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REsEaRchstudy 2015
Road TRanspoRT challenges
In IndIa
PaRtI:WhIchEVOLutIONsFORINdIaNRaILWays?
Interview of Mr Vinod Bhatia, Director of the Railway Board at Indian Railways
IndianRailwayssetforaradicaloverhaul
Interview of Mr Kunal Singh, Research Associate at Centre for Policy Research
PaRtII:MaINchaLLENGEsFORtRucKsININdIa
Howtopreventtheincreasingproblemofoverloadedtrucks?
Interview with Volvo Trucks India
AnoverviewofRoadTransportChallenges
PaRtIII:tRucKsRadIaLIsatION
Radialtyreshavevirtuallyreplacedbias
Interview with Michelin India
Interview with Apollo Tyres
PaRtIV:ROad&INFRastRuctuRE
WilltheGadakri-ledroadministryliveuptoitspromises?
PossiblesolutionstorelievetrafficcongestiononIndianroads
BIBLIOGRaPhy
aBOutINdIatRaNsPORtPORtaL
TABLE OF CONTENTS paRT I:
WhIch evoluTIons foR IndIan RaIlWays?
thepowersoftheGovernmentofIndiainregard
toRailwayexpenditure.Itco-ordinateswithother
MinistriesoftheGovernmentofIndiaforintergrat-
eddevelopmentoftransportnetwork.
ThemaininitiativesofRailwayBoardare:
a) To partner with key stakeholders: States,Pu-
blicSectorUnit’s,multilateralandbi-lateralorga-
nizations&othergovernmentstogainaccessto
longtermfinancingandtechnologyfromoverseas,
theprivatesectortoimprovelastmileconnectivity,
expandfleetofrollingstockandmodernizeour
stationinfrastructure.
b) Indian Railways is envisaging investment of
$142 billion innextfiveyears.Thiscapitalwillbe
mobilizedfrommultiplesourcesi.eMultilateral
developmentbanks,pensionfunds.
c)Targeting operating ratio for2015-16at88.5%
against91.8%in2014-15:bestinthelast9years.
d) To speed up decision making, tightenac-
countability,improvemanagementinformation
systems:traininganddevelopmentofhuman
resource.
e) To Develop and introduce High Speed
ITP: You are director at the Railway Board, and
you will be a speaker at the 5th Annual Modern
Railways taking place in Indonesia. What will be
your key messages?
MR Vinod Bhatia: IndianRailwayshasunder-
takenthetaskofmodernizingthemassiveRail-
wayssystem.Thistaskinvolves,organizational/
managementsupport,substantialfunding,new
direction,newthinking,mobilizationofresources,
innovativePPPandnewbusinessmodels,anda
lotmore.GovernmentofIndiainAugust,2014has
permittedForeignDirectInvestmentinconstruc-
tion,maintenanceandoperationoftheidentified
areasinIndianRailways.Thereareunprecedented
opportunitiesinIndianRailwaysystem.IndianRail-
waysisinterestedincloselyinteractingandwork-
ingwithindustryandstakeholders.
ITP: What is the Railway Board and what are
your main initiatives?
TheRailwayBoardisthechiefadministrativeand
executivebodyfortheadministration,technical
supervisionanddirectionoftheRailways.TheRail-
wayBoardhasalsobeenvestedwithcertainpow-
ersoftheCentralGovernmentanditalsoexercises
INTRODUCTION WITH MR. VINOD BHATIA, DIRECTOR OF THE RAILWAY BOARD AT INDIAN RAILWAYS
� copyright India Transport portal Road Transport challenges 2015 5
areexpectedtoenhancethepassenger’stravel
experience.
ITP: Indian roads are still carrying most of the
freight. How would you comment the rail/road
freight transportation in this area?
Indianrailwaysistargetingtoincreaseitsfreight
sharefrom35%to50%.Thiswillbeachievedby
creatingcarryingcapacitythroughcapacityen-
hancementworksonHighDensityNetworksand
providingnewvalueaddedservicesonacustom-
izedbasis.Par-
ternershipwith
majorlogistics
providers,pro-
curementofHigh
speedandhigh
capacitywagons,closelinkageswiththecustom-
ers,strengtheningofitspositioninbulkcommodi-
tieslikeCoal,Cement,IronoreandutilizingInfor-
mationTechnologytomeetdeliveryschedulesare
someofmajorinitiativesundertaken
byIndianrailways.Twodedicated
freightcorridorsi.e.Easternand
Westernwillbeoperationalby2020.
Preliminaryengineering-cum-traffic
surveys(PETS)forfourotherDFCs
areinprogress.Thiswouldcreate
adequatecapacitytomeetthefreight
demand.Incentivestomajorcustomershavebeen
offeredtoinvestinefficientterminalhandlingsys-
temstoreduceturn-roundofthewagons.
ITP: What changes can we expect with the Rail
Budget 2015?
RailBudget2015marksbeginningofaFiveYear
ActionPlantotransformtheRailwaysbysetting
higherstandardsforGovernanceandTranspar-
ency.Amediumtermperspectivetoincrease
dailypassengercarryingcapacityfrom23million
to30million,increasetracklengthby20%from
1,14,000kmto1,38,000kmandgrowourannual
freightcarryingcapacityfrom1billionto1.5billion
tonnes
hasbeen
initiated.
Estab-
lishing
‘wasteto
energy’conversionplants,onlinebookingofdis-
posablebedrolls,provisionofbiotoilets,issuing
unreservedticketsthroughsmartphones,smart
cardsforticketing,e-cateringbyintegratingbest
foodchains,Introduction
of‘SMSAlert’toinform
passengersaboutup-
datedarrivalanddepar-
turetime,provisionof
conciergeservices,user
friendlyladdersforclimb-
ingupperberths,new
Brailleenabledcoaches,developmentof10Satel-
literailwayterminalsinmajorcitiesfordecongest-
ingthesecitiesaresomeofnewinitiativeswhich
“Indian Railways is targeting to in-crease its freight share from 35% to
50%”
� copyright India Transport portal
10.8billionhasbeenmarkedforHighspeedRail&
Elevatedcorridorand$2billionwillbeutilizedfor
enhancingPassengerAmenities.
ITP: In India, railways infrastructure is not as
discussed as road construction but how would
you describe it and the investment it requires?
Inlastfewdecades,theexpenditureonRailways
infrastructureasapercentageoftotaltransport
expenditurehasdeclinedconsiderably.Railwayex-
penditureaspercentageoftransportsectorexpen-
ditureusedtobeabout56%in7thPlan(1985-90)
whichhasreducedto30%in11thPlan(2007-12).
IndianRailwaysinlasttwodecadeshasremained
under-investedwhereastheroadsectorhaswit-
nessedasurgeininvestments.
TheshareofIndianRailwaysinoverallGDPhas
beenstaticat1%andhas,infact,gonedownto
0.9%in2012-13.Since1951,whilethefreightload-
inghasgrownby1344%andpassengerkilometers
by1642%,theRoutekilometershavegrownby
only23%andDoubling&Multipleroutelengthby
only289%.
Thereisalargeshelfofpendingprojectswhichis
estimatedat$80billiononthebasisoforiginal
estimatedcosts.Ofthese,fundrequirementfor
theprioritizedworkssuchasdoubling,newlines,
gaugeconversion,trafficfacilities,signal&telecom
works,workshopsandelectrificationisestimated
at$35billion.Overthenextfiveyears,Indian
Railwaysisenvisaginganinvestmentof$142bil-
lion.Outofthese,$16.67billionwillbeutilized
forStationredevelopmentandlogisticparks.$
Indian Railways set for a radicaloverhaul
“One of the main reasons that the Indian railways has survived is because is has no
competitors.”
� copyright India Transport portal Road Transport challenges 2015 �
technologythatitneedstocaterefficientlyand
effectivelytoIndia’steemingpopulation.
Thereisnodoubtineitherthegovernment’s
orthecommonpeoples’mindsthatRailways
needsamakeoverandhugeinvestment.Railways
hasbeenlosingtrafficshare,bothpassengerand
freight,foroverhalfacentury.
Sadly,thisvitalelementofinfrastructurehas
progressedabysmallyintheyearssincethefirst
trainranbetweenMumbaiandThanein1853
whereitcarried400passengers34kmataspeed
of28kmphinabout1.5hours.Nowthetrains
betweenthesetwodestinationsrunatanaver-
agespeedof50kmph.Perhapsoneofthemain
reasonsthattheIndianRailwayshassurvivedis
becauseithasnocompetitors.
ndianRailways’ricketycoachestrundling
pastill-maintainedstationsmaysoonbeathing
ofthepastsaysthenewgovernment.theloss-
makingnationaltransporterisexpectedtoseea
majorfaceliftwithambitiouspromisesofmod-
ernizationandbetteroperationalefficiency.
Thelifelineofmillionsofcommuters,theIndian
Railwaynetworkismassivealbeitatadrickety.One
ofthelargestemployersintheworld,thenational
transporterisreadytotakethe‘BigLeap’and
transformitselffromtheabysmalstateitisintoan
efficient,modernsystem.PeopleofIndiaareskep-
ticalaboutthefantasticpromisesvariousgovern-
mentshavebeenmakingovertheyears.Thisrelic
oftheBritishRajhasstoodthepassageoftimebut
hasbeenunabletointegratemodernandrequisite
mixedreactionsaboutthe‘radicalrailoverhaul.’
