National transport development policy committee final report

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Transport Research Wing

Ministry of Road Transport & Highways

Government of India

May 2012

Working Group on Roads for

National Transport Development Policy Committee
Terms of Reference

  1. Determine the role of road transport in meeting transport requirements of the economy over the next two decades, keeping in view the need to

  1. Conserve energy and protect the environment,

  2. Promote development of remote and inaccessible areas through universal connectivity,

  3. Promote safety and sustain future quality of life,

  4. Create an optimal intermodal mix.

  1. Estimate the growth in road traffic, passenger and freight, by 2020 and 2030 in the context of economic, demographic and technological trends at local, national and global levels.

  1. Consistent with the above, assess the current capacity and required capacity in future, of the physical road infrastructure. The requirements may be grouped into different categories:

  1. Expressways

  2. National Highways

  3. State Highways and Major District Roads

  4. Rural Roads – both PMGSY and non-PMGSY

(urban road requirements would be addressed by the working group on urban transport).

The following aspects may also be kept in view while assessing the requirements:

  1. Universal rural connectivity.

  2. Special problems of remote, difficult and border areas including the north-east region.

  3. Road connectivity with ports, power plants, water fronts.

  4. Road connectivity with neighbouring countries.

  5. Development of regional and international road corridors.

  1. In light of the above,

  1. Assess the investment required to achieve the projected road traffic growth.

  2. Identify sources of funding and assess fund requirements from budgetary, non-budgetary and private sources for different areas in road infrastructure.

  3. Identify areas for PPP and the requirement of private and public funding in these areas.

  4. Examine the existing PPP policy framework and policy initiatives including the regulatory and institutional framework, and suggest changes necessary to attract greater private investment.

  5. Suggest measures for greater commercial orientation of road transport services.

  1. Assess the full costs of road transport, including the costs of externalities, and suggest appropriate pricing regimes, both direct and indirect, including institutional arrangements for rational pricing.

  1. Estimate the energy requirements necessary for road infrastructure and suggest measures to put the road construction and road transport sector on a sustainable low carbon path, promoting energy efficiency, emission reduction and environment protection.

  1. Review status of road quality and safety measures and ways to ameliorate road accidents and make roads more user friendly.

  1. Assess the availability of human resources for the road sector and suggest measures for skill development and institutional capacity building for various stakeholders.

  1. Suggest measures for promotion of research and development and technology upgradation in the road transport sector, including institutional development.

  1. Indicate broad areas and investment for IT in road transport to improve customer interface/satisfaction and internal efficiency.

  1. Suggest measures for speedy acquisition of land for roads, along with rehabilitation and resettlement of persons affected.

  1. Identify data deficiencies in road transport and suggest measures for improving, maintaining and updating the database, including institutional measures.

  1. Assess the current industry structure, including the role played by the public and private sectors and suggest policies to promote adequate competition in road transport with the objective of enhancing access and affordability.

  1. Examine the barriers to free flow of road freight traffic and suggest measures to promote seamless movement of road freight across India, including in particular the use of IT.

  1. Suggest measures towards consolidation and preservation of road assets.

  1. Identify social disconnects arising out of construction of roads and suggest measures for their mitigation.

  1. Suggest measures for upgrading and modernizing the trucking industry.



Secretary (Road Transport & Highways) - Chairman


Shri S. Sundar, Member, NTDPC


Shri D.P. Gupta, Member, NTDPC


Member Secretary/Co-ordinator, NTDPC


Chairman, National Highway Authority of India (NHAI)


Director General, Roads, Ministry of Road Transport & Highways


Principal Secretary (Transport), Government of Andhra Pradesh


Principal Secretary (PWD), Government of Assam


Joint Secretary (Road Transport), Ministry of Road Transport & Highways.


Joint Secretary (Rural Roads), Ministry of Rural Development


Professor Geetam Tiwari, Indian Institute of Technology, Delhi


Shri Partha Mukhopadhyay, Centre for Policy Research, New Delhi.


Shri Athar Shahab, Dy. MD, IDFC Projects and Chairman, CII Roads Committee


Shri O.B. Raju, MD, GMR Highways Pvt. Ltd., Bengaluru.


Shri Parvesh Minocha, MD, Transportation Division, Feedback Ventures


Representative of financial sector (nominated by Secretary, Department of Financial Services)


Representative of IT sector


Adviser (Transport Research), Ministry of Road Transport & Highways - Convenor

Chapter I


    1. Introduction

1.1.1 Improvements in road transport can be expected to have important economic effects. Lower costs or better service, or both, in road transport have a positive effect on all firms engaged in the production, distribution, trade and/or retail sale of physical goods. Reducing the per kilometre cost of goods carriage means that any production or distribution facility can serve a wider market area, with potential gains from scale efficiencies. It also means a factory can draw supplies from a wider area with potential gains in terms of the cost and/or quality of inputs coming to the factory.

