan needs to internalize the features ofsustainable transport systems. In developing such plans, attention should also be paid tochannel the future growth of a city around a preplanned transport network rather thandevelop a transport system after uncontrolled sprawl has taken place. Transport plansshould, therefore, enable a city to take an urban form that best suits the geographicalconstraints of its location and also one that best supports the key social and economicactivities of its residents. Unfortunately, however, transport planning has not receivedthe extent of attention it should have in drawing up strategic development and land useplans.3. The Central Government would support formulation and implementation of specific―Area Plans‖ in congested urban areas that propose appropriate mix of various modes oftransport including exclusive zones for non-motorized transit.4. The Central Government would, therefore, encourage measures that allocate roadspace on a more equitable basis, with people as its focus. This can be achieved byreserving lanes and corridors exclusively for public transport and non-motorized modesof travel. Similarly lanes could be reserved for vehicles that carry more than threepersons (popularly known as High Occupancy Vehicle Lanes). Past experience has beenthat such reserved lanes are not 11
  • 12. 5. In order to effectively promote such investments, the Central Government would: a. Provide 50% of the cost of preparing comprehensive city transport plans and detailed project reports b. Offer equity participation and/or viability gap funding to the extent of 20% of the capital cost of public transport systems c. Offer 50% of the cost of project development whenever such projects are sought to be taken up through public-private partnerships, so that a sound basis for attracting private partners can be established. The remaining cost of such project development would have to come from the city development authority/State government and a project developer.6. To ensure that the fares charged are fair and reasonable, the Central governmentwould require that a regulatory authority be set up by the State Government to, inter-alia, regulate the prices to be charged by different types of public transport servicesTechnologies for Public Transport7. The Central Government would encourage high capacity public transport systems beingset up through the mechanism of Special Purpose Vehicles (SPV) and would offerfinancial support either in the form of equity or one time viability gap financing, subjectto a ceiling of 20% of the capital cost of the project, after evaluating variousparameters such as: a. Extent of resources mobilized by the State government through exploitation of its land resources b. Extent of resources likely from private participation c. Institutional mechanisms set up by the State government to ensure a well coordinated public transport system d. Willingness to divert funds from projects that add to road capacity towards public transit systems e. Initiatives taken to promote non-motorized transport and improve safe access to public transport.8. The Central Government would give priority to the construction of cycle tracks andpedestrian paths in all cities, under the National Urban Renewal Mission (NURM), toenhance safety and thereby enhance use of non-motorized modes. Cities would also beencouraged to explore the possibility of a public bicycle program, where people can renta bicycle for use in specially designated areas. 12
  • 13. 9. The Central Government would also take up pilot projects, in a sample set of cities, todemonstrate the improvements that are possible through the enhanced used of cycling,for possible replication in other cities.5. Some Facts of Urban National Transport Policy: 1. EMBARQ India informed and facilitated the adoption of India‘s first National Urban Transport Policy by collaborating directly with the Indian Ministry of Urban Development and by bringing together experts and government officials from around the world. 2. Further, the centrally funded Jawaharlal Nehru National Urban Renewal Mission; set up in 2005 for a duration of seven years will invest INR 1,20,536 crore in urban infrastructure projects in 63 cities across India. 3. The linking of this funding with the rules and regulations enlisted under the National Urban Transport Policy has resulted in a demand to design, plan and implement sustainable transport solutions and non motorized modes by state and local governments. 4. Mission cities include Indore, Delhi, Mumbai, and Bangalore where EMBARQ India is presently engaged. In particular, EMBARQ India has been asked to review; plan and implement the JNNURM funded Bus Rapid Transit System in India. The BRT Systems are has been operational since 2009. 13
  • 14. 1. Railways:Introduction: The Indian Railways ( IR) is an Indian state-owned enterprise, owned and operated bythe government of India through the Ministry of Railways. It is one of the worldslargest railway networks comprising 115,000 km (71,000 mi) of track over a route of65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25million passengers daily (over 9 billion on an annual basis). In 2011, IR carried over 8,900million passengers‘ annually or more than 24 million passengers daily (roughly half ofwhich were suburban passengers) and 2.8 million tons of freight daily. In 2011-2012Indian Railways earned Rs104, 278.79 crore (US$18.98 billion) which consists of Rs69,675.97 crore (US$12.68 billion) from freight and 28,645.52 crore (US$5.21 billion)from passengers tickets. Railways were first introduced to India in 1853 from Bombay to Thane. In 1951 thesystems were nationalized as one unit, the Indian Railways, becoming one of the largestnetworks in the world. IR operates both long distance and suburban rail systems on amulti-gauge network of broad, meter and narrow gauges. It also owns locomotive andcoach production facilities at several places in India and are assigned codes identifyingtheir gauge, kind of power and type of operation. Its operations cover twenty fourstates and three union territories and also provides limited international servicesto Nepal, Bangladesh and Pakistan. Presently, the Railways have a large shelf of ongoing projects, mainly relating to newlines and gauge conversion. In view of scarce availability of resources, the availablefunds are thinly spread over a large number of projects resulting in time and cost over 14
  • 15. runs. The throw forward (balance amount required to complete the projects) on allthese projects amounts to more than Rs. 30,000 crore and going by the present rate ofallocation on these projects, it will take more than 30 years to complete them.Some of Government Policies to for the Progress theIndian Companies By giving Railways in the Hands ofPrivate Sector: Though the Indian Railways enjoys a near monopoly in India, a few private railways doexist, left over from the days of the Raj, usually small sections on private estates, etc.There are also some railway lines owned and operated by companies for their ownpurposes, by plantations, sugar mills, collieries, mines, dams, harbors and ports, etc.The Bombay Port Trust runs a BG railway of its own, as does the Madras Port Trust. TheCalcutta Port Commission Railway is a BG railway. The Vishakhapatnam Port Trust has BGand NG, 2 ft 6 in (762 mm), railways. The Bhilai Steel Plant has a BG railway network. The Tatas (a private concern)operate funicular railways at Bhira and at Bhivpuri Road (as well as the Kamshet–Shirawta Dam railway line, which is not a public line). These are not common carriers, sothe general public cannot travel using these. The Pipavav Rail Corporation holds a 33-year concession for building and operating a railway line from Pipavav to Surendranagar.The Kutch Railway Company, a joint venture of the Gujarat state government and privateparties, is involved (along with the Kandla Port Trust and the Gujarat Adani Port) to builda Gandhidham–Palanpur railway line. These railway lines are principally used to carryfreight and not for passenger traffic.News Paper Articles Relating to New Rail Policies:1. Railway policy for private sector participation (The Indian Express Newspaper Jan 08,2012)Facing a resource constraint, Railways has come up with a new draft policy which seeksincreased private participation for rail connectivity and opens the doors for foreigndirect investors for expanding its network.The cash-strapped public transporter has proposed six PPP models for project executionthat include creating railway connectivity on private land and forming special purposevehicles (SPV) for new line and gauge conversion. 15
