Highway To Progress

Sanjay Mitra, Secretary, Road Transport & Highways in an interview with S.A.Faridi discusses plans, policies, achievements and goals for ensuring hassle-free and safe movement of freight and passengers across the country.

At the outset, let me congratulate your ministry for reaching all time high 16.5 km roads construction per day. What important steps are you taking to make 30km a day a reality and then pushing it to 40km, as promised by the Road & Highways Minister? How long will it take to make this come true?
We feel that one should assess highway construction achievement on a yearly basis. A couple of years back, we awarded 1,900 km of roads, while this year, we took a five-fold jump and awarded 10,000 km. The award target for 2016-17 is tougher. We will definitely try to achieve it. The more important thing here is how well we are able to organize ourselves and create an enabling environment. We took many steps in this direction and have managed to streamline approvals and other processes to a large extent, such as:

Increased focus on quality of DPR during project preparation
Priority on timely land acquisition
Enhanced coordination with state governments for utility shifting, approvals and clearances, other administrative support
Adequate delegation of roles/responsibilities across levels
Better project monitoring through use of IT-enabled services
Focus on innovative technologies and construction practices – rigid pavements, pre-fabricated structures etc.

However, highway development cannot be a goal by itself but should lead to unhindered and safe movement of freight and passengers across the country. Therefore, along with highway construction, we are also focused on creating an enabling environment for seamless movement of goods and people across the country.

There is no doubt that MoRTH is working hard to achieve this target of 40km a day, but industry insiders feel that without heavy private investment, this daunting task might be difficult to complete. What measures are being taken by MoRTH to make the road sector more attractive for private investors with assurances of good returns?
We agree that private sector participation through PPPs is essential for achievement of set targets for the sector.

A host of policy measures have been undertaken in last two years to address issues pertaining to PPP contracts - Exit Option, One time fund infusion to revive languishing projects, rationalized compensation to concessionaires in case of project delays due to authority's default, etc.
Innovative project implementation models are being developed with focus on risk re-balancing. For example, the 'Hybrid Annuity Model' has been developed and implemented. Market sentiments are buoyant on the Model and 15 projects have already been awarded so far (estimated length - 617 Kms, cost - Rs.10,380 crores).
Monetization of highway projects through the 'Toll–Operate-Transfer (ToT) Model' is being taken up on priority basis. Under the Model, the right of collection of user fee (toll) for selected highway stretches constructed through public funding will be assigned for a specific time period, to developers/investors against upfront payment of a lump-sum amount to the Government.
Around 75 operational NH projects completed under public funding have been preliminarily identified for potential monetization using the ToT Model.

There are many issues stakeholders want the government to address on a war footing. They include fast-tracking dispute resolution, independent regulator, poor quality of DPR, WPI forecasting, cost and time overruns, subdued revenue generation, etc. How is the ministry addressing these concerns of the industry, to retain their confidence?
Some major steps in this regard include the following:

Renegotiation of Contracts - A "Renegotiation Framework for PPP projects" is being finalized under DEA initiatives in consultation with the concerned line Ministries including MoRTH. This should help to address unforeseen issues and disputes stemming out of them in long-term PPP contracts for highways.
Dispute Resolution – A proposal on "Public Utility (Resolution of Disputes) Bill, 2016" is also under consideration. This should take care of many issues.
Subdued Revenue Generation – While revenue collection through user fees for roads (Toll) is a function of overall economic condition of the country and major activities in the project hinterland, steps like increased reliance on 'Electronic Toll Collection' are being encouraged that should bring in the required operational efficiency.

One of the master strokes of the government is to recycle the assets where it planned to sale its operational projects and has identified 150 road projects initially; how is this programme faring and generating interest of investors?
Monetization of highway projects through the Toll –Operate-Transfer (ToT) Model is being taken up on priority basis. A proposal is under active consideration of MoRTH. Under the Model, the right of collection of user fee (toll) for selected highway stretches constructed through public funding shall be assigned for a specific time period, to developers/investors against upfront payment of a lump-sum amount to the Government.

