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Economic
Development Policy |
| ROADS |
INTRODUCTION
Madhya
Pradesh occupies the central position in India. National Trunk
routes, the North-South and the East-West corridors, pass
through the state. Before the separation of Chhattisgarh, the
state possessed a total road length of as much as 100,556 km,
almost 3000 km of National Highways and 10,000km State Highways.
The responsibility for funding, construction, operation and
maintenance of state highways and major district roads lies with
the Public Works Department (PWD) of the Government of Madhya
Pradesh. Village road development falls under the purview of
zilla parishads under the department of rural development of the
Government of Madhya Pradesh. The Ministry of Surface Transport
(MOST) implements National Highway projects through its state
level agency (i.e. the National Highway Division of the PWD).
STATUS
OF THE ROADS SECTOR
The
table below shows a detailed break-up of roads within the state
segregated according to surfacing and category, prior to the
reorganisation of the state. |
| Road lengths
according to surfacing and category |
|
(Road lengths in km) |
| |
Bituminous
Tar |
WBM
|
Class
II |
Total
|
| National
Highway |
4881.9 |
- |
- |
4881.9 |
| State
Highway |
8701.9 |
1042.7 |
137.8 |
9882.4 |
| Major
District Roads |
12347.6 |
3299.0 |
408.9 |
16055.5 |
| Village
Roads |
12596.1 |
36324.7 |
20815.7 |
69736.5 |
| Total
|
38527.5 |
40666.4 |
21362.4 |
100556.3 |
| Source
: Administrative Analysis, 1999-2000 |
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Subsequent
to break up of the state, it is estimated that the total road
length in the state has reduced to 68,000 kms.
As can be observed from the table 8.1, only around 37% of the
total road length was surfaced with bituminous tar. Moreover, the
state compares poorly with other states in terms of road density.
The State has a road density of 22.7 km per 100 sq.km. as compared
to the national average of 37 km per 100 sq.km.
The
pattern of road surfacing in the state is skewed. The northern and
western regions of the state show a significantly higher
percentage of “pucca” roads (bituminous tar or WBM roads) than
the eastern region of Jabalpur. (Gwalior region - 86.62%; Bhopal
region – 88.53%; Jabalpur 76.11%;(Source:
Sadak Sankhyaki, 1999).
As per the
Administrative Analysis 1999-2000 of the PWD, the budgeted
expenditure on both road construction and road maintenance was
Rs.235.72 Cr. However, it is estimated that more than 70% of the
total departmental expenditure is spent towards wages &
salaries, general administration and various overheads while
actual execution of works accounted for less than 30%.
One
of the primary constraints facing the state is the paucity of
funds for road maintenance and road network expansion. Against an
annual requirement of Rs.800 Cr., the public works department
received funding of less than Rs. 300 Cr. in 1999-2000. Since
1994, the amount of funds allocated to the department has been
less than 40% of the actual funds required to maintain roads
quality at desirable standards
(Source:
Sadak Sankhyaki, 1999).
Definitive measures need to be taken to attract private
investment into roads, enhance the funds available for road
development, and improve efficiency in utilisation of these funds.
It must also be recognised that while privatisation of road
infrastructure is a highly positive and desirable element in this
sector, the induction of private investment in most infrastructure
sectors has been relatively slow across the country. It would be
unrealistic to expect the funding gap in the roads sector to be
met by the private sector in the immediate future. Therefore, it
will also be necessary to improve the efficiency of utilisation of
the GoMP’s own funds in road maintenance and seek additional
sources of funds other than private funding in BOT projects.
POLICY
THRUST
The Government of Madhya Pradesh has identified the development of road
connectivity, as a priority for the rapid economic development of
the state. It seeks to provide road connectivity between villages,
between town and cities, with the rest of the country. More
importantly, the State wishes to connect production centres with
consumption centre, suppliers with markets, backward areas into
the mainstream, and the State to not only Nation but the Rest of
the World.
To achieve this objective of road connectivity, and given the
resource constraints being progressively faced by the State, the
Government seeks to adopt the following strategy:
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Maximizing
private sector participation in the development of Roads.
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Focussing
on rehabilitation and maintenance of existing roads before
creating new capacity.
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Capacity
building within PWD to enable it to manage the role of
regulating the private sector.
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Rural
connectivity, particularly to mandis, to be allocated the
utmost priority.