  • 16. The policy has also sought to attract the state government in playing a proactive role indevelopment and implementation of rail projects in their respective states, a seniorRailway Ministry official said. He said the draft policy aims to open opportunity forreturns from investment in rail projects and ensure timely availability of railinfrastructure to the beneficiaries such as port, industry and states. Local bodies,ports, large import and export companies, co-operative societies, infrastructure andlogistics providers too have been invited for increasing the rail network.The official said overseas corporate bodies and foreign direct investors can alsoparticipate in asset creation pending clearances by Foreign Investment Promotion Board."Once finalized, the policy would replace both R3i and R2Ci policies" he said, admittingthese policies could not achieve the desired objectives.The new draft policy encapsulates creating railway connectivity on private land, formingspecial purpose vehicle (SPV) for new line and gauge conversion, awarding railwayprojects on BOT basis, customer-funded capacity augmentation and creating multi-userlines.Railway Minister Dinesh Trivedi, participating in a discussion in Parliament in the recentlyconcluded Winter Session had sought increased private participation for taking railwaysto the next generation.He had said the public transporter requires over Rs five lakh crore in the coming yearsto achieve this.Described as the fourth largest rail network in the country, Indian Railways have beensaddled with problems like delay in project execution and cost overruns. It has come infor flak from several quarters owing to tardy progress of work.2. Government drafts new policy for Metro rail projects( The Indian Express Newspaper, Jan 29, 2013)Anticipating proposals to set up metro rail in 34 cities that have one million pluspopulation, the Ministry of Urban Development (MoUD) has drafted a consolidated policythat focuses on both public-private partnership and government funding models for thereference of state government. Most of the cities are in UP, Maharashtra, MP, Gujaratand Punjab."We have come out with this consolidated new metro railway policy, in case somebodywants to approach us for assistance in such projects. We keep getting lot of requestsfrom state and city administrations. This will aid them in drafting their own feasibilityreports," Sudhir Krishna, secretary, MoUD said. 16
  • 17. The ministry however has supported the government-funded model as success rate ofPPP model is yet to be ascertained. The policy stated that PPP is supported where thecorridor is mostly elevated and ridership quite high."Globally only 18 per cent of metro rail projects have been taken up under PPP model andthat PPP experience in India is limited and to be observed for some more time beforeany conclusion can be drawn, the MoUD prefers government funding with equityparticipation by the government of India," the policy noted."So far we are working on the proposals forwarded by cities like Ludhiana, Pune,Chandigarh, Guwahati, Nagpur, Ahmedabad and Surat to name a few," said Krishna.3. Indian Railways finally moving on its dream project “high- speed trains” (Economic Times, Jan 27,2013)After policy flip-flops over decades, here is a concrete sign of India getting its firstbullet train. The Indian Railways quietly formed a company called HSRC Ltd in July lastto run its dream project, high-speed rail.And if the buzz in Rail Bhawan is anything to go by, minister Pawan Kumar Bansal hasmore to announce on the subject when he reads his first Rail Budget next month. Evenbefore Indian policymakers made any formal announcement on this big-ticket project,Japans ambassador to India Takeshi Yagi recently said in Gujarat that Indias firsthigh-speed rail would run between Ahmedabad and Mumbai.Rail Policies in 12th Five Year Plan(2012-2017):To meet the requirements of passenger services a number of steps are planned in theTwelfth Plan.Some of the important areas proposed to be taken up are mentioned below:1. Enhancing accommodation in trains: Augmenting the load of existing services withpopular timings and on popular routes to 24/26 coaches would help generating additionalcapacity and availability of additional berths/seats for the traveling public.2. Enhancing speed of trains: At present, speed of Mail/Express trains is below 55 kmph.Segregation of freight and passenger traffic, enhancing the sectional speeds, and 17
  • 18. rationalisation of stoppages are important measures for speed enhancement. The speedof passenger trains is quite low at present primarily because of the coaching stock in useand due to multiplicity of stoppages en-route. There is scope for speeding up of theseservices by replacing trains with conventional stock by fast movingEMUs/MEMUs/DEMUs. Enhancing the sectional speeds is another enabling factor inspeeding them.3. Introduction of tailored services: The traveling requirements of various sectors andvarious classes of passengers differ. Between major cities and metros, fast serviceswith very limited stoppages are preferred. Introduction of non-stop services andservices with higher accommodation between popular destinations would better servepassengers‘ requirements. Strategies for decongesting major passenger terminals: Thiswould be done through development of alternative terminals in suburban areas of majorcities and expeditious operationalisation of the Dedicated Freight Corridors resulting insegregation of passenger and freight traffic. Spin off effects in the form of largernumber of passenger services, faster passenger services, quicker freight movement, andhelp in decongesting major terminals would be achieved. There are internationalexamples of efficient passenger and freight operations which have relevance for IndianRailways.4 .Developing High Speed Rail Corridors and Upgradation of SpeedsMinistry of Railways has selected following six corridors for conducting pre-feasibilitystudies for development of High Speed Rail Corridors: i. Delhi–Chandigarh–Amritsar (450 km); ii. Pune–Mumbai–Ahmedabad (650 km);iii. Hyderabad–Dornakal–Vijaywada–Chennai (664 km);iv. Chennai–Bangalore–Coimbatore–Ernakulam (649 km); v. Howrah–Haldia (135 km);vi. Delhi–Agra–Lucknow–Varanasi–Patna (991 km).The viability of each corridor identified for pre-feasibility study is being examined byconsultants. Efforts are being made to complete all such studies, undertake at least twoDetailed Projects Reports and develop one corridor of about 500 km for construction. Itis also proposed to set up a National High Speed Rail Authority (NHSRA), an autonomousbody through a Bill in Parliament for implementation of High Speed Rail Corridorprojects of Indian Railways. This authority will be entrusted with the work of planning,standard setting, implementing and monitoring these projects.5. It is planned to undertake civil and signaling works to support faster movement oftrains on few selected routes. This will enable increase in speed to 130–140 kmph in 18
  • 19. certain routes and 160 kmph in Delhi–Mumbai and Delhi–Howrah to be further upgradedto 200 kmph.6. Public Private Partnerships (PPP) Investments in Railways can be stepped up with the help of PPP. So far, suchinvestments have been extremely small. This is far less compared to the Private Capitalshare in other sectors like Ports – 80 per cent, Telecom 82 per cent, Electricity 44 percent, Airports 64 per cent and Roads 16 per cent. PPP Projects related to rolling stockmanufacturing units, modernisation of railway stations, multifunctional complexes,logistics parks, private freight terminal, freight train operators, liberalized wagoninvestment schemes, Dedicate Freight Corridors and so on which are in pipeline offerexcellent opportunities for private investment.7. Twelfth Plan would target to enhance rail share in freight traffic by at least 2 percent.8. The Eastern and Western Dedicated Freight Corridors would be completed duringthe Twelfth Plan period and planning for other DFCs—North South, East-South, East-West and South-West may be firmed up during the Twelfth Plan period.9.The Twelfth Plan would focus on five areas—track, bridges, signaling and telecom,rolling stock and station and freight terminals which would lead to safety, decongestion,capacity augmentation and modernisation of system creating more efficient, faster andsafer railways.10. Signaling system would be modernized with provision of advanced technologicalfeatures and development of Train Protection and Warning System (TPWS), AntiCollision Device (ACD), Trains Collision Avoidance System (TCAS), GPS based Fog SafetyDevice and Biometric Drivers Vigilance Elementary Control System.11. Phased elimination of all unmanned level crossings by provision of subway,ROBs/RUBs, constructing diversion roads, and so on.12. Expansion of Long Haul trains using distributed power system.13. Improvement in the design and technology of wagons, coaches and locos throughacquisition as well as investment in R&D along with induction of latest technology inrolling stock by encouraging expansion in capacity of manufacturing units through PPPDeveloping High Speed Rail corridors and Setting up National High Speed Rail Authority(NHSRA) as an autonomous body for planning, standard setting, implementation andmonitoring of high speed corridors. 19
