NTPDC Report - Findings and Recommendations

NTPDC Report – Findings and Recommendations

Question - Development of transport infrastructure is a key to effective economic development. The Rakesh Mohan National Transport Development Policy Committee/NTDPC has recently submitted its report. Discuss the findings and sector specific recommendations of this report for furthering national transport development.

Findings of the NTDPC Report

• Thrust for more investment in overall infrastructure is a must for sustained high growth part; this necessitates development of transport connectivity and linkages

• Adequate financing for transport investment should be both from domestic and international sources

• Overall investment in infrastructure should rise from 7% of GDP in the 12th Plan to 8.1% in the coming 3 plans till 2032

• Public sector investment in infrastructure should correspondingly rise rom 4% in 12th Plan to 4.3-4.5% in the coming plans and private investment from 3 to 3.7%

• Annual investment in transport should rise from INR 2.2 trillion to INR 3.8 trillion during the 12th
plan and INR 14 trillion during the 15th Plan

• There should be greater investment in railways; rail investment should rise from INR 300 billion in 2011-2012 to INR 900 billion in the 12th Plan

• Government must have an integrated transport strategy immune to financial and economic shocks

• Overall integrated strategy should have optimal modal mix reflecting complete resource costs of transport mode for each kind of commodity transported

• Cost of services and actual resources used in production should be linked with pricing in the transport sector

• Network of dedicated freight corridors must be rapidly completed

• Smaller fresh ports should be constructed regularly

• There should be on-airport offices for concerned regulatory agencies for inspecting food, pharma, textiles and biological matter shipments

• National Pipeline Grid could be established like the National Electricity Grid

• Major transport hubs should have logistics parks

• The Central Logistics Development Council must be set up

• NTDPC recommends the creation of an Office of Transport Strategy at national level during the 12th Plan for design and coordination of transport strategy

• This is an independent agency associated with NITI Aayog which will provide technical support for sectoral investment

• At metro city level, Metropolitan Urban Transport Authorities will be established

• India will also have a single unified ministry with mandate for deliverance of multi-modal transport system

• Ministry along with independent regulatory institutions will ensure good regulation design

• Regulatory bodies will further be strengthened against monopolies and their boundaries with CCI will be set

• Legal structure in transport sector must be simplified; life cycle analysis must be used for minimising environmental impact of such transport projects

• Transport sector is chief constituent of GHG emissions; future and current standards need to be reviewed to ensure India has compliance mechanisms in place

• Bharat IV fuel quality standard should be implemented within the next 5 years; Bharat VI should be reached by 2020

• Emissions control should reach European levels in 2 decades

• There should be a National Automobile Pollution and Fuel Authority for curbing emissions and assessing fuel quality standards

• Auto fuel policy committee should be set up every 5 years to ensure air quality

• Safe non motorised options and optimal public transport systems should be assured, especially in cities with more than 500,000 persons

• India’s needs for bulk commodities are expected to grow four fold over the next two decades

• Rail network is stretched to capacity already

• Strategic bulk transport planning group for monitoring developments in coal, fuel, renewable energy etc should be established with priority for critical feeder routs for coal and iron and steel

• Tri-state region of Odisha, Chhattisgarh and Jharkhand must be focused on; coastal shipping from coal producing areas across the eastern coast must be encouraged

• Private sector participation in this field should be encouraged

• Easy and rational road transport tax structure should be in place to ensure efficiency and sustainability

• Ministry of Finance may convene an Empowered Committee of State FMs to undertake collaboration with Ministry of Road Transport

• Tax administration should not be integrated with interstate movement of passengers and freight; single window clearance system should be there for all kinds of taxes and charges at the state border

• ICT technologies are critical in the transport sector; strong institutional foundation for the same should be laid

• Autonomous central level Indian Institute of Information Technology in Transportation most be set up to assist ministries and departments in key areas

• Decentralising of the institutional esteemed construction of institutions and networks for the next 20 years is essential for plugging knowledge gaps

• One percent of investment in transport sector should be set aside for institution and capacity building in all sectors

• Numerous research institutes such as Indian Institute of Transport Research must be set up alongside centres of excellence in concerned universities and research institutes

• Further education should be sponsored for 2 to 5 % of personal in public and private transport organisations and task force should be set up for master’s and bachelor’s programmes for the same

• There should be National Safety Boards for each transport sector and Road Safety Boards at State levels

• Safety policies and safety departments need to be set up

• Improved access to border posts via reclassification of remaining few kms of road corridors in international borders is a must for improving international traffic

• Domestic laws should be tweaked and standardisation of technologies should be encouraged for improvement of global traffic; non physical barriers should be lowered

• Trade through all modes should be encouraged and dedicated Joint Task Force should be set up for supporting international transport connectivity

B. Sector Specific Recommendations

Railway

• Massive expansion capacity must be met for freight and passenger traffic requiring organisational reform of railways

• A new Railway Regulatory authority needs to be set up while the Indian Railways Corporation must be made statutory with subsidiaries such as CONCOR

• There should be Dedicated Freight Corridors as well for setting up multimodal transport of non bulk commodities

• Capacity creation and strategy for passenger service is a must

• Accounting system must be in line with GAAP

• There should be a National Board for Rail Safety and Establishment of Railway Research and Development Council

• Independent Rail Tariff Authority should be set up

Roadways and Road Transport

• Dedicated Road Data centres should be set up; roads should be systematically numbered

• PMGSY should be expanded to achieve universal connectivity; NE should have comprehensive transport development plan

• Accruals to CRF must be increases and cess of INR 2 per litre must be increased to INR 4 per litre

• Current policy of levy of toll on 2 lane roads should be stopped; special connectivity to multimodal transport must be encouraged

• Road and Road Safety as well as Traffic Management Boards should be formed

• Motor Vehicle Act should be amended to meet contemporary road transport needs

Civil Aviation

• Complementary international, national and regional air networks should be built and a National master Plan for the construction of airports should be formed

• Airport Approval Commission should be set up within MoCA

• Regulatory and policy functions should be well separated
• Centre should withdraw from airport operations which are commercially viable

• DGCA should be replaced with a Civil Aviation Authority for operation regulation of airlines and aircraft covering spaces

• Air Accident investigation should be outside the purview of DGCA; there should be a separate fully autonomous body for the same

• Taxation regime for aviation industry should be revised

• Disused or low traffic secondary airports should be developed

• Air India’s role should be clarified

• Regulation of tariffs at airports should be under the PPP model

Ports

• Investment should be made in 4 to 6 mega ports over the next 2 decades and two to three should be located on each coast

• Governance structure of major ports should be changed through decentralisation and corporatisation

• Current port trusts should be changed into statutory landlord port authorities

• Priority should be given to development of coastal shipping

• Inland water transport should be developed and TAMP should be restructured

• Indian shipping industry should provide a level playing field

Summary

• The report stresses modernisation, growth of all transport segments

• Institutions should be formed in transport at national, state and local levels

• New regulatory authorities must be established and adequate technical competence must be introduced for existing ones

• R&D in transport needs to be strengthened

• Fiscal regimes need to be rationalised

• Safety in transport planning and development is a must

Facts and Stats

• Freight transport is estimated to grow 6 to 7 times and passenger traffic by 15 to 16 times over 20 years; assumption of resumption of rapid economic growth is around 7 to 9 percent per annum

• India has emerged as the 9th largest civil aviation market in the world. Air traffic density in India is lower at 72

• Gap between traffic growth and port growth is widening; port traffic is expected to rise by 40% from current 914 million tonnes to 1279 million tonnes towards the close of the 12th Plan