| The government has its task cut out if it is to complete the national highway development programme by 2015.
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| The progress of the national highway development programme (NHDP), of late, has been marred by the slackness in awarding contracts.
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| The much-hyped Golden Quadrilateral (GQ) project, the first phase of the NHDP, would be completed by the middle of 2007, though it should have ended by December 2005. It is 93 per cent complete as of now.
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| The upgradation of the national highways connecting north-south and east-west of the country (NSEW, phase II) is expected to be completed by December 2008, even though it was originally scheduled for completion by December 2007.
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| Currently, the government is concentrating on four-laning 6,000 km of the national highways under phase III A of the NHDP, even as the detailed project report for phase III B has been cleared by the Union Cabinet.
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| The government plans to finish the NHDP by 2015, while the issuing of contracts will end by 2012. According to the government, out of the total length of 7,498 km of national highways to be upgraded, the work on 6,669 km has been done.
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| Thus 89 per cent of the NHDP is complete. However, the big question is that if in seven years (the project began in 1999), about 90 per cent of the project work was completed, then why will it take nine years for the government to finish the remaining 10 per cent of the work? This, when the government has access to the latest technology and consultants.
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| The two-laning of 20,000 km of highways under phase IV is yet to be approved by the government, even though the concerned ministry has got phase V approved from the Cabinet. Under this phase, six-laning of 6,500 km of four-laned highways is to be done.
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| The government has also approved phase VI of the NHDP, as part of which 1,000 km of four to six lane expressways will be constructed.
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| Phase VII would include the construction of ring roads, flyovers and bypasses on select routes.
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| With the work on phase II yet to take off, and 356 km of highways connecting ports to hinterlands yet to be four-laned completely (work on only 111 km has been done), the government will have to work hard to meet the deadline of 2015.
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| SNIPPETS
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Policies for change
The government has taken some key policy initiatives for the development of the road sector.
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| These include the amendment in the National Highway Act (1956), allowing private agencies to build, maintain, manage and operate national highways for a specific duration, and levy fees to recover costs and generate reasonable returns.
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| Secondly, the setting up of the committee on infrastructure, headed by the prime minister, was also a significant development.
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| Apart from formulating policies to ensure time-bound development of world-class infrastructure, and monitoring progress of projects, the committee also develops structures to maximise the scope of public-private partnership.
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| The government has also made a provision for 40 per cent capital subsidy to make projects viable. This is known as viability gap funding. This is available for the four-laning projects being initiated by the National Highway Authority of India (NHAI).
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Also, the government has kept duty free, import of high capacity and modern construction equipment. There is also a provision for encumbrance -free site work, which means the government would meet all expenses relating to acquisition of land and other pre-construction activities. The link fund
The government allocates funds for development of state roads to the respective state governments under the Central Road Fund (CRF) scheme.
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| The CRF was constituted by setting apart an amount of Rs 2.64 paise per litre out of the custom and central excise duty levied on petrol for the development of state roads on March 1, 1929.
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| The cess was increased from time to time to meet the challenges of accelerated fund requirement for all categories of roads in the country. The CRF was revamped in 1998-99.
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| This fund is non-lapsable and was given a statutory status under the CRF Act in 2000.
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| Currently, a cess of Rs 2 per litre on petrol and high speed diesel (HSD) is being levied. Out of this, Rs 1.50 per litre is allocated in such a manner that 50 per cent of the cess on HSD goes for the development of rural roads.
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| The remaining 50 per cent cess on HSD and the entire cess collected on petrol is allocated for the development and maintenance of national highways, construction of roads, under- or over-bridges and safety works at unmanned railway crossings.
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| A part of the cess is also used for the development and maintenance of state roads. |
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Content Guide