  • 20. 14 .Promoting private investments in special purpose high capacity wagons under theLiberalized Wagon Investment Scheme (LWIS) and Encouraging private freightoperators to transport select commodities where railway modal share is low, that isautomobile, un-bagged cement and fertilizer, fly ash, edible oils, and so on.15. Activity Based Accounting to facilitate managerial decision making and to establishprofit/loss making routes/activities.16. Correcting the imbalance between passenger and freight traffic by setting up aTariff Regulatory Authority to suggest tariff structures consistent with the level offeasible cross-subsidies.17. Resolution of regulatory issues regarding CONCOR and private players and furtherexpansion of containerization.18. Reorganization of Indian Railways on business lines, hiving off non-transportationtasks and separation of policy making and operational responsibilities of the RailwayBoard.Railway Budget (2013-2014) 1. 67 new express trains to be introduced; 27 passenger trains, 8 DEMUs. 2. Operating ratio of 88.8 percent achieved. 3. Dividend reduced from 5 to 4 percent. 4. Electrification of 1,200 km to be completed this year. 5. 72 additional suburban services in Mumbai and 18 in Kolkata. 6. An independent Rail Tariff Authority has been formalized. 7. Dynamic fuel adjustment component to be introduced on freight rates from April one, that will result in less than five per cent increase in rates. 8. Diesel price hike added Rs 3,300 crore to fuel bill of Railways. 9. Railway revenues to show a balance of Rs 12,506 crore in 2013-14 20
  • 21. 10. Planned investment of Rs 63,363 crore for 2013-14, including Rs 600 crore from PPP route.11. Operating ratio expected to improve to 87.8 per cent in 2013-14 from 88.8 per cent in the current fiscal year.12. 5.2 per cent growth in passenger traffic expected in 2013-14.13. Railway hopes to end 2013-14 with a balance of Rs 12,506 crore14. Rs.100 crore for improving stations in New Delhi15. Railways to set up a Debt Service Fund16. Freight earning to grow by 9 per cent to Rs 93,554 crore.17. No fresh hike in passenger fares18. Indian Railway Institute for Financial Management to be set up at Secunderabad to train rail officers on a regular basis19. Railway Energy Management Company to be set up to harness solar and wind energy.20. 47,000 vacancies for weaker sections and physically challenged to be filled up soon21. New coach manufacturing and maintenance facilities to be set up in various places including Rae Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh22. Allocation of Rs 1,000 crore each made for railway land development authority and railway station development authority.23. Railways set to enter 1 billion ton freight club of China, Russia and US24. Common rail-bus ticket to be introduced for Katra-Vaishnodevi pilgrims25. New train Azadi Express to places linked with the freedom struggle to be introduced, fares to be concessional. 21
  • 22. 26. Internet booking to be provided from 0030 hours to 2330 hours 27. Internet booking to be strengthened with next-generation e-ticketing system to eliminate delays 28. Special A/C coaches ‗Anubhuti‘, to be introduced in select Shatabdi and Rajdhani trains to give excellent ambience with commensurate fare 29. Railways will use Aadhar data base for bookings and validation of passengers 30. SMS alert service being rolled out shortly to intimate passengers about reservation status. 31. Free wi-fi facility to be provided in select trains 32. Plan to allow e-ticketing via mobile phones 33. Seventeen bridges identified for repair 34. Smoke and fire detection system envisaged 35. Identification of 104 stations for upgradation in places with more than one million population and of religious significance 36. Railways to set up six more Rail Neer bottling plants 37. 10% reservation for women in RPF.Policy of Reservation for SCs, STs and OBCs in Railways:i) SCs/ STs get reservation in all groups of posts under the Government in case of directrecruitment and in case of promotions made by non-selection method. In case ofpromotions made by selection, reservation is available to them when promotions are madein Group B, C, D posts and from Group B to the lowest rung in Group ‗A‘ posts.(ii) SC/ST/OBC candidates appointed by direct recruitment and SC/ST candidates alsopromoted on their own merit are adjusted against unreserved posts. 22
  • 23. (iii) In promotion by selection to posts within Group ‗A‘ which carry an ultimate salary ofRs. 18,300/- or less (pre-revised), there is no reservation, but the ScheduledCaste/Scheduled Tribe officers who are senior enough in the zone of consideration forpromotion so as to be within the number of vacancies for which the select list is to bedrawn up, would be included in that list provided they are not considered unfit forpromotion.(iv) There is a general ban on de-reservation of posts in case of direct recruitment.(v) In case of direct recruitment various relaxations, like relaxations in age limit by 5year; exemption from payment of examination/application fees; relaxation inqualification of experience at the discretion of UPSC/competent authority; relaxation instandard of suitability, etc. are available to members of SCs and STs.(vi) In case of direct recruitment, OBCs get relaxation of 3 years in upper age limit,relaxation in standards of suitability, etc.(vii) In case of promotion, zone of consideration is extended upto five times the numberof vacancies in case suitable candidates are not available within normal zone ofconsideration; minimum qualifying marks/ standards of evaluation are relax able; upperage limit is relax able by five years where upper age limit for promotion is prescribednot more than 50 years.(viii) There is a provision of appointment of liaison officers in all Ministries/Departments to ensure proper implementation of reservation policy.Policy for Safety of Passengers:ID proof must for all reserved train passengersFrom December 1, 2012, all train passengers with reservations will have to carry a validphoto identity proof. ID cards will be needed if you are travelling on Reserved SecondClass(2S), Sleeper Class(SL), III Economy Class(3E) and First Class(FC).The move is seen as a step by the Railways Ministry to facilitate the travel of onlylegitimate passengers and to reduce scope of misuse of reserved ticketing system aswell as for general security reasons.The Press release issued by the Railways Ministry says, "Any one of the passengers 23
  • 24. booked on a PNR for undertaking journey in any reserved class has to produce any one ofthe above mentioned prescribed proofs of identity in original during the journey failingwhich all the passengers booked on that ticket will be treated as travelling withoutticket and charged accordingly. The existing provision of the Tatkal scheme where thepassenger is required to show the same original proof of identity as indicated on theticket shall continue".The ministry has also decided to expand the list of acceptable ID proof. The list forTatkal ticket and other reserved classes will now be as follows:1) Voter Photo identity card issued by Election Commission of India.2) Passport.3) PAN Card issued by Income Tax Department.4) Driving Licence issued by RTO.5) Photo identity card having serial number issued by Central/State Government whichinclude the following:-Pension Pay Orders(PPO)-Ration Card with photographs-Senior Citizen cards-Below Poverty Line (BPL) cards-ESI cards (with photograph) issued for taking treatment in ESI dispensaries.-CGHS Cards (with photograph) issued to individual family members of Central Govt.employees.6) Student Identity Card with photograph issued by recognized School/College for theirstudents.7) Nationalized Bank Passbook with photographs.8) Credit Cards issued by Banks with laminated photograph.9) Unique Identification Card "Aadhaar".10) Photo identity cards having serial number issued by Public Sector Undertakings ofState/Central Government, District Administrations, Municipal bodies and PanchayatAdministrations.Currently, only passengers travelling with ID proofs are those with e tickets, Tatkaltickets or the AC classes (except in III Economy -3E class). 24
