INDIAN TRANSPORTATION SECTOR: AN OVERVIEW

SUBMITTED TO: Dr. ASHISH MANOHAR URKUDE

SUBMITTED BY: AMAR ASHISHMBA(PSM)

SAP ID: 500015422ROLL NO: R310211003

INDIAN TRANPORT SECTOR

•India’s transport sector is large and diverse; it caters to the needs of 1.1 billion people. In 2007, the sector contributed about 5.5 percent to the nations GDP,.

•However, the sector has not been able to keep pace with rising demand and is proving to be a drag in the economy. Major improvements in the sector are required to support the country’s continued economic growth and to reduce poverty.

RAILWAYS: Indian Railways is one of the world’s largest railways under single management. It carried some 17 million passengers and 2 million tonnes of cargo a day in the year 2007 and is one of the world’s largest employers. The railways play a leading role in carrying passengers and cargo across India’s vast territory. However, most of its major corridors have capacity constraint requiring capacity enhancement plans.

ROADS: Roads are the dominant mode of transport in India today. They carry almost 90% of the country’s passenger traffic and 65%of its freight. The destiny of India’s highway network- at 0.66 km of highway per square kilometer of land- is similar to that of United States(0.65) and much greater than China's (0.16) and Brazil’s (0.20). However, most highways in India are narrow and congested with poor surface quality, and 40 percent of India’s villages do not have access to all-weather roads.

AVIATION: India has 125 airports, including 11 international airports. Indian airports handled 96 million passengers and 1.5 million tonnes of cargo in year 2006-2007, an increase of 31.4% for passengers and 10.6% for cargo traffic over previous year. The dramatic increase in air traffic for both passengers and cargo in recent years has placed a heavy strain on the country’s major airports. Passenger traffic is projected to cross 100 million and cargo to cross 3.3 million tonnes by year 2010.

PORTS: India has 12 major and 187 minor and intermediate ports along its more than 7500 km long coastline. These ports serve the country’s growing foreign trade in petroleum products, iron ore, and coal, as well as the increasing movements of containers. Inland water transportation remains largely undeveloped despite India’s 14,000 kilometers of navigable rivers and canals.

CHALLENGES:

Indian Roads are congested and of poor quality

Rural Areas have poor access

The Railways are facing severe capacity constraints

Ports are congested and inefficient

Urban centers are severely congested

Airport infrastructure is strained

KEY GOVERNMENT STRATEGIES:

India’s Eleventh Five Year Plan identifies various deficits in transport sector which include inadequate roads/highways, old technology, saturated routes and slow speed on railways, inadequate berths and rail/road connectivity at ports and inadequate runways, aircraft handling capacity, parking space and terminal building at airports. Government aims to modernize, expand, and integrate the country's transport services. It also seeks to mobilize resources for this purpose and to gradually shift the role of government from that of a producer to an enabler. In recent years, the Government has made substantial efforts to tackle the sector’s shortcomings and to reform its transport institutions. These include

Increasing public funding for transportation in its five year plans

Financing the development and maintenance of roads by creating a Central Road Fund (CRF) through an earmarked tax on diesel and petrol.

Improving rural access by launching the Pradhan Mantri Gram Sadak Yojana (Prime Minister’s Rural Roads Program).

Reducing the congestion on rail corridors along the highly trafficked Golden Quadrilateral and improving port connectivity by launching the National Rail Vikas Yojana (National Railway Development Program)

The development of two Dedicated Freight Corridors from Mumbai to Delhi and Ludhiana to Dankuni.

Cont.

Improving urban transport under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Upgrading infrastructure and connectivity in the country's twelve major ports by initiating the National Maritime Development Program (NMDP).

Privatization and expansion of the Mumbai and New Delhi Airports and development of new international airports at Hyderabad and Bangalore.

Enhancing sector capacity and improving efficiencies through clear policy directive for greater private sector participation. Large parts of the NHDP and NMDP are to be executed through public private partnerships (PPP).

WORLD BANK SUPPORT: The World Bank has been a major investor in the transport sector in India. At

present, it has ten projects in transport portfolio which include seven state road projects and one each for national highway, rural road and urban transport with total loan commitments for the transport sector in India as US$3.48 billion. The main activities include:

NATIONAL HIGHWAY DEVELOPMENT PROGRAM: The World Bank is financing highway construction on the Lucknow-Muzaffarpur corridors. It is also involved in other sector activities such as improving road road safety.

RURAL ROADS PROGRAM: The project supports the PMGSY in providing all weather roads to villages in four states – Uttar Pradesh, Jharkhand, Rajasthan and Himachal Pradesh.

STATE ROADS PROJECT: State Highways are being upgraded in the states of Kerala, Mizoram, Uttar Pradesh, Tamil Nadu, Punjab, Himachal Pradesh, Orissa and Andhra Pradesh.

SUSTAINABLE URBAN TRANSPORT PROJECT: The project aims to promote environmentally sustainable urban transport in various cities and support implementation of the India National Urban Transport Policy (NUTP).

STUDIES: In addition to the above, the Bank is involved in the preparation of various

analytical works (AAA) in the transport sector in India. These include: INDIA PORT SECTOR STUDY: The purpose of the proposed effort is to review the

demand-supply situation with respect to the port sector, identify physical, financial and policy constraints to sector development and suggest mitigation measures for the same.

INDIA CONSTRUCTION INDUSTRY STUDY: Given the large development programs being launched to support the rapidly growing economy, the supply side constraints in terms of the construction industry capacity are a serious cause of concern. The study reviews these limitations and suggest mitigation measures. This study has produced two outputs titled "Indian Road Construction Industry: Ready for Growth?" and "Indian Road Construction Industry - Capacity Issues, Contraints and Recommendations".

While the Bank will continue to support the upgrading and development of roads and highways in the country, it plans to scale up its involvement in railways and urban transportation.

SOURCE: http://go.worldbank.org/FUE8JM6E40

INDIA: TRASPORT SECTOR KEY STATISTICS

UNITS AS OF 2009

LENGTH OF ROADS KM. 3,516,452 MAIN ROADS KM. 666,452

PAVED ROADS % 47.3

ACCESS TO ALL SEASON ROADS % 61

ROAD DESTINY KM/1000 sq. KM. 1115

RAIL TRACK LENGTH KM. 63,327

TURNAROUND TIME DAYS 3

AIRPORTS 125

INTERNATIONAL 11

NO. OF PORTS 199