Roads and Road Transport

An Overview
and
Current Initiatives

by
D. P. Gupta
Director (Roads and Highways), AITD

24 November 2016
 Purpose of Roads
 Enabler for quality and efficient transport services:
 Inter-city transport
 Rural transport (inter-village; intra village)
 Urban transport
 Provide access to social infrastructure
 Education centres
 Healthcare facilities
 Markets, fairs
 Safety, security, administration
 An infrastructure critical to socio-economic development
of our country
As such the road infrastructure must have capacity to
support the flow of goods and people and the vehicles
(motorised and non-motorised) and pedestrians that move
on the road network.
 Historical Growth of Road Network
(‘000 km)
Current 2016
Category 1951 1971 1991 2011
(Quick estimates)
Total 400 915 2327 4690 5000
NHs 22 24 34 71 101
SHs 50 57 127 164 166
Surfaced Roads 157 398 1113 2525 3000

 Currently rural roads constitute about 85 percent of the total

road network
 Overall road density – very good. But regional differences
exist
 Still several states where habitations are crying for
connectivity with all-weather roads
 Sector got a push with Vajpayee’s announcement of NHDP
and PMGSY
 Expenditure on Roads
Period Expenditure (Rs. crore)

1992-1997 13,200

1997-2002 39,300

2002-2007 130,000

2007-2012 430,000

2012-2017 725,000 (Estimated)

 Challenges in Road Development
 Capacity augmentation of
NHs, SHs, MDRs NHs
 Expansion of road network – SHs
universal connectivity
 Rehabilitation of deteriorated District

Mobility
roads Roads
 Preservation of existing roads
 Balanced development Rural
 All categories of roads roads
 All regions of country
 Resource efficiency
 Sensitive to social,
environment concerns Accessibility
 Efficient delivery of
programmes
 Governance, transparency
 Road Transport
 Share of road transport in total transport very high
 Motorised : Cars, buses and trucks: tremendous
growth and continuing
: Car ownership levels are still low
: Buses and trucks – annual growth 7-10%
 Short haul by road plus long haul by rail continues to be a
challenge
 Truck industry has seen considerable modernisation by
way of increase in proportion of multi-axle vehicles
 Provides door to door service, flexibility of operation
 But Negative externality : Overloading
: Impacting railway operations
: Accident hazards
: Energy guzzlers
 Road Transport
 Roads have a critical role in containing vehicle
operation cost of cars, buses and trucks.
 Current broad assessment is Annual VOC =
Rs.800,000 crore.
 Bad roads could cause annual loss of say Rs.30,000
crore.
 Bus transport services have considerably expanded.
However, it may still be inadequate in remote areas.
 Buses and trucks are the rolling stock of road
transport infrastructure.
 GPS enabled trucks, buses, cars
 ITS coming up for traffic management and violation
detection
 Integrated Rural Development
 Social justice
 National integration
 Economic uplift
 Higher productivity in rural areas
 Role of rural roads:
 Undeniable
 An instrument of poverty alleviation
That explains the rationale of GOI intervention in PMGSY
and entrusting this to MORD
 MORD Model: Standards national, implementation local
 Also several states – including Bihar started creation of
separate rural engineering organisations even though
same cadre of engineers
 Central Road Fund
 Existed since 1929
 Revamped in December 2000: Re.1.00 per litre on
petrol & diesel at that time
 Currently Rs.6.00 per litre on petrol and diesel
 Annual proceeds – currently of the order of
Rs.70,000 crore
 Distribution among all categories of roads as per
CRF Act (with amendments from time to time).
 Current Allocation of CRF
(Effective 01.06.2016)

Current Cess on Petrol and Diesel : Rs. 6.00 per ltr

S. Category of roads Percent
No.
1. Development and maintenance of national 41.5
highways
2. Development of rural roads 33.5
3. Railway over/under bridges and safety works at 14.0
unmanned railway level crossings
4. Development and maintenance of state roads of 10.0
inter-state and economic importance
5. Development and maintenance of roads in border 1.0
areas
 Current Initiatives
National Highways
Seven Phases of NHDP
 I : 4-laning GQ
 II : 4-laning E-W and N-S
 III : 4-laning links to state capitals
 IV : Two-laning
 V : 6-laning
 VI: Expressways
 VII: Ring Roads, Bypasses, Flyovers

