Transport policy in india

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Name: Marieum.S.Fakhri
Roll No: 09
Class: M.Com-1
Subject: Economics and Business
Policies
University: SNDT Women’s University
Submitted to: Prakash Parkhe Sir
Topic: Transport Policy in India
(Semester – 2)

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Transport Policy In India Relating to

Railways Roadways



Waterways Airways

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Preface:
I‘m glad to present this project to Prakash Parkhe Sir.
This project is about Transport Policies in India. This includes
policies relating to Railways, Roadways, Waterways and the last
Airways. This project reflects the different Transport Policies for
betterment of the country and people. It also r eflects Indian
Government efforts in framing these policies which has led to the
betterment of Railways, Roadways, Waterways and Airways.
This project is prepared by Miss Marieum.S.Fakhri
as Economics Project for the subject Economics and Business Policies
for Semester - 2 which was given as a class project work.

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Acknowledgment:
I am very thankful to everyone who all supported me, for I have
completed 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 this
wonderful project on the topic of ‗Transport Policy In India‘ which
also helped me in doing a lot of Research and I came to know about so
many new things

Last but not the least, I would like to thank my parents who helped
me a lot by comprising with me at home and not disturbing me, while I
was doing this project.

I am making this project not only for marks but to also increase my
knowledge.

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Table of Contents:
Sr
No
Particulars Pg No
1 Introduction 6-9
2 National Urban Policy 9-13
3 Railways 14-26
4 Roadways 26-37
5 Waterways 38-42
6 Airways 43-45
7 Conclusion 46&47
8 Weblography &
Bibliography
48

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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

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more than 95% of total traffic generated in the country. Although other modes like
coastal shipping and inland water transport would play a greater role, the railways and
roads would continue to dominate the transport landscape in the foreseeable future. For
purposes of policy planning, the transport system must be viewed as an integrated
structure in which various modes complement each other, interface appropriately and
where possible provide healthy competition to each other. This competition must be
conducted within the framework in which each mode is able to operate on a ―level playing
field‖ so that in comparative advantages and econom ic efficiencies are properly
reflected in the costs to the users.
India‘s transport sector is large and diverse; it caters to the needs of 1.1 billion
people. In 2007, the sector contributed about 5.5 percent to the nation‘s GDP, with road
transportation contributing the lion‘s share. Good physical connectivity in the urban and
rural areas is essential for economic growth. Since the early 1990s, India‘s growing
economy has witnessed a rise in demand for transport infrastructure and services.
Indian Railways is one of the largest railways under single management. It carries
some 17 million passengers and 2 million tons of freight a day in year 2007 and is one of
the world‘s largest employers. The railways play a leading role in carrying passengers and
cargo across India‘s vast territory. However, most of its major corridors have capacity
constraint requiring capacity enhancement plans.

Roads
Roads are the dominant mode of transportation in India
today. They carry almost 90 percent of the country‘s passenger
traffic and 65 percent of its freight. The density of India‘s
highway network – at 0.66 km of highway per square kilometer of land – is similar to that
of 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 Services
and markets

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Ports
India has 12 major and 187 minor and intermediate ports along its more than
7500 km long coastline. These ports serve the country‘s growing foreign trade in
petroleum products, iron ore, and coal, as well as the increasing movement of containers.
Inland water transportation remains largely undeveloped despite India‘s 14,000
kilometers of navigable rivers and canals.
Aviation
India has 125 airports, including 11 international airports. Indian airports
handled 96 million passengers and 1.5 million tons of cargo in year 2006-2007, an
increase of 31.4% for passenger and 10.6% for cargo traffic over previous year. The
dramatic increase in air traffic for both passengers and cargo in recent years has placed
a heavy strain on the country‘s major airports. Passenger traffic has crossed 100 million
and cargo has crossed 3.3 million tons by year 2010.

National Urban Transport Policy:
1. BACKGROUND
1. India is poised for rapid economic growth. Such future growth will largely come from
the secondary and tertiary sectors of the economy, i.e., the industrial and service
sectors. 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‘s
urban population is currently around 30% of its total population. Experience across the
world has been that as economies grow, rapid urbanization takes this proportion to over
60% before it begins to stabilize. As such, it is projected that India‘s urban population
would grow to about 473 million in 2021 and 820 million by 2051, as against only 285
million in 2001. Hence, cities must not only meet the mobility needs of the current
population but also provide for the needs of those yet to join the urban population. In
this context, the Government of India has launched the National Urban Renewal
Mission(NURM) that inter-alia seeks to bring about comprehensive improvements in
urban infrastructure, committing substantial funds for this purpose and requiring a
series of reforms that would make the investments sustainable. For urban areas to be
able to support the required level of economic activity, they must provide for the easy
and sustainable flow of goods and people. Unfortunately, however, such flow of goods
and people has been facing several problems. Most prominent among them have been the

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following: Accessing jobs, education, recreation and similar activities is becoming
increasingly 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 motor
vehicles, coupled with limitations on the amount of road space that can be provided. For
example, on an average, while the population of India‘s six major metropolises increased
by about 1.9 times during 1981 to 2001, the number of motor vehicles went up by over
7.75 times during the same period.
2. The cost of travel, especially for the poor, has increased considerably. This is largely
because the use of cheaper non-motorized modes like cycling and walking has become
extremely risky, since these modes have to share the same right of way with motorized
modes. Further, with population growth, cities have tended to sprawl and increased
travel distances have made non-motorized modes impossible to use. This has made
access 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 1.6
lakhs in 1981 to over 4.9 lakhs in 2010. The number of persons killed in road accidents
has also gone up from 28,400 to over 1, 00,000 during the same period. This again has
tended to impact the poor more severely as many of those killed or injured tend to be
cyclists, pedestrians or pavement dwellers. Increased use of personal vehicles has led to
increased air pollution.
4. Unless the above problems are remedied, poor mobility can become a major dampener
to 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 clear
direction and a framework for future action.
2. OBJECTIVES:
1. The objective of this policy is to ensure safe, affordable, quick, comfortable, reliable
and 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 planning
stage rather than being a consequential requirement
3.Encouraging integrated land use and transport planning in all cities so that travel
distances are minimized and access to livelihoods, education, and other social needs,
especially for the marginal segments of the urban population is improved
4. Improving access of business to markets and the various factors of production.

