Roadways and its Economic impact

Indian highway density map in lane kilometers per 100,000 people as of

2012. Average lane kilometers per 100,000 equals average kilometers of road per
100,000 multiplied by average number of lanes per road for a country. India's
average was 7.7 lane km per 100,000, compared to 49 for Japan and 114 for the
US. Developed highway and road networks in India will have an immediate
positive effect on employment status. It will be especially beneficial to the nation's
manufacturing growth.

Roads are an important mode of transport of India. India has a network of over
6,215,797 kilometers (3,862,317 mi) of roads as of 1 December 2021. This is the
second-largest road network in the world, after the United States with 6,853,024
kilometers (4,258,272 mi). At (1.94 km, 1.21 mi) of roads per square kilometer of
land, the quantitative density of India's road network is equal to that of Hong
Kong, and substantially higher than the United States (0.71 km, 0.44 mi), China
(0.54 km, 0.34 mi), Brazil (0.23 km, 0.14 mi) and Russia (0.09 km, 0.056 mi).

Road networks play an essential role in India's growth story. It contributes more
than 3.6 per cent of Gross Domestic Product (GDP) or around two-thirds of all
transport-related contributions to the GDP of India. Over 85 per cent of India's
passenger traffic and about 65 per cent of its freight are transported on roads. With
a total length of 5.5 million km, India boasts one of the largest road networks
globally. Ninety per cent of India's total passenger traffic uses the country's road
network for travel, and it transports 64.5 per cent of all goods and commodities in
the nation.
As of March 2020, India had completed and placed into use over 136,440
kilometers (84,780 mi) of four or more lane highways connecting many of its
major manufacturing, commercial and cultural centers. According to Ministry of
Road Transport and Highways, as of March 2021, India had about 151,019
kilometers (93,839 mi) of national highways and expressways, plus another
186,528 kilometers (115,903 mi) of state highways. Major projects are being
implemented under the Bharat Mala, a government initiative. Private builders and
highway operators are also implementing major projects.
Organization:
category managing authority Length(k Length(
m) %)
National Ministry of road transport and highway 151,000 2.19%
highway
State Public works department of state/union 186,528 3.00%
highway territory
District Public works department of state/union 632,154 10.17%
Roads territory
Rural roads Panchayat and PMGSY 4,535,511 72.97%

Urban Municipal corporation and 544,683 8.67%

Roads municipalities
Project Various government departments of 354,921 5.70%
roads states/union territories,
and ,SAIL,NMDC and BRO
Total Total roadways 6,215,797 100%

Role of Roadways in Economic development of India:-

Roads serve as the lifeline of Indian trade. They connect the consumers with
producers that are they connect urban and rural centers. Rural centers are producers
of agricultural goods which are consumed by them and are transported to urban
centers because they do not have production of agricultural commodities. On the
other hand, urban centers produce consumer products and supply them to rural
areas. Most of the intranational trade of India is carried out through roads. Since
roads connect different areas, they help in boosting up trade by joining the
industrial areas with raw material producing areas, consumers with producers.

The government has categorized various road types which are headed by different
authorities. The largest bulk of transportation and trade is carried out through
national highways which connect major cities, ports, and capitals.
Following national highways, there are state highways, district roads, and village
roads that connect smaller administrative units and facilitate economic activity at
the micro-level. Although most of India's international trade is carried out through
airways and seaways construction of border roads has helped in increasing the
trade with the neighboring countries thus providing an impetus to international
trade.
The government has categorized various road types which are headed by different
authorities. The largest bulk of transportation and trade is carried out through
national highways which connect major cities, ports, and capitals.
Following national highways, there are state highways, district roads, and village
roads that connect smaller administrative units and facilitate economic activity at
the micro-level. Although most of India's international trade is carried out through
airways and seaways construction of border roads has helped in increasing the
trade with the neighboring countries thus providing an impetus to international
trade.

Methodology:-
Pole of national highways in economic development-
The pulsating economy of a country depends on the roads that serve as its arteries.
Therefore, road transport has emerged as a dominant segment with a share of 4.8
per cent in India’s GDP.
As we know that national highways are play a major role by providing mobility for
the efficient movements of people and goods, as well as providing availabilities to
a wide variety of commercial and social activities. National Highways are
connecting all the major cities and state capitals, forming the economic backbone
of the country. This Economic development is categorized into 4 types:-
1) Tourism:-
National Highways and the tourism industry are indivisible. National
Highways are an essential component of the tourism industry which can give
safe rides and great offices to the guests.