ItmaytakeIndiadecadestorealisethedream
oftrainslikethelocalversionoftheShinkansen
runningthetracks.Modi’sDiamondQuadrilateral
lineswillhavetowaitandacompromiseofsorts
hasbeenarrivedat—semi-highspeedrailservice
thatwilllinkIndia’sbiggestcities.Chinaisexpect-
edtohelpwithexpertiseandfundingtobuilda
high-speedcorridorbetweenChennaiandDelhi,
whereasJapan’stechnologicalknow-howand
investmentwillbeleveragedtointroduceahigh-
speed
service
inthe
Mum-
bai-
Ahmedabadsection.Feasibilitystudiesare
underwayforninehigh-speedcorridorsthathave
beenidentified.WithIndiarequiringaninvest-
mentof$137billionoverthenextfiveyears,
otheradvancednationssuchasFrancearealso
keentobidforasharetoupgradeIndia’sun-
derdevelopedrailsector.TheDedicatedFreight
Corridor(EasternandWestern)projectisfacing
landacquisitionchallengesasofnow.DFCCisbe-
ingfundedbytheJapanInternationalCoopera-
tionAgencyandtheWorldBank.Workispicking
uppaceandthesecorridorsareexpectedtobe
completebytheendof2019(twoyearsbehind
schedule).“Dedicatedfreightcorridorswillfree
up70%ofRailways’carryingcapacity,”saidAdesh
IndianRailwaysischaracterizedbyoperational
inefficiencythatbeggarsbeliefanditsperipherals,
researchanddevelopment,andmanufacturing
unitsarealsoinvaryingstagesofunderutilization.
Indigenizationofmanufacturingshouldbeakey
focusareaofthegovernmentasitwillgenerate
employmentandhelpcutcostsincurredbyim-
portingcomponentssuchasLinke-Hofmann-BI-
uschwheelsusedforDurontoandRajdhani.After
gainingindependencein1947,Indiahasadded
about13,000kmtoitsextensiverailwaynetwork,
where-
as
China
added
14,000
kmin
justfiveyears(2006–2011).Indiamustfindwaysto
breathelifeintothissectorasitleadsto“improved
landuseandurbandensification,lowercarbon
emissions,reducedcongestionandenhanced
energysecurity”(DeloitteAccessEconomicsStudy,
2011).
TheNarendraModi-ledGovernmentrecognizes
thattherailwayssystemneedsreformslikenever
before.Thenewregimehasevenbeenambitious
enoughtoenvisionanIndiathathashighspeed
bullettrainslikeJapanandChina—anexpensive
proposition,saycritics,inacountrywheresomany
peoplelivebelowthepovertyline.Peoplehave
9 copyright India Transport portal Road Transport challenges 2015 10
privatesectorparticipationandnotprivatization
ortransferofownership.Mostpeoplearehappy
withrecommendationsthatrelatetosettingup
anindependentregulator,decentralization,track
accessandcommercialaccounting.Indianeeds
afairsystemtoregulateandsetpassengerfares
andfreightrates.Howdotheyplantomakethis
systemvibrantagain?IntheBudgetspeechin
February2015,theUnionMinisterforRailways,
SureshPrabhu,said,“Whatisimportantishowwe
sustaintheIndianRailways.Weneedtoregener-
atetheRailways.”Improvingthetravelexperience
seemstobeafocusareaforthisparty.Headded:
“AmajorpartofmyBudgetfocussedonpassen-
geramenitieslikecleanlinessandtoilets.Ifcus-
tomersrealisetheyaregettingsomething,they
willbereadytopay.Thedirectionisveryclear.
WewanttomaketheRailwayself-sustainable
andprofitable.Wewanttoputthemoneyback
intothesystem.”Theministryseemstohavekept
atleast39ofitspromisesifoneistobelievethe
pressreleaseinMay,includingimprovingthe
qualityoffoodandcleanlinessinthecoachesand
stations,settingupemergencyhelplines,making
bookingticketsandretiringroomseasier,signing
MoUstoimproveraildesign,obtainfundingand
Committeesovertheyearshaverecommended
thattheRailwayssplitfunctionsandaRailway
TariffAuthoritybeestablished;corporatizationis
importantandexpertsbelievethatsettingupa
holdingcompanyisthewayforward.TheDebroy
Committeeinitsinterimreport(April2015)said,
“Privateentryintorunningbothfreightandpas-
sengertrainsincompetitionwithIndianRailways
shouldbeallowedandprivateparticipationin
variousRailwayinfrastructureservicesandnon-
coreactivitieslikeproductionandconstruction,
shouldbeencouragedbytheministry.”Theseven-
memberpanelsaid,“Itisimperativetosplitthe
rolesofpolicy-making,regulation,andoperations.
Thereshouldbecleardivisionofresponsibilitybe-
tweenthegovernmentandrailwayorganizations.
TheNarendraModi-ledGovernmentrecognizes
thattherailwayssystemneedsreformslikenever
before.TheMinistrywillonlyberesponsible
forpolicyfortherailwaysectorandParliamen-
taryaccountabilityandwillgiveautonomyto
IndianRailways.”However,theRailUnionhas
rejectedtheDebroyreportandrailedagainst
railrestructuringthroughprivatizationmodelled
onthatusedintheUKandotherrailsystemsin
Europe.Theministryinsiststhatitispushingfor
mentthosealreadyawarded.IndianRailways
needsclosetoINR209,000crore(~USD33bil-
lion)forpriorityprojectsthatdealwith‘doubling
newlines,gaugeconversion,trafficfacilitiesand
electrification.’Therearependingprojectsworth
aboutINR492,000crore(~USD78billion).
ThisgovernmentisallsettoturnIndianRail-
waysintowhatitcalls‘anengineofeconomic
growth.’Theincumbentrailwayministerseemsto
bedynamicandreadytoimplementsomemuch-
neededmeasuresvitaltothemodernizationof
therailsector.Comparedwiththeexpectations
peoplehad,undoubtedlythereformshavebeen
modestsincetheNDAgovernmentcameinto
powerayearago,butnoonecandenythefact
thatithascertainlybroughtaboutanimpressive
waveoftransformation.nssuchasFrancearealso
keentobidforasharetoupgradeIndia’sun-
derdevelopedrailsector.TheDedicatedFreight
Corridor(EasternandWestern)projectisfacing
landacquisitionchallengesasofnow.DFCCisbe-
ingfundedbytheJapanInternationalCoopera-
tionAgencyandtheWorldBank.Workispicking
uppaceandthesecorridorsareexpectedtobe
completebytheendof2019(twoyearsbehind
schedule).“Dedicatedfreightcorridorswillfree
up70%ofRailways’carryingcapacity,”saidAdesh
Sharma,MD,DedicatedFreightCorridorCorpora-
tionofIndiaLtd(DFCCIL).
expediterailconnectivity,andintroducingtech-
nologyinsomespheres(surveillancecameras,
e-ticketing,e-concierge,mobilechargingfacilities).
SureshPrabhusaid,“Inthenextfewmonthswe
shouldbeabletoputinplaceacompleteblue-
print”toachievethesegoalswithoutdentingthe
railfinances.”
The$140billionrebootproposedforthenext
halfadecadetoenhancesafety,buildnewrail
linesandfinishpendingprojectswillrequireenor-
mousamountsofinvestment.Alongwithbudget-
arysupport,theministrywillbeaidedbytheLife
InsuranceCorporationofIndia(LIC),whichwill
provide$25billion(intheformofdebt)inthe
nextfiveyears—agreatstepforwardinattracting
privateinvestmentwithoutriskingthe‘publicdebt
dynamics.’Lastyear,thegovernmentdecidedto
allowFDIfor‘construction,maintenanceandop-
eration’ofcertain‘identifiedareas.’Variousgovern-
mentsrefusedtoincreaserailtariffsandinstead
uppedfreightrates,movesthatledtomorelosses
forthedecrepitrailsector.herearepending
projectsworthmillionsofdollars.Foreveryru-
peetheRailwaysearns,itspends96paise;thereis
barelyenoughtoreinvest.Theministryisactively
consideringmanyalternativesourcesoffunding
suchasmonetizationofrailwayland,approaching
multilateralfundingagencies,tax-freebondsand
jointventures(forsuburbanrail)withstategovern-
ments.Thedefenceministrymayfundrailprojects
alongtheIndia-Chinaborder.Therailministryhas
toincreasethepaceofprojectawardsandimple-
INTERVIEW WITH MR. KUNAL SINgH RESEARCH ASSOCIATE AT CENTRE FOR POLICY RESEARCH
forfreighttransportcarriedbyrailwayssoasto
cross-subsidisepassengertrains.Thisresultsinfr-
ieghtshiftingtoroadshavingdeleteriousimpacts
onboththeeconomyandtheenvironment.Till
veryrecently,thedieselwassubsidisedinIndia
thusprovidingalicensetopol-
lutetothevehicleowners.
So,whileIndiahastoin-
creasethedensityofitsroad
networkinordertoconnect
theunconnectedbutatthe
sametimedecreasetheshare
ofroadtransportcomparedto
railandwaterways.National
TransportDevelopmentPolicy
CommitteechairedbyDr.
RakeshMohanestimateda
freighttraffictoGDPelasticity
ratioof1.2andcorrespond-
ingnumberforthepassenger
trafficwas1.9.Usingtheseelasticityratiosand
expectedeconomicgrowthfigures,onecancal-
culatearoughestimateofroadnetworkin2020.
ButtherealchallengeiswhatIstatedbefore:
augmentingroadnetworkwhileaugmentingrail
andwaterwayswaymoresothatshareofroad
trafficdecreases.
ITP: What are the main evolutions the Indian
road transport sector will go through by 2020?
Roadtransportrepresentuniquechallenge
toIndiaatthemoment.Whilethereiscertainly
aneedforaugmentingthecurrentnetwork,the
shareofroadtransporthastobebroughtdown.