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5. Bringing about a more equitable allocation of road space with people, rather than
vehicles, as its main focus.
6. Encourage greater use of public transport and non motorized modes by offering
Central financial assistance for this purpose.
7. Enabling the establishment of quality focused multi-modal public transport systems
that are well integrated, providing seam less travel across modes
8. Establishing effective regulatory and enforcement mechanisms that allow a level
playing field for all operators of transport services and enhanced safety for the
transport system users
9. Establishing institutional mechanisms for enhanced coordination in the planning and
management of transport systems
10. Introducing Intelligent Transport Systems for traffic management
11. Addressing concerns of road safety and trauma response
12. 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 planning
work under the Central government, with no accountability to the State government.
2. Several Acts and Rules, which have important implications in dealing with urban
transport issues, are administered by the Central Government
3. 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 significant
financial support from the Central Government for investments in urban transport
infrastructure. As such, this offers an opportunity for a meaningful national policy that
would guide Central financial assistance towards improving urban mobility.

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5. A need exists to build capacity for urban transport planning as also develop it as a
professional practice.
6. A need exists to take up coordinated capacity building, research and information
dissemination 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 that
would revolve around the measures highlighted in the previous section. These are
further elaborated in the sections that follow integrating land use and transport
planning
2. Cities in India vary considerably in terms of their population, area, urban form,
topography, economic activities, income levels, growth constraints, etc. Accordingly, the
design 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 be
developed together in a manner that serves the entire population and yet minimizes
travel needs. In short, an integrated master plan needs to internalize the features of
sustainable transport systems. In developing such plans, attention should also be paid to
channel the future growth of a city around a preplanned transport network rather than
develop a transport system after uncontrolled sprawl has taken place. Transport plans
should, therefore, enable a city to take an urban form that best suits the geographical
constraints of its location and also one that best supports the key social and economic
activities of its residents. Unfortunately, however, transport planning has not received
the extent of attention it should have in drawing up strategic development and land use
plans.
3. The Central Government would support formulation and implementation of specific
―Area Plans‖ in congested urban areas that propose appropriate mix of various modes of
transport including exclusive zones for non-motorized transit.

4. The Central Government would, therefore, encourage measures that allocate road
space on a more equitable basis, with people as its focus. This can be achieved by
reserving lanes and corridors exclusively for public transport and non-motorized modes
of travel. Similarly lanes could be reserved for vehicles that carry more than three
persons (popularly known as High Occupancy Vehicle Lanes). Past experience has been
that such reserved lanes are not

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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 government
would 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 services
Technologies for Public Transport

7. The Central Government would encourage high capacity public transport systems being
set up through the mechanism of Special Purpose Vehicles (SPV) and would offer
financial support either in the form of equity or one time viability gap financing, subject
to a ceiling of 20% of the capital cost of the project, after evaluating various
parameters 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 and
pedestrian paths in all cities, under the National Urban Renewal Mission (NURM), to
enhance safety and thereby enhance use of non-motorized modes. Cities would also be
encouraged to explore the possibility of a public bicycle program, where people can rent
a bicycle for use in specially designated areas.

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9. The Central Government would also take up pilot projects, in a sample set of cities, to
demonstrate 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.

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1. Railways:

Introduction:
The Indian Railways ( IR) is an Indian state-owned enterprise, owned and operated by
the government of India through the Ministry of Railways. It is one of the world's
largest railway networks comprising 115,000 km (71,000 mi) of track over a route of
65,000 km (40,000 mi) and 7,500 stations. As of December 2012, it transported over 25
million passengers daily (over 9 billion on an annual basis). In 2011, IR carried over 8,900
million passengers‘ annually or more than 24 million passengers daily (roughly half of
which were suburban passengers) and 2.8 million tons of freight daily. In 2011-2012
Indian Railways earned Rs104, 278.79 crore (US$18.98 billion) which consists of Rs
69,675.97 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 the
systems were nationalized as one unit, the Indian Railways, becoming one of the largest
networks in the world. IR operates both long distance and suburban rail systems on a
multi-gauge network of broad, meter and narrow gauges. It also owns locomotive and
coach production facilities at several places in India and are assigned codes identifying
their gauge, kind of power and type of operation. Its operations cover twenty four
states and three union territories and also provides limited international services
to Nepal, Bangladesh and Pakistan.
Presently, the Railways have a large shelf of ongoing projects, mainly relating to new
lines and gauge conversion. In view of scarce availability of resources, the available
funds are thinly spread over a large number of projects resulting in time and cost over

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runs. The throw forward (balance amount required to complete the projects) on all
these projects amounts to more than Rs. 30,000 crore and going by the present rate of
allocation on these projects, it will take more than 30 years to complete them.

Some of Government Policies to for the Progress the
Indian Companies By giving Railways i n the Hands of
Private Sector:
Though the Indian Railways enjoys a near monopoly in India, a few private railways do
exist, 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 own
purposes, 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. The
Calcutta Port Commission Railway is a BG railway. The Vishakhapatnam Port Trust has BG
and 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, so
the 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 private
parties, is involved (along with the Kandla Port Trust and the Gujarat Adani Port) to build
a Gandhidham–Palanpur railway line. These railway lines are principally used to carry
freight 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 seeks
increased private participation for rail connectivity and opens the doors for foreign
direct investors for expanding its network.
The cash-strapped public transporter has proposed six PPP models for project execution
that include creating railway connectivity on private land and forming special purpose
vehicles (SPV) for new line and gauge conversion.

