PROPOSAL FOR SETTING UP NATIONAL ROAD SAFETY AND TRAFFIC MANAGEMENT BOARD IS IN FINAL STAGES OF APPROVAL
April 7, 2008
THIRU BAALU ADDRESSES CONSULTATIVE COMMITTEE MEETING
The Union Minister of Shipping, Road Transport and Highways Thiru T.R. Baalu has said that the proposal for setting up of the National Road Safety and Traffic Management Board, as recommended by the Committee on Road Safety and Traffic Management, is in the final stages of approval. Similar Boards would be set up in the States also. Thiru Baalu was addressing the Seventeenth Meeting of the Consultative Committee of Members of Parliament attached to his Ministry here today.
Thiru Baalu also informed the Members that the Department of Road Transport and Highways is also contemplating constitution of a Committee of Experts to suggest a comprehensive scheme to improve the public transport system. The proposed scheme would stipulate certain reform measures to be undertaken by the States to be eligible for seeking financial assistance from the Central Government.
The Minister further informed that a ‘Working Group’ has been constituted by the Government to determine the technology for Advanced Traffic Management System, Advanced Travel or Information System and Electronic Toll collection. He said that a System is proposed to be installed for automatic traffic counting and classification to have better assessment of traffic moving on National highways. He said that these steps are being taken as part of Government’s efforts to give more emphasis on the modernisation of the toll collection system for which introduction of Intelligent Transport System (ITS) is proposed to be gradually introduced.
Thiru Baalu said that a proposal has recently been approved for creation of State and National Registers of driving licenses and registration certificates envisaging inter-linking of all Regional Transport Offices. This would enable creation of authentic database for road transport sector, ensuring transparency in the process of registration of motor vehicles and issuance of driving licenses at a total cost of Rs. 148 crore. The project period is two years. It would check issuance of fake driving licenses / registration certificates and lead to better enforcement of the provisions of the Motor Vehicles Act / Rules, he added.
The Minister also informed that to formulate a scheme for trauma care facilities across the country in general and along the National Highways in particular, his Ministry has been working closely with the Ministry of Health & Family Welfare to work out a -2- combined plan of action. For this purpose, Thiru Baalu informed that the Ministry of Health and Family Welfare has introduced a scheme for setting up of an integrated network of Trauma Centres along the GQ, North-South and East-West Corridors of the National Highways by upgrading the trauma care facilities in 140 identified State Government Hospitals at a total cost of Rs.732.75 crore during the Eleventh Five Year Plan period. Our Ministry has to supply 140 ambulances and NHAI has to provide 50 Ambulances with advanced life support equipment to identified hospitals.
Giving an account of the progress made on the National Highway Development Programme (NHDP), Thiru Baalu observed that upto February 2008, out of the 5,846 kms under the Golden Quadrilateral (GQ) Project, 4/6 laning of about 5,650 kms has been completed and works are in progress in the remaining 196 kms length. Out of about 7,300 kms length under the North-South and East-West Corridors, 4/6 laning was completed in 1,962 kms and works were under implementation in about 4,359 kms. Under NHDP Phase-III, out of 12,109 kms length, 4-laning has been completed in 330 kms and works are in progress in about 1,745 kms and under NHDP Phase-V, out of 6,500 kms length, 6-laning was in progress in about 1,030 kms.
So far 86 projects valued at Rs.29,576.94 crore have been awarded on BOT (Toll) basis. Out of these, 34 projects have been completed and 52 projects are in progress. Also, so far 25 projects valued at Rs. 9,411.88 crore have been awarded on BOT (Annuity) basis; out of which, 8 projects have been completed and 17 projects are in progress, the Minister informed.
The Members of Parliament who participated in the meeting are: S/Shri M.R. Reddy, S. Ajaya Kumar, L.R. Patil, Hari Kewal Prasad, M.L. Mandal, Tiruchi Siva and Ms. Mabel Rebello.
Source: pib.nic.in
Mega six-lane projects in offing
March 10, 2008
With access-controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for more such expressways.