Therearetwoissuesin-
volvedhere.Oneisthe
inevitabilityofroadnet-
worksolvingthelastmile
connectivityproblem.It
ismucheasiertobuilda
roadnetworktoallnooks
andcornersofthecountry
comparedtoarailnetwork.
Watertransportdepends
ongeographicalfactors.It
isalsoproventhatproxim-
itytoroadsincreasethe
socialwell-beingofthe
neighbouringtownsandvillages.Notonlythey
provideeasyaccesstomarketsforfarmproducts
butalsogreateropportunitiesfornon-farmem-
ployment.
Atthesametime,thesecondissueinvolved
hereistheincreasingshareofroadsintheover-
alltransportchoicesisbadforenergyefficiency
andcarbonfootprint.Wechargeveryhightariffs
hastoinvestinitsinfrastructure.Iftheprivate
companiescan’tdoit,theStatehastodoit.Wait-
ingisnotanoptionanymore.3/TheIndianroad
networkisthesecondlargestintheworldandis
ranked87thintheworldforitsquality.Howdo
youthinkIndiacouldimproveitsroadnetwork?
Whatarethemostimportantbarriersthecountry
faces?
Indiahastofocusonanumberofthings.The
regulatorysystemisamess.PPPhasnotproved
tobethekindof
panaceaitwas
presentedtobe.
Infact,theinsti-
tutionsareweak.
Theinstitutions
astheyexistare
unabletoenforcethecontracts.Thecasesendup
withthejudiciarywhichleadstoseveredelays
beforeanyconclusionisreached.Theregulatory
mazealsocreatesincentivesforprivategainsat
thecostofpublicgoods.Theentireregulatory
structurehastoberelooked.
Fundingisobviouslyanotherproblem.Itisa
problembecausepricingisapoliticalissuerather
thananeconomicissue.Tollboothshavebecome
thenewarenaforpoliticalshowmanship.Toll
boothsarepoliticallyunpopular.Pooroversight,
regulationandpolitickingcreatesenoughincen-
tivestonotpayattentionandresourcestowards
maintenanceoftheroads.
ITP: China is supposed to surpass India from an
economical point of view within the next years.
Is the transport sector involved in the Indian
growth? Can the lack of infrastructure (rail and
roads) be an obstacle to the Indian growth?
Indiawillonlysurpassingrowthfigures,notab-
soluteGDP.Transportsectorisobviouslyafactorin
India’sgrowth.TheGovernmentisfocusedonmak-
ingRailwaysasapivotaroundwhichhighratesof
growthcanbeachieved.ThechapteronRailways
intheEconomicSurvey
makesforaverygood
reading.Itcalculates
theimpetusthatthe
Railwayscanprovideto
theeconomythrough
itsforwardandback-
wardlinkages.Theroadsalsoprovidesignificant
opportunitiesforgrowth.Butthelatter“road”was
takenbythepreviousNDAgovernmentunderAtal
BihariVajpayeethatservedfrom1998to2004.In
fact,theEconomicSurveyrecognisesthisandtalks
aboutrecreatinginRailwayswhattheprevious
NDAgovernmentcreatedwithruralroads.
Thelackofinfrastructureisanimpediment.
Askanyinvestorandhewillstatethelackofin-
frastructureasoneofthetopthreereasonsthat
detershim/herfrominvestinginIndia.Itisnotjust
thetransportbutalsootherthingslikechronic
powercuts.Theinlandconnectivityfromportsis
notgood.Thelastmileconnectivityispoor.India
“Transport sector is ob-viously a factor in In-
dia’s growth”
copyright India Transport portal 11 Road Transport challenges 2015 12
tyislastonanyone’smind–resultinginsomany
deaths.Overloadedandunlicensedvehiclesply-
ingontheroadsonlyaddtotheproblem
ITP: What major improvements India should
go through in its rail sector by 2020?
TheInterimReportpresentedbyDr.Bibek
DeboryCommitteeisonthewebsiteofMinistry
ofRailways.Itpresentsacomprehensiveplan
forreformingtherailwaysectorfornextseven
years.Railwayboardhastoberestructuredand
DebroyCommitteehasusefulsuggestionsforit.
TheAccountingpracticeshavetobereformed.
Privateentryhastobeencouraged.Decentralisa-
tionfromBoardtotheZonesandthentoDivi-
sionsshouldbethewayforward.Settingupofa
regulatorandremovingsomeoftherestrictions
intariffsettingwillencourageprivateplayersto
operateinthisspace.
ITP: The Minister of Railways is willing to es-
tablish technonlogy collaboration with China
but is ready to consider some others with
Japan, France…What do you think of such col-
laborations?
Thecollaborationisgood.Withonecaveat.Some
ofthecollaborationisonhighspeedandbullet
trains.Whilethegovernmenthadannounced
thatitwilldeliverabullettrainfromMumbaito
Ahmedabad.Itshouldnotannouncemorebefore
takingahardlookatthefacts.Inmyopinion,
Anotherreasonissafety.Roadsafetyiscompletely
neglectedinIndia.Whiledesigningtheroads,
safetyislastonanyone’smind–resultinginso
manydeaths.Overloadedandunlicensedvehicles
plyingontheroadsonlyaddtotheproblem.
ITP: The Indian road network is the second larg-
est in the world and is ranked 87th in the world
for its quality. How do you think India could
improve its road network? What are the most
important barriers the country faces?
Indiahastofocusonanumberofthings.Theregu-
latorysystemisamess.PPPhasnotprovedtobe
thekindofpanaceaitwaspresentedtobe.Infact,
theinstitutionsareweak.Theinstitutionsasthey
existareunabletoenforcethecontracts.Thecases
endupwiththejudiciarywhichleadstoseverede-
laysbeforeanyconclusionisreached.Theregula-
torymazealsocreatesincentivesforprivategains
atthecostofpublicgoods.Theentireregulatory
structurehastoberelooked.
Fundingisobviouslyanotherproblem.Itisaprob-
lembecausepricingisapoliticalissueratherthan
aneconomicissue.Tollboothshavebecomethe
newarenaforpoliticalshowmanship.Tollbooths
arepoliticallyunpopular.Pooroversight,regula-
tionandpolitickingcreatesenoughincentivesto
notpayattentionandresourcestowardsmainte-
nanceoftheroads.
Anotherreasonissafety.Roadsafetyiscompletely
neglectedinIndia.Whiledesigningtheroads,safe-
hereisnopointrunninhighspeedorbullettrains
inIndiaifithastobesubsidisedbytheGovern-
ment.
ITP: Is Make In India a project which could reig-
nite growth in the transport sector?
Yesandno.Yes,becauseintransportsector,we
haveadomesticconsumptionsectorthatcan
supportinitiativeslikeMakeinIndiawhenglobal
demandisfalling.No,becausetherearemany
hiccupsinthefull-fledgedsuccessofMakeinIndia
program.Thereareavarietyofreformsonland,
labourandcapitalthathastogothrough.The
regulatoryinstitutionshavetoberelookedat.The
judicialsystemhastobeagileandeffective.The
juryisoutonthisone.
copyright India Transport portal 13 Road Transport challenges 20151�
HOW TO PREVENT THE INCREASINg PROBLEM OF OVERLOADED TRUCKS?
paRT II:
MaIn challenges
foR TRucks In IndIa
Road Transport challenges 2015 1�
Bengaluruhasshownthat4,000drivinglicenses
werecancelledin2013forvehiclescaughtplying
onfootpaths.
“Thesearecomprehensiveeffortsbythegovern-
menttocrackdownonoverloadingandpro-
trudingbesidessafeguardingpedestrianrights.
Bringingtheconsignees,commoncarriersand
transportagentsunderthislawwillputanend
tothepractice,whichisaseriousthreattoother
roadusers”,saidSPSinghofIFTRT,aDelhibased
thinktankontransportissues.
Twooverloadedtrucksrecentlyoverturnedon
theBareilly-Haridwarnationalhighwaynumber
30nearNisraVillageinthePilibhitdistrict.The
highwaybecameblockedresultinginahuge
trafficjamlastinghours.
The Indian government want zero tolerance on
overloaded vehicles, the illegal plying of “over
dimensional” vehicles and vehicles carrying pro-
truding items such as metal rods. A high penalty
has been proposed for those who fail to comply
with the new rules, with a suspension of permits for
one month upon first offence and a cancellation of
permits if the offence is repeated.
Overloadingdamagesthequalityofroadsandcan
bethecauseoffatalcrashes.In2013,approximate-
ly38,370peoplewerekilledasaresultof‘overload-
ing’.Tosafeguardpedestriansandcyclists,thebill
willintroducefinesofRs2,500($40)forfirsttime
offendersandRs5,000($80)forarepeatoffence.If
avehicleisparkedonthesestretchesorifvehicles
arecaughtdrivinghere,fineswillalsobeimposed.
trucksbacked by
strongAftersales
Support–robustservicenetworkandcustomized
serviceagreementsbothinoff-roadandon-road
applicationsegments.Lastyearin2014,wehave
launchedallnewtechnologicallymostadvanced
VolvotrucksrangeinIndia.
ITP: According to you, what are the biggest
challenges for road transport in India? (Freight,
road construction, road safety…)
Roadtransportationis
thepredominantchoice
forfreighttransport
inIndiacontributing
toaround60%overall
freightmovementand
passengertrafficaswellisincreasingconsistently
overaperiodoftime.Butthereareseveralchal-
lengeswhichareimpactingtheroadtransportef-
ficiency–delayedroadconstructionprojects,poor
qualityofroads,urbanroadsheavilycongested,
ruralareahaveverybadconditionofroads,fluctu-
atingfuelpricesbutfreightratesnotproportion-
ateetc.Also,majorityofthetruckingindustryis
fragmentedwithsmallfleetoperatorsoccupying
amajorportionresultinginoverloadingoftrucks
toreapindividualbenefits.Severalotherissueslike
ITP: Volvo Trucks is the leader of the pre-
mium trucks manufacturers in India.