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PRIVATE
PARTICIPATION & Shift towards a New Paradigm
The
normal budgetary resources of the Government are unable to meet
the gigantic challenge of roads construction, upgradation and
maintenance. It is therefore, necessary to attract private sector
funding for construction, rehabilitation and maintenance of state
highways, MDRs and ODRs wherever traffic levels and user
willingness-to-pay offer suitable cost recovery.
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The
Government proposes to develop more and more roads on a
Build-Operate-Transfer (BOT) basis. Funds shall be
accessed from the Govt. of India as well as through bond
and institutional financing. 17 BOT road projects have
already been identified and are being implemented by the
MP Setu Nirman Nigam.
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The
government would enhance the viability of such by
providing appropriate concessions/ grants.
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Ribbon
/ commercial activity beyond road control line may also be
permitted to the BOT contractor. Revenue from road
hoardings can also be his right.
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The
responsibility for maintenance of roads for the period of
toll collection would be bundled together to the same
agencies that build or rehabilitate (BOT) the facilities. The responsibility would cover new and proposed
upgradation of roads along with routine maintenanace of
long stretches. This new contracting paradigm is expected
to increase the involvement of larger organised operators
in the sector, increase efficiencies in contract
management by the PWD and enforce greater accountability
on construction contractors.
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For
projects absolutely unviable for private participation,
the GoMP shall provide or arrange for the entire funding.
Given the constraints of public resources, rehabilitation
and maintenance of existing road networks shall be
prioritised over the creation of fresh capacities.
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It
is envisaged that the combination of the above measures
will reduce cumbersome and inefficient multiple contract
award procedures by the department. It will also introduce
private sector skills in larger measure into individual
projects, and induce larger responsibility for design and
construction defects as well as long term maintenance on
private sector contractors.
PWD’s
Role as High Level Policy Making Body
It
is envisaged that under the new paradigm, the PWD’s
direct role in project implementation and maintenance
would be reduced. It should play a leading role in
formulating a policy for the roads sector, the elements of
which would largely stem from the initiatives discussed in
the earlier sections.
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As
the apex road development body in the state, the
department shall first commission and manage a Strategic
Options Study (SOS) to identify priority projects
for implementation across the state.
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In
the light of its increased role as an agency for managing
the implementation of projects through privatisation and
large construction and O&M contracts, there is a need
to improve the expertise and capability of the PWD.
Capacity Building exercise is thus required for developing
knowledge base and expertise on viable financial
structuring of projects, latest contracting procedures,
monitoring of projects and contractors / operators,
collection of tolls and other revenues, mobilisation and
judicious spending of public resources, accounting &
auditing procedures, etc. In this context, the department
shall commission an Institutional
Development Study.
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PRIORITISING
Rural CONNECTIVITY
The
State has received an allocation of Rs. 214 crores as part of the
first phase (FY 2001-02) and Rs. 498 crores for the phase II (FY
2001-2002) of the Prime Ministers Gram Sadak Yojana (PMGSY)
and
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A
Master Plan of roads in every block of the state,
highlighting their priority in terms of connecting
villages with highest population density has been
prepared.
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As
part of Phase I, 157 blocks out of 313 blocks have been
identified for road upgradation and new road construction.
156 blocks shall be covered in the following year.
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The
Government is targeting the upgradation to tar roads of
3300 kms and 2600 kms of new road construction.
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MP
Rural Roads Development Authority (MPRRDA) has been
nominated the nodal agency for overseeing the
implementation of the scheme.
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Project
Implementation Units (PIU) have been set up at the local
level, reporting directly to the MPRRDA.
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In addition, the GoMP has created a Rural Road Fund (KRF) from the proceeds of Mandi Cess. A Cess of
2% has been imposed of which 0.85% has been dedicated for
rural road development.
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It
is expected that Rs. 85 crores shall be collected from
this source on an annual basis. The possibility of raising
finances from other sources by leveraging existing
resources shall also be explored.
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PWD
has been made the relevant execution authority.
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These
funds shall be utilized for only the rehabilitation and
upgradation of existing roads, mainly Major District Roads
(MDR) connecting villages for better movement of
agricultural produce, as the PMGSY does not allow for the
rehabilitation of existing tar roads.
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A
Master Plan of such roads, with their priority / phasing
shall be developed. |
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