Rakesh Mohan Committee Report on Transport Development Policy Released

Increase Investment in Transport to 3.3 Percent of GDP
set up Metro-Politant Urban Transport Authority

The High Level National Transport
Development Policy Committee (NTDPC), chaired by Dr. Rakesh Mohan, former
Deputy Governor, RBI, emphasises the need for modernisation and expansion of
all segments of the transport system. 
The Report is to be presented to the Prime Minister Dr.Manmohan
Singh tomorrow.

The NTDPC was set up in 2010 to
assess the transport requirements of the economy for the next two decades in
the context of the changes in economic, demographic and technological trends expected
at local, national and global levels; and to recommend a comprehensive and
sustainable policy for meeting such requirements. 
The Committee comprised of
Secretaries of central ministries, private sector representatives, and eminent
persons/experts from the transport sector. The Committee held consultations
with State Governments in 2012-13 and also received technical assistance from
the Asian Development Bank and the World Bank in its work.  The Interim Report of the Committee was
earlier submitted to the Government in April, 2012.
Report sets the conditions for a coherent system based transport strategy for
the two decades beginning with the 12th Five Year Plan to the end of the 15th
Five Year Plan.  The Report represents
new thinking on how to look at different sectors in an integrated fashion and
suggests mechanisms and measures for carrying this approach forward in a manner
that reduces the resource costs involved.
To enable sustained high economic
growth over the next two decades, investment in transport would need to
increase from the current about 2.6 per cent of GDP to about 3.3 per cent in
the 12th Plan, and then stabilise at about 3.7 per cent of GDP until 2032.
Based on the macro modelling framework utilised, the projections envisage that
with appropriate economic pricing and adequate regulation, sustainability can
be achieved in the transport sector; and resources can be attracted from both
private and public sectors. Moreover, the resource projections suggest that the
country can become more ambitious in transport projects in the 13th Plan and
While the Report addresses sectoral issues in detail, it addresses a number of wider
issues that affect the transport system as a whole. Its focus is on
cross-cutting themes underlying transport strategy and the resulting investment
programmes. It is not so much about specific solutions, as it is about
developing human resource capacity, and developing responsive institutions for
achieving the overall strategy and outcomes envisaged.
One of the significant findings
of the Committee is that there is lack of expertise within the whole transport
system: from policy making to designing and execution. The Report thus focuses specific
attention on developing research and human resource capacity at all levels, and
developing responsive institutions for achieving the overall strategy and
outcomes envisaged. It also proposes reform measures in regulation,
rationalisation of fiscal regimes and embedding safety concerns in all
transport planning and execution.
Taking note of the weak
institutional framework for policy, planning and coordination in transport at
the central and state levels the Report argues for decentralised coordination
keeping in view the federal nature of the country. To this end, the Report
advocates re-aligning transport governance and proposes establishment of
Offices of Transport Strategy at the national and state level within the 12th
Plan period.  The Report also recommends
a unified Ministry of Transport at the centre, with similar merger of transport
functions at the state level. At the metropolitan city level it advocates the
formation of Metropolitan Urban Transport authorities. These institutions should
be embedded with adequate technocratic capacity in both quality and quantity.
In its vision for a modern
transport system for the country, the Report also takes cognizance of the
probable growth rate of energy usage in transportation and its impact on environment,
and has made several recommendations with regard to policy on emissions
standards, pollution control, use of information and communication technology,
and advocates a Life Cycle Analysis approach to transport planning. With regard
to transportation of energy commodities, which is a greater challenge to the
economy, the recommendations include concentration of investment in railways
and proactive action in port development, including coastal shipping.  The Report has devoted exclusive chapters for
Transport Development in the North East and another on Promoting International
Connectivity between India and the South and South East Asia regions.
While the main section of this
Report looks at these broader systemic issues and makes recommendations on how
to achieve these goals, the second section, looks at specific sectors, and what
needs to be done to take these to the next stage of development commensurate
with our aspirations as a nation.  These
and Road Transport
and Shipping
Urban Transport

The Executive Summary and the
full report of the High Level Committee on National Transport Development
Policy can be accessed on the official website of the Planning Commission http://planningcommission.nic.in/

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