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The policy has also sought to attract the state government in playing a proactive role in
development and implementation of rail projects in their respective states, a senior
Railway Ministry official said. He said the draft policy aims to open opportunity for
returns from investment in rail projects and ensure timely availability of rail
infrastructure to the beneficiaries such as port, industry and states. Local bodies,
ports, large import and export companies, co-operative societies, infrastructure and
logistics providers too have been invited for increasing the rail network.
The official said overseas corporate bodies and foreign direct investors can also
participate in asset creation pending clearances by Foreign Investment Promotion Board.
"Once finalized, the policy would replace both R3i and R2Ci policies" he said, admitting
these policies could not achieve the desired objectives.
The new draft policy encapsulates creating railway connectivity on private land, forming
special purpose vehicle (SPV) for new line and gauge conversion, awarding railway
projects on BOT basis, customer-funded capacity augmentation and creating multi-user
lines.
Railway Minister Dinesh Trivedi, participating in a discussion in Parliament in the recently
concluded Winter Session had sought increased private participation for taking railways
to the next generation.
He had said the public transporter requires over Rs five lakh crore in the coming years
to achieve this.
Described as the fourth largest rail network in the country, Indian Railways have been
saddled with problems like delay in project execution and cost overruns. It has come in
for 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 plus
population, the Ministry of Urban Development (MoUD) has drafted a consolidated policy
that focuses on both public-private partnership and government funding models for the
reference of state government. Most of the cities are in UP, Maharashtra, MP, Gujarat
and Punjab.
"We have come out with this consolidated new metro railway policy, in case somebody
wants to approach us for assistance in such projects. We keep getting lot of requests
from state and city administrations. This will aid them in drafting their own feasibility
reports," Sudhir Krishna, secretary, MoUD said.

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The ministry however has supported the government-funded model as success rate of
PPP model is yet to be ascertained. The policy stated that PPP is supported where the
corridor is mostly elevated and ridership quite high.
"Globally only 18 per cent of metro rail projects have been taken up under PPP model and
that PPP experience in India is limited and to be observed for some more time before
any conclusion can be drawn, the MoUD prefers government funding with equity
participation 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 first
bullet train. The Indian Railways quietly formed a company called HSRC Ltd in July last
to run its dream project, high-speed rail.
And if the buzz in Rail Bhawan is anything to go by, minister Pawan Kumar Bansal has
more to announce on the subject when he reads his first Rail Budget next month. Even
before Indian policymakers made any formal announcement on this big-ticket project,
Japan's ambassador to India Takeshi Yagi recently said in Gujarat that India's first
high-speed rail would run between Ahmedabad and Mumbai.

Rail Policies in 12
th
Five Year Plan(2012-2017):
To meet the requirements of passenger services a number of steps are planned in the
Twelfth 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 with
popular timings and on popular routes to 24/26 coaches would help generating additional
capacity 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

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rationalisation of stoppages are important measures for speed enhancement. The speed
of passenger trains is quite low at present primarily because of the coaching stock in use
and due to multiplicity of stoppages en-route. There is scope for speeding up of these
services by replacing trains with conventional stock by fast moving
EMUs/MEMUs/DEMUs. Enhancing the sectional speeds is another enabling factor in
speeding them.
3. Introduction of tailored services: The traveling requirements of various sectors and
various classes of passengers differ. Between major cities and metros, fast services
with very limited stoppages are preferred. Introduction of non-stop services and
services with higher accommodation between popular destinations would better serve
passengers‘ requirements. Strategies for decongesting major passenger terminals: This
would be done through development of alternative terminals in suburban areas of major
cities and expeditious operationalisation of the Dedicated Freight Corridors resulting in
segregation of passenger and freight traffic. Spin off effects in the form of larger
number of passenger services, faster passenger services, quicker freight movement, and
help in decongesting major terminals would be achieved. There are international
examples of efficient passenger and freight operations which have relevance for Indian
Railways.
4 .Developing High Speed Rail Corridors and Upgradation of Speeds
Ministry of Railways has selected following six corridors for conducting pre-feasibility
studies 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 by
consultants. Efforts are being made to complete all such studies, undertake at least two
Detailed Projects Reports and develop one corridor of about 500 km for construction. It
is also proposed to set up a National High Speed Rail Authority (NHSRA), an autonomous
body through a Bill in Parliament for implementation of High Speed Rail Corridor
projects 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 of
trains on few selected routes. This will enable increase in speed to 130–140 kmph in

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certain routes and 160 kmph in Delhi–Mumbai and Delhi–Howrah to be further upgraded
to 200 kmph.
6. Public Private Partnerships (PPP)
Investments in Railways can be stepped up with the help of PPP. So far, such
investments have been extremely small. This is far less compared to the Private Capital
share in other sectors like Ports – 80 per cent, Telecom 82 per cent, Electricity 44 per
cent, Airports 64 per cent and Roads 16 per cent. PPP Projects related to rolling stock
manufacturing units, modernisation of railway stations, multifunctional complexes,
logistics parks, private freight terminal, freight train operators, liberalized wagon
investment schemes, Dedicate Freight Corridors and so on which are in pipeline offer
excellent opportunities for private investment.
7. Twelfth Plan would target to enhance rail share in freight traffic by at least 2 per
cent.
8. The Eastern and Western Dedicated Freight Corridors would be completed during
the 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 and
safer railways.
10. Signaling system would be modernized with provision of advanced technological
features and development of Train Protection and Warning System (TPWS), Anti
Collision Device (ACD), Trains Collision Avoidance System (TCAS), GPS based Fog Safety
Device and Biometric Drivers Vigilance Elementary Control System.
11. Phased elimination of all unmanned level crossings by p rovision 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 through
acquisition as well as investment in R&D along with induction of latest technology in
rolling stock by encouraging expansion in capacity of manufacturing units through PPP
Developing High Speed Rail corridors and Setting up National High Speed Rail Authority
(NHSRA) as an autonomous body for planning, standard setting, implementation and
monitoring of high speed corridors.