The tourism industry in India is economically vital and is developing

quickly. The World Travel and Tourism Council determined that the tourism
industry produced ₹14.02 lakh crore (US$180 billion) or 9.6% of the
country's GDP in 2016 and upheld 40.343 million, 9.3% of its all-out work.
The area is anticipated to develop at a yearly pace of 6.8% to ₹28.49 lakh
crore (US$370 billion) by 2027 (10% of GDP). In India every state had at
least one tourist place which helping Indian economy. In this most tourism
states are:-

Rank State/Union Territory Number Share in %

1 Tamil Nadu 345,061,140 20.9
2 Uttar Pradesh 233,977,619 14.2
 3 Karnataka 179,980,191 10.9
4 Andhra Pradesh 165,433,898 10.0
5 Maharashtra 119,191,539 7.2
6 Telangana 85,266,596 5.2
7 Madhya Pradesh 78,038,522 4.7
8 West Bengal 79,687,645 4.8
9 Gujarat 48,343,121 2.9
10 Rajasthan 45,916,573 2.8
Total of top 10 states 1,380,896,844 83.6
Others 271,588,513 16.4
Total 1,652,485,357 100

SHARE OF TOP 10 STATES/UT’s OF INDIA IN NUMBER OF

DOMESTIC TOURIST VISITS

2) Transportation:-
National Highways are very important for transportation of goods across the
lengths and breadths of India. Presently, the length of National Highways in
India is about 151,019 km (93,839 mi).

They spread through every one of the states like an organization, giving
street availability all through the country. National Highways form only
2.91% of the total length of roadways in India. They help to transport about
40% of the total transport plying through roadways in the country.
They are supported by the central government of India. Transportation can
be roughly grouped into two types-

i) Transportation of people –
National Highways are playing a crucial role in public transportation by
providing beautiful sceneries and safe riding facilities with less time and
without any traffic issues by connecting the main states, popular cities,
ports, and international borders to cross the country. Because of good
facilities the people are also choosing the national highway is increasing
 year by year. Average growth of the number of vehicles has been around
10.16% per annum over recent years.

ii) Transportation of goods -

National highways play a key role in the transportation of goods like
agricultural products, industrially manufactured products, market closets,
and naturally produced products, etc. Faster transportation of goods will
increase and customers are also receiving the products without any
damage within time without any delays.

In India, 29 states and 773 districts are recorded in the 2022 Census of
India. In every state, we can get at least one unique product is
manufacturing and transported to other states, districts, and other border
countries like Bangladesh, Afghanistan, etc. For e.g.-
(1) Andhra Pradesh – Budithi Brassware
(2) Arunachal Pradesh – Handcraft woods and bamboo products
(3) Assam – Tea Farming
(4) Maharashtra – Kolhapur Chappals
(5) Odisha – Pattachitra Painting

3) Employment:-
National highways and development are using a crucial tool to elevate
employment growth by restoring the economic activities and attracting
foreign investments. The ongoing and targeted projects of the national
highways Authority of India (NHAI) would generate estimated employment
of approximately 50crore men a day over the next four years on a seasonal
basis.

National highways and development are using a crucial tool to elevate

employment growth by restoring the economic activities and attracting
foreign investments. The ongoing and targeted projects of the national
highways Authority of India (NHAI) would generate estimated employment
of approximately 50crore men a day over the next four years on a seasonal
basis.
 Not only local people some other manufacturing companies, sales marketing
agencies, industrial companies, raw material industries, etc.; are started the
business in those respected areas and automatically nearly villages are cities
get job opportunities increases day by day.

4) Toll Plaza:-
National Highways Authority of India(NHAI) has been the nodal agency
tasked with developing national highways and appointing concessionaries
for building highways under the Build, Operate and Transfer(BBOT) basis.

There is 549 Toll Plazas at various points on national highways, as of

November 2016, and till December 31, 2016, the total revenue collected was
Rs 5,128 crore. Of this, Rs 3,993 crore was the revenue collection (non-
BOT) and Rs 1,135 crore was BOT-shared.
We expect the total yearly toll collection to reach up to Rs1, 34,000 crores in
the next three to four years," Gadkari added. In FY2022, the traffic is
expected to increase by 5% and toll rates (WPI linked) by 3-4% resulting in
an overall increase in toll collections by 14-15% on a low base in FY2021.
Rating agency IKRA had in January said in a report that toll collections in
India are likely to grow 14%-15% in 2021-22, while maintaining a stable
outlook for the Indian road sector.
 Revenue Generated by Toll Plazas. In 2016-17, an aggregate of Rs 6,937
crore, in 2017-18, Rs 8,630 crore, and in 2018-19, Rs 9,187 crore is the
complete income produced from the 549 functional cost squares the nation
over. The highest toll cost charge was gathered from Uttar Pradesh adding
up to Rs 1,525 crore in the monetary year of 2018-19.