1.1.2 Although improvements in road transportation have important economic ramifications, freight transportation enhancements that reduce the costs of moving goods (and services) to and from markets are critical to economic expansion. This is because the movement of goods is what economists term a factor input in the production of goods. Much like labour and capital, transportation costs affect directly the price of goods and services and the profits of products. Consequently, investments that reduce the cost of moving goods and people to and from markets (via improvements in reliability, transit times, service levels, etc.) can help to increase and sustain economic growth. In effect, the efficiency and reliability of the road transportation system affects economic productivity, and many economists would argue that productivity is the most important determinant of economic performance.

1.1.3 Improvements in the freight transportation system globally have made it possible for innovative producers to provide a high level of service to retail customers while holding inventories at low levels. One of the best examples of this is the system of on-line ordering of custom configured computers combined with just-in-time (JIT) delivery of components and tight control of inventory developed by electronic and auto sectors. The JIT system provides a high level of customer service with a dramatic reduction in inventory levels and costs. This chapter provides an overview of broad contours of policy framework to achieve an efficient road transportation system in the country to sustain an overall growth of 9 % over the medium term.
1.2 Projected Road Freight and Passenger Traffic

1.2.1 The growth in road freight and passenger traffic has been estimated up to 2029-30 assuming four different scenarios. The first one assumes ‘Business As Usual’, implying that the rates of growth of freight and passenger would remain the same, as has been observed in the past. The other three are based on elasticity of road freight and passenger traffic with respect to Gross Domestic Product (GDP), in conjunction with three variants of growth rates which have been assumed (Table 1.1).

Table 1.1: Projected Road Freight and Passenger Traffic



Scenario I

Scenario II

Scenario III






















































Notes: Business As Usual (BAU): Freight traffic is assumed to grow at 5.3% per annum. Passenger traffic is assumed to grow at 13% per annum.

BTKM: Billion Tonne Kilometre

BPKM: Billion Passenger Kilometre

Scenario I: staggered GDP growth over the horizon

Scenario II: GDP growth of 9 per cent

Scenario III: GDP growth of 9.5 per cent

Elasticity of freight transport assumed at 1.2.

Elasticity of passenger transport assumed at 1.9.

1.2.2 The expansion in the road network across various categories of roads has been worked out by keeping in view the expected growth in the different categories of vehicles and growth in road freight and passenger traffic, in particular. On the basis of the trend of growth during 2004 to 2009, it is estimated that the vehicles on the inter-city highways will witness a 4 to 22 fold growth during 2009 to 2031.

1.3 Strategy

1.3.1 Road Network

  • Primary emphasis on consolidation of existing networks rather than expanding it.

  • Promote energy efficient and more environment friendly travel with enhanced safety;

  • Develop Expressway Network to provide unhindered movement of traffic;

  • Develop road corridors necessary for Investment Regions and Investment Areas;

  • Develop multi-modal connectivity particularly road access to the airport and to ports;

  • Develop State roads in Scheduled Areas;

  • Improve road connectivity in Left Wing Extremism (LWE) affected areas;

  • Develop fully access controlled facilities, whenever 2-lane NHs are upgraded to 4-lanes;

  • Plan for bypasses in cities with population above 1 million on the NH Network;

  • Setting up a Bridge Management System for formulating maintenance strategies;

  • Identify a Core Network of major arterial routes, with a Corridor Concept;

  • Provide urban linkages to National Expressways;

  • Four-laning of existing SH on high density corridors;
  • Upgradation of entire SH to at least 2-lane standards;

  • Address the issue of inadequate allocation for Maintenance and Repair (M&R) of NHs;

  • Make highway designs in tune with the international best practice;

  • Make Road Safety Audit (RSA) an integral part of any road project.

1.3.2 Energy, Environment, Technology & Modernization of Trucking Industry

  • Improve operating efficiency of trucks on highways;

  • Develop end of life regulations of vehicles for future implementation in India;

  • Establish commercially viable recycling centres;

  • Incentivize scrapping of old vehicles;

  • Ensure optimum investment and operating costs for scrapping infrastructure;

  • Ensure appropriate generation, storage and dissemination of data of scrapped vehicles;

  • Have the provision of real-time traffic information in vehicles;

  • Introduce electronic toll collection on all major highways/expressways;

  • Initiate public transportation information system in major cities;

  • Introduce adaptive traffic signals, congestion charging, parking guidance;

  • Install weighing-in-motion of goods carriage vehicles on roads;

  • Adapt electric buses in urban areas;

  • Encourage use of natural gas for vehicle transportation to reduce pollutants;

  • Focus on improving fuel economy of heavy commercial vehicles;

  • Promote research in renewable sources;

  • Introduce uniform fuel quality and uniform emission standards throughout the country;

  • Follow a road map of propagation of clean diesel, alternative fuels and electric mobility
  • Introduce a time lag of at least five years between successive stages of emission norms;