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14 .Promoting private investments in special purpose high capacity wagons under the
Liberalized Wagon Investment Scheme (LWIS) and Encouraging private freight
operators to transport select commodities where railway modal share is low, that is
automobile, un-bagged cement and fertilizer, fly ash, edible oils, and so on.
15. Activity Based Accounting to facilitate managerial decision making and to establish
profit/loss making routes/activities.
16. Correcting the imbalance between passenger and freight traffic by setting up a
Tariff Regulatory Authority to suggest tariff structures consistent with the level of
feasible cross-subsidies.
17. Resolution of regulatory issues regarding CONCOR and private players and further
expansion of containerization.
18. Reorganization of Indian Railways on business lines, hiving off non-transportation
tasks and separation of policy making and operational responsibilities of the Railway
Board.

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

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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 crore
14. Rs.100 crore for improving stations in New Delhi
15. Railways to set up a Debt Service Fund
16. Freight earning to grow by 9 per cent to Rs 93,554 crore.
17. No fresh hike in passenger fares
18. Indian Railway Institute for Financial Management to be set up at Secunderabad
to train rail officers on a regular basis
19. 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
soon
21. New coach manufacturing and maintenance facilities to be set up in various places
including Rae Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh
22. 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 US
24. Common rail-bus ticket to be introduced for Katra-Vaishnodevi pilgrims
25. New train Azadi Express to places linked with the freedom struggle to be
introduced, fares to be concessional.

22. 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 direct
recruitment and in case of promotions made by non -selection method. In case of
promotions made by selection, reservation is available to them when promotions are made
in 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 also
promoted on their own merit are adjusted against unreserved posts.

23. 23

(iii) In promotion by selection to posts within Group ‗A‘ which carry an ultimate salary of
Rs. 18,300/- or less (pre-revised), there is no reservation, but the Scheduled
Caste/Scheduled Tribe officers who are senior enough in the zone of consideration for
promotion so as to be within the number of vacancies for which the select list is to be
drawn up, would be included in that list provided they are not considered unfit for
promotion.

(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 5
year; exemption from payment of examination/application fees; relaxation in
qualification of experience at the discretion of UPSC/competent authority; relaxation in
standard 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 number
of vacancies in case suitable candidates are not available within normal zone of
consideration; minimum qualifying marks/ standards of evaluation are relax able; upper
age limit is relax able by five years where upper age limit for promotion is prescribed
not 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 passengers
From December 1, 2012, all train passengers with reservations will have to carry a valid
photo identity proof. ID cards will be needed if you are travelling on Reserved Second
Class(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 only
legitimate passengers and to reduce scope of misuse of reserved ticketing system as
well as for general security reasons.

The Press release issued by the Railways Ministry says, "Any one of the passengers

24. 24

booked on a PNR for undertaking journey in any reserved class has to produce any one of
the above mentioned prescribed proofs of identity in original during the journey failing
which all the passengers booked on that ticket will be treated as travelling without
ticket and charged accordingly. The existing provision of the Tatkal scheme where the
passenger is required to show the same original proof of identity as indicated on the
ticket shall continue".

The ministry has also decided to expand the list of acceptable ID proof. The list for
Tatkal 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 which
include 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 their
students.
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 of
State/Central Government, District Administrations, Municipal bodies and Panchayat
Administrations.

Currently, only passengers travelling with ID proofs are those with e tickets, Tatkal
tickets or the AC classes (except in III Economy -3E class).

25. 25

Tatkal Policy :
The introduction of 'Tatkal' Scheme by Indian Railways has been proved beneficial for
latecomers. 'Tatkal' is an emergency reservation scheme. The 'Tatkal' scheme is
applicable to more than 100 trains throughout India. Under this scheme, people can book
their tickets just one day before the actual date of journey, excluding the date of
journey, w.e.f 21/11/2011. The booking for 'Tatkal' opens at 08:00 hrs IST one day prior
to the definite date of journey. For example, for train leaving on 8th, Tatkal Booking will
Commence at 8 AM on 7th.

Government Policies in Form of Introduction of
NewTrains for Passengers Needs:
Sr
No
Trains

Particulars

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
Express
Jan Shatabdi Express are a more affordable variety of the Shatabdi
Express, which have both AC and non-AC classes. The maximum speed is

26. 26

130 km/h.
6 Superfast
Express/Mail
These are trains that have an average speed greater than 55 km/h
(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
Passengerand Fast
Passenger
These are slow trains that stop at most stations along the route and
are the cheapest trains. The trains generally have unreserved seating
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
Monorails
These trains are designed for city transport in metro cities of India.
2. Roadways:

Introduction:
India has one of the largest road networks in the world, consisting of (i) national
highways (NHs), (ii) state highways (SHs), (iii) major district roads (MDRs) and (iv)rural

