road tra - ministry

7/27/2019 Road Tra - Ministry

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An OverviewROAD NETWORK OF INDIA

Category of road Length in KmTotal road network 3.34 millionNational Highways 65,569State Highways 1,30,000Major Distt. Road, Rural

road & Urban road 3.14 million

India having 3.34 million kilometers of road network is the second largest in theworld.

As per present estimate, road network carry nearly 65% of freight and 85% ofpassenger traffic.

Traffic on roads is growing at a rate of 7 to 10% per annum while the vehiclepopulation growth is of the order of 12% per annum.

Authorities responsible for different categories of roads are:Category of Roads Authorities responsible

National Highways Central Government (through Ministry of RoadTransport and Highways)

State Highways and

Major Highways State Governments (PWDs)

Rural Roads andUrban Roads Rural Engineering Organisations,Local Authorities like Panchayats and

MunicipalitiesNATIONAL HIGHWAYS

Ministry of Road Transport and Highways is responsible for development &maintenance of National Highways.

The total length of National Highways in the country at present is 65,569 km


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This comprises only 2 per cent of the total road network, but carries over 40 per centof the total traffic.

National Highways Development Projects (NHDP)Project Length

(In

Km)Target

date ofCompletion

NHDP Phase-I(i) GQ(ii) Port Connectivity

& others58461133 Dec., 2005Dec., 2007

NHDP Phase-II(i) N-S Corridor

(ii) E-W Corridor7300 Dec., 2007

NHDP Phase-III 10,000 Dec., 2012In order to give a boost to the economic development of the country, the Government had

embarked upon a massive National Highways Development Project (NHDP) in the country.Under the first two phases of the project i.e. NHDP Phase-I & NHDP Phase-II, about 14,279

km length of National Highways are proposed to be upgraded to 4 or 6 lane at a total

estimated cost of Rs. 64,639 crore. National Highways Authority of India (NHAI) isimplementing this.NHDP (Phase-I & II) has the following components:

Project Length(InKm) Cost(Rs.

in Crore)NHDP Phase-I &

II(i) GQ(ii) N-S Corridor

(iii) E-W Corridor

(iv) PortConnectivity &others

584673001133 64,639

Golden Quadrilateral (GQ) comprising, National Highways connecting four metrocities having total length of5846 km. Golden Quadrilateral is targeted for

substantial completion (92%) by December 2005. North-South and East-West Corridors comprising the National Highways connecting

Srinagar to Kanyakumari including Kochi-Salem spur and Silchar to Porbandar. The


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total length of the corridors is about 7300 km. The North-South and East-West

Corridors is targeted for completion by December 2007. Apart from above the National Highways Authority of India is also implementing four

laning of 356 kms of Port Connectivity for 10 major ports of the country and 777

km length of other important National Highways. These are targeted for completion

by December 2007.NHDP Phase-III

NHDP Phase-III Length(InKm)

Target dateof

Completion

NHDP Phase-III ANHDP Phase-III B

40006000

Dec. 2009Dec. 2012

This programme, being implemented by the National Highways Authority of India(NHAI) envisages four-laning of about 10,000 km of existing National Highways(other than NHDP Phase I&II) and is proposed to be undertaken on BOT basis.

NHDP phase-III will provide connectivity to important places not covered underNHDP Phase-I&II. This includes connectivity of numbers of State Capitals with NHDPPhase-I&II, high-density corridors, places of tourist and economic importance etc.

NHDP Phase III-A. Government have approved 4/6 laning of4000 km on BOT basis and preparation

ofDPRs of the balance6000 km in first phase and targeted to be completed by

Dec 2009.NHDP Phase III-B

In the 2nd Phase 4/6 laning of balance 6000 km will be taken up and completed byDec. 2012

BOT bids for 6 projects covering 507 km have been awarded. BOT bids for another10 projects covering 554 km length have been invited.

Development of National Highways other than NHDP (Phase I & II)

Apart from National Highways Development Projects (NHDP) there are about 41290km of National Highways whose development and maintenance is being carried outfrom the funds available from Budget.

Development works like Improvement of Riding Quality, widening to 2/4 lane,strengthening, construction of bypasses and rehabilitation/construction of bridgesetc. have been undertaken for these National Highways.

These sections of National Highways are being executed by the respective StatePWDs and Border Road Organisation (BRO) on agency basis.


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Projects on road development have also been taken up in various parts of thecountry with the assistance of World Bank, Asian Development Bank (ADB) and

Japan Bank for International Cooperation (JBIC).Private Sector Participation

With a view to further augment flow of funds to the sector and to encourage privatesector participation in the road sector, several initiatives have been taken by the

Government which includes: Declaration of the road sector as an industry; Provision of capital grants subsidy upto 40% of project cost to enhance viability of

the projects on case-to-case basis. Duty-free import of certain identified high quality construction plants and

equipments; 100% tax exemption in any consecutive 10 years out of 20 years; Provision of encumbrance-free site for work, i.e. the Government shall meet all

expenses relating to land and other pre-construction activities; Foreign direct investment upto 100% in road sector; Easier external commercial borrowing norms; Higher concession period, upto 30 years; Right to collect and retain toll.