  • 25. Tatkal Policy :The introduction of Tatkal Scheme by Indian Railways has been proved beneficial forlatecomers. Tatkal is an emergency reservation scheme. The Tatkal scheme isapplicable to more than 100 trains throughout India. Under this scheme, people can booktheir tickets just one day before the actual date of journey, excluding the date ofjourney, w.e.f 21/11/2011. The booking for Tatkal opens at 08:00 hrs IST one day priorto the definite date of journey. For example, for train leaving on 8th, Tatkal Booking willCommence at 8 AM on 7th.Government Policies in Form of Introduction ofNewTrains for Passengers Needs:Sr Trains ParticularsNo 1 Duronto Express These are the non-stop (except for operational stops) point to point rail services introduced for the first time in 2009. They connect the metros and major state capitals of India and are faster than Rajdhani Express. They provide first AC, two-tier AC and three-tier AC accommodation. Some of them provide Sleeper Class accommodation.2 Rajdhani Express These are air-conditioned trains linking major cities to New Delhi. They have high priority and are one of the fastest trains in India, travelling at about 130 km/h (82 mph). They have only a few stops.3 Shatabdi Express The Shatabdi trains are air-conditioned intercity trains for travel during day. They have seats and executive class seats. Some of them 3- tier AC berths. They are the fastest trains in India, travelling at about 140 km/h.4 Garib Rath Air-conditioned no-frills trains with seats and 3-tier Economy AC berths. The maximum speed is 130 km/h.5 Jan Shatabdi Jan Shatabdi Express are a more affordable variety of the Shatabdi Express Express, which have both AC and non-AC classes. The maximum speed is 25
  • 26. 130 km/h.6 Superfast These are trains that have an average speed greater than 55 km/h Express/Mail (34 mph). Tickets for these trains have an additional superfast surcharge.7 Express These are the most common kind of trains in India. They have more stops than their super-fast counterparts, but they stop only at relatively important intermediate stations.8 These are slow trains that stop at most stations along the route and Passengerand Fast are the cheapest trains. The trains generally have unreserved seating Passenger accommodation but some night trains have sleeper and 3-tier AC compartments.9 Suburban trains These trains operate in the urban areas of Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune and between Kanpur &Lucknow,usually stop at all stations and have unreserved seating accommodation.10 Metros and These trains are designed for city transport in metro cities of India. Monorails 2. Roadways: Introduction: India has one of the largest road networks in the world, consisting of (i) nationalhighways (NHs), (ii) state highways (SHs), (iii) major district roads (MDRs) and (iv)rural 26
  • 27. roads (RRs) that include other district roads and village roads. India has a roadnetwork of over 4,245,429 kilometers (2,637,987 mi) in 2012, the third largest roadnetwork in the world. At 0.66 km of roads per square kilometer of land, the quantitativedensity of India‘s road network is similar to that of the United States (0.65) and farhigher than that of China (0.16) or Brazil (0.20). However, qualitatively Indias roads area mix of modern highways and narrow, unpaved roads, and are undergoing drasticimprovement. As of 2008, 49 percent - about 2.1 million kilometers - of Indian roadswere paved. Adjusted for its large population, India has less than 4 kilometers of roads per1000 people, including all its paved and unpaved roads. In terms of quality, all season, 4or more lane highways, India has less than 0.07 kilometers of highways per 1000 people,as of 2010. These are some of the lowest road and highway densities in the world. Forcontext, United States has 21 kilometers of roads per 1000 people, while France about15 kilometers per 1000 people - predominantly paved and high quality in both cases. Interms of all season, 4 or more lane highways, developed countries such as United Statesand France have a highway density per 1000 people that is over 15 times as India As of December 2012, India had completed and placed in use over 19,200 kilometersof recently built 4 or 6-lane highways connecting many of its major manufacturingcenters, commercial and cultural centers.NATIONAL ROAD TRANSPORT POLICY: 1. Introduction: Road transport is vital to economic development, trade and social integration,which rely on the conveyance of both people and goods. Reduction in transport costspromote specialization, extend markets and thereby enable exploitation of theeconomies of scale. Global competition has made the existence of efficient transportand logistic systems in delivery chain an absolute imperative. Easy accessibility,flexibility of operations, door-to-door service and reliability have earned road transportan increasingly higher share of both passenger and freight traffic vis-à-vis othertransport modes. Road transport has emerged as the dominant segment in India‘stransportation sector with a share of 4.5 per cent in India‘s GDP in 2005-06. Over thelast six years (2000-01 to 2005-06), the annual average growth in road transport sectorGDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per cent. 27
  • 28. Robust growth in road transport has been attained despite significant barriers to inter-State freight and passenger movement compared to inland waterways, railways and airwhich do not face rigorous enroute checks/barriers. Transport demand in India has beengrowing rapidly. In recent years this demand has shifted among transport modes, mainlyto the advantage of road transport, which carries about 87 percent and 61 per cent ofpassenger and freight transport demand arising for land based modes of transport (i.e.roadways and railways taken together) respectively. During 1992-93 to 2004-05 demandfor road freight transport in India is estimated to have grown at an annual average rateof 6.7 percent, while GDP grew at an average of 6.2 percent. Road freight transportdemand is expected to grow by around 10% per annum in the backdrop of a targetedannual GDP growth of 9% during the Eleventh Five Year Plan. 2. Motorization levels in India: Motor vehicle population has recorded significant growth over the years. Indiahad 72.7 million registered motor vehicles at the end of fiscal year 2003-04. Thegrowth of vehicular traffic on roads has been far greater than the growth of thehighways; as a result the main arteries face capacity saturation. Between 1951 and 2004the vehicle population grew at a compound annual growth rate (CAGR) of close to 11 percent. Personalized mode (constituting mainly two wheelers and cars) 1account for morethan four-fifth of the motor vehicles in the country compared to their share of littleover three-fifth in 1951. Further break up of motor vehicle population reflectspreponderance of two-wheelers with a share of more than 71 per cent in total vehiclepopulation, followed by cars with 13 per cent and other vehicles (a heterogeneouscategory which includes 3 wheelers, trailers, tractors etc.) with 9.4 per cent. Incontrast to personalized mode, the share of buses in total registered vehicles hasdeclined from 11.1% in 1951 to 1.1 as in 2004. Also, the share of goods vehicle which wasabout 27% in 1951 has declined to a little over 5% by end March 2004. The share ofgoods vehicle in vehicle population is modest in comparison to the size of the economy.The share of buses and trucks in the vehicle population at about 1 per cent and 5 percent respectively is much lower compared to most of the other countries in Asia. International experience suggests that with the rising income levels, car ownershiprates are likely to grow much faster than GDP and start to displace 2-wheelers. Thecurrent vehicle density in developing countries is low; for example, the vehicle density in 28
  • 29. India is only 12 vehicles per 1000 persons, compared to 580in Germany, 808 in the USA.Also the number of cars per 1000 people in Asia remains modest- at about 10 per 1000people in PRC, 8 for India. However, the number of two-wheelers per 1000 population ismuch higher at around 45 in case of India. The low vehicle density is marked by itsskewed distribution in favour of cities. In 2004-05, 22 cities accounted for 60 per centof sales of passenger vehicles. 2.3 In the coming years the profile of motorization isexpected to witness a number of changes in terms of segment shifts, driven by risingincomes, desire for safety and comfort and government regulations. Over the shortterm, the sensitivity of demand for vehicles to changes in GDP and in vehicle price issomewhat elastic as their purchase can often be delayed, but in the long term it has lowelasticity, indicating that personal mobility is considered by many as essential toeveryday living and that it has few substitutes. Thus, other measures are required aswell to restrain growth in personal motor vehicle and associated negative externalities. 3. Need for Policy: Of all infrastructure sectors, the products and markets of the transport industryare most varied. Road Transport sector consists of two distinct segments; (a) Transportservices that serve the public or commercial customers directly, and; (b) Transportinfrastructure that is used by the transport service providers. Transport services aremainly privately owned and operated. In contrast, privately-owned transportinfrastructure (particularly road networks) is not common. Passenger and freight movement by road is expected to rapidly expand in the comingyears in view of number of factors which amongst others include (a) substantialinvestment in improvement in national highway network which will facilitate speedy,reliable, door to door services (b) freight movement by road offers a holistic logisticsolution that minimizes the costs of transport, logistics, and inventories (c) risingvolumes of exports and imports which would entail higher demand for inland transportfor moving cargo from production centres to the gateway ports – both air and sea and(d) accelerated urbanization creating additional demand for transportation. Despite good performance of the road transport sector it is beset with slowtechnological development, low energy efficiency, pollution and slow movement of freightand passenger traffic. To sustain an annual overall growth in the GDP of 9% during theEleventh Plan would require growth in both passenger and freight road transport of 29