27. 27

roads (RRs) that include other district roads and village roads. India has a road
network of over 4,245,429 kilometers (2,637,987 mi) in 2012, the third largest road
network in the world. At 0.66 km of roads per square kilometer of land, the quantitative
density of India‘s road network is similar to that of the United States (0.65) and far
higher than that of China (0.16) or Brazil (0.20). However, qualitatively India's roads are
a mix of modern highways and narrow, unpaved roads, and are undergoing drastic
improvement. As of 2008, 49 percent - about 2.1 million kilometers - of Indian roads
were paved.
Adjusted for its large population, India has less than 4 kilometers of roads per
1000 people, including all its paved and unpaved roads. In terms of quality, all season, 4
or 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. For
context, United States has 21 kilometers of roads per 1000 people, while France about
15 kilometers per 1000 people - predominantly paved and high quality in both cases. In
terms of all season, 4 or more lane highways, developed countries such as United States
and 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 kilometers
of recently built 4 or 6-lane highways connecting many of its major manufacturing
centers, 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 costs
promote specialization, extend markets and thereby enable exploitation of the
economies of scale. Global competition has made the existence of efficient transport
and logistic systems in delivery chain an absolute imperative. Easy accessibility,
flexibility of operations, door-to-door service and reliability have earned road transport
an increasingly higher share of both passenger and freight traffic vis-à-vis other
transport modes. Road transport has emerged as the dominant segment in India‘s
transportation sector with a share of 4.5 per cent in India‘s GDP in 2005-06. Over the
last six years (2000-01 to 2005-06), the annual average growth in road transport sector
GDP at 9.5 per cent was much higher than the overall GDP growth of 6.5 per cent.

28. 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 air
which do not face rigorous enroute checks/barriers. Transport demand in India has been
growing rapidly. In recent years this demand has shifted among transport modes, mainly
to the advantage of road transport, which carries about 87 percent and 61 per cent of
passenger 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 demand
for road freight transport in India is estimated to have grown at an annual average rate
of 6.7 percent, while GDP grew at an average of 6.2 percent. Road freight transport
demand is expected to grow by around 10% per annum in the backdrop of a targeted
annual 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. India
had 72.7 million registered motor vehicles at the end of fiscal year 2003-04. The
growth of vehicular traffic on roads has been far greater than the growth of the
highways; as a result the main arteries face capacity saturation. Between 1951 and 2004
the vehicle population grew at a compound annual growth rate (CAGR) of close to 11 per
cent. Personalized mode (constituting mainly two wheelers and cars) 1account for more
than four-fifth of the motor vehicles in the country compared to their share of little
over three-fifth in 1951. Further break up of motor vehicle population reflects
preponderance of two-wheelers with a share of more than 71 per cent in total vehicle
population, followed by cars with 13 per cent and other vehicles (a heterogeneous
category which includes 3 wheelers, trailers, tractors etc.) with 9.4 per cent. In
contrast to personalized mode, the share of buses in total registered vehicles has
declined from 11.1% in 1951 to 1.1 as in 2004. Also, the share of goods vehicle which was
about 27% in 1951 has declined to a little over 5% by end March 2004. The share of
goods 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 per
cent respectively is much lower compared to most of the other countries in Asia.
International experience suggests that with the rising income levels, car ownership
rates are likely to grow much faster than GDP and start to displace 2-wheelers. The
current vehicle density in developing countries is low; for example, the vehicle density in

29. 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 1000
people in PRC, 8 for India. However, the number of two-wheelers per 1000 population is
much higher at around 45 in case of India. The low vehicle density is marked by its
skewed distribution in favour of cities. In 2004-05, 22 cities accounted for 60 per cent
of sales of passenger vehicles. 2.3 In the coming years the profile of motorization is
expected to witness a number of changes in terms of segment shifts, driven by rising
incomes, desire for safety and comfort and government regulations. Over the short
term, the sensitivity of demand for vehicles to changes in GDP and in vehicle price is
somewhat elastic as their purchase can often be delayed, but in the long term it has low
elasticity, indicating that personal mobility is considered by many as essential to
everyday living and that it has few substitutes. Thus, other measures are required as
well 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 industry
are most varied. Road Transport sector consists of two distinct segments; (a) Transport
services that serve the public or commercial customers directly, and; (b) Transport
infrastructure that is used by the transport service providers. Transport services are
mainly privately owned and operated . In contrast, privately-owned transport
infrastructure (particularly road networks) is not common.
Passenger and freight movement by road is expected to rapidly expand in the coming
years in view of number of factors which amongst others include (a) substantial
investment in improvement in national highway network which will facilitate speedy,
reliable, door to door services (b) freight movement by road offers a holistic logistic
solution that minimizes the costs of transport, logistics, and inventories (c) rising
volumes of exports and imports which would entail higher demand for inland transport
for 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 slow
technological development, low energy efficiency, pollution and slow movement of freight
and passenger traffic. To sustain an annual overall growth in the GDP of 9% during the
Eleventh Plan would require growth in both passenger and freight road transport of

30. 30

higher order. Such an endeavor calls for a conducive road transport policy regime geared
to meet requirements of faster mobility, safety, access to social and economic services
and 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 promote
modern, energy efficient and environment friendly road transport with followi ng
objectives:
i. Promote Road Infrastructure support for transportation of humans and goods to
sustain 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 transport
development; and
viii. Strengthen database collection and management system to assist in continued policy
and performance evaluation.

5. Promotion of Road Infrastructure Support
The aggregate length of roads, which was 0.4 million km in 1950-51 has increased 8 fold
to 3.4 million km in 2002 but over the same period the number of passenger buses has
shown 19 fold jump from 0.34 lakh to 6.35 lakh and goods vehicle fleet more than 36
fold increase from 0.82 lakhs to 29.74 lakh. The geographic coverage of India‘s highway
network 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

31. 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 provide
connectivity 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 all
state capitals, major ports, international boundaries, areas of economic and strategic
importance, etc. The present total length of NHs is about 66,590 km. An overwhelming
proportion of the total length of NHs is two or single laned (56% and 32 % of the total
length 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 NHs
constitutes 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 by
heterogeneity in traffic, encroachment, and frequent and long halts at state and
municipal check posts. Further, over loading by rigid two-axle trucks has been a major
source of damage to road structure and pavement.
In order to expand and improve road connectivity in the country, the Government
has launched National Highways Development Project (NHDP). It is the largest highway
project ever undertaken in the country. The NHDP is being
implemented by National Highways Authority of India (NHAI). Government has
envisaged investment of Rs.2,35,430 crore for upgradation of National Highways under
various 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 road
transportation in the country. The State Highways provide linkages with the National
Highways, district headquarters, important towns, tourist centres and minor ports. Their
total length was about 1,37,711 km as at the end of March 2002. Major District Roads
run within the district, connecting areas of production with markets, rural areas to the

