GENERACORE SECTOR
Time To Rebuild The Nation
Good infrastructure lays the foundation of a great nation. It is not just a need, but a right. Five experts chalk out the roadmap
14 Aug 2009
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| (Pic by Sanjay Sakaria) |
Roads: Gearing Up For Change
O.B. Raju, Managing Director, GMR Highways, & Director, GMR Infrastructure
History shows that right from the invention of the wheel to the present age of multi-modal transport, the progress of human civilisation bears close links with transportation. Importantly, transportation has played an instrumental role in improving the quality of human lives. Rail, shipping, road and air transport have driven industrialisation, created the world’s greatest cities, spurred international trade and globalisation, and allowed for free movement of people and goods.
There is an intrinsic link between efficient road networks and economic prosperity, with new transport connections enabling new economic relationships. A robust transport system is an important enabler for sustained economic prosperity. For example, a 5 per cent reduction in travel time for all business and freight travel on the roads could generate a few thousand additional ‘man-hours’ for a country and save crores of rupees. Good roads will ensure low maintenance cost, better fuel consumption and safer means of commute.
As individuals and as business leaders, we have also experienced that delays and unreliability of road network can cost people and businesses dearly; increase business costs and affect productivity and innovation. Roads cannot create growth by itself: they are just enablers, which can improve productivity when other conditions are right.
Transport corridors are the arteries of domestic and international trade. They boost competitiveness in imports and exports. Road networks support the productivity and success of urban areas and their catchments. They get people to work, support deep and productive labour markets and allow businesses within the area to reap the benefits of agglomeration. They contribute equally to the development of rural economy by creating new markets and also provide faster access to existing markets to sell agricultural produces.
The Road Ahead
Looking forward, roads will play key economic roles in India’s future by supporting the success of the country’s highly productive and cost efficient goods and services in the global market, and enabling efficient freight distribution. To meet its ambitious economic goals for roads, the government has already taken many measures. But these have to be strengthened further. The most important aspect is to have balanced development across the country.
There is an immediate need to standardise the roads in the country. Our roads require regular preventive maintenance, more so in the dense traffic corridors. We need to create more passenger amenities. Truck lay-byes and related facilities are essential where freight movement is frequent.
Our road networks need to be supported by the cutting-edge toll collection mechanisms. Implementing electronic toll collection system across the highways will help reduce the time wasted at toll plazas. For example, users can drive through a plaza without stopping to pay toll, as an on-board unit installed on their vehicle shall complete the transaction by communicating with a transponder at the plaza.
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O.B. Raju Managing
Director, GMR Highways,
& Director GMR Infrastructure |
To ensure that projects are viable and attract private and foreign investment, current policy measures need to be strengthened. These include availability of funds at cheaper interest rates, liberal fiscal and tax incentive packages and a review of contractual provisions constraining the funding of projects by financial institutions. To reduce execution level challenges and ease faster implementation, the government needs to hasten the process of land acquisition and explore faster approval process. It must ensure that enough checks and balances are built into the project-review system.
The government should continue to invest and deliver sustained transport investment, along with the private sector. Investment in infrastructure by the government during this recession will provide great benefits in future. Not to mention the huge employment-generation capability of infrastructure investment; it is an added advantage for the country. The government spending will also help deliver a transport system capable of supporting the continued success of India’s economy in the global market. Of course, this calls for a paradigm shift in the planning and execution of road projects.
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