  • 30. higher order. Such an endeavor calls for a conducive road transport policy regime gearedto meet requirements of faster mobility, safety, access to social and economic servicesand minimizing the impact of negative externalities (e.g., pollution, accidents etc.) 4. Objectives:The endeavor of the National Road Transport Policy (NRTP) should be to promotemodern, energy efficient and environment friendly road transport with followingobjectives:i. Promote Road Infrastructure support for transportation of humans and goods tosustain high growth rate of GDP;ii. Promote public transport and requisite quality of service;iii. Promote quality and productivity of goods transportation and infrastructure;iv. Ensure availability of adequate trained manpower;v. Promote road safety, traffic management and post - accident trauma care;vi. Promote sustainable road transport with special emphasis on energy efficiency,environmental conservation and social impact;vii. Promote increasing use of modern technology and research in road transportdevelopment; andviii. Strengthen database collection and management system to assist in continued policyand performance evaluation. 5. Promotion of Road Infrastructure SupportThe aggregate length of roads, which was 0.4 million km in 1950-51 has increased 8 foldto 3.4 million km in 2002 but over the same period the number of passenger buses hasshown 19 fold jump from 0.34 lakh to 6.35 lakh and goods vehicle fleet more than 36fold increase from 0.82 lakhs to 29.74 lakh. The geographic coverage of India‘s highwaynetwork at 1.03 km of highway per square km of land is much dense compared to USA(0.77) and that of China (0.20). But, China‘s highway network consists of over 34,288 km 30
  • 31. of four or six lane access controlled expressway linking the major cities. In India,expressways do not yet link the major economic centres. The country‘s road network can broadly be divided into three categories viz. (a)National Highways (NHs) (b) State Highways (SHs) (c) Major District Roads (MDRs) and(d) Rural Roads. The SHs and MDRs serve as secondary road network and provideconnectivity between primary (NHs) road network and tertiary (rural roads). a. National Highways:The National Highways running across the length and breadth of the country connect allstate capitals, major ports, international boundaries, areas of economic and strategicimportance, etc. The present total length of NHs is about 66,590 km. An overwhelmingproportion of the total length of NHs is two or single laned (56% and 32 % of the totallength of national highways are double/intermediate lane and single lane respectively)and only 12 per cent of the length of the NHs are four lane and more. The NHsconstitutes less than 2 per cent of the road length of the country but carry about 40 %of the road based traffic. Highway 4capacity shortages are aggravated byheterogeneity in traffic, encroachment, and frequent and long halts at state andmunicipal check posts. Further, over loading by rigid two-axle trucks has been a majorsource of damage to road structure and pavement. In order to expand and improve road connectivity in the country, the Governmenthas launched National Highways Development Project (NHDP). It is the largest highwayproject ever undertaken in the country. The NHDP is beingimplemented by National Highways Authority of India (NHAI). Government hasenvisaged investment of Rs.2,35,430 crore for upgradation of National Highways undervarious phases of NHDP over the medium term.b. State Highways and Major District Roads:State Highways and Major District Roads constitute the secondary system of roadtransportation in the country. The State Highways provide linkages with the NationalHighways, district headquarters, important towns, tourist centres and minor ports. Theirtotal length was about 1,37,711 km as at the end of March 2002. Major District Roadsrun within the district, connecting areas of production with markets, rural areas to the 31
  • 32. district headquarters and to State Highways/ National Highways. By acting as the linkbetween the rural roads and National Highways, the State Highways and Major DistrictRoads contribute significantly to the development of the rural economy. Construction and maintenance of SHs, MDRs and Rural Roads is undertaken by variousagencies in States and Union Territories. The size and spread of the road networkcomprising SHs and MDRs are reasonable but the standards and quality of these roadsare not adequate to cope with the growing traffic. Their conditions and state vary widelyfrom state to state due to a number of factors which include: inadequate finance and itsthin spread over a number of projects; weak management by contractors and; delay inpre-construction activities. With a view to augment the resources, funds are beingprovided from the Central Road Fund (CRF) by the Union Government for thedevelopment of State Roads. The funds from the CRF are provided for improvement ofState Roads other than rural roads. At present, the annual amount available from thissource is about Rs. 1560 crore. The state-wise distribution of this amount is done on thebasis of fuel consumption and geographical area of the state.c. Inter State Connectivity:To promote inter-state facilities and also to assist the State Governments in theireconomic development through construction of roads and bridges of Inter-state andeconomic importance, Central Government provides 100% grant for inter-stateconnectivity projects and 50% grant for projects of economic importance. This fund isalso made available from the CRF. An amount of about Rs. 170 crore per annum isavailable for development of the state roads under this scheme. d. Rural roads:Rural roads connect villages giving access to rural population to the National Highwaysthrough Major District Roads and State Highways. Around 59 per cent of the total roadlength is accounted by rural roads largely built under Jawahar Rojgar Yojna. These roadsare of limited value from the point of view of movement of heavy traffic. Roads are alsobeing developed in rural areas under the Pradahn Mantri Gram Sadak Yojana (PMGSY).The objective of PMGSY is to link all villages with a population of more than 500 peoplewith all-weather roads by the year 2007. This is being implemented by Ministry of RuralDevelopment. 32
  • 33. To ensure smoother traffic flow, it is important that provision is made for waysideamenities, maintenance and repair facilities and parking spaces along highways. Also, aCorridor Management Plan should be drawn up for major state highways so that theproblems of ribbon development, encroachments, uncontrolled access and poor safetycan be tackled. 6. Public Private Partnership (PPP)Traditionally, the road projects were financed only out of the budgetary grants andwere controlled/supervised by the Government. The road sector has attracted littleprivate sector participation in the past. The traditional system of financing roadprojects through budgetary allocation has proved to be inadequate to meet the growingrequirements of this sector. To encourage private sector participation, severalinitiatives have been taken by the Union Government; which include: - 1. Provision of capital subsidy up to 40% of the project cost to make projects commercially viable. 2. 100% tax exemption in any consecutive 10 years out of the first 20 years of a project. 3. Provision of encumbrance free site for work, i.e. the Government shall meet all expenses relating to land and other pre-construction activities. 4. Foreign Direct Investment up to 100% in road sector. 5. Higher concession period, (up to 30 years). 6. Right to collect and retain toll.The implementation of NHDP–III and NHDP–IV phases is to be mainly undertaken underPPP mode. The PPP projects are being implemented for the National Highways on BuildOperate Transfer (BOT) (Toll) and BOT (Annuity) basis. 7. Road Development in the Hilly Region including North Eastern Region and other isolated areas:The development of roads in the hilly region poses special problems due to difficultterrain, heavy precipitation, rich biodiversity, fragile hills, high seismicity, etc. Theseexternal constraints are compounded by shortage of technical personnel, limited working 33