How do you explain such a success? What
are your next steps for India’s market?
VolvogroupinIndiahaveinitiateditsoperationsin
1996andnowwithover17yearsofourpresence
inIndia,Volvotrucksbeendeliveringthebestin
classSafety,Uptime,Fuelefficiency,Productivity
andsuperioroveralllifetimeprofitabilityforour
customersandhencethemarketleaderinpremi-
umtruckssegmentwith
astrongmarketshare
ofover60%asofendof
2014.Evenbeforesetting
upamanufacturingunit
in1998,westartedour
workshopandadrivertrainingcenterwhichshows
ourcommitmenttowardsAftersalessupportand
driverdevelopment.Volvolauncheditsfirsttruck
modeltheFH123406x4TractorinJune1998with
amissionto“DrivetheChange”intheIndianCV
industry.Thiswasthefirsthighperformance(HP)
heavydutytractorwithstateoftheartfeatures
andtechnologyatatimewhenmajorityofCVin-
dustrywasruledbylowhorsepower(120-160Hp),
lowtechnologytrucks.Sincethenwehavebeen
drivingprogressintheindustrythroughintroduc-
tionofinnovativeandtechnologicallyadvanced
1� copyright India Transport portal Road Transport challenges 1�
INTERVIEW WITH VOLVO TRUCKS INDIA
“Safety is one of Volvo’s core values”
NirmalKumarVishttoldTimesofIndiathatover-
loadedtruckscarryingsugarcanemoresothan
oftencausetrafficjamsonthisparticularroad.
Hesaidthattruckownersandsugarmilladmin-
istrationshavebeenwarnedseveraltimesand
thatlegalactionhasbeentakenbefore,buttruck
operatorscontinuetooverload.
ThereviseddraftoftheRoadTransportandSafety
billstatedthattheroadtransportministryhas
broughtthesecategoriesofvehiclesunderthe
term“overloadedvehicles”.Plus,thelistofpeople
whocannowbeheldresponsibleforsuch,now
includesnotonly
thedriverbutthe
vehicle’sownerfor
allowingtheirve-
hiclestoply,com-
moncarriers,good
transportagentsand
consignees.Roadtoll
operatorscaneven
beheldresponsible.
PenaltieswouldbeashighasRs35,000($560)
forminitrucksandbuseswhereasthefinesfor
heavytrucksandlargerbuseswouldincreasetoRs
50,000.Plus,peoplewillfaceaonemonthpermit
suspensionforthefirstoffenceandarepeatof-
fencewouldresultinaRs50,000($800)fineand
acompletecancellationofpermit.Ifadriveror
ownerfailstosubmittheirvehicleforweighing,
thepresentfinestandsatRs3,000($50).
unorganizedtollsystems,delaysincheckposts,
trafficcongestionetc.leadtolowaveragespeeds
andthusaffectingthefleetoperatorsprofitability
andthuseconomy.Aboveall,Safetyisthebig-
gestconcernwitheachyearIndialosingupto
3percentofitsGDPduetoroadaccidents.The
newroadtransportandsafetybillproposedby
theMoRTHwouldlikelyaddressmanyofthese
challenges
ITP: Poor road conditions in India seem to
damage trucks. How can India prevent this to
happen? How Volvo trucks could respond to
this challenge?
Roadsqualityisnotbeingmaintainedprop-
erlyinIndiaanditalsoaffectsthetrucksbadly.
Poorlymaintainedroadswillleadtolowaverage
speeds,break-downofthevehicle,increased
wearandtear,poortyrelifeandalsoincreases
thedriverfatigue.Withthelowaveragespeeds
andbadroads,fuelconsumptionalsowould
likelyincrease.Inall,theaverageoperationaland
maintenancecostsgoup.Volvotrucksarebuilt
robustwithruggedchassis,highperformance
enginesmatchedtooptimizeddrivelineandsus-
pensionsystemsthatoffersmoothridehandling
andcomforteveninbumps/badroadconditions.
(GDP).
ITP: How Volvo trucks is tackling road safety
and driver’s safety in India? Which steps could
be taken in India to improve road safety and
stop trucks from overloading?
SafetyisoneofVolvo’scorevaluesandDriver
Productivityakeydeliverable.Weconductthe
extremelytoughcabcrashtestsatourcollision
centreinSweden.AllcabsmeettheSwedishcab
strengthstandards–thetoughestintheworld.
Thevehicleisequippedwithlistoffeaturesto
ensurehighlevelofactiveandpassivesafetye.g.
bettervisibility,powerfulheadlightbeam,sun-vi-
sors,extrafootstepsetc.
Twonewintroductionswithourtechnologically
advancedtrucks-thenewVolvoFMX,FM&FH
are“RedSafetyBelt”and“ElectricParkingbrake”.
RedSafetybeltbringsmorefocustowardsthe
drivertousesafetybeltwithoutmiss.
Theparkingbrakeactivatesautomaticallywhen
theengineisturnedofftoensurehighdegree
thedrivernowhastofocusonlyonmanoeuvring
thevehicle(Handsonwheel–Eyesonroad)
Inadditiontothis,outofthetwentyrequire-
mentsprescribedbyDGMSthroughCircularNo.
05dated13thOctober2010,fifteenareprovided
asstandardfeaturesinVolvoFMX.
Followingfeaturesareofferedasaccessoryfit-
mentbasedoncustomerrequirement.
-FireSuppressionSystem
-Proximitywarningdevice
-RearVisionSystem
-LoadindicatorandRecorder
-Autodippingsystem(isnotavailablecurrently
andisunderdevelopment).
19 copyright India Transport portal Road Transport challenges 2015 20
andinvestmentofthetransportsector
becomesintegraltorealisingthevision.
Railandroadaretheprincipalmodesof
transportinIndia.Roadtransportconti-
nuestobethedominantmodeoftrans-
portinIndiadespitethec
ountrybeinghometooneofthelargest
railnetworksintheworld.Poordesign
andmaintenanceoftheroadscoupled
withrashdrivinghasmadeIndia’sroads
themostunsafeintheworld.Corrup-
tionandpoortrafficmanagementadd
tothesector’swoes.Roadtransportis
theprimarylogisticsproviderinIndia.
Intermsofpassengertraffic,theshare
ofroadtransporthassteadilyincreased.
Inthelastfewyears,roadshaveover
takenrailintermsoffreightmovement.
Asthebackboneofaneconomy,the
logisticssectorhastoprovidecost-ef-
fective,promptandreliabletransporta-
tionofgoodsIndiaisyettofullyrealise
theimmensepotentialofitswaterways
andextensiverailnetwork.Indiahasto
re-apportionfundstoensurethatthe
railshareinfreighttrafficincreasesto50
percent.AnalystssaythatIndiawillhave
tocomeupwithanationalpolicythat
will‘reduceeconomicwasteandimprove
TheeyesoftheworldareonIndia,aneco-
nomicpowerthatissteadilygrowingin
strengthandinfluence.Overcomingits
roadtransportationhandicapsisvitalifthe
countryistorealizeModi’svision.Increasing
levelsofradialisationinthetruckingseg-
mentisperhapsahintoftheprogressthat
willprovi-
deamuch-
needed
filliptothe
commer-
cialsector—oftenconsideredanindicatorof
economicgrowth.
Indiaisallsettowalkthepathofeconomic
progressandattainsustainablegrowthin
thenexttwodecades.Whenthecountryas-
pirestoachievefourtimestherealpercapita
incometodayby2032,thedevelopment
Road transport accounts for 65% of freight in India
AN OVERVIEW OF ROAD TRANSPORT CHALLENgES
source: http://www.kpmg.com/in/en/issuesandinsights/articlespub-
Road Transport challenges 21
energyefficiency.’GivenIndia’sneedtomanage
energyissuesandcontrolemissions,shiftingthe
excessivedependencefromroadtorailwillbe
criticaltoachievingsustainablemobilityinthe
future.Indiareliesheavilyonitsroadsfortrans-
port–roadsaccountforabout65percentand45
percentoffreightandpassengertraffic,respec-
tively.Thehighlyfragmentedandunorganised
logisticssectorisallsetforacompletetransfor-
mationwiththerenewedfocusonthissector.
Roadtransportislargelyinthehandsofprivate
parties,eachwithasmallfleetoftrucksofthe
single-axletype.MosttruckownersinIndiahave
lessthanfivetrucks;
the‘ownership
profile’hasgiven
risetoanumberof
middlemenexerting
varyinglevelsof
influenceonprofita-
bilityandefficiency.
Asignificant
playerinthe
movementof
goods,thetruckingindustryishighlycompeti-
tive.Truckoperatorprofitsdependonoperating
costsandfreightrates.Factorsthatplaguetruck
transportincludelowcapacityutilisation,poor
roadquality,vehicleoverloading,hightransit
times,barrierstofreemovementandsafety
concerns.Lowutilisationresultstypically
fromtrucksbeingoverloadedandunder-
powered.Thefatalitiesthathaveresulted
duetotruckaccidentshaveledtonotonly
alossoflivesbutalsoeconomicloss(GDP).