Construction companies eyeing the access controlled, six-lane expressway projects of National Highways Authority of India (NHAI) are likely to get investment opportunities for at least four such projects spread over 495 km over the next few months.They are Chandikhol-Jagatpur-Bhubaneswar (70 kilometre length, estimated cost Rs 761 crore), Delhi-Hapur (47 km, Rs 474 crore), the 198-km stretch of Vijayawada-Elluru-Rajamundri (Rs 1,602 crore) and the 180-km stretch on Delhi-Agra highway (Rs 1,918 crore). The feasibility reports for these projects are already completed and the work is likely to be awarded in about six months, said NHAI officials.Toll collection These projects are for widening the current four-lane highways into six lanes and operating them for certain durations.Companies would have to bid competitively for these projects on a revenue-sharing basis. Thus companies would have to bid on the extent of toll revenue that they are ready to share with the Government if they are allowed to operate the roads.Since these highways are already four-lane stretches, the road operators can start toll collection even during the project construction phase from an ‘appointed date’ (within six months of winning the project), mutually decided by NHAI and the road operator. The toll revenues will be routed to an escrow account.Recently, the NHAI awarded four such mega projects of 882 km length, which are likely to cost an estimated Rs 10,912 crore.From the NHAI perspective, these projects have emerged as money-spinners, with companies willing to foot the entire construction cost and part with two per cent to 48.06 per cent of their revenues in the initial leg of the project.At the end of the concession period, which is about 12 to 15 years duration, the winning firms have agreed to part with 12 per cent to 59 per cent share of toll revenues.More studies The feasibility reports for another ten projects of similar nature are under preparation. They are: Kishangarh-Udaipur stretch (315 km, Rs 2,205 crore), Udaipur-Ahmedabad (235 km, Rs 1,645 crore), Varanasi-Aurangabad (190 km, Rs 1,330 crore), Nellore-Chilkaluripet (184 km, Rs 1,288 crore), Krishnagiri-Walajapet (148 km, Rs 1,036 crore), Pune-Satara (145 km, Rs 1,015 crore), Ludhiana-Chandigarh (85 km, Rs 595 crore), Belgaum-Dharwad (80 km, Rs 560 crore), Samakhiali-Gandhidham (56 km, Rs 392 crore), Indore-Dewas (55 km, Rs 385 crore).With access controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for four such expressways between Delhi-Meerut, Chennai-Bangalore, Vadodara-Mumbai and Dhanbad-Kolkata. This was decided by the Road Ministry officials at a meeting with State Government authorities recently.Source: http://www.thehindubusinessline.com
From April, pay toll tax to use NH 25
February 24, 2008
Lucknow, February 24 Planning to take the Lucknow-Kanpur highway? Get ready to pay for a smooth driving experience. The National Highway Authority of India (NHAI) is all set to introduce toll tax for the 48-km Lucknow-Unnao stretch on NH 25 by April this year. It will set up a toll tax booth just before Nawabganj.
NHAI officials said the recommendation in this regard has already been sent to the Ministry of Road, Transport and Highways and a notification is expected within a month.
The toll tax may be charged at reduced rates initially, they added.
“A toll plaza is generally set up at an interval of 70-80 km on the highway. But a railway overbridge in Unnao on Lucknow-Kanpur stretch is yet to be completed. So, the toll may be reduced proportionately,” said M K Jain, Project Director of NHAI.
The proposed site (near Nawabganj) for the toll plaza suggests that commuters coming from Lucknow to Unnao and Kanpur will have to pay the tax.
“Similarly, the people coming from Kanpur to Lucknow will also have to pay the toll. But, people travelling from Lucknow to Banthara or from Kanpur to Unnao would be saved from the tax,” an official said.
The proposed toll site, however, may be changed after the ROB in Unnao is completed.
While cars, jeeps and vans will have to pay a tax of around Rs 25, trucks and buses will be charged around Rs 95.
“The toll tax is calculated for 12 am to 11.59 pm for one-side trip. If a commuter has to return on the same day, he will have to shell out about one-and-a-half times of the toll rate,” a NHAI official said.
“For daily commuters, the NHAI can issue monthly passes,” he added.
According to NHAI norms, VIPs, defence vehicles, police vehicles, fire-fighting vehicles, ambulances, funeral vans, posts and telegraphs department vehicles will not have pay toll tax.
This will be the second highway after NH 2 in the state on which toll tax will be introduced.
“According to government policy, NHAI will set up toll plaza as soon a particular highway stretch is completed. And these are going to stay, so that NHAI could carry out maintenance and upgradation works effectively,” another official said.
Source: expressindia.com
India’s Largest Toll Plaza - Delhi-Gurgaon
January 28, 2008
Kapsch Metro JV has commissioned the Delhi Gurgaon Expressway with 3 Toll Plazas with a total of 59 toll lanes. The largest toll plaza has a total of 32 + 4 reversible toll lanes.