  • Maintain an emission inventory database for facilitation of storage and retrieval of data;

  • Make inspection and certification mandatory for all motor vehicles;

  • Make retirement compulsory for vehicles which do not obtain road worthiness certificate;

  • Curb fuel adulteration;

  • Strengthen fuel delivery infrastructure;

  • Establish traffic injury surveillance systems at hospitals and medical;

  • Develop a highway crash data system to monitor the details of vehicle and road design;

  • Develop three or four multidisciplinary crash investigation centres and personnel trained;

  • Implement uniform bus body and truck codes throughout the country;

  • Encourage bus and truck body manufacturers for technology upgradation;

  • Develop institutional structure of I&M regime;

  • Phase I/C regime through a nodal agency;

  • Audit Vehicle Inspection Centres.

1.3.3 Road Safety and HRD

  • Initiate a systems approach;

  • Coordinate with health, law, transport, police, insurance agencies, NGOs and road agencies;

  • Main thrust of accident prevention and control on 4 E’s.

1.3.4 IT and Data Issues

  • Apply IT to roads and road transport sector.

1.3.5 Public transportation and Seamless Freight and Passenger Movement
  • Rationalise tax structure in passenger transport;

  • Inter-modal integration;

  • Give primacy to mobility to ensure access of people to socio economic services;

  • Facilitate speedy finalization of the inter-State agreements;

  • Free movement of personalized vehicles;

  • Adopt a single window clearance system for all authorized charges;

  • Revive SRTUs.

1.3.6 Rural Roads

  • Follow a need-based approach

  • Strengthen institutional arrangement and contracting capacity

  • Explore the possibility of PPP


1.4.1 Expansion of Road Network

  • It is proposed to develop a total Expressway Network of about 18,637 km by 2031.

  • Keeping in view the targeted economic growth of 9% or more, it is desirable to aim at achieving an average grid length of about 60 km for NH Network in the country by 2031. This would require the total NH network length of about 100,000 km by 2031.

  • Investment approval of Rs. 10,700 crore for development of 8,014 km road stretches under Road Requirement Plan (RRP) phase II spread over 34 districts in 8 states is proposed to be obtained. The development of roads under Phase II of RRP is likely to be completed by March, 2017.

  • Complete all the works under Vijayawada-Ranchi route by March, 2015.
  • Upgrade about 4,958 km length of stretches of NHs which are less than 2-lane standards to 2-lane standards following Corridor Development Approach by December 2014 through budgetary resources and also through possible Loan Assistance from the World Bank.

  • While identifying the specific linkages, emphasis is required to be given to the following:

  • Providing linkages with minor ports, industrial towns, pilgrimage and tourist centres;

  • Connecting the remaining towns with population 5000 and above;

  • Connecting the capitals of the newly carved out States with the district headquarters.

  • Develop the balance length of about 9,129 km under SARDP-NE and Arunachal Package on priority.

  • Develop 4-lane road connectivity for 3 Investment Regions (IRs) (minimum area of over 200 sq. km) and Investment Areas (IAs) (minimum of 100 sq. km) on pilot basis, viz. Dighi Port connectivity and Shendra - Bidkin Mega Industrial Park connectivity in Maharashtra and Neemrana-Khushkhera-Bhiwadi Investment Region in Rajasthan.

  • Develop road connectivity for the remaining 11 IRs / IAs.

  • Develop roads in Jammu & Kashmir under a Special Package.

  • Provide road connectivity to non-major ports.

  • Develop road connectivity to 24 airports which need creation of new approach roads, widening of existing approach road, provision of flyovers with clover leaves and grade separators to de-congest and streamline the moving traffic at road junctions etc.

  • Develop about 4,000 km length of roads to 2-lane standards in Scheduled Areas in the States of Andhra Pradesh, Himachal Pradesh, Gujarat, Odisha, Rajasthan, Maharashtra, Chhattisgarh, Madhya Pradesh and Jharkhand.
  • Initiate detailed investigations on the promising corridors of expressways to fix up alignment and start the process of freezing land.

  • Explore the possibility to take up the development to proper 2-lane NH standards of at least 40 % of the total stretches on BOT basis.

  • Develop an institutionalized system of database which would be capable of maintaining and updating the details of investments made historically for developing and maintaining a road.

  • Apart from the ongoing phases of NHDP (viz. NHDP-Phases-I to VI and NHDP-Phase-VII), upgrade about another 25,000 km length of NHs to 4-lane divided carriageway facilities or more.

  • Improve the riding quality of about 30,000 km of NH during 20 year horizon.

  • Provide urban linkages at every toll plaza (having closed system of tolling) located at about 50 km apart along National Expressways Network, and an average length of about 10 km for each such urban linkages.

  • Achieve a target of 50 per cent of MDR roads (i.e.119,025 km) to be widened to two-lane standards in the next 20 years.

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