PPP initiatives saw good progress

Some review being undertaken now
 Recent initiatives include focus on:
 Bridges and Bridge Management System
 EPC, Hybrid Annuity Mode of Delivery
State Highways and Major District Roads
 Several states are taking up capacity augmentation
and upgradation of their SHs and MDRs including
bridges
 Strategies include tapping private sector financing
and avail of Viability Gap Funding of Central
Government
 Dedicated programmes for safety engineering
measures
 Proceeding with Performance Based Maintenance
Contracts
 Earlier neglect also to be made up
 Rural Roads
 PMGSY launched in 2000
 An excellent example of managerial and technical
support at national level
 And, sound implementation by states and their field
PIUs
 Several states undertaking own programmes –
MMGSY, GTSNY (Bihar)
 MGNREGS
 Projected Investments in Roads
(Rs. crore)
No. Scheme 2012-17 2017-22 2022-27 2027-32 2012-32
1. Expressways 20,000 60,000 120,000 180,000 380,000
2. National Highways 215,000 315,000 420,000 570,000 1,520,000
Special Schemes
SARDP-NE +
3. 25,000 40,000 50,000 60,000 175,000
Arunachal Package
(central sector)
Other special
4. schemes (central 10,000 15,000 20,000 20,000 65,000
sector)
5. State Highways 210,000 270,000 320,000 360,000 1,160,000
6. Major District Roads 100,000 130,000 160,000 210,000 600,000
Rural Roads
7. 145,000 185,000 130,000 110,000 570,000
including PMGSY

Total 725,000 1,015,000 1,220,000 1,510,000 4,470,000

Source: NTDPC
 Toll Financing
 Sector got commercialised
 Public private partnership can flourish
 System and methodology of collection of toll needs
advance technologies
 Advances in mode of project delivery
BOT (Toll), BOT (Annuity/Hybrid Annuity), EPC
 Toll financing even for government funded projects
 Replacement Value of Road Assets
(Broad Assessment* as of January 2013)
A. National Highways Rs. Billion
19,000 km (4 lane or more) @ Rs.70 million/km 1,330
40,000 km (2 lane) @ Rs.20 million/km 800
19,000 km (Single lane) @ Rs.8 million/km 152
2,282
B. State Highways
4,000 km (4 lane) @ Rs.65 million/km 260
61,000 km (2 lane) @ Rs.18 million/km 1,098
101,000 km (single lane) @ Rs.7 million/km 707
2,065
C. Major District Roads
266,000 km (single lane) @ Rs.5 million/km 1,330
D. Rural Roads
PMGSY: 400,000 km @ Rs.4 million/km 1,600
Non-PMGSY: 25,00,000 km @ Rs.1.2 million/km 3,000
4,600
Total Road Network Asset Base (excludes roads in urban areas) 10,277
Say 10,300

* Source: NTDPC estimates prepared by DP Gupta, former DG (Roads) MORTH

Combined Wealth of Top 10 Industry Captains
(India)
US$ (Billion)
1. Mukesh Ambani 23.1
2. Dilip Sanghvi 15.8
3. Azim Premji 15.4
4. L. N. Mittal 13.3
5. Shiv Nadar 12.1
6. Cyrus Poonawalla 8.8
7. Kumar Mangalam Birla 8.8
8. Uday Kotak 7.9
9. Sunil Mittal 6.5
10. Deshbandhu Gupta 4.9
Total 116.6
____________
* Source: Hindustan Times, 22 October 2016
(Forbes, IMF)
 Impact of Poor Maintenance
● Loss of Assets
 Current replacement Value : Rs. 10,300 billion
 Annual Loss due to poor
condition (5% of 7,000) : Rs. 350 billion
 Erosion of network (Annual) : 40,000 km rural roads
10,000 km secondary roads
● Increased Vehicle Operating Cost (Say Rs.300 billion per year)
● Reduced Life of Vehicles
● Increase in carbon footprint
 Higher fuel consumption
 Higher pollution
 Avoidable burden of quarrying and transporting road
aggregates due to reconstruction
● Economic and Social Benefits of Creating Assets are Lost
● Loss of Image: Highway Agency, State, Nation
● Saviour: Growing awareness among political leadership and
administrators in states
 Asset Management
 A strategic and systematic process of:
 Operating
 Maintaining
 Upgrading
 Expanding
Physical assets throughout their life cycle.
 Asset Life Cycle
 Identifying the needs: creation, maintenance
 Asset planning
 Asset design and construction
 Asset operation and maintenance
 Asset renewal
 Asset upgradation and expansion
 Asset Preservation
Strategy Elements in Maintenance
Policy Framework
(Political & Administrative
Support)

