Economic Editors Conference MINISTRY OF ROAD TRANSPORT & HIGHWAYS 8 th October 2012.

1. Economic Editors Conference MINISTRY OF ROAD TRANSPORT & HIGHWAYS 8th October 2012.

2. India’s Road Network National Highways constitute only 1.7% of length, but carry 40% of the traffic on Indian Roads.

3. NHDP • National Highways Development Program is world’s largest road development program based on Public Private Partnership (PPP) Model. • Under NHDP, the NHAI has • Completed Length :18,760 Kms • Presently Under Implementation :14,130 Kms • Balance for award : 22868 Kms • All seven phases of NHDP cover 55,000 Kms + approximately. (including 5700 Km approx. of 6-Laning of Phase – I [GQ]) • Other than NHDP, Government is also implementing major road development programmes in North East (SARDP-NE) for 6418 Kms (NH-3513 Kms and SH-2905 Kms) and in Left Wing Extremism (LWE) affected areas for 5477 Kms (NH-1126 Kms and SH-4351 Kms).

4. Robust PPP Model • The road development regime changed from public funded projects to PPP projects in order to harness the efficiency and competence of the private sector, leverage its resource raising capacity and ensuring quality operation and maintenance during its life cycle. • Standard documents for the Bidding and Model Concession agreements have been developed and standardized. • A robust PPP policy framework has gradually evolved and matured.

5. Year 2012-13 is challenging • While a record length of 7957 Kms was awarded in 2011-12, the scenario during the current fiscal year appears challenging. • NHAI has made adequate preparations regarding land acquisition and feasibility reports - a large shelf of projects is available – 12000+ kms. • While Annual Prequalification has facilitated bidders, e-Procurement has boosted bidders’ confidence into the transparency of the systems. • Some new policy initiatives have been taken to furtehr streamline and expedite the development of highways.

6. New Policy Initiatives - EPC • New EPC agreement document for construction of two lane (with paved shoulders) National Highways has been approved by the Cabinet. • Allows major shift in public procurement from Item Rate Construction Contract to EPC Contract. • Design responsibilities vests with the contractor to enable him to use best practices and innovate for efficiencies. • About 4000 Kms planned to be awarded on EPC mode of delivery in 2012-13 to infuse public capital in the road sector and boost confidence of the Industry.

7. New Policy Initiatives - OMT • Operate, Maintain & Transfer (OMT) Policy is now in place. • Maintenance is critical for the service life of high valued road infrastructure. A need was felt to tap private sector efficiencies in operation, fee-collection and maintenance. • Presently, maintenance of public funded roads is through annual Operation & Maintenance contracts and user fee collected through different agencies. • In OMT contracts, the concessionaire is given contract for 5 to 9 years with responsibilities for maintenance and tolling together.

8. SPECIAL ACCELERATED ROAD DEVELOPMENT PROGRAMME IN NORTH EAST (SARDP-NE) • OBJECTIVE is to upgrade National Highways to 2/ 4 lane to provide connectivity of all 88 District Headquarters and backward and remote areas of NE region by at least 2-lane road, improve roads of strategic importance and improve connectivity to neighboring countries. • Under SARDP-NE, the Govt. has approved 6418 Kms (NH-3513 Kms and SH-2905 Kms) • THE PROGRESS OF THE SARDP-NE AT A GLANCE * Out of 886 km NHAI is implementing 39 4 km on BOT(Annuity), MoRT&H 140 km on BOT(Annuity) & 347km on EPC

9. Status of LWE projects • To improve road connectivity of identified backward area, which are affected by Left Wing Extremism (LWE), for transforming socio-economic conditions of the community. • Under Road Requirement Plan-I, 5477 km (1126 Km of NH + 4351 Km of SH) existing roads at a cost of Rs. 7,300 crores in 34 Districts of 8 States identified by MHA and States are being improved to 2-lane.