32. 32

district headquarters and to State Highways/ National Highways. By acting as the link
between the rural roads and National Highways, the State Highways and Major District
Roads contribute significantly to the development of the rural economy.
Construction and maintenance of SHs, MDRs and Rural Roads is undertaken by various
agencies in States and Union Territories. The size and spread of the road network
comprising SHs and MDRs are reasonable but the standards and quality of these roads
are not adequate to cope with the growing traffic. Their conditions and state vary widely
from state to state due to a number of factors which include: inadequate finance and its
thin spread over a number of projects; weak management by contractors and; delay in
pre-construction activities. With a view to augment the resources, funds are being
provided from the Central Road Fund (CRF) by the Union Government for the
development of State Roads. The funds from the CRF are provided for improvement of
State Roads other than rural roads. At present, the annual amount available from this
source is about Rs. 1560 crore. The state-wise distribution of this amount is done on the
basis 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 their
economic development through construction of roads and bridges of Inter-state and
economic importance, Central Government provides 100% grant for inter-state
connectivity projects and 50% grant for projects of economic importance. This fund is
also made available from the CRF. An amount of about Rs. 170 crore per annum is
available for development of the state roads under this scheme.

d. Rural roads:
Rural roads connect villages giving access to rural population to the National Highways
through Major District Roads and State Highways. Around 59 per cent of the total road
length is accounted by rural roads largely built under Jawahar Rojgar Yojna. These roads
are of limited value from the point of view of movement of heavy traffic. Roads are also
being 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 people
with all-weather roads by the year 2007. This is being implemented by Ministry of Rural
Development.

33. 33

To ensure smoother traffic flow, it is important that provision is made for wayside
amenities, maintenance and repair facilities and parking spaces along highways. Also, a
Corridor Management Plan should be drawn up for major state highways so that the
problems of ribbon development, encroachments, uncontrolled access and poor safety
can be tackled.

6. Public Private Partnership (PPP)
Traditionally, the road projects were financed only out of the budgetary grants and
were controlled/supervised by the Government. The road sector has attracted little
private sector participation in the past. The traditional system of financing road
projects through budgetary allocation has proved to be inadequate to meet the growing
requirements of this sector. To encourage private sector participation, several
initiatives 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 under
PPP mode. The PPP projects are being implemented for the National Highways on Build
Operate 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 difficult
terrain, heavy precipitation, rich biodiversity, fragile hills, high seismicity, etc. These
external constraints are compounded by shortage of technical personnel, limited working

34. 34

season, non-availability of contractors, difficulty in procuring road construction
equipment etc. These factors make road building activity difficult and expensive. Roads
serve as the principle mode of transport for movement of goods and passengers with a
share of over 90% in the total movement by surface transport in the region. The
National Highways are the main arteries of this road network in this region. To address
the special needs of the region, Government has approved a special project for
development of roads in the North Eastern Region under Special Accelerated Road
Development Programme - North Eastern Region (SARDPNE). This programme has been
made for improving road connectivity to remote areas and places of strategic importance
in the North Eastern Region. It envisages improvement of 3228 km of National Highways
and 4388 km of state roads and roads of strategic importance. The total cost of the
programme is estimated at Rs. 28,000 crore. This will also ensure connectivity of all
District Headquarters which are still not connected to the National Highways in the
eight North Eastern states. Besides, the improvement of rural roads in the hilly region
has also been taken up under the programme of Bharat Nirman and Pradhan Mantri Gram
Sadak Yojana. This will help achieve road connectivity to all villages having a population
of 500 and above. Special construction technology to tackle the construction of roads in
the 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 commercial
vehicle industry, according to Frost & Sullivan. The Government of India's budget for FY
2010-11 clearly point toward heavy investments in the Indian infrastructure segment,
bringing cheer to the commercial vehicle (CV) market. Acknowledging the rising need for
green 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 emission
regulation trends, which will translate into world-class products with the implementation
of Euro V and Automatic transmission standards by 2015.


2. Policy on road safety soon (Times of India, Nov 24 2012)

35. 35


Rise in death toll in road accidents has forced the state government to chalk out a
comprehensive policy on road safety. To formulate the policy, 10 state departments have
been roped in and the policy draft is likely to be placed before the government by the
end of this year.
"The issue is very close to chief minister Ashok Gehlot's heart and he has asked the
government officials to work on it. He is monitoring the progress personally and
different department along with experts including the United Nations have been
consulted," said a senior government official. Rajasthan is among the few states to have
a road safety council. The state council was set up on the lines of the National Road
Safety Council under Section 215 of the Motor Vehicles Act, 1988. The main agenda of
the 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 a
law that could prove a major deterrent in curbing road accidents. According to the state
police data for 2010, 24,302 accidents were registered in which 9,163 lives were lost
and 31,033 injured. Between 2005 and 2010, 28,726 people were killed in road accidents.

India: Highway and road projects

Although India has 3.3 million kms of roads only 1.5 million of it is paved and just 50,000
kms of National Highways is used most heavily.