  • 34. season, non-availability of contractors, difficulty in procuring road constructionequipment etc. These factors make road building activity difficult and expensive. Roadsserve as the principle mode of transport for movement of goods and passengers with ashare of over 90% in the total movement by surface transport in the region. TheNational Highways are the main arteries of this road network in this region. To addressthe special needs of the region, Government has approved a special project fordevelopment of roads in the North Eastern Region under Special Accelerated RoadDevelopment Programme - North Eastern Region (SARDPNE). This programme has beenmade for improving road connectivity to remote areas and places of strategic importancein the North Eastern Region. It envisages improvement of 3228 km of National Highwaysand 4388 km of state roads and roads of strategic importance. The total cost of theprogramme is estimated at Rs. 28,000 crore. This will also ensure connectivity of allDistrict Headquarters which are still not connected to the National Highways in theeight North Eastern states. Besides, the improvement of rural roads in the hilly regionhas also been taken up under the programme of Bharat Nirman and Pradhan Mantri GramSadak Yojana. This will help achieve road connectivity to all villages having a populationof 500 and above. Special construction technology to tackle the construction of roads inthe hilly regions would be adopted to ensure quality roads within a specific time frame.Newspaper Articles about Road Policy:1. New road transportation policies to bring cheer to Indian commercial vehicle industry: Frost & Sullivan (Economic Times, Sept 26 2012)New road transportation policies will bring order to the Indian commercialvehicle industry, according to Frost & Sullivan. The Government of Indias budget for FY2010-11 clearly point toward heavy investments in the Indian infrastructure segment,bringing cheer to the commercial vehicle (CV) market. Acknowledging the rising need forgreen initiatives, the government also mandated the use of compressed natural gas(CNG) for the registration of CVs in the metro cities.Commercial vehicle industry in India is fast catching up with the global emissionregulation trends, which will translate into world-class products with the implementationof Euro V and Automatic transmission standards by 2015.2. Policy on road safety soon (Times of India, Nov 24 2012) 34
  • 35. Rise in death toll in road accidents has forced the state government to chalk out acomprehensive policy on road safety. To formulate the policy, 10 state departments havebeen roped in and the policy draft is likely to be placed before the government by theend of this year."The issue is very close to chief minister Ashok Gehlots heart and he has asked thegovernment officials to work on it. He is monitoring the progress personally anddifferent department along with experts including the United Nations have beenconsulted," said a senior government official. Rajasthan is among the few states to havea road safety council. The state council was set up on the lines of the National RoadSafety Council under Section 215 of the Motor Vehicles Act, 1988. The main agenda ofthe council is to address the reasons behind road mishaps in the state.However, in the wake of the recent rise in accidents the government felt the need of alaw that could prove a major deterrent in curbing road accidents. According to the statepolice data for 2010, 24,302 accidents were registered in which 9,163 lives were lostand 31,033 injured. Between 2005 and 2010, 28,726 people were killed in road accidents.India: Highway and road projectsAlthough India has 3.3 million kms of roads only 1.5 million of it is paved and just 50,000kms of National Highways is used most heavily. 1. Golden QuadrilateralThe Golden Quadrilateral is a highway network connecting Indias four largestmetropolises: Delhi, Mumbai, Kolkata and Chennai, thus forming a quadrilateralof sorts.Four other cities amongs top ten metropolises: Bangalore, Pune,Ahmedabad, and Surat,are also served by the network, which connects many of the major industrial, agriculturaland cultural centres of India. The largest highway project in India and the fifth longestin the world it is the first phase of the National Highways Development Project (NHDP),and consists of building 5,846 km (3,633 mi) four/six lane express highways at a costof 60,000 crore (US$10.92 billion). The four-lane system was constructed between1999 and 2012, and is currently being expanded to six lanes throughout. The GQ projectis managed by the National Highways Authority of India (NHAI) under the Ministry ofRoad, Transport and Highways. The Mumbai-Pune Expressway, the first controlled-access toll road to be built in India is a part of the GQ Project though not funded byNHAI, and separate from the main highway. Infrastructure Leasing & FinancialServices (IL&FS) has been one of the major contributors to the infrastructural 35
  • 36. development activity in the GQ project. Then Prime Minister Atal Bihari Vajpayee laidthe foundation stone for the project on January 6, 1999. In January 2012, India announced the four lane GQ highway network ascomplete. Indias government had initially estimated that the Golden Quadrilateralproject would cost 60,000 crore (US$10.92 billion) at 1999 prices. However, thehighway has been built under-budget. As of August 2011, cost incurred by Indiangovernment was about half of initial estimate, at Rs 30,858 crore (US$5.62 billion). Theeight contracts in progress, as of August 2011, were worth Rs 1,634 crore (US$297.39million). In September 2009, it was announced that the existing four-lane highwayswould be converted into six-lane highways. 2. Pradhan Mantri Gram Sadak Yojana vor PMGSY The Pradhan Mantri Gram Sadak Yojana or PMGSYis a nationwide plan in India toprovide good all-weather road connectivity to unconnected villages. It is under theauthority of the Ministry of Rural Development and was begun on 25 December 2000.The goal was to provide roads to all villages (1) with a population of 1000 persons andabove by 2003, (2) with a population of 500 persons and above by 2007, (3) in hill states,tribal and desert area villages with a population of 500 persons and above by 2003, and(4) in hill states, tribal and desert area villages with a population of 250 persons andabove by 2007. Empowering rural India through the strategic provision of all-seasonroad access has emerged as one of the key priorities for the Government of India. TheEleventh Five Year Plan (2007–12), and the Tenth Plan before it, recognised that ruralconnectivity is a key component of rural development and poverty alleviation in India.The main mechanism for enhancing rural connectivity in a more systematic way has beenthe Pradhan Mantri Gram Sadak Yojana (PMGSY), a Centrally Sponsored Scheme (CSS). 3. National Highways Development ProjectThe National Highways Development Project is a project to upgrade, rehabilitate andwiden major highways in India to a higher standard. The project was implemented in1998. "National Highways" account for only about 2% of the total length of roads, butcarry about 40% of the total traffic across the length and breadth of the country. Thisproject is managed by the National Highways Authority of India (NHAI) underthe Ministry of Road, Transport and Highways. The NHAI has implemented US$ 71billion for this project, as of 2006. 36
  • 37. 4. Yamuna Expressway Yamuna Expressway formerly known as Taj Expressway, is a 6-lane (extendable to 8lanes), 165 km long, controlled-access expressway, connecting GreaterNoida with Agra in the Indian state of Uttar Pradesh. It is Indias longest six-lanedcontrolled-access expressway stretch. The total project cost was Rs12,839 crore (US$2.34 billion). The Yamuna Expressway was formally inaugurated on 9August 2012 by Chief Minister Akhilesh Yadav, about two years of delay from its originaltarget completion date. The Taj Expressway project was announced in 2001 by Mayawati,then UP Chief Minister. It was conceived with the idea of reducing the travel timebetween Delhi and Agra. But the project could not start because of a change ofgovernment in the state in 2003. The project was reactivated in 2007 whenMayawati regained power and was renamed Yamuna Expressway. Yamuna Expressway project was implemented by Jaypee Group. In May 2012, JaypeeGroup informed state government officials that construction of the expressway hadbeen completed. The Yamuna Expressway was formally inaugurated on 9 August 2012 byChief Minister Akhilesh Yadav, via videoconference from Lucknow, about two yearsahead of its original target completion date. 5. Delhi Western Peripheral ExpresswayDelhi Western Peripheral Expressway, or Kundli-Manesar-Palwal (KMP Expressway), is a135.6 km (84.3 mi) long Expressway being constructed in the Indian state of Haryana.The expressway will act as a Delhi bypass for traffic coming from north of Delhi on NH1 and going to south of Delhi on NH 2 or west of Delhi on NH 8. KMP Expresswaysconstruction started in 2007 and it was planned to become operational by 29 July 2009at the cost of INR Rs.17.6 billion but the construction by the contractor, Darshan SinghConstruction Company (DSC), has been so tardy that the expressway will not be readyeven partially before second half of 2013 and the cost may escalate to Rs.25 billion.The construction company assured the Haryana government in October 2010 that the53 km long stretch of the expressway from Manesar to Palwal would be completed byMarch 2011. However, the stretch had not opened for traffic even by the end of 2012and may not be ready before mid-2013. Work had been completed only on 48 km sectionby August 2012. 37