Around 75 operational NH projects completed under public funding have been preliminarily identified for potential monetization using the Model. Rounds of stakeholder consultation sessions including with global investors have been held in this regard and most of the investors have shown keen interest in the Model.

Though construction of concrete road has been welcomed by the stakeholders at large for being sustainable, but constructing concrete roads need high level of expertise and advance equipment which make it 10-20% costlier than bitumen. What steps is the government taking to minimize the construction cost and to attract more players in this sector?
Cost for concrete roads is not necessarily more than bitumen roads. The two costs should ideally be compared considering the overall Life-Cycle which for a project includes construction as well as O&M costs. To encourage the Life Cycle Cost approach, the bid parameter considered in the recently developed Hybrid Annuity Model for implementing NH projects is the Life-Cycle Cost.

Further, cement for highway construction is being made available through an e-portal under MoRTH initiatives thereby enabling cement procurement in a fair and transparent manner.

In the years past, it has been noticed that roads construction quality was compromised by contractors in EPC contract, which resulted in distressed roads within few months of their completion. Taking note of this, how is the ministry ensuring road performance, and making road contractors accountable with stricter norms?
Ensuring more stringent role for the Authority's Engineer and having provision for Defect Liability Period of 4 years in the EPC contract are major steps in this regard.

Repair and rehabilitation (R&R) of existing roads is a major issue. How is the ministry addressing this issue by making R&R fast and effective?
The major initiative in this direction is a better planning of O&M activities through enhanced monitoring of road conditions. Implementation of an IT based Road Asset Management System (RAMS) including Bridge Management is enabling the same.

Further, an IT enabled comprehensive ERP framework for overall streamlining of operations for MoRTH and its implementing agencies like NHAI, NHIDCL etc. is in an advanced stage of consideration.

Don't you think that we are in an era where instead of just lower bid, a contract should be awarded keeping better technology and sustainability, and enhancing road service life in mind?
In order to promote use of innovative technology, flexibility in construction and O&M of highways is being encouraged. For example, the Hybrid Annuity Model for highways project implementation dovetails this requirement in the bid parameter itself.

India is known as one of the worst nations for its road safety. What actions are being taken by the road ministry to make roads safer and accident-free?
Road safety is being accorded highest priority:

A National Road Safety Policy has been approved, which outlines various policy measures like promoting awareness, establishing road safety information data base, encouraging safer road infrastructure, enforcement of safety laws etc.
The Government has constituted the National Road Safety Council as the apex body to take policy decisions in the matter of road safety. The Ministry has evolved a multi pronged strategy to tackle the problem based on the 4 Es viz Education, Engineering (both of roads and vehicles) Enforcement and Emergency Care.
The Ministry has constituted Group of Ministers from eight states to deliberate and propose strategies for reducing road fatalities.
Road safety has been made an integral part of road designing, safety audits are being taken up for selected stretches of National Highways
723 black spots have been identified which are accident prone and steps are being taken to rectify engineering defects at such spots at a cost of Rs.11,000 crore.
Vehicular Safety Standards are being set for all classes of vehicles.
Highway Advisory System (HAS) has been launched as a pilot project on Delhi-Jaipur highway. This is a free-to-air information distribution system that uses radio to make the travelling experience on National Highways safer, faster and hassle-free
Automated Camera Based Driving Test System has been started on a pilot basis with the aim of minimizing human intervention in the issue of driving licences.
Ministry has sanctioned 25 Institutes of Driver Training and Research and 15 Inspection and Certification Centres for vehicle fitness.
Effective Trauma Care through provision of ambulances on Highways.
Pilot Projects for Cashless Treatment of Road Accident Victims has been started on Gurgaon-Jaipur, Vadodara – Mumbai stretch of NH 8 and Ranchi-Rargaon-Mahulia stretch of NH 33.
Good Samaritans Guidelines - have been issued by the Ministry to prevent the harassment of "Good Samaritans" who help road accident victims.