Funding Institutional Arrangements

 Sources  Organisation and
 Budgeting and allocations responsibilities
 Expenditure  Asset management systems
 Human resource development

Maintenance
Implementation
 Key Elements – Road Maintenance
Implementation on Ground
Management & Planning Delivery on Ground
 Maintenance units Contract procedures
 Inventory and surveys Contract documentation
 Inspections Contracting
 Planning and arrangements
prioritisation
 Works and supervision

Technology Control
 Resource efficiency  Monitoring
 Knowledge development  Review and evaluation
 Appropriate equipment  Technical and Financial
Auditing
 Maintenance Management –
Broad Principles
 Conducting inventory and condition surveys
 Planning and economics of maintenance
 Timing of maintenance interventions
 Estimating and budgeting
 Works preparation and works programme
 Reporting
 Road Deterioration Curve
Managing Life Cycle

Very good
2
Good 1
R
o
Fair a
d

C
o
n
Poor d
i
t
i
o
n
Very Poor

Time/Traffic
Planning and Economics of Maintenance
 First priority: Routine maintenance of roads in good
condition
 Second priority: Off-carriageway maintenance of
roads in fair and good condition
 Third priority: Periodic surface renewal of roads in
fair condition
 Special repairs and emergency works: Reserve 15 -
20 percent of budget
 Rehabilitation, reconstruction: Not from
maintenance budget
 Global Plan

UN Decade of Action for

Road Safety
2011-2020

Five Pillars

Road safety Safer roads Safer Safer Post-crash

management and mobility vehicles road users response
 Road Safety and Traffic Management
 Safety with mobility
 Engineering measures: Critical element
 Society awareness
 Hazards identification and counter measures
 Inadequate road signs, pavement markings
 Poor intersection layout
 Poor arrangements at construction sites
 Unmanned railway level crossings
 Road Safety Audits: Need for sunset sometime
 Shortage of good safety auditors
 State Road Agencies
 Strong institutions, need to be preserved
 Reorientation
 Project delivery through PPP
 Functions based management structure
 Improved management training
 Human resource development
 Strong database, MIS
 State road corporations/authorities
 HRD (knowledge and skill upgradation)
 Fill up speciality gaps: core and business processes
 Strengthen/enhance existing skills
 Talent creation, talent retention
 Career planning/cadre management
 Hygiene factors
 Work stations
 IT, computerization
 Inspection vehicles
 Contracting Industry
 Fillip by World Bank, ADB since mid-1980s
 ICB / FIDIC culture
 Focus on:
 Equipment management
 Resource scheduling
 Innovative technology
 Safety at construction sites
 Training of workers
 Equipment banks
 Growth on healthy lines
 Partnership approaches
 Dispute resolution
 Healthy decision support system by Employer
 Advances in Equipment,
Instrumentation
 Advances in Survey Instruments
 Advances in Laboratory Testing Equipment
 Advances in Construction Machinery and Equipment
 Zero customs duty on import of road construction equipment in
mid-1990s revolutionised the sector delivery (quality, speed and
environment savy)
 Vibrant equipment industry (pressure on domestic industry to
modernise)
 Several new equipments are seen now
 Information and Communication Technology provided the boost
 Mobile Apps
 Geotagged, Geostamped photos
 Ownership by contractors: enhanced
 Equipment banks coming up
 Advances in Technology
 Innovative Materials: IRC Accreditation
 Industrial wastes – Utilisation increasing
 Fly ash
 Steel / Copper / Zinc slag
 Marble slurry
 Use of construction / demolition waste
 Use of plastic waste in bitumen
 Use of crumb rubber in bitumen
 Use of geo-fabric, coir
 Use of bio-engineering measures in slope protection
 Recycling of pavements
 Use of locally available marginal materials (lime/cement
stabilisation)
 Advances in Technology
 Thanks to research effort by Academia (state,
national and international levels)
 Thanks to research effort by Industry (all
stakeholders connected with roads and road
transport)
 Thanks to policy initiatives by government
 Innovations and advancements will occur
 through partnership between Academia and
Industry, and
 through facilitation by the Government
 Government Need to Invest in Research
Paving the Way to Tomorrow’s Energy
(Initiative on Wattway by Colas)
 Thank you

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