Theauthoritieshavebeenlaxinenforcing
overloadingandlicencingregulationsand
therearenoincentivesforusingmulti-axle
trucks.Fluctuatingfuelpricesandhightoll
chargesincreasetherunningcostsofthe
trucks.Tyremaintenanceisalsomajorfactor
indecidingoperatorprofit.Customerchoice
inthecommercialvehiclesegmentisslowly
tiltinginfavourofradial
tyresasthesetyrescan
enhanceprofitsasthey
offerbettermileage,du-
rabilityandperformance.
Overloadingrestrictions
andgrowthofmulti-axle
trucksaugurwellforra-
dialtyremanufacturers.
Therearepositivesignsof
economicrecoveryworld
overandthe
that,“Radialtyre,byvirtueofitspeculiar
structure,employsitsconstituentmaterials
andstructuralcomponentstodotheintend-
edworkmoreefficientlythancrossplytyres.
Performanceenhancementintermsofwear,
rollingresistance,durabilityandcomfortis
easilyrealisedbyauserbyshiftingtoradials.”
Headded,“Forexample,inabiastyre,only
about30-40percentofthetreadcompound
isactuallyuseduptoprovidingthemileage
whenradialsutilisecloseto50-60percent
bythetimeofremovalforretreading.Slower
rateofwearenhancestyrelife,delayingthe
replacementdemandandthisisexpected.
Butthefearsareunwarrantedconsidering
theoverallbenefitstothecustomeraswellas
totheenvironmentintermsofcostofopera-
tionandemissions.WiththefirstIndianradial
tyrefromJKTyrehittingthedomesticmar-
ketsin1977,onewouldexpectthecommer-
cialvehiclesector,whichgotitsfirstradialin
1999fromthesametyremaker,toshowthe
nearlycompletelevelofradialisationseen
inthepassengervehiclesegment.Thelevel
ofradialisationinthetrucksectorIndia(~20
percent)isnotonparwiththatofChina.Ac-
cordingtotheVicePresident(R&D)ofCEAT
TyreLtd.UnnikrishnanG,thereasonradialisa-
tioninIndialagsbehindChinaisbecausethe
aftershocksoftheglobalcrisisarebecoming
lessintenseinallsectors.Thecommercialve-
hicleindustry,generallyconsideredanindica-
torofeconomicgrowth,hassteadilygrownin
termsoftechnologicalinnovationsespecially
inemergingmarketsinAsia,AfricaandLatin
America.TruckmakersfromChinaandIndia
havetailoredtheirmarketingstrategiesand
productdesigntosucceedinthelow-cost,
high-growthcountries,effectivelymaking
themsignificantcontendersintheglobalmar-
ket.FrenchtyregiantMichelin,thepioneerof
radialtechnology,believesthatradialisationin
theIndianCVsegmentwilltouch50percentby
2020.TyremakersinIndiasuchasApolloTyres
areincreasingtheproductionoftruck-busradi-
als(TBR)tomeetthegrowingdemandsthat
havecomewitheconomicprogress.Unfortu-
nately,cheaperChinesesurplusradialshave
beenfindingtheirwaytoIndianmarketsand
upsettingthebalance.Radialtyresaffordsig-
nificantadvantagesintermsoffuelefficiency,
safetyandlongevityoverbiasorply.Iadial
tyresshowlessertransverseslip,transfermore
powertothegroundanddonottransmitside-
wallflextothetread.Theseflexibleandstrong
tyresabsorbshocksbetterandallowthedriver
toenjoyabetterdrivingexperiencethancross-
plytyres.Lowerresistanceresultsinimproved
fueleconomyandtherebyreducedemissions.
TheApolloTyresHeadofDesign&Develop-
ment,GlobalR&D–CV,PradeepKumarNsaid22 copyright India Transport portal
comparison between a radial and a bias tyreSource: http://www.bridgestone.co.in/TyreKnowledge.aspx
paRT III:
TRucks RadIalIsaTIon
Itlookslikeradialtyreswillbethefuturebecauseofthemulti-
pleadvantagesofthesetyresoffer.Radialisationinthecom-
mercialvehiclesectorissettoimprovewithpeoplebecoming
awareofthebenefitsandinnovationsradialsoffer.
What radial tyres have more to offer? Developedin1946bytheFrenchtyregiantMichelin,radialtyres
haverevolutionizedthetyremarket.Unlikeabiastyrewhichhas
aninterdependentcrownandsidewall,thetreadandsidewall
inaradialtyrefunctionindependently.Flexibleradialplytyres
absorbshocksbetterandallowformoreroadcontactthanbias
plytyres.Aradialtyreisdefinedasatyreinwhich“theplycords
extendingtobeadsarelaidatapproximatelyrightanglestothe
centrelineofthetread.”Radialshavepolyestercordsthatare
“wrapped”perpendiculartothetreaddirection,whereasasbias
havediagonalnylonweavesthatmeetatthecenterline.Radial
tyres,whichcomeinattractivedesigns,canbeeithertubeless
radialsortube-typeradials.
Radial tyres and drop centers rimsInthetube-typetyres,thereisatubewithavalveandrim;
whenthetyregetspunctured,airleaks.Intubelesstyreswhere
thevalveisplacedontherim,thereisahalobutylinnerliner
andthetyreitselfisatube;inthecaseofapuncture,thetyre
deflatesslowlytherebyprovidingmorestability.Tubelesstyres
offeradvantagessuchasbetterhandling,addedfuelsavings,
easymountingastheyhaveasingle-piecewheel,lesserweight,
longercasinglifeandreductionofrunflats.Tubelesstyreshave
higherwheelclearancethatleadstolessergenerationofbrake
marginsarelowandthemarketentrybar-
riersandinitialinvestmentarehigh.Also,
theChinesegovernmentprovidedstrong
incentivestopromoteradialisationatthe
startofthelastdecadeanditbeganphasing
outbiastyres.InChina,roadqualityisbetter
andthecostofoperations,rawmaterialsand
capitalislower.Radialsoftenfailtodeliver
inIndiabecausepeoplecontinuetoviolate
overloadinglaws.Indiawillhavetooffer
domesticplayerspolicysupporttoenhance
radialisation.Increasingcus-
tomerawareness,focusingon
R&D,‘phasingout’oldauto-
mobiles,improvingthequality
oftheroadsandloweringthe
capitalexpenditurewillboost
theadoptionofradialsinthe
commercialvehiclesector.Ra-
dialisationinIndiawillsurpass
thatinChinainafewyears
sayanalysts.“Radialisationis
thereforeaninevitableforward
stepinadevelopingmarket
wheredemanddelaywillbe
compensatedbyhigherdemandbyincreased
economicactivity.Fastervehicles,runningon
radialswillconsumetyresmorefrequentlynar-
rowingthegapinreplacementtimebycover-
inglargerdistancesinshorterdurations”,said
“Michelin, the pioneer of radial technology, believes that radialisation in the In-dian CV segment will touch
50 percent by 2020.”
source: http://www.kpmg.com/in/en/issuesandinsights/articlespub-
RADIAL TYRES HAVE VIRTUALLY REPLACED BIAS
2� copyright India Transport portal Road Transport challenges 2�
consumersaboutsustainablechoices.2.By2020,
wecansupposeIndiawillhaveimproveditsroad
transportasthecountrywouldhaveovertaken
Chinafromaneconomicalpointofview.Howdo
youpictureit?
TheprogressmadeinthetransportsectorinIndia
hasbeensignificant.Howeverto
meettherisingdemandsandalso
pushinfrastructuredevelopment,
therearenewsreportsaboutthe
government’splantoinvestsignifi-
cantlyinroadprojectsthisyearas
itlookstomorethandoublehigh-
wayconstructionto30kmperday,
whichwillconsequentlyincrease
overalltransportdemand.
ITP: We spoke with Michelin in 2012 about radi-
alisation in India (see the interview here: http://
indiatransportportal.com/michelin-fuel-radiali-
sation-15436.)How did the situation progress
since? What are the barriers if they do exist?
Withthecountry’sroadinfrastructuredeveloping,
ourmanufacturingplantoffersopportunitiesfor
ustoimprovetransportationofpeople,goodsand
ITP: Road transport is the dominant mode
of transport in India. However Indian roads
are reputed to be the most dangerous in the
world. What are the most important handi-
caps for India’s road transport system? How
can the country improve it?
WhileIndiaremains
oneofthefastest
growingautomotive
marketsintheworld,
ourtransportinfra-
structureisyetto
catchupwiththeris-
ingdemand.Factors
thatcanpropelour
roadtransportsystem
includeincreaseincapacityutilization,improved
roadquality,reducedornovehicleoverloading,
controlledtransittime,environmentconducive
freemovementandsafety.
Pressureforpositivechangefromtheindustries
thatunderpinIndia’seconomicgrowthcandrive
pro-environmentlegislation,increasegovern-
mentattentiontoinfrastructure,andeducate
INTERVIEW WITH MR. MOHAN KUMAR, COMMERCIAL DIRECTOR AT MICHELIN INDIA
source: http://www.henkorim.com/eabout.asp?key=10clespublications/investing-in-india/pages/tl-june12.aspx2�
2� copyright India Transport portal Road Transport challenges 2015 2�
drumheatwhichconsequentlyimprovesthe
beaddurability.Unliketube-typetyres,tube-
lesstyreshaveimprovedlateralstabilityand
bettersidewallandcrowndurability.Inlow
aspectratioradialtyres,thesectionheights
arelesserthanthesectionwidths;theyoffer
keyadvantagesintermsofsidewallcurb
damage,steerand
trailaxletreadwear,
weightandlateral
springrate.Formany
applications,lower-
profileradialswithan
80percentaspect
ratioarethemost
economicalofalltyres.Longhaultrucks
andurbantrucksoftenuseultra-low-profile
radialswithanaspectratioof70percent.