The Project has a total of 24 ETC with some of them mixed type with cash and smart card facility ; the remaining being cash and smart Card type.
All lanes are equipped with Automatic vehicle classification systems . All the three plazas are interconnected through a WAN.

The First Kapsch Toll System In India Finalized: Toll System For One Of The Most Frequented Highways Is Up And Running.
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Since End of January 2008 runs the operation of the first road toll project of Kapsch TrafficCom AG in India with no problems. Within a joint venture structure - the Kapsch Metro Joint Venture - Kapsch TrafficCom alongside the Indian Metro Road Systems Ltd. fitted one section of the National Highway No. 8 with a modern manual/electronic toll system. This highway covers the route from Delhi to Gurgaon and is one of the most frequented roads in the region. The central toll plaza with altogether 32 toll lanes is one of the largest toll stations in all of Asia.
Since January 2008, the road from Delhi to Gurgaon features a modern manual/electronic toll system based on microwave technology (CEN 278). Completion of this toll system marks the successful finalization of the first road toll project of Kapsch TrafficCom in India. The principal, licensee DS Constructions Ltd., decided to award the contract to the Kapsch Metro Joint Venture in September 2006.
“For us, the selection of KapschMetro JV as a technology partner was an important step in the management of the traffic volumes on the project. The technology selected is stable, secure and has processed over 3 million transactions to date with no problems. The installation of the equipment was done in difficult circumstances with live traffic of over 130,000 per day travelling through the lanes during the installation period. The equipment implementation of the Delhi-Gurgaon toll project is a success story, Kapsch Metro JV delivered the project on schedule and to our complete satisfaction“, explains Allan Le Roux, Chief Operations Officer- Tolling of DS Constructions Ltd.
“Kapsch has already performed successful projects in India in the past, contracting GSM-R work for Indian Railroads, the Indian national railway system. With this commission, we were able to enter the Indian toll system market within an extremely short time, owing our success largely to our staff’s wealth of know-how and to the many years of experience we have in the Asian area. For me, the route that has now been completed is just the beginning of numerous further business ventures in Asia“, says Erwin Toplak, Board Member of Kapsch TrafficCom AG.
The Toll Road project is constructed on a 20 year BOT basis and has a length of 27 km long and rates among the most heavily trafficked projects in the region and provides important connectivity to the Indira Gandhi International Airport of New Delhi and the “New Millennium City” Gurgaon which boasts as having one of the worlds biggest shopping malls! The three toll plazas on the project have a total of 56 toll lanes. The main toll plaza located on the Delhi Haryana Border has 32 toll lanes. Motorists are able to use cash or use a Smart Card in at all lanes except the 4 dedicated non stop lanes with exclusive payment via microwave TAGs.
Kapsch TrafficCom AG is a global provider of innovative road traffic telematic systems, products, and services. Kapsch TrafficCom develops and supplies electronic toll collection systems, in particular multi-lane free-flow (MLFF) systems, and is also able to act as the technical and commercial manager for operating these systems. Further, Kapsch TrafficCom offers traffic management solutions (with the focus on road safety and traffic control), electronic access control systems, and parking space management. Kapsch TrafficCom has established itself among the global market leaders for ETC systems with more than 140 installed toll systems in 30 countries in Europe, Australia, Latin America, the Asian/Pacific Area, and South Africa, which altogether feature more than eleven million transponders and about 11′000 fitted lanes. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 18 countries.
Vienna on 27th March, 2008
For further information, please contact:
Brigitte Herdlicka
Public Relations & Sponsoring
Kapsch Group
Phone: +43 (0) 50 811 2705
1120 Vienna, Wagenseilgasse 1
E-Mail: brigitte.herdlicka@kapsch.net
www.kapschtraffic.com
www.kapsch.net
Toll policy change may rationalize annual hikes
December 4, 2007
Under the proposed policy, only 40% of the WPI will be taken into account while revising the rates
New Delhi: Even as tolled roads are becoming a norm in the country with the government handing over more highway projects to the private sector, a new tolling policy is seeking to limit the annual increase in toll rates.
As of now, toll rates are revised every year and concessionaires are compensated in full as per the increase in the wholesale price index (WPI). But under the new policy, which is yet to be placed before the cabinet for approval, only 40% of WPI will be taken into account while revising the toll rate. This is apart from a fixed component of a 3% increase every year.
