Open Forum

New Delhi, 30 June 2015

Roads Infrastructure

KEY TO ECONOMIC GROWTH

By Dhurjati Mukherjee

The need for rapid infrastructure development, specially roads and highways, is imperative at this juncture. In fact, Prime Minister Modi is reviewing the measures to do the same as existing highways need upgrading along-with building new links to connect remote areas in the hinterland. Given that connectivity is the key to rural transformation to enable the country make rapid strides on the economic front. 

Already, the Union Highway Ministry has identified 123 district headquarters which are not linked to the national highway network for development. As part of its National Highway Development Programme, most of these stretches are expected to be upgraded to match NH standards.

The Government has also drawn up a plan to connect 2000 km of underdeveloped non-Naxal belt areas in Uttar Pradesh, Madhya Pradesh, Gujarat and Rajasthan to the national highway network on an urgent basis.

Alongside, plans are afoot to link religious places such as Nanded and Katra also to national highways. Towards that end, the Roads and Tourism Ministries have prepared a coordinated plan. Other tourist centres like Varanasi are also expected to improve their roads network.

Undeniably, the one-time fund infusion of Rs 4000 crores by the National Highways Authority of India (NHAI) is expected to breathe fresh life into 16 projects which were stalled due to a monetary crunch. Despite, nearly 50 per cent work having being completed.

Besides, the Government has initiated plans whereby 60 per cent of the project cost will come from private investors and the remaining 40 per cent would be made available from the NHAI as private investment in the roads sector is not forthcoming. Recently, as part of the Bharat Mala programme, the NHAI has invited tenders for preparing DPRs of over 3500 km roads along the border and coast lines.

Rajasthan, Tamil Nadu & Puducherry, Uttarakhand, Odisha, Gujarat and Punjab would get substantial portion of this network. In each stretch/package, 80 per cent of roads would be two-lane with paved shoulders and 20 per cent of length four-lane.  The overall investment is estimated to be around Rs 50,000 crores.

Meanwhile, in a new development, developers have been allowed to divest their entire equity from projects where toiling is on for over two years and apply for 80 public-private partnership projects. Out of the 115 PPP projects in the highway sector, 80 meet the new criteria.

True, Prime Minister Modi has allowed developers to avail this scheme, but the Ministry would have to keep track of whether this equity is being utilized in the proper manner. 

Pertinently, earlier this year, the Government launched a new company National Highways & Infrastructure Development Corporation  (NHIDCL) for developing and widening 3600 km road with a Rs 34,000 crores investment to fast-track road construction in the North East and border areas. According to Road Minister Nitin Gadkari more tranches would be handed over to the company for building roads, tunnels and bridges in rough terrains and hilly areas.

The NHIDCL also plans to improve road connectivity in international trade corridor by expanding about 500 km by roads in north Bengal and the North Eastern region to enable efficient transport with South Asia Sub Regional Economic Corporation countries.  

While all these programmes underscore the Government’s intent, only the implementation would show the sincerity of the authorities. Given, that Modi would like to replicate the success of Vajpayee Government’s mega road-building projects.

Gadkari   wants to push construction of 17-18 kms per day by the end of 2015-16 and cross 20 km per day during the next fiscal. Notably, if the Ministry can achieve this sans corruption, a tall order, the Government would accomplish a crucial yardstick in rejuvenating rural and semi urban areas.

Remember, China’s rapid growth is partly due to its vast network of roads throughout the country. Thus, increasing connectivity is vital for India’s economic and social growth. Today, the country boasts of over 24,000 kms recently built 4 or 6-lane highways connecting many major manufacturing, commercial and cultural centres.

Add to this, private operators are also implementing major projects. An example: Yamuna Delhi-Agra Expressway was completed ahead of schedule and within budget. Yet, the KMP Expressway started in 2006 is far behind schedule, over-budget and incomplete, thanks to a slow-down of construction.

Nevertheless, India has a road network of over 4,689,842 kms (2,914,133 miles), the second largest road network in the world. At 0.66 km of roads per square km of land, the quantitative density of road network is similar to that of the US (0.65) and higher than China’s (0.16) or Brazil (0.20).

However, qualitatively India's roads are a mix of modern highways and narrow, unpaved roads which need improvement. As of 2011, 54 per cent, roughly 2.53 million kms roads were paved which is slated to rise around 59 per cent. 

Recall, in 2009 Goldman Sachs had estimated that India would need US$1.7 trillion investment on infrastructure projects before 2020 to meet its economic needs, a part of which would be in upgrading the road network, for which foreign investment would be welcome. Already, 45 international contractors and 40 design/engineering consultants have shown interest from Malaysia, South Korea, UK and US.

Clearly, as roads development is the backbone of economic development, the Government should make available adequate funds along-with strict monitoring to ensure targets are reached within this financial year. ----- INFA

(Copyright, India News and Feature Alliance)