Thebasicqualitiesoftruckradialsareload
capacity(resultofverticaldeflection),heat
resistance,andadequatetreadcontactarea
forroadgripandsteeringcontrol.Typically,
vehiclesuserimswiththedropcentersde-
signorwheel-baseddesign.Thedropcenter
ortherimdropallowstheeasymounting(or
demounting)oftheradialontherimofthe
wheel.Optimumperformanceofdirectional
trucktyresrequiresthemtobemountedon
thecorrectsizedrimwheel.Theselectionof
arimordiscwheeldependsontheoperat-
ingconditionstowhichitwillbesubjected.
Off-the-roadtrucktyreshavedropcenter,
semi-dropcenter,fulltaperedbeadseat
andflattypesofrims.Smallloadersgener-
allyusedropcentrerims,whereasgraders
andloadersusuallyusesemi-dropcenter
rims.Rimdropsareusedasareferencewhen
mountingtrucktyres.Typi-
cally,tubelesstruckradials
havea5°or15°dropcenter
steelwheel.Thedifficultyin
assemblingthewheeland
servicingdependsonhow
farthedropcenterisfrom
thewheel’slipandhow
deepitis.Radialtyresoffernumerousadvan-
tagesthatenhancethedrivingexperience
whencomparedwithtraditionalbias–high-
erspeed,endurance,traction,lesserheat
generationandstability.Thesetyreshave
lowerrollingresistanceandasaresultcon-
tributesignificantlytoensuringfuelecono-
my.Radialshavemorepotentialforretread-
ingandarelesspronetotreadpunctures.
Radialtyreshavevirtuallyreplacedbiasply
tyresbecauseoftheirinherentadvantages.
roadsafetyinIndia.Theseimprovementswould
bedriveninparticularbyanevolvingshift
towardsradialtyresandhigh-qualityproducts
manufacturedbyMichelin.
TheIndiantruckandbusmarketisadopting
radialisationatasteadypace.Giventheclear
benefitsoffuelsavingsandlongevityofradial
technologyandsafety,moreandmorecus-
tomersareswitchingtoradialtyresowingto
reductionoftheoverallcostoffleetownership.
Today,aroundone
fourthofalltrucks
onIndianroads
areonRadialtyres,
whichwasunder
1%in2005.India
hasalsomadea
notableprogressin
adoptingtubeless
radialtechnology
forTrucksandBuses
duetotheimprovedroadconditions.
MichelinTyres,theworldleaderintyretechnol-
ogy,estimatesthatabout76billionlitersoffuel
canbesavedannuallyshouldalltrucksrunning
onbiastyrestodayswitchtousingMichelin
radialtyres.Fuelsavingsofthismagnitude,in
thefaceofsignificantlyrisingoilprices,could
potentiallyhaveanimpactontheoverallbal-
anceoftradeforthegovernmentaswell.
GiventhebenefitslikeincreasedtyreMileage
andFuelsavingovertheTubetyperadialtyres,
Indiancustomersarequicklyswitchingtowards
TubelesstyresespeciallyinBussegments.This
trendwillcontinueandweseegreatopportu-
nityindrivingtheradialtransformationstoryin
India.However,therearefewbarrierslikeroad
infrastructure,lackofknowledgeaboutbenefits
ofradialtyresthathindergrowthofradialisation
inIndia.
ITP: Cheaper Chi-
nese tyre imports
flood India’s mar-
ket. How to deal
with these new
competitors?
What Michelin
has more to of-
fer?
WebelievethatavastmarketlikeIndiaoffers
alevelplayingfieldforallmajorcompanies
providingequalopportunitiesforalltogrow.
WeareinIndiawithourlongtermstrategyand
areconfidentthatourproductofferingsare
thebestbalancebetweensafety,longevityand
fuelsavingsforthecustomersinIndia.Michelin
hasbuiltitsleadershiponinnovationforover
125years.InIndia,withacomprehensiveradial
“Michelin, the pioneer of radial technology, believes that radialisation in the In-dian CV segment will touch
50 percent by 2020.”
29 copyright India Transport portal Road Transport challenges 2015 30
channelslikeMichelinTruckserviceCenter
(MTSC)andpostsalesserviceslikeRecamic
-retreadingcomplementand
differentiateourproductoffer.
Michelin’sonestoptruckser-
vicecentre,MTSC’sarecom-
mittedtoprovidecustomers
withqualityandcomfortable
environmentforcomprehen-
siverangeofprofessionaltechnicalservicesto
improveoperationalefficiency,suchaslesser
downtimefortyremaintenance,lowervehicle’s
operatingcosts,improvedoperationalcontrol
andefficiency,highqualityMichelinproducts
andclearproductpricing.
Michelinsretreadingcentres(Recamic)provide
qualityretreadingsolutionsforallkindoftruck
andbustyres,helpingreduceoperationalcosts
offleetownersbyimprovingonmultiplelives
ofthecasings.Designedandcertifiedtoof-
ferretreadsforallcasings,ourstate-of-the-art
plantsoffertheMichelingroupbrandRecamic
treadforuseonallMichelincasings.ture,lack
ofknowledgeaboutbenefitsofradialtyresthat
hindergrowthofradialisationinIndia.
thecasings.
ITP: Several types of radial tyres coexist in
the Indian market. How different are they?
Should Indian fleet owners particularly focus
on one type?
Indiaisstilllargelyabias
tyremarket,withradialisa-
tiongrowingatasteady
pace.WithmostOEMsnow
offeringnewvehicleswith
radialtyres,weseethepro-
cessofradialisationfurther
speedupinthecomingyear.Tubelessradial
tyresscorehigherinfuelsaving,safetyandtyre
mileage,leadingtoreductioninoperatingcost
ofthefleet.Atyrebeingamajorcomponent
ofafleet’soperatingcost,Indianfleetowners
shouldcarefullyselecttyresbasedontheirop-
erationandroadconditions.
ITP: Can you explain more about drop cen-
ter’s interest on trucks tyres?
TheIndiantruckIndustryhasseenatremen-
doustechnologicalprogressinthelastdecade
intermsofvehiclegeometry.Thetechnological
updateontyresespeciallyondropcenter(tube-
less)wasslowerthanexpected.Thisismainly
uetolackofknowledgeonbenefitsoftubeless
tyres,inconsistentgrowthofthecommercial
vehiclemarketandlackofproperserviceinfra-
structureforthesetyres.
hasexpandedfromapproximately4.2million
kmin2007-08to4.8millionkmin2011-12,at
aCAGRof3.4%only.Ruralareasarelagging
behindinaccessibilitytoroadswhereasurban
roadsaremorecongestedwithonly1.27Km.of
roadper1000persons.Theavailabilityofgood
roadinfrastructure,poormaintenanceofroad
andvehicleconditionare
responsibleforhigherrateof
removaloftyresdueexternal
damage,lossofpotential
fuelsavingandreductionin
recappingcapability.These
threeitemcausinghugeloss
tothecustomerandcountry
2007-08to4.8millionkmin
2011-12,ataCAGRof3.4%
only.Ruralareasarelagging
behindinaccessibilitytoroadswhereasurban
roadsaremorecongestedwithonly1.27Km.of
roadper1000persons.Theavailabilityofgood
roadinfrastructure,poormaintenanceofroad
andvehicleconditionareresponsibleforhigher
rateofremovaloftyresdueexternaldamage,
lossofpotentialfuelsavingandreductionin
recappingcapability.Thesethreeitemcausing
hugelosstothecustomerandcountry
ITP: We spoke with you in 2012 about radiali-
ITP: According to you, what are the main
challenges for India’s road transport? Which
challenges concern particularly the tyre mar-
ket?
Acountry’sdevelopmentisstrongly
linkedtoitsinfrastructurestrengthandability
toexpandtrade,copewithpopulationgrowth,
reducepovertyandpro-
duceinclusivegrowth.
Lackofhighqualityin-
frastructurehasbeenan
impedimentinIndia’s
economicgrowth.India’s
roadinfrastructurecarries
60%offreightand87%of
passengertraffic.
Therehasbeena
staggeringincreaseinthenumberofmotorized
vehicles,buttheexpansionintheroadnetwork
hasnotbeencommensuratewiththisincrease.
Withgrowingpopulationthereisaneedto
providematchingtransportinfrastructureto
avoidovercrowding,overloadingandpoor
maintenanceoftheavailableinfrastructure.
Whilethemotorvehiclepopulationhasgrown
from105millionin2007-08toover159million
in2011-12withCAGRof11%theroadnetwork
hasconstantlyendeavoredtoofferproducts
thathelpfleetownersmaximizetheirreturnon
investments.Onesuchendeavourwasourin-
troductionofthedropcenter(tubeless)tyresfor
commercialvehiclesinIndiawhichhavebeen
wellassimilatedbytheIndiantruckowners.We
expectaformidablegrowthintubelesstyres
fortrucksandbusesinthecomingyearsfrom
Indianmarket.
INTERVIEW WITH APOLLO TYRES
comparison between Radial and Bias tyres by Michelinhttp://www.michelinag.com/Innovating/Radial-vs.-Bias-technology
31 copyright India Transport portal Road Transport challenges 2015 32
sation in the TBR market. How did the situa-
tion evolved since?
EventhoughIndiahasachievedover95%
radialisationinthepassengercarsegment,the
countryremainslargelyacross-plymarketbe-
causeradialpenetrationsincommercialvehicle
segment,whichaccountsfor65%(byweight)of
themarket,isonlyslowlygainingpace,which
isnowaround
30to35%.Ifyou
lookatthepat-
ternofradicaliza-
tioninallradi-
alisedcountries
youmayobserve
thatitisfollowed
thepathofan
S-shapedcurve.