Economic Contribution:-

India has the world’s second largest road network, aggregating over 3.34 million
kilometers. The share of road transport in GDP is over 3.6 per cent, accounting for
about two-thirds of the total transport contribution to the GDP. Roads handle about
65 percent of the freight and over 85 percent of the passenger traffic in India.

When it comes to categories of roads, while National Highways and State

Highways account for about 2 per cent and 4 per cent, respectively the rest is
accounted by the Major and other District Roads and Rural Roads. The national
highways carry about 2 per cent of the total road network but carry 40 per cent of
the movement of goods and passengers. Out of the total length of National
Highways, 32 per cent is single lane/intermediate lane, 56 per cent is 2-lane
standard and the balance of 12 per cent is 4-lane standard or more.

With the ever-expanding number of vehicles (automobiles grew at the rate of 16.82
per cent in 2006-07), accelerated trade growth, increasing urbanization, need to
reduce the stress on existing highways and the need to provide connectivity for
improved accessibility of hinterland, it becomes imperative to strengthen and
expand the road transport network to meet both present and future traffic demand.

An estimated investment of US$ 50-60 billion over the next five years is required
to tackle the projected growth of 12-15 per cent passenger traffic and 15-18 per
cent cargo traffic. To meet this investment requirement the government has
undertaken various reform measures.

Pending Highway Project:-

According to Gadkari, the government has constituted a High-Powered Committee

to evolve a framework of guidelines for resolution of stuck projects, issuing
guiding principles for resolution of such projects. The ministry and its
implementing agencies have initiated action to take up measures for resolution of
stuck projects within the framework of these guiding principles, he said in a
written reply in Lok Sabha.

As per the policy guidelines, the term “Stuck Project” as used, means a project
undertaken by the MoRTH through NHAI, NHIDCL or state PWD where the work
has stopped due to :-

i. inability of the Contractor/Concessionaire to continue with the execution of

the project on account of proceedings initiated against it before the NCLT
under the Insolvency and Bankruptcy Code, 2016 or under Section 241(2) of
the Companies Act, 2013
ii. default (consecutive or simultaneous) on account of both the parties i.e., the
NHAI/NHIDCL/State PWD and the Contractor/Concessionaire. Process for
revival of stuck projects has been initiated.

National Highway Projects in J&K:-

Nitin Gadkari also informed the House about the major road development projects
undertaken by the Central government in Jammu and Kashmir. He stated that the
government has undertaken 17 major road development projects of aggregate
length of 1,554 km to enhance the capacity of National Highways (NHs)in Jammu
& Kashmir.

According to his statement, the progress of Qazigund- Banihal tunnel project on

NH-44 undertaken by National Highways Authority of India (NHAI) is 75.24%
against the fund allocated amounting to Rs 2,648 crore for the project and
scheduled to be completed by July, 2020.

However, the work of preparation of detailed project r(DPR) costing Rs 3.23 crore
for two laning of Mughal Road connecting Shopian to Baffliaz (in Punch district)
including Mughal Road is in progress and scheduled to be completed by January,
2020, the statement added.
Revenue Collection by Toll Plaza:-

Total toll collection through FASTag on fee plazas, including state highway toll
plazas, increased 46 per cent to Rs 50,855 crore in 2022, state-owned NHAI said
on Tuesday. Total toll collection through FASTag on fee plazas, including state
highway toll plazas, in 2021 was Rs 34,778 crore.

The average daily toll collection through FASTag on NH fee plazas in December
2022 was Rs 134.44 crore, and the single day highest collection touched Rs 144.19
crore on December 24, 2022, the National Highways Authority of India (NHAI)
said in a statement.

Similarly, the statement said the number of FASTag transactions also witnessed a
growth of about 48 per cent year-on-year in 2022.The number of FASTag
transactions in 2021 and 2022 was 219 crore and 324 crores, respectively, it added.

The statement said with 6.4 crore FASTags issued as of date, the total number of
FASTag-enabled fee plazas across the country also grew to 1,181 (including 323
state highway fee plazas) in 2022 from 922 in the previous year 2021.

FASTag implementation has reduced the waiting time at NH Fee Plazas

significantly. A FASTag allows a user to pay the highway fee electronically
without having to stop at the toll collection booths set up by the highway operators.