  • 38. 3. Water Ways: Introduction: Since time immemorial India has been well known for its sea faring activities.Waterways are the cheapest form of transport suitable for carrying heavy and bulkygoods. It is a fuel efficient and environment friendly means of transport. Watertransport in India is mainly confined to navigable rivers, canals and backwaters. Most ofthe rivers in Peninsular India are seasonal so the Ganga and Brahmaputra are the onlytwo rivers which are navigable. India has a long coastline of 7,516.6 kms and has 12major ports and nearly 200 minor ports. India has about 14,500 km of navigablewaterways, which comprise of rivers, canals, backwaters, creeks, etc. About 55 milliontones of cargo are being moved annually by Inland Water Transport (IWT), in a fuel-efficient and environment-friendly mode.Policies in 12th Five Year Plan There has been a consistent decline in the share of Indian ships in the carriage ofIndia‘s overseas trade from 31.5 per cent in 1999–2000 to 13.7 per cent in 2004–05 andfurther to 7.95 per cent in 2010–11. There is a need for policy intervention to arrestthis declining trend. Indian shipping fleet is characterised by the predominance of oiltankers and bulk carriers. While as on 31.03.12, oil tankers account for 63.76 per cent ofthe Deadweight Tonnage (DWT), bulk carriers account for 28.77 per cent, with all othervessel types such as liner vessels, OSVs and so on accounting for a mere 7.47 per cent. 38
  • 39. 1. Establishing P&I ClubIn present day scenario, maritime insurance of ships, wreck removal, dealing withmaritime both for the ship and seafarers are organised by P&I Clubs of foreign origin.Establishing P&I Club in India should not only increase trade but would also augmentforeign exchange earnings when these clubs are used by foreign companies. It istherefore proposed to establish one P&I Club in Indian League by the year 2015 and onemore in the IG League by the year 2020. 2. Strengthening Participation in IMOThe increasing number of International Codes and Conventions, emanating from theInternational Maritime Organization (IMO), have changed the maritime traderelationships between nations and also created a whole new statutory structure formaritime countries. 3. Navigational Safety in Port Committee (NSPC)The scope of NSPC may be extended to major as well as non-major ports and the dutiesshould include port navigational safety issues, cargo related safety aspects, oversightfunction of oil pollution response mechanism, reception facilities in the ports, and so on.For the protection of the environment, it may be necessary to develop a ‗Ballast WaterManagement System‘ in accordance with the requirements of International Conventionfor the Control and Management of Ships as adopted by the IMO in 2004, along with thedevelopment of waste disposal facilities in ports.Ports and waterways - the future courseThe importance of ports in India can be gauged by the fact that they handle 95% byvolume and 70% by value, the countrys international trade. India has a total of 187minor ports and 13 major ports spread across the nine maritime states. 39
  • 40. 1. Ports According to the Planning Commission, total capacity of the port sector is envisaged todouble to 2,302 million tonne, to meet the overall projected traffic of 1,758 milliontonne by 2016-17. The 12th Five Year Plan (2012-17) document says, "The trafficforecast by the end of the 12th Plan would be 943 million tonne and 815 million tonne forthe major and non-major ports respectively with corresponding port capacities of 1,242million tonne and 1,060 million tonne respectively." In 2011-12, total capacity of thecountrys ports, including 12 major and over 200 non-majors, stood at 1,247 million tonneand they together handled 971 million tonne of cargo. In the 12th Five Year Plan the Government of India hasproposed to invest Rs 160,559 crore for development of various projects in port sectorand inland waterways. An amount of Rs 73,794 crore has been allocated for developmentof various projects in port sector.The total investment during the Twelfth Plan is nearly three-time as compared to Rs49,551 crire spent in the Eleventh Plan. Of the total Rs 160,559 crore, Rs 17,055 croreor 11% is projected to be contributed by the Centre while the state will contributeanother 3% or Rs 4,594 crore. A major chunk 86% of investment is expected fromprivates sector which is projected to bring in Rs 139,000 crore.In 2012-13, 25 projects have been identified for award at various Major Ports in thecountry under Public Private Partnership (PPP) mode. Recently, the Prime Minister DrManmohan Singh has set the target for the Ministry of Shipping to award projects thatwill create 244 million tonne of capacity during 2012-13 spread across 42 projects at anestimated cost of Rs 14,500 crore. The target also include, obtaining approval ofestablishing two new Major Ports - one in Andhra Pradesh and another in West Bengal.The ten-year plan is known as Maritime Agenda 2010-2020 was announced a couple ofyears ago with a combined US$ 110 billion package to develop ports and shipbuildingindustry by 2020. It intended to take the ports capacity to 3,200 million tonne by 2020.The port sector under the new agenda would invest US$66 billion, of which the majority 40
  • 41. is expected from private investors. The government is of the belief that private sectorwill handle 50% of the countrys cargo by 2015.The Maritime Agenda 2010-2020 has set the goals as follows: 1. Upgrade ports at par with the best international ports in terms of performance and capacity, 2. Create a port capacity of around 3,200 million tonne to handle the expected traffic of about 2,500 million tonne by 2020 3. Increase the tonnage under the Indian flag and Indian control and also the share of Indian ships in the country‘s foreign trade, 4. Promote coastal shipping to decongest inland roads and is environment friendly 5. Increase Indias share in global ship building to 5 from the current 1%, 6. Increase the share of Indian seafarers from 6-7% to at least 9% in the global shipping industry by 2015. 2. Waterways: There are 14,500 km of navigable and potentially navigable inland waterways in the country of which the following five inland waterways have been declared as National Waterways: 1. National Waterway-1: Allahabad-Haldia stretch of the Ganga-Bhagirathi-Hooghly river (Total length-1620 km) in the states of Uttar Pradesh, Bihar, Jharkhand and West Bengal 2. National Waterway-2: Sadiya-Dhubri stretch of the Brahmaputra river (Total length-891 km) in the state of Assam 3. National Waterway-3: Kollam-Kottapuram stretch of West Coast Canal and Champakara and Udyogmandal canals (Total length-205 km) in the state of Kerala 4. National Waterway-4: (Total length-1027 km) in the states of Andhra Pradesh and Tamil Nadu and the Union Territory of Puducherry 41
  • 42. 5. National Waterway-5: (Total length- 588 km) in the states of West Bengal and OrissaPolicy guidelines: The Government of India is focusing on port infrastructure development in thecountry and is promoting private participation and foreign direct investment (FDI). 100per cent FDI is allowed under the automatic route for: 1. Leasing of existing assets of ports 2. Construction/ creation and maintenance of assets such as-container terminals bulk/ break bulk/ multi-purpose and specialised cargo berths, warehousing, container freight stations, storage facilities and tank farms, cranage/ handling equipment, setting up of captive power plants, dry docking and ship repair facilities 3. Leasing of equipment for port handling and leasing of floating crafts 4. Captive facilities for port based industries 5. The Shipping Ministry is also considering removing fixing tariffs for major ports, passing responsibility for this to the ports themselves. Instead, a new regulator for the sector will be appointed who will be responsible for setting, monitoring and regulating service levels as well as technical and performance standard. 6. The guidelines for private sector participation in the Major Ports was issued in October, 1996 which allows and encourages private participation including Multi- National Companies (MNCs) in enhancing port capacities and modernization of port equipments etc. 42