10. Statewise Progress of LWE projects

11. Road Transport

12. INITIATIVES FOR SEAMLESS INTER-STATE TRANSPORT (Through consensus building among States) • National Permit Scheme established for seamless movement of goods vehicles across the country on payment of annual fee. • Efforts are being made to reach a consensus on rationalization of Motor Vehicle Taxes throughout the country. Committees have been constituted consisting of Ministers and Secretaries of the State Governments on the following issues: • Rationalization of life time tax on two wheelers, cars/LMVs and taxis/maxies at a floor rate of 6% of the sale price (excluding VAT). • Rationalization of taxes on temporary or permanent re-location of two-wheelers, cars/LMVs and taxies/maxies. • National Permit Scheme for commercial passenger vehicles.

13. Road Safety National Road Safety Council under the Chairmanship of Union Minister of RT&H meets regularly to formulate policies and plans to mitigate road accidents. Education Awareness campaign through print & electronic media, organization of road safety week, distribution of road safety awards, seminars, engagement with schools and universities Driving training, refresher training, training to trainers Improvements in issue of driving licence Engineering Road Safety Audit: Identification and remedy of black spots Making road safety an integral part of design to enhance safety of Vulnerable Road Users Ensuring fitness of vehicles: Automated Inspection & Certification Centres

14. Road Safety .. Contd.. • Enforcement • Provision of speed radar guns, interceptors and breath analyzers for better enforcement • National Highways Administrators- Nodal officers for road safety on the National Highways • Advisories to states to enforce helmets, seat belts, check overloading • Emergency Care • Efforts undertaken for a unified call centre • NHARSS – Provision of ambulance and cranes • National Ambulance Code being finalized for standardizing ambulance services

15. ICT Initiatives • Electronic Toll Collection: by 2014 , on all NHs, toll collection would be through ETC system based on RFID technology. • Presently Pilot projects on Zirakpur- Parwanoo, Mumbai- Ahmedabad, Bengaluru- Chennai stretches undertaken. • e-Procurement and e-Tendering: has been introduced for the projects under NHDP being executed by the NHAI. • All concession agreements and the details of Consultants etc. have been put in the public domain on NHAI web site. • Facebook based system has been created allowing direct comments from people and redressal of grievances. • Road Information System, GIS based Asset Management System (GIS-AMS)and use of Satellite Imagery System (SIS) for monitoring projects in far- flung and inaccessible areas. • Enterprise Resource Planning (ERP): steps undertaken for procurement and commissioning of the system in MoRTH & NHAI. • E-Office being implemented in Ministry

16. Challenges - Financing • Financial closures have not been easy to come by in recent times. • High Level Committee on Financing Infrastructure set up under Mr. Deepak Parekh has recently submitted its report. • New innovative financing models are being explored: • Re-inventing the role of IIFCL to facilitate credit enhancement and takeout financing. • Infrastructure Debt Fund • Introduction of tax-free Infrastructure Bonds

17. The Road Ahead • Reinforce the enabling environment for private investment. • Aggressively pursue technology (ETC, ITS) for improved riding experience, road safety and transport management. • Adopt standardized systems and processes for accelerating investment flows & for ensuring safe and competitive delivery.

18. The Road Ahead-.. Contd.. • Leverage budgetary resources & multi-lateral loans for Public Private Partnerships. • Adopt best practices and continue to innovate. • Accelerate the roll-out of PPP projects. • Build capacities – both in private and public sectors. • Roll out of large public funded road projects in EPC mode would boost confidence and infuse liquidity in the industry.

19. Major milestones for all weather connection to Laddakh region • Z-Morh tunnel (6.5 Km tunnel + 6 Km approach road) at a cost of Rs. 2700 Crores sanctioned in BoT (Annuity) mode. • Zozilla pass tunnel (13 Km long tunnel project) also planned. • The tunnels proposed above would provide all weather connectivity to Kargil –Leh –Laddakh region. • This is in the series of major other tunnel projects under construction in J&K Z-Morh Tunnel QuazigundBanihal Tunnel Chenani-Nashri Tunnel

20. Thank You