Since February 16, 2021, the government has made FASTag mandatory for all
private as well as commercial vehicles. As per the rules, vehicles that do not have a
valid or functional FASTag must pay double the toll charge as a penalty.
Golden Quadrilateral:-

The Golden Quadrilateral Project (GQ Project) was intended to establish faster
transport networks between major cities and ports, provide smaller towns better
access to markets, reduce agricultural spoilage in transport, drive economic
growth, and promote truck transport.
History:-

Prime Minister Atal Bihari Vajpayee laid

the foundation stone for the project on 6
January 1999. It was planned to be
completed by 2006, but there were delays
due to land acquisition constraints and
disputes with contractors which had to be
renegotiated.

Cost:-

India's government had initially estimated that the

Golden Quadrilateral project would cost ₹600
billion (US$7.5 billion) at 1999 prices. However,
the highway was built under-budget. As of August
2011, the cost incurred by the Indian government
was about half of the initial estimate, at ₹308.58
billion (US$3.9 billion). The eight contracts in
progress, as of August 2011, were worth ₹16.34
billion (US$200 million)

No Segment Length Completed

1. Delhi – Kolkata 1,453 km (903mil) 31 August 2011

2. Chennai – Mumbai 1,290 km (800mil) 31 August 2011

3. Kolkata – Chennai 1,684 km 31 May 2013

(1,046mil)

4. Mumbai - Delhi 1,419 km (882mil) 31 August 2011

Total 5,846 km
(3,633mil)

Economic Benefits:-

Enhanced Connectivity:

The Golden Quadrilateral improves connectivity between major economic

hubs, facilitating the movement of goods, services, and people. The highway
network reduces travel time and transportation costs, leading to increased
trade and business activities. It allows for the efficient movement of goods
across different regions, enabling companies to expand their markets and
reach a larger customer base.

Boost to Trade and Commerce:

The improved road connectivity provided by the Golden Quadrilateral has a

positive impact on domestic and international trade. It enables businesses to
transport their products quickly and reliably, leading to reduced logistics
costs and improved supply chain efficiency.

Industrial Development:
 Industries can set up their manufacturing units in areas along the highway,
benefiting from improved connectivity and transportation infrastructure.
This leads to the establishment of industrial clusters and promotes industrial
development in previously underserved regions.

Agricultural Sector:

In the agricultural sector, farmers can transport their produce to distant

markets more efficiently, reducing wastage and improving profitability. The
highway network facilitates the movement of agricultural inputs such as
fertilizers, seeds, and machinery to rural areas, promoting modernization and
increased productivity in agriculture.

Infrastructure Development and Investments:

The construction of the Golden Quadrilateral involves significant

infrastructure development, including road construction, bridges, and
associated facilities. This creates a demand for construction materials,
machinery, and labor, stimulating the construction industry and related
sectors. Additionally, the project attracts private investments in
infrastructure development, leading to overall economic growth and
employment opportunities.

Corruption Allegations:-
In August 2003, Jharkhand-based project director Satyendra Dube, in a letter to the
prime minister, outlined a list of bad faith (mala fide) actions in a segment of a
highway in Bihar.
Dubey's claims included that big contractor had inside information from NHAI
officials, that the contractors for this stretch were not executing the project
themselves (as stipulated in the contract) but had been subcontracting the work to
small builders who lacked technical expertise, and that no follow-up was
performed after awarding advances.
Dubey's name was leaked by the prime minister's office to the NHAI, and he was
transferred against his wishes to Gaya, Bihar, where he was murdered on 27
November.
The NHAI eventually admitted that Dubey's allegations were substantiated, and
implemented "radical reforms" in the selection and contract procedures. After
considerable Central Bureau of Information scrutiny, Mantu Kumar and three
accomplices were arrested and charged with murder. Mantu escaped from court on
19 September 2005, but was recaptured a month later. In 2010, Mantu and others
were convicted of murder and other offenses and sentenced to life in prison.

Problems Faced by Roadways:-

i. many roads being unmetalled, due to which transportation is difficult during

rainy seasons.
ii. Inadequate reach of National Highways in many places.
iii. High traffic congestion on roads in cities.
iv. Bridges and culverts (tunnels) connecting roads are old and narrow at many
places.

According to volume of traffic and passengers, the road network is inadequate.

However, the fats development of road network has taken place in different parts
of our country.

