Up transport infra spend; remove tolls on 2-lane roads: Panel

An expert panel has recommended increasing investment in the transport sector to 3.3 per cent of GDP in the 12th plan to enable sustained economic growth.
"To enable sustained high economic growth over the next two decades, investment in transport would need to increase from the current about 2.6 per cent of GDP to about 3.3 per cent in the 12th Plan, and then stabilise at about 3.7 per cent of GDP until 2032.
"Annual investments in transport should increase from Rs 2.2 trillion in 2011-12 to Rs 3.8 trillion during the 12th Plan, and rise further to about Rs 14 trillion in the 15th Plan period (2027-32)," the High Level National Transport Development Policy Committee (NTDPC) chaired by former RBI Deputy Governor Rakesh Mohan said.

Mohan today submitted the report to Planning Commission Deputy Chairman Montek Singh Ahluwalia. He will present the report to Prime Minister Manmohan Singh tomorrow.
The committee has also recommended doing away with existing policy of levy of toll on two-lane roads.
"The existing policy of levy of toll on two-lane roads needs to be done away with. A two-lane highway on the primary network should be viewed as a basic minimum facility and provided through government budget including CRF," it said.

The panel has also recommended setting up of a regulatory authority to mediate in needs of producers and consumers to promote competition in the sector and regulate monopoly.

The report has suggested modernising and expanding all segments of transport system.
"It also proposes reform measures in regulation, rationalisation of fiscal regimes such as embedding safety concerns in all transport planning and execution."
It recommended overall investment in infrastructure to increase from about 7 per cent in the 12th Plan (2012-17) to about 8.1 per cent of the GDP till the next three Five Year Plans (till 2032).
It has suggested greater investment in railway, setting an Office of Transport Strategy within the 12th Plan period, implementing Bharat IV fuel quality standards by 2020 and tightening and enforcing vehicle standards to drive innovation and control emissions.

"Annual investment in railways should increase from Rs 300 billion in 2011-12 to Rs 900 billion during the 12th Plan, and rising to Rs 4.6 trillion in the 15th Plan period."
On fiscal side, it has suggested a simple and rational tax structure, setting up an Empowered Committee of State Finance Ministers for transport levies, integration of tax administration for inter-state freight movement and a single window clearance for all types of taxes and charges at state border.