Business Environment and Law-Infrastructure Of The Economy
Road Transport- Infrastructure Of The Economy
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In order to improve the road transport system, the government announced several measures.
Road Transport
In order to improve the road transport system, the government announced several measures. Private participation has been allowed in the construction and maintenance of roads. In addition, road transport has been declared as an industry, which enables it to borrow finance from financial institutions. National highway act is to be amended so as to enable the levy of a toll on road users.
MRTP act is also to be amended to enable large firms to enter the road transport sector. The Road Development Plan for 1981 – 2001 envisages the construction of 2212000 kms of rural roads. But viewing against the backdrop of the resource crunch, this plan appeared to be unimplementable.
In order to improve the road transport system, the government announced several measures. Private participation has been allowed in the construction and maintenance of roads. In addition, road transport has been declared as an industry, which enables it to borrow finance from financial institutions. National highway act is to be amended so as to enable the levy of a toll on road users.
MRTP act is also to be amended to enable large firms to enter the road transport sector. The Road Development Plan for 1981 – 2001 envisages the construction of 2212000 kms of rural roads. But viewing against the backdrop of the resource crunch, this plan appeared to be unimplementable.
Strengths, Weaknesses And Remedies Of Road Transport
Strengths
- One of the worlds largest, stretching for almost 201 million across the country
- Relatively low vehicle density per km.
- Ease the burden of railways
Problems
- Only
1.6% Of road strength is occupied by national highways, 5.86% By state highways
and 92.54%By district and village roads. Except the national highways, the
condition of other roads is pathetic.
- Several
missing links, unbridged river crossings, weak culverts and inadequate road
pavement enroute.
- Remote
parts of the country are still not connected.
- Veritable
death traps.
- Lack
of adequate finance.
- Increasing
pollution.
Remedies
- Allocate additional resources for upgrading and widening existing national and state highways.
- Create a highway development fund as an extra-budgetary development fund for funding highways
- Set up a financing mechanism for funding road construction, using the toll system for cost recovery
- Encourage private sector participation in highways by institutionalising build-operate – transfer schemes.
- Earmark a proportion of the state’s levies on vehicle and fuels for road maintenance.
- Amend the loans to allow for right of way in land acquisition for laying roads.
Tags : Business Environment and Law-Infrastructure Of The Economy
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