Bharat Mala Yojana:-

The Bharat Mala Pariyojna (lit. 'India garland project') is an ecosystem of road
development which includes development of tunnels, bridges, elevated corridors,
flyovers, overpass, interchanges, bypasses, ring roads etc. to provide shortest, jam
free & optimized connectivity to multiple places, it is a centrally-sponsored and
funded Road and Highways project of the Government of India.

The total investment for 83,677 km (51,994 mi) committed new highways is
estimated at ₹10.63 lakh crore (US$130 billion), making it the single largest outlay
for a government road construction scheme (as of March 2022).
Impact:-

i. Raise 6 NC corridors to 50 corridors (6 NC and 44 EC)

ii. Raise 40% freight to 80% freight on National Highways
iii. Raise 300 districts to 550 districts connected by minimum 4-lane highways .

GSRTC:-

GSRTC has 125 depots, 16 divisions, and a central office/workshop.

Has a fleet size of 8322 buses.
Operating at 30.39 lakh kilometers daily with 41446 trips and catering daily
25.18 lakh passengers.
Is covering 99.34% of the villages and 99% population of Gujarat in
addition to plying to important destination outside the state.
Rejuvenation of Fleet:-

Year Total Buses Grant of GoG(Rs in % of Over Total Fleet

CR) Aged Buses

2006-07 1000 115.00 74.75 8084

2007-08 1500 244.00 52.34 7987

2008-09 1002 153.00 50.10 8069

2009-10 1690 248.50 40.90 7628

2010-11 1951 281.00 27.00 7643

2011-12 2850 440.00 14.00 7692

2012-13 1050 290.00 9.00 7663

2013-14 - - - 7719

2014-15 1050 190.00 05.00 7852

2015-16 1050 205.00 05.67 8086

2016-17 1600 361.00 04.50 8236

2017-18 1600 410 24.65 7549

2018-19 1600 410 32.68 8703

2019-20 1000 221 20.20 8715

2020-21 1000 387 20.42 8113

 2021-22 10000 310 19.71 8070

Up to Oct 12000 379 25.01 8322

2022

Total 22143 4644.50 -- --

*Overaged Bus = Completed 8 lakh Kilometers ** yet to be purchased

Loss of Revenue due to delays in tariff implementation:-

Date of proposal Date of approval Time taken in Revenue loss(Rs.
Days in crores)
21-07-2005 14-11-2005 116 days 15.89
10-06-2006 15-07-2006 35 days 4.32
09-06-2008 23-06-2008 14 days 2.76
22-03-2010 05-05-2010 44 days 6.82
03-07-2010 10-08-2010 38 days 3.83

Government of Gujarat and GSRTC:-

No. Particular (Rs. In lacs
1 Losses incurred 204028.83
2 Received from Govt. 18899.49
3 Paid to Govt.
(a)Passenger Tax 154599.29
(b)Motor vehicle Tax 4700.77
(c)Sales Tax 65944.67
(d)Interest and depreciation 10046.54 235291.27
Impact of Pandemic on GSRTC:-
It is akin to the last year's lockdown for transporters Movement
restrictions and curbs have been imposed to tackle the massive surge in cases of
Covid-19 and Gujarat transporters are feeling the heat. Estimates of Akhil Gujarat
Truck Transporters' Association (AGTTA) suggest that at least 40% of the transport
vehicles have now gone off the roads.
"The lockdown measures in various states have sparked a fear among drivers who
often refuse to report for work," said Mukesh Dave, president, AGTTA. "Some
drivers or their family members have been affected by Covid. Many have left for
their home towns fearing getting stranded"
Transporters said that even demand has taken a hit as industrial production has
been impacted by Covid
"The demand for raw materials as well as for finished products has dropped as
there are different levels of restrictions across different states," Dave said. As
territorial lockdowns and curbs on movement are extended, transporters have
warned that supplies of essential commodities, including medicines, may take a
hit
"We anticipate that if the availability of vehicles reduces, it may adversely hit the
supply of medicines, essentials, and raw materials," he said. "The fast-moving
consumer goods (FMCG) segment has already begun feeling the pinch."
Restrictions and the reduction in demand have come as a double whammy for
transporters, especially because fuel prices have remained on the higher side and
unchanged over a month.
The petrol price stands at Rs 87.57 per liter and the diesel price is at Rs 86.96 per
liter. "Our contracts with suppliers are pre-negotiated. Currently we are short of
staff and the demand has gone down, which directly impacts our revenues," said an
Ahmedabad-based transporter. "However, our cost of operations remains
unchanged and such a high price of diesel certainly hits the effective income."