  • 43. 4. Air Ways: Introduction: On 28th May 1953 - with the enactment of the Air Corporations Act, 1953 -Government of India nationalised the airline industry. In accordance with this Act, twoair corporations, viz. Indian Airlines Corporation and Air India International, wereestablished and the assets of all the then existing air companies (nine) were transferredto the two new Corporations. The Indian civil aviation industry proudly celebrated 100years of its existence. The 12thPlan has propelled the Indian aviation sector on a highgrowth path. Both passenger and cargo traffic have shown robust growth and there hasbeen modernization and augmentation of capacities, in a major way, at various metro andnon-metro airports. In FY 11, India has already made its place among the 10 largestaviation markets of the world. There is need now to consolidate the gains and furtherincrease the airtravel penetration in India. Under this backdrop, the vision for Indiancivil aviation industry for the new civil aviation policy period should be:―To handle morethan 300 million passengers and propel India among the top three civil aviation marketsin the world by 2020 ‖ In order to facilitate this significant growth potential, India will need moreairports, higher capacity, supporting infrastructure, finance and human resources. Allthis would require progressive policies and collaborative approach between thegovernment, industry and the public at large. 43
  • 44. .FDI by foreign carriers in Indian aviation: The proposal to allow 49% FDI by foreign airlines has been moved to thecabinet, which will take it up shortly. FDI by foreign airlines is a significant decision andcan play a crucial role in improving the aviation landscape in India. Apart from the muchneeded fund infusion, it would also provide access to global routes, managerial expertiseand synergy benefits .For global airlines, it is a great opportunity to enter one of thefastest growing aviation markets in the world.Hub Policy: Government wants India as emerge as a major regional aviation hub. However,infrastructure has been a major handicap in the way of India emerging as a regional hubfor aviation. Other major obstacles to having a hub in India include an inability toattract passengers, saturated airports and the poor health of Indian airlines. There isalso a lack of efficient connectivity between the domestic and international terminalsmade transfers from domestic to international flights (and vice versa)enablers requiredto make India global aviation hub are: 1. Enable an open bilateral regime to stimulate competition and traffic growth as shown by the global hubs of Singapore and Dubai. It can be instrumental in bringing down the overall cost of travel and promoting economic growth. 2. Initiate broader partnership involving alliance partners, regulators, airport operators and local authorities. 3. Embark on a marketing overreach program by attracting airlines and freighters to set up base in India.POLICY GUIDELINES FOR STARTING SCHEDULED/ NON-SCHEDULED AIR TRANSPORT SERVICESCATEGORIES OF AIRTRANSPORT SERVICES Scheduled Air Transport Service:Scheduled Air Transport Service means an air transport service undertaken between thetwo or more places and operated according to a published time table or with flights so 44
  • 45. regular or frequent that they constitute a recognizably systematic series, each flightbeing open to use by members of the public. Detailed requirements are specified in CivilAviation Requirements (CAR) Section 3 Air Transport Series ‗C‘ Part II dated 1st March1994. Non-Scheduled Services: Non-Scheduled Operation means an air transport service other than scheduled airtransport service and that may be on charter basis and/or non-scheduled basis. Theoperator is not permitted to publish time schedule and issue tickets to passengers.Detailed requirements are specified in Civil Aviation Requirements (CAR) Section 3 AirTransport Series ‗C‘ Part III dated 8th October 1999 and Part V dated 17th May 2000for passenger and Charter operations, respectively. 1. Equity from foreign airlines is not allowed, directly or indirectly, in the domestic air transport services. 2. On receipt, the applications are scrutinised in the DT (Domestic Transport) Section of the Ministry for any, prima-facie, and deficiency. 3. After the application is found complete in all respects, it is circulated to the members of the Committee for comments. 4. The applications are considered in the meeting of the Committee, which is usually held on a monthly basis. 5. The Committee is empowered to decide all applications for issue of NOC for nonscheduled services and for import of aircraft by both scheduled/non- scheduled operators. In case of NOC for scheduled services, the recommendations of the Committee are submitted to the Secretary (Civil Aviation) for approval. The final decision is, thereafter, communicated to the applicant by the Ministry/ DGCA. 6. NOC holder for Scheduled/Non-Scheduled Operations is given permit by DGCA after completion of all requirements laid down in the guidelines / instructions. 45
  • 46. Conclsuion: Government Transport Policies has gone long way in improving transportation system in ourcountry India. One of the main factors in India success is improvement in various modes oftransport from railways to airways. Government policies to build highways, railways tracks,airports are making India progress towards the path of development and success. India‘sEleventh Five Year Plan identifies various deficits in transport sector which include inadequateroads/highways, old technology, saturated routes and slow speed on railways, inadequate berthsand rail/road connectivity at ports and inadequate runways, aircraft handling capacity, parkingspace and terminal building at airports. Government aims to modernize, expand, and integratethe country‘s transport services. It also seeks to mobilize resources for this purpose and togradually shift the role of government from that of a producer to an enabler. In recent years,the Government has made substantial efforts to tackle the sector‘s shortcomings and to reformits transport institutions. The government has overcome the shortcomings of Eleventh Five YearPlan in Twelfth Five Year Plan. In recent years, the Government has made substantial efforts totackle the sector‘s shortcomings and to reform its transport institutions. This includes: 1. Increasing public funding for transportation in its Five Year Plans. 2. Launching the ambitious National Highway Development Program which has seven phases and is expected to be completed by 2014. It includes improved connectivity between Delhi, Mumbai, Chennai and Kolkata, popularly called the Golden Quadrilateral, in the first phase, North- South and East- West corridors in phase two, four laning of more than 12,000 km in phase three, two laning of 20,000km and six laning of 6,500 km respectively in phase four and five, development of 1,000km of expressway in phase six and other important highway projects in phase seven. Total expected investment is INR 2.2 trillion. 3. Accelerated Road Development Program for the North East Region to provide road connectivity to all State capitals and district headquarters in the region. 4. Financing the development and maintenance of roads by creating a Central Road Fund (CRF) through an earmarked tax on diesel and petrol. 5. Operationalising the National Highway Authority of India (NHAI) to act as an infrastructure procurer and not just provider. 6. Improving rural access by launching the Pradhan Mantri Gram Sadak Yojana (Prime Minister‘s Rural Roads Program). 7. Reducing the congestion on rail corridors along the highly trafficked Golden Quadrilateral and improving port connectivity by launching the National Rail Vikas Yojana (National Railway Development Program) 46
  • 47. 8. The development of two Dedicated Freight Corridors from Mumbai to Delhi and Ludhiana to Dankuni.9. Improving urban transport under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).10. Upgrading infrastructure and connectivity in the country‘s twelve major ports by initiating the National Maritime Development Program (NMDP).11. Privatization and expansion of the Mumbai and New Delhi Airports and development of new international airports at Hyderabad and Bangalore.12. Enhancing sector capacity and improving efficiencies through clear policy directive for greater private sector participation. Large parts of the NHDP and NMDP are to be executed through public private partnerships (PPP). 47
  • 48. Weblography: 1. 2. 3. 4. 5. 6. 7. 8. www.indianexpress.comBibliography:1. Indian Economy book by Misra Sk & Puri VK2. Indian Economy book Dutt Rudra & Sundaram KPM 48
  • 49. 49