Initiallythecon-
versionrateisveryslowtillitreaches9to15%
andthenitmovesveryfasterratetillitreaches
80to90%.ButinthecaseofIndianmarketitis
observedthattheslopeofthecurveislowafter
reachingtheinflectionpointinspiteofthefact
thatenoughmanufacturingcapacityisavailable
inthecountrytofeedthemarket.Thismaybe
duetofollowingreasons:
- Cash availability
- Poor road and vehicle condition
- Frugal vehicle design, especially suspension
system
- Overloading condition
- User Education
- After sales service
- Repair and Retread Infrastructure.
- Poor inflation maintenance
ITP: How the transportation sector could
gain from radialisa-
tion (performances
on fuel savings, car-
bon emission, road
safety etc.)?
Transportsectorwould
havebenefitedim-
menselyduetoradiali-
sationasiswitnessed
indevelopedcountries
byitshighermileage,betterfuelefficiency,less
punctures,andgoodspeedcapabilitywhen
comparedtoasimilarcrossplytyre.However
togettheoptimumperformancefromthe
comparativelyexpensivetyre,roadinfrastruc-
ture,vehiclesuspensionsystemandfacilitiesto
providetheserviceofrepairandretreadshould
alsohavetosimultaneouslyevolvetothede-
siredlevel.
ITP. How Apollo Tyres is different from com-
petitors? (domestic, international, Chinese
brands…)
ApollotyresisonecompanyinIndiawhoiswork-
ingverycloselywiththecustomertoprovide
solutionfor360°operation.Eventhoughwehave
enteredintothetruckradialmarketverylate
butwehavegained
theconfidenceofthe
customerbyprovid-
ingtyreswithhigh
mileageandsuperior
casingforrepeated
retreading.Theseare
themajorrequire-
mentofIndianradial
customers.
Itisourendeavortocontinuouslyeducatethe
customertogetbestoutoftyresandalsoto
helpthemtoprovideproperadviceandfacility
torepairandretreadthetyresontime
ITP: Apollo Tyres has begin the construction
of a new facility in Hungary? What are your
goals in new countries in terms of innova-
tion/performances?
“ProductSegmentation”bestsuitedforthe
serviceconditionand“ApplicationtoFit”to
realizeoptimalperformance,beenoursuccess
33 copyright India Transport portal Road Transport challenges 2015 3�
“Radial penetrations in com-mercial vehicle segment is only slowly gaining pace, which is now around 30 to
35%”.source: http://www.sanasecurities.com/stock-analysis/apollo-tyres
as a satellite CV R&D center. R&D center – Asia
with base at Chennai will continue to develop
the products in collaboration with the satellite
R&DcenterinEurope,basedattheNetherlands.
Withtheevolvedretreadingpractice inEurope,
we are sure that our customers will appreciate
the multiple ser-
vice lives with
Apollo tyre’s su-
periorretreadabil-
ity and realize re-
markable benefit
inCPKM.
paRT Iv:
Roads&
InfRasTRucTuRe
analystssaythemomentumintheroadsectorisunparalledwiththeNdagovern-
mentgoingallouttoreducecostescalationsthatcomewithinnumerabledelays,to
getridofthefundingconstraintsandtoprovidethenecessaryimpetusforitsroad
infrastructureprojects.
Indiaboastsofthesecondlargestroadnetworkintheworld—overfour-and-a-halfmil-
lionkilometresofroadandstillcounting!Overtheyears,theconnectivityhasimproved
somuchthatabout85percentofthetotalpassengertrafficand60percentoffreight
movementisviaroadtransport.Indiaispoisedfortremendousgrowthandclearlyneeds
robustinfrastructuretohelprealizeitsimmensepotential.Analystssaythatby2019,the
IndianroadindustrywillbewortharoundUSD19.2billion.
Modi’sgovernmentiszealouslytryingtorevivetheailingroadsectorandgetseveral
stalledprojectsgoing.InSeptember2014,NitinGadkari,MinisterforRoadTransport
andHighways,said,“Intwoyears’time,theRoadTransportandHighwaysSectorwill
undergorevolutionarychanges.TransportandShippingsectorswillcontributetoat
least2percentincreaseinthecountry’sGDPintwoyearsspan.”Whileaddressingthe
medialastyearaftercompleting100daysinoffice,Gadkarisaid,“Weinheritedalegacy
where189projectsworthRs1.5lakhcrorewerestuckonaccountofregulatoryhurdles
includingenvironmentandforestclearances,mostofwhichhavebeenremovedand
arerolledout.”AccordingtoGadkari,only12kmofroadareconstructedeverydayasof
now;however,NationalHighwayInfrastructureDevelopmentCorporationLimitedhas
setatargetof30kmperdaywithintwoyears.Thecash-strappedsectorhastheCentre
scurryinghighandlowforfunds.Earlythisyear,Gadkarisaid,“Infiveyears,therewillbe
investmentofRs5lakhcrore.”Gadkariintendstobuildcementroadsinsteadofbitumen
astheyarecheapertoconstructandmaintainovertimes.
WILL THE gADKARI-LED ROAD MINISTRY LIVE UP TO ITS PROMISES?
Road Transport challenges 2015 3�
3� copyright India Transport portal Road Transport challenges 2015 3�
“According to Gadkari, only 12 kms of road are built everyday
as of now“
ThePublicPrivatePartnership(PPP)modelhas
failedtoworkintheroadsectorrecently.The
governmentwillnowlowerinterestratesand
useotherpolicyinstrumentstoattractprivate
investors—inthelasttwoyears,20projects
worthaboutINR27,000crore(USD4.2billion)
foundnotakers.Untiltheeconomyimproves,
thegovernmentwillawardmostprojectsvia
theEngineering,Procure-
mentandConstruction
(EPC)route.Theroadmin-
istryhasdecidedtoallow
privatedevelopers‘totake
outtheirentireequityfrom
aprojectaftertwoyearsof
startoftollcollection.’This
moveisexpectedtore-
viveprivateinterestinthe
sectorand‘unlockatleast
Rs4,800croreofprivate
equitystuckatpresent
inapproximately80PPP
(private-publicpartnership)
highwayprojects.’Asourcefromtheroadmin-
istrysaid,“Wearenotgettingprivateplayersto
bidforPPPprojectssincetheydon’thaveequity
toraiseloanfrombanksandfinancialinstitu-
tions.WitharoundRs5,000croreofequityback
incirculationweareconfidentofrollingout
morePPPprojectsduringthisfinancialyear.”
Officialssaythat80projectsoutofthe115
awardedviathePPProutecantakeadvantage
ofthisdecision.Agovernmentofficialadded:
“PMhasobservedthatwhileallowingthedevel-
operstoavailthisscheme,ministryshouldkeep
trackofhowthisequityisbeingutilizedbythe
developers.Theministrywillneedtohavesome
mechanismtoseethattheequityisploughed
backtotheroadprojects.”TheCentrewillinfuse
fundsequalingINR16crore(USD2.5million)for
half-completeprojects
thatwerestuckasbanks
refusedtogiveloansto
privateplayerswhose
coffersrandry.“Banks
arenotprovidingfund
forthesestuckproj-
ectsandtheyshould
notobjecttothisnew
schemesincenoprog-
resswouldforceNHAI
toterminatecontracts.
Inthatcase,theprojects
wouldbecomeNPAand
lenderswouldgetthe
maximumhit,»saidsourcesintheministry.This
movecouldalsoencourageforeigninvestorsto
competeforapieceofthepie.
Agovernmentofficialsaid,“Foreigninvestorsare
notcomingastheydon’twanttoriskofdelayin
construction,whichimpactstheirinvestmentre-
covery.Butwhencompletedprojectswillbeon
theofferwewillseeoverseasinvestorsvyingfor
theseprojects.Thereisnoriskofcashflowsince
tollinghasbeenonforovertwoyears.”
The“hybrid”model(amixoftheEPCandBOT
models)isexpectedtobreathelifeintotheroad
infrastructuresector.
Inthis
model,the
develop-
erswillnot
haveto
tieup100
percentof
theirinvestment(amixofdebtandequity)in
thehighwayprojectsandNHAI’sinitialcapital
inflowwillalsobelesser.HighwayMinistrySec-
retaryVijayChibber,said,“Underthenewhybrid
annuitymodel,notonlywilltheNHAIsupport
40%oftheprojectcostinfiveequalinstalments,
thegovernmentwillalsobeartherevenuerisk
inprojectswithalowanticipationoftraffic
flow.”ThirteennewprojectsworthINR14,422
crore(USD2.25billion)arelikelytobeawarded
underthehybridmodel.Underthismodel,the
governmentwillhavetoacquireallrequisite
environmentalclearancesand90percentofthe
landpriortoawardingprojects.
WemightprobablyseeaPublicContracts
(ResolutionofDisputes)Billinthenextfiscal.
“Ifthedisputeresolutionprocessisexpedited
andfreesupthestuckcapitalunderarbitration
claims,theliquiditypositionofsomedevelop-
erscouldimprovesignificantly.Therehasbeen
demandforsettinguparegulatorforthesector
forresolutionofdisputesbetweencontractoror
developerandNHAI,astheyfeelthatthepres-
entdisputeredressalmethodistimeconsuming
andcostlythusinefficient,theintroductionof
thisBillcouldaddress
theirconcern,”said
RohitInamdar,ICRA’s
SVP.NHAI’sinde-
pendentsettlement
advisorycommittee
(ISAC)willlookto
resolveroadprojectsworthnearlyINR26,000
crore(USD4.1billion)caughtindisputes.