BOT Projects Ministry has so far taken up 32 numbers of projects valued about Rs.4692.31

crore on Build, Operate and Transfer (BOT) basis (Toll based projects). Out of this, 22 numbers of projects have been completed and 10 numbers of

projects are in progress.Annuity Projects

The major roadblock to Private Sector Participation is recognized as huge upfrontcapital investment and high risks of revenue collection, which sometimes deter theinvestors to come to this sector. To address the issues, apart from giving several

incentives, the Government has decided to offer some projects on annuity basis. 8 numbers of projects valued about Rs. 2354 crore have already been awarded on

annuity basis and are in progress.Special Purpose Vehicles (SPV)

The NHAI has also formed Special Purpose Vehicles (SPV) for funding road projects.SPVs are separate legal entities formed under the Companies Act 1956.

12 numbers of projects valued about Rs. 2266 crore have been identified underSPV funding.


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5 numbers of projects amounting to Rs. 923 crore have been completed so farunder SPV.

7 numbers of projects valued about Rs.1343 crore are in progress on SPV fundingbasis.

New initiativesSpecial Accelerated Road Development Programme in the North Eastern Region

This Ministry has framed a "Special Accelerated Road Development Programme inNorth Eastern Region" for improving road connectivity to remote places of this

region. It envisages 2/4 laning of about 3251 km of National Highways. 2 laning/improvement of about 4388 km of State roads. The estimated cost of the proposal is Rs.12,123 crore Budgetary support ofRs.9952 crore Rs.2171 crore is proposed through private sector participation. No foreign assistance is sought for this purpose. This proposal is in the process for

approval. The programme is under active consideration of Government. The works to be executed under this proposal is targeted for completion within 7

years from date of commencement.Central Road Fund

In 1998-99 to meet the challenges of accelerated funding requirement for allcategories of roads in the country. Union Budget had provided for levy of additional

excise duty and additional custom duty ofRe.1 per litre of petrol. Subsequently, in the Union Budget for the year 1999-2000, an additional duty of

Re.1 per litre of high-speed diesel was also levied. The then Honble Finance Minister, during his budget speech for the year 2003-04,

has announced additional levy ofcess of 50 paise per litre each on petrol and

high-speed diesel. The revenue generated from the cess would be used to finance all categories of

roads. This fund has been given a statutory status by Central Road Fund Act enactedin December 2000.

Allocations from this fund are being made in the following manner:-Category of Road Share of fundi) Rural roads 50% of cess on HSD


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ii) National Highways

and other roads 50% of cess on HSD+ entire cess onpetrol

50% of the cess on high speed diesel oil for development of rural roads. 50% of cess on HSD and the entire cess collected on petrol are being allocated as

per the following:- An amount equal to 57.5% of such sum for the development and maintenance of

National Highways; An amount equal to 12.5% for construction of road under or over bridges and safety

works at unmanned railway crossing; and An amount equal to 30% on development and maintenance of State Roads. Out of

this amount, 10% shall be kept as reserved by the Central Govt. for allocation toStates for implementation of State Road Schemes of Inter-state and economic

importance to be approved by the Central Government.

Distribution of Central Road Fund earmarked for all roadsother than Rural roads

57.5% for the development and maintenance of NationalHighways

12.5% for construction of road under or over bridges andsafety works at unmanned railway crossing

30% development and maintenance of State Roads. Out ofthis amount, 10% shall be kept as reserved by theCentral Govt. for allocation to States for

implementation of State Road Schemes of Inter-state

and economic importance to be approved by theCentral Government

It has also been decided to levy additional cess of 50 paise per litre on petroland diesel for the year 2005-06 which will be exclusively used for NationalHighways.

Economic importance and Interstate connectivity schemes (EI & ISC Schemes).

The scheme has now been regulated in accordance with revamped Central RoadFund scheme as per Central Road Fund Act 2000 passed in Dec. 2002

The scheme provide following funding pattern: 100% grant for Road/bridge projects of Inter State Connectivity 50% grant for projects of Economics Importance


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Broadly the following categories of road/bridge projects will be eligible forconsideration:-

Inter-State roads/bridges necessary for ensuring through communication. Roads/Bridges connecting National Highways. Road/Bridges required for opening up new areas for economic growth where railway

facilities cannot be provided in near future. Roads/Bridges which would contribute materially to rapid development e.g. in hilly

areas and areas having rich mineral resources for exploitation. The Ministry has so far accorded in principle approval to : 81 numbers of proposals amounting to Rs. 402.62 crore under Economic

Importance. 116 numbers of proposals amounting to Rs. 521.24 crore under Inter-State

Connectivity scheme. An amount ofRs. 170.59 crore (Rs. 162.09 crore for the States and Rs. 8.5 crore

for UTs) is earmarked for this purpose during the year 2005-06Other Activities of DORT&H

Nodal Ministry of roads sector for guiding different states for construction andmaintenance of quality roads by issuing technical circulars related to different

aspects of Highway Engineering and Practice. Prepared specification for Road and Bridge Works, standard drawings for various

types of bridges, culverts and junctions.

Actively involved with International Organisations like World Bank, AsianDevelopment Bank, Japan Bank for International Co-operation for upgradation of thetechnology and decision making process.

Involved in active co-operation in the field of developing Highway linkages like AsianHighways. This requires continuous interaction with organisations like ESCAP,

BIMSTEC etc. Signed Memorandum of Understanding with its counterparts in USA, Malaysia and

France for co-operation in the areas of Highway Engineering. This Ministry also has administrative responsibilities for its Associated Offices (such

as NHAI, NITHE etc).

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