1. Golden Quadrilateral
The Golden Quadrilateral is a highway network connecting India's four largest
metropolises: 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, agricultural
and cultural centres of India. The largest highway project in India and the fifth longest
in 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 cost
of 60,000 crore (US$10.92 billion). The four-lane system was constructed between
1999 and 2012, and is currently being expanded to six lanes throughout. The GQ project
is managed by the National Highways Authority of India (NHAI) under the Ministry of
Road, 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 by
NHAI, and separate from the main highway. Infrastructure Leasing & Financial
Services (IL&FS) has been one of the major contributors to the infrastructural

36. 36

development activity in the GQ project. Then Prime Minister Atal Bihari Vajpayee laid
the foundation stone for the project on January 6, 1999.
In January 2012, India announced the four lane GQ highway network as
complete. India's government had initially estimated that the Golden Quadrilateral
project would cost 60,000 crore (US$10.92 billion) at 1999 prices. However, the
highway has been built under-budget. As of August 2011, cost incurred by Indian
government was about half of initial estimate, at Rs 30,858 crore (US$5.62 billion). The
eight contracts in progress, as of August 2011, were worth Rs 1,634 crore (US$297.39
million). In September 2009, it was announced that the existing four-lane highways
would 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 to
provide good all-weather road connectivity to unconnected villages. It is under the
authority 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 and
above 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 and
above by 2007. Empowering rural India through the strategic provision of all-season
road access has emerged as one of the key priorities for the Government of India. The
Eleventh Five Year Plan (2007–12), and the Tenth Plan before it, recognised that rural
connectivity 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 been
the Pradhan Mantri Gram Sadak Yojana (PMGSY), a Centrally Sponsored Scheme (CSS).


3. National Highways Development Project
The National Highways Development Project is a project to upgrade, rehabilitate and
widen major highways in India to a higher standard. The project was implemented in
1998. "National Highways" account for only about 2% of the total length of roads, but
carry about 40% of the total traffic across the length and breadth of the country. This
project is managed by the National Highways Authority of India (NHAI) under
the Ministry of Road, Transport and Highways. The NHAI has implemented US$ 71
billion for this project, as of 2006.

37. 37

4. Yamuna Expressway
Yamuna Expressway formerly known as Taj Expressway, is a 6-lane (extendable to 8
lanes), 165 km long, controlled-access expressway , connecting Greater
Noida with Agra in the Indian state of Uttar Pradesh. It is India's longest six-laned
controlled-access expressway stretch. The total project cost was Rs
12,839 crore (US$2.34 billion). The Yamuna Expressway was formally inaugurated on 9
August 2012 by Chief Minister Akhilesh Yadav, about two years of delay from its original
target 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 time
between Delhi and Agra. But the project could not start because of a change of
government in the state in 2003. The project was reactivated in 2007 when
Mayawati regained power and was renamed Yamuna Expressway.
Yamuna Expressway project was implemented by Jaypee Group. In May 2012, Jaypee
Group informed state government officials that construction of the expressway had
been completed. The Yamuna Expressway was formally inaugurated on 9 August 2012 by
Chief Minister Akhilesh Yadav, via videoconference from Lucknow, about two years
ahead of its original target completion date.

5. Delhi Western Peripheral Expressway

Delhi Western Peripheral Expressway, or Kundli-Manesar-Palwal (KMP Expressway), is a
135.6 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 NH
1 and going to south of Delhi on NH 2 or west of Delhi on NH 8. KMP Expressway's
construction started in 2007 and it was planned to become operational by 29 July 2009
at the cost of INR Rs.17.6 billion

but the construction by the contractor, Darshan Singh
Construction Company (DSC), has been so tardy that the expressway will not be ready
even 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 the
53 km long stretch of the expressway from Manesar to Palwal would be completed by
March 2011. However, the stretch had not opened for traffic even by the end of 2012
and may not be ready before mid-2013. Work had been completed only on 48 km section
by August 2012.

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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 bulky
goods. It is a fuel efficient and environment friendly means of transport. Water
transport in India is mainly confined to navigable rivers, canals and backwaters. Most of
the rivers in Peninsular India are seasonal so the Ganga and Brahmaputra are the only
two rivers which are navigable. India has a long coastline of 7,516.6 kms and has 12
major ports and nearly 200 minor ports. India has about 14,500 km of navigable
waterways, which comprise of rivers, canals, backwaters, creeks, etc. About 55 million
tones of cargo are being moved annually by Inland Water Transport (IWT), in a fuel-
efficient and environment-friendly mode.

Policies in 12
th
Five Year Plan
There has been a consistent decline in the share of Indian ships in the carriage of
India‘s overseas trade from 31.5 per cent in 1999–2000 to 13.7 per cent in 2004–05 and
further to 7.95 per cent in 2010–11. There is a need for policy intervention to arrest
this declining trend. Indian shipping fleet is characterised by the predominance of oil
tankers and bulk carriers. While as on 31.03.12, oil tankers account for 63.76 per cent of
the Deadweight Tonnage (DWT), bulk carriers account for 28.77 per cent, with all other
vessel types such as liner vessels, OSVs and so on accounting for a mere 7.47 per cent.

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1. Establishing P&I Club
In present day scenario, maritime insurance of ships, wreck removal, dealing with
maritime 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 augment
foreign exchange earnings when these clubs are used by foreign companies. It is
therefore proposed to establish one P&I Club in Indian League by the year 2015 and one
more in the IG League by the year 2020.

2. Strengthening Participation in IMO
The increasing number of International Codes and Conventions, emanating from the
International Maritime Organization (IMO), have changed the maritime trade
relationships between nations and also created a whole new statutory structure for
maritime 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 duties
should include port navigational safety issues, cargo related safety aspects, oversight
function 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 Water
Management System‘ in accordance with the requirements of International Convention
for the Control and Management of Ships as adopted by the IMO in 2004, along with the
development of waste disposal facilities in ports.

Ports and waterways - the future course

The importance of ports in India can be gauged by the fact that they handle 95% by
volume and 70% by value, the country's international trade. India has a total of 187
minor ports and 13 major ports spread across the nine maritime states.