As many as 54 highway construction packages of around 320 projects awarded under the National Highway Development Programme were “build operate and toll” projects. According to Planning Commission member Anwar-ul-Hoda, the idea behind changing the structure of toll revision was to ensure that the concessionaires are paid only their due share while fixing annual hikes on toll.
“The input costs of the concessionaire mostly occur many years before they begin to collect toll. So why should the toll revision be based on the wholesale price index of the current year?” asks ul-Hoda.
An official with the National Highways Authority of India (NHAI) also said that many components of WPI did not directly affect the highway construction industry.
The CEO of the roads division of the GMR Group, Rajan Krishnan, said his company was neutral to the proposal as WPI was difficult to predict. “Even the best economists cannot clearly track the movement of WPI. This is just a matter of mathematical modelling,” said Krishnan.
According to Krishnan, however, concessionaires stood to gain from the new policy so long as WPI was less than 5%. But when WPI moves beyond 5%, the toll rate to be charged under the new proposal would be lower than what is currently collected, he added.
Nirmaljit Singh, member, technical, NHAI, said the proposal was with the ministry of road transport and highways, from where it would be sent to the cabinet for clearance.
“I just think you are increasingly reaching a situation where the risk-reward equation is being changed against the government,” said an analyst with a consulting firm, who did not wish to be identified. “The government is taking more and more of the risk. You don’t need to guarantee a 3% increase every year when concessionaires had already accepted the earlier policy (where fee revisions were tied only to WPI),” the analyst said.
According to accepted wisdom, the government passes on fewer risks—such as those associated with traffic—to the concessionaire when evolving a public-private partnership policy and as the market evolves, passes on more of the risks. However, this administration is doing the opposite, the analyst said.
The analyst cited the example of the recent move away from “negative grants”, a term for upfront money paid to the government for the privilege of winning a concession, over and above the cost of the project. Mint had earlier reported plans to do away with negative grants in favour of a revenue-share model, where NHAI would derive a percentage of revenues from toll roads. “By going for revenue sharing, the government is taking more risks,” the analyst said.
Source: livemint.com
Evaluating toll road credits
November 1, 2006
It has been recently reported that the government of India has given its approval for six-laning of 6,500 km of national highways, including 5,700 km forming part of the Golden Quadrilateral at a total cost of Rs 41,210 crore. In terms of financing, the expectation is that private sector will commit investments of Rs 35,690 crore. Also the government, in order to accelerate implementation of highway projects of Rs 2,20,000 crore, has set a target of awarding 175 contracts for Rs 76,540 crore, all on BOT basis by March 2008. Since a number of these projects are going to be predominantly debt financed with repayments supported by toll collections, it would be timely and useful to have an analytical framework for assessing the credit quality of various types of toll roads and financing structures.
4-laning of Amritsar to Wagah road okayed
October 14, 2006
With elections to the Punjab Assembly due early next year, the Union Cabinet today cleared the long-pending demand of four-laning of the Amritsar-Wagah section of National Highway 1 on built-operate-transfer (BOT) basis at an estimated cost of Rs 207 crore.
Rethink Tolling
October 12, 2006
There’s better road-pricing technology, use it
Recent news reports about the government’s new tolling policy rationale are disturbing. Marginal cost pricing permits tolls only to reduce congestion, but in India, tolls are more a user charge than a traffic management tool. Even so, project viability should not be the primary basis for setting tolls. Sensible public policy on tolls should focus on fostering development, by promoting use of the road, tempered by cost recovery. A key benefit of roads is the large spillover from better connectivity. High user charges would dampen usage and reduce this benefit, and may be self-defeating, even for viability.
Toll to be Delinked from road length
October 12, 2006
NEW DELHI, OCT 12: The government has finalised the toll policy for national highways, with the toll to be based on the cost of construction of roads. The toll will neither be uniform nor be based on the road length as suggested earlier.
Cabinet to consider NHAI restructuring soon
September 13, 2006
NEW DELHI, SEPT 13: In a bid to bring in more private investment in the National Highways Development Project (NHDP), the National Highways Authority of India (NHAI) is seeking a complete overhaul of its administrative set up.
NHAI has already sent a corporate restructuring note to the committee on infrastructure stating that it wants greater decision-making autonomy, in order to expedite all highways projects.