ThisMayGadkarisaid,“AtotalofRs15,000crore
ofroadsprojectswillbeawardedbytheendof
thisyear.Ofthis,Rs6,000croreofroadsprojects
wouldbedevelopedinArunachalPradeshand
Rs2,000croreworthofprojectseachinMegha-
layaandNagaland.Theremainingprojects
wouldbespreadacrossotherstates.”Headded:
“Wehavedesignedanewpolicyfordevelop-
ingroadsprojectsintheNortheast.Ifthestate
governmenttakescareoflandacquisitionand
environmentandforestclearances,thecentral
governmentwillbuildstatehighwaysatitsown
cost.”Theministersaidthenewhighwayswill
encouragelocalcontractorsandgenerateop-
portunitiesforemploymentthatwouldcome
withtheinfrastructureprojectsandindustries
thatcropupduetoimprovedconnectivity.
OneofIndia’sbiggestproblemsregardingtransportisthecongestionthatmillionsof
commutersfaceeachdayontheroads.delhiisoneofthefastestgrowingcapitalcities
intheworldbutisinthetop10listofcitieswiththeworsttrafficjams,accordingtoIBM’s
globalcommuterPainstudyin2013.
Causesoftrafficcongestionincludefactorssuchasthecountry’spublictransportinfra-
structure,whichisfailingtokeepupwiththerapidlygrowingdevelopmentsinthecities
thatrequirepeopletotravelinandoutonadailybasis.Thereisanestimatedonelakhof
vehiclestravellingonDelhiroadsperday;thisincludesmixedtrafficsuchascars,trucks,
two-wheelers,animaldrivencartsandpedestrians.Allthishasnotonlyledtoobviousde-
laysandjams,butahighrateofaccidentsandfatalitiesthroughoutthecountryaswellas
increasedairandnoisepollution.
Asitstands,Indiadoesnothaveaformalnationalroadsafetypolicy.Sinceitbeganin1988,
theNationalRoadSafetyCouncil(NSRC)hastriedtoformulatethisbutisyettosucceed.
Roadsafetypolicieswereagainattemptedin2003bytheMinistryofHighwaysandTrans-
portandin2004attheAnnualSessionofIndianRoadsCongress,theministryintroduced
11elementsforroadsafetypoliciesunderthetitle‘SaferRoadsforEveryone’.Thesedealt
withtheoverallframeworkforroadsafety,componentsoftheroadtrafficsystemandsup-
portforroadsafetyforexamplesafetyeducationandenforcement.
Thereareanumberofinitiativesthathavealreadybeensetupindifferentpartsofthe
countrytorelievetheproblemofcongestion.TheIntelligentTransportSystem(ITS)and
DelhiIntegratedMulti-ModalTransitSystemLtd.(DIMTS)areworkingtoprovidesafeand
accessiblepublictransportforcommutersinIndia.TheIntelligentTransportSystemhasre-
centlybeenintroducedinDelhiandhasprovidedsolutionsforcertaintransportproblems
throughtheuseofcomputerandcommunicationstechnologies.
39 copyright India Transport portal Road Transport challenges 2015 �0
POSSIBLE SOLUTIONS TO RELIEVE TRAFFIC CONgETIONS ON INDIAN ROADS
Theministersaidthenewhighwayswillencour-
agelocalcontractorsandgenerateopportuni-
tiesforemploymentthatwouldcomewiththe
infrastructureprojectsandindustriesthatcrop
upduetoimprovedconnectivity.Gadkarisaid,
“ThecostofroadconstructionintheNorth-east
isfourtimesthatinotherpartsofthecountry.
Mostprojectsarebeingdevelopedbycon-
tractorswhodonotbelongtothesestates.To
ensurelocalparticipation,wehavedecidedto
identifysmallprojectsofuptoRs50croreand
wewillpayinadvance20percentofthecostso
thatlocalyouthcanbecomeinvolvedindevel-
opmentalworks.”
Improvingruralconnectivityisakeyfocusarea
fortheNDAgovernment.“AsianDevelopment
Bankisprovidingabout$2billionloansthrough
itsthreelong-terminvestmentprogrammesto
buildandimproveruralroadsinfivestatesof
Chhattisgarh,MadhyaPradesh,WestBengal,
OdishaandAssam,”saidTeresaKho,ADB’sCoun-
tryDirectorforIndia.Thesupportisexpected
tohelpconstruct31,000kmofruralroadsin
thesestates.Theroadministryisalsoplanning
10newprojectsinKarnataka—thatis,about
1,572km—bytheendofthisyear.Threehigh-
waywideningprojects(PPProute)worthmore
thanINR5,500crore(USD860million)havebeen
giventhegreensignalbytheUnionCabinet
forUttarPradesh,MaharashtraandHaryana.In
aninterviewwithNDTVinApril2015,Gadkari
said40projectsthatwereidentifiedasunvi-
ablehavebeenterminated.About26projects
needgovernmentinterventionastheminis-
tryhasbeenunablespurtheirexecution.He
addedthatprojectsworthoverINR1,40,000
crore(USD21.9billion)havegotclearance.The
newMotorVehiclesActwillensurebetterroad
safety,amatterofgraveconcerninIndia.Will
Gadkari’sambitiousplansofachievinginfive
yearswhatthepreviousgovernmenthadnotin
25yearsbearfruit?
“Delhi’s Master Plan 2021 is set to encourage 80% of commuter to use public transport by 2020”
�1 copyright India Transport portal Road Transport challenges 2015 �2
Someexamplesincludeadvancedtrafficman-
agementsystems,wirelesstrafficsignalcontrol-
lers,CCTVjunctionsurveillance,electronictoll
collectionsystems,advancedvehiclecontrol
systemsandvideoincidentdetection.
Constructionhasrecentlybegunona$50bil-
lionhighwayprogramthatissettoimprove
upto40,000kmsofIndianhighways.However,
thesewillnotbeeffectiveuntilcompletion,as
theyhaveseentoincreasetheamountoftraffic
fatalitiesduetopoorroadconditionsinsome
areasduringconstruction.
TheWorkingGrouponUrbanTransportisalso
workingonmea-
surestomanage
congestion.The
lackofurban
planningandinef-
ficiencytoimple-
mentregulations
hasledthemto
suggestthecreationofacompletelynewinfra-
structurethatwillincludetrafficsignals,more
lanesandtheintroductionofone-waystreets.
Theyhavealsobeguntopromotetheuseof
publictransport.Metrorailisalreadypresentin
citiessuchasNewDelhiandBangalore.
heJawaharlalNehruNationalUrbanRenewal
Mission(JnNURM)city-modernisationscheme
waslaunchedinDecember2005.Thisisaseven-
yearplanwithatotalinvestmentof$20billion
thatwillupgradethesocialandeconomicstruc-
tureincities.PartofJnNURMistoredevelopthe
innercitiestoreducecongestion.
Othersolutionsthathavealreadybeenintro-
ducedinclude:
-ThecompletionoftheDelhiMetrosystemthat
willprovideaccessfromthecapitaltocities
suchasGurgagon,NoidaandGhaziabad.Phase
3issetforcompletionbetweenMay2015and
December2016.
-ThismonthsawtheintroductionbytheDelhi
TransportCorporation(DTC)ofmorethan3,500
busesontheroads,includingcorporatesector
buses.
-Theon-go-
ingconstruc-
tionofnew
roadsinthe
country,in-
cludingthe
wideningof
existingroad
networks,flyoversandfootbridgesforpedes-
trians.TheAsianDevelopmentBanklastmonth
lent$2billionforroadconstructioninfivestates
thatwillimproveruralconnectivity.
-Theconstructionofringroadbypassesinsome
areasthatwillallowasignal-freeflowoftraffic.
India’srapidlygrowingpopulationhascalledfor
thegovernmenttointroducepoliciesregarding
thedevelopmentofurbaninfrastructure.Delhi’s
MasterPlan2021issettoencourageupto80
percentofcommuterstousepublictransport
by2020.Ithasbeenestimatedthatby2021,
therewillbeademandfortransportby27.9
millionpas-
sengersin
comparison
with13.9
millionin
2001.
TheGov-
ernment
havealso
exploredfur-
therpossi-
bilitiestoreducecongestionandloweraccident
ratessuchaspromotingtrafficsafetythrough
educationinschools,thestrictenforcementof
trafficregulations,designingseparateroadsor
lanesforvehiclesofdifferentsizesandweights,
improvingandupdatingIndia’spublictransport
system.
Whenitcomestopoliciesandregulations,the
Governmentareduetotakea‘zerotolerance’
approachtorulebreakers.Already,thelawhas
beenamendedtomakewearingahelmeton
two-wheelerscompulsory,andtheoutcome
hasworkedwellthusfar.Intermsofcongestion
withinthecities,theGovernmentareexploring
theintroductionofastrictparkingpolicyand
anincreaseinparkingchargesthatmatchesthe
greaterdemand.
Thereisalsoanincreasedneedforseparate
lanesfordifferentvehicles,particularlyinDelhi
wherelandavailabilityfortransportisless.APIL
hasrecently
beenfiled
inGurgaon
thatasksfor
anencroach-
ment-freelane
forcyclistsin
thecity.
Whetheror
notsuchmea-
surestakenwill
beeffectivedependsontheGovernment,road
usersandsuitableenforcementofthelaw.Cur-
rently,Indiastillfacesmajorproblemsregard-
ingtrafficcongestionandhowtocombattheir
needforamoresustainableinfrastructureto
suittherapidlygrowingpopulation.
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ABOUT INDIA TRANSPORT PORTAL
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