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1. Ports
According to the Planning Commission, total capacity of the port sector is envisaged to
double to 2,302 million tonne, to meet the overall projected traffic of 1,758 million
tonne by 2016-17. The 12th Five Year Plan (2012-17) document says, "The traffic
forecast by the end of the 12th Plan would be 943 million tonne and 815 million tonne for
the major and non-major ports respectively with corresponding port capacities of 1,242
million tonne and 1,060 million tonne respectively." In 2011-12, total capacity of the
country's ports, including 12 major and over 200 non-majors, stood at 1,247 million tonne
and they together handled 971 million tonne of cargo.


In the 12th Five Year Plan the Government of India has
proposed to invest Rs 160,559 crore for development of various projects in port sector
and inland waterways. An amount of Rs 73,794 crore has been allocated for development
of various projects in port sector.

The total investment during the Twelfth Plan is nearly three-time as compared to Rs
49,551 crire spent in the Eleventh Plan. Of the total Rs 160,559 crore, Rs 17,055 crore
or 11% is projected to be contributed by the Centre while the state will contribute
another 3% or Rs 4,594 crore. A major chunk 86% of investment is expected from
privates 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 the
country under Public Private Partnership (PPP) mode. Recently, the Prime Minister Dr
Manmohan Singh has set the target for the Ministry of Shipping to award projects that
will create 244 million tonne of capacity during 2012-13 spread across 42 projects at an
estimated cost of Rs 14,500 crore. The target also include, obtaining approval of
establishing 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 of
years ago with a combined US$ 110 billion package to develop ports and shipbuilding
industry 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

41. 41

is expected from private investors. The government is of the belief that private sector
will handle 50% of the country's 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 India's 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

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5. National Waterway-5: (Total length- 588 km) in the states of West Bengal and
Orissa

Policy guidelines:
The Government of India is focusing on port infrastructure development in the
country and is promoting private participation and foreign direct investment (FDI). 100
per 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.

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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, two
air corporations, viz. Indian Airlines Corporation and Air India International, were
established and the assets of all the then existing air companies (nine) were transferred
to the two new Corporations. The Indian civil aviation industry proudly celebrated 100
years of its existence. The 12thPlan has propelled the Indian aviation sector on a high
growth path. Both passenger and cargo traffic have shown robust growth and there has
been modernization and augmentation of capacities, in a major way, at various metro and
non-metro airports. In FY 11, India has already made its place among the 10 largest
aviation markets of the world. There is need now to consolidate the gains and further
increase the airtravel penetration in India. Under this backdrop, the vision for Indian
civil aviation industry for the new civil aviation policy period should be:―To handle more
than 300 million passengers and propel India among the top three civil aviation markets
in the world by 2020 ‖
In order to facilitate this significant growth potential, India will need more
airports, higher capacity, supporting infrastructure, finance and human resources. All
this would require progressive policies and collaborative approach between the
government, industry and the public at large.

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.

FDI by foreign carriers in Indian aviation:

The proposal to allow 49% FDI by foreign airlines has been moved to the
cabinet, which will take it up shortly. FDI by foreign airlines is a significant decision and
can play a crucial role in improving the aviation landscape in India. Apart from the much
needed fund infusion, it would also provide access to global routes, managerial expertise
and synergy benefits .For global airlines, it is a great opportunity to enter one of the
fastest 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 hub
for aviation. Other major obstacles to having a hub in India include an inability to
attract passengers, saturated airports and the poor health of Indian airlines. There is
also a lack of efficient connectivity between the domestic and international terminals
made transfers from domestic to international flights (and vice versa)enablers required
to 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 F OR STARTING SCHEDULED/ NON -
SCHEDULED AIR TRANSPORT SERVICESCATEGORIES OF AIR
TRANSPORT SERVICES
Scheduled Air Transport Service:
Scheduled Air Transport Service means an air transport service undertaken between the
two or more places and operated according to a published time table or with flights so

45. 45

regular or frequent that they constitute a recognizably systematic series, each flight
being open to use by members of the public. Detailed requirements are specified in Civil
Aviation Requirements (CAR) Section 3 Air Transport Series ‗C‘ Part II dated 1st March
1994.

Non-Scheduled Services:
Non-Scheduled Operation means an air transport service other than scheduled air
transport service and that may be on charter basis and/or non-scheduled basis. The
operator is not permitted to publish time schedule and issue tickets to passengers.
Detailed requirements are specified in Civil Aviation Requirements (CAR) Section 3 Air
Transport Series ‗C‘ Part III dated 8th October 1999 and Part V dated 17th May 2000
for 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.

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Conclsuion:
Government Transport Policies has gone long way in improving transportation system in our
country India. One of the main factors in India success is improvement in various modes of
transport from railways to airways. Government policies to build highways, railways tracks,
airports are making India progress towards the path of development and success. India‘s
Eleventh Five Year Plan identifies various deficits in transport sector which include inadequate
roads/highways, old technology, saturated routes and slow speed on railways, inadequate berths
and rail/road connectivity at ports and inadequate runways, aircraft handling capacity, parking
space and terminal building at airports. Government aims to modernize, expand, and integrate
the country‘s transport services. It also seeks to mobilize resources for this purpose and to
gradually 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 reform
its transport institutions. The government has overcome the shortcomings of Eleventh Five Year
Plan in Twelfth Five Year Plan. In recent years, the Government has made substantial efforts to
tackle 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)

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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).

48. 48


Weblography:
1. www.morth.nic.in
2. admis.hp.nic.in
3. www.ilfsindia.com
4. www.cadgog.org
5. en.wikipedia.org
6. civilaviation.gov.in
7. www.timesofindia.com
8. www.indianexpress.com

Bibliography:
1. Indian Economy book by Misra Sk & Puri VK
2. Indian Economy book Dutt Rudra & Sundaram KPM

49. 49