©Octor of in COMMERCE

U.P. AND ITS ROLE IN RURAL UPLIFTMENT

ABSTRACT

Thesis Submitteci for the award of the degree of ©octor of IN COMMERCE

(By ABDUL nmmAH

UNDER THE SUPERVISION OF / Prof. NAFEES BAIG M.Com., Ph.D., D.Litt. (Allg.), C.A.S.F (Manchester)

DEPARTMENT OF COMMERCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) 2002 CONCEPTUAL FRAMEWORK AND STATEMENT OF PROBLEM

The road transport is regarded as one of the most important infra-

structures for the over-all growth and development of our

economy.' This sector has great importance in affecting a socio- economic change in the country because roads are the veins o without which no development can take place. The same holds

good for the state of U.P. where road transport has assumed a pivot position in the overall economic development of U.P. That is why the Central Government passed the Road Transport

Corporation Act in 1950 to establish state road transport corporations in various states to provide cheap and adequate transport services in different states. It is with this significance that we have undertaken this work with the following objectives;

i) To find out as to how the road transport affects the

agricultural and industrial development of U.P.

ii) To ascertain as to what kinds of roads are necessary for

the rural development of U.P. and examine the socio-

economic needs of road development in the state.

iii) To provide some guidelines and suggestions for a well

developed road transport system. iv) 'I'o provide an insight into the working iiiul pci I'oi iii;i;)cc

of U.P.S.R.T.C, so that it may be compared with the

performances of some other States Road Transport

Corporations.

v) To suggest improvements and progress of the road

transport sector in U.P. so as to develop its economy on

a sound footing with particular reference to the growth of

U.P's rural sector.

HYPOTHESIS

Before starting the work on this project it was thought that the development of road transport with its supporting infrastructure is a must for any rural development programme of the country. The same holds good in the case of U.P. and its rural economy. It was also felt that the development and growth of a well planned network of roads is a pre-requisite for any development of road transport sector of U.P. In addition to this, it was felt that the infra-structure growth should also be made available for a balanced development of rural economy of the state.

To test the above hypothesis, the study is presented in

the following chapters:-

The first chapter has been devised to analyse the socio-economic significance of road transport in India. It examines the impact of road transport on agricultural and industrial development of the country.

The second chapter will include the general development of road transport in U.P. and the needs of development of roads and road transport in the state to meet the transport requirements. It will also highlight whether the pattern of road transport development is satisfactory or not.

The third chapter will analyse the working and management of U.P.S.R.T.C. It will also highlight the various problems and difficulties faced by the U.P.S.R.T.C. in its operations and working. The chapter will also include some measures to overcome or remove the difficulties and problems faced by the Corporation. The achievements of U.P.S.R.T.C. will be compared with the performance and working of other State's

Road Transport Corporations.

The fourth chapter which forms the core chapter of the thesis presents the role of road transport in rural upliftment of

U.P.

The fifth chapter will be the last chapter of this work providing conclusions and recommendations. It will contain the summary of earlier chapters and will also contain the findings and suggestions for future development.

Ill METHODOLOGY AND DATA-BASli:

The study on the 'Development of Road Transport in U.P. and its

role in rural uplifment' has been completed with the help of

existing published literature and statistical informations. Relevant

figures and necessary data have been collected from various

secondary sources and some time visiting the relevant offices and branches of the U.P. Government eliciting informations relevant to the work. We have also taken recourse to meeting officials of the U.P. Government and discussing with them the possibilities of developing our rural economy with the help of road transport development.

With the help of relevant and detailed informations and collected data, an attempt has been made to arrive at certain conclusions with regard to the efficiency of road transport system in U.P. The working and operations of U.P.S.R.T.C. have been compared with other S.R.T.Cs. to conclude whether the working and operations of this Corporation will help in the development of an infra-structure for future growth of U.P.'s rural economy. In order to know the role of road transport in rural upliftment of

U.P., various sections of rural economy such as agriculture, industries, service sectors, land, water and irrigation, employment, housing, education, banking institutions, rural infra-structure and

Vlll various developmental schemes have been thoroughly studied and examined.

The data and statistical informations collected for the purpose of study have helped in presenting an analytical study of road transport in India and U.P. These data and informations have been collected from various journals periodicals, publications of

U.P.S.R.T.C. and the Development Reports of the Government and

Semi Government Agencies, Statistical Abstracts and Economic

Surveys issued by the respective Departments of Central State and

District Level.

REVIEW OF LITERATURE:-

Road transport plays an important role in the development of an economy because socio-economic development of a nation largely depends upon the mode of transport. Roads are the mirrors of all development of a country. Road transport is considered as a wheel of a nation's economic development when the wheels of economic growth move, it leads the economy towards faster growth. The increase in the mobility of men and materials has expanded its socio-economic significance. Road transport becomes more important in the sense that it provides feeder services to other modes of transportation. On studying a number of books, articles and research-papers, it has been found that most of the books on the subject of road tianspoit have coveied and analysed the lole ol

transport as a basis of social, political and economic development

in our country

Jain, J K ' in his book entitled " Transpoit

Economics" has highlighted the condition of road transport before

independence He has analysed the socio-economic sugnificance

and problem of road transport He has also suggested some

measures to bring efficiency in road transport sector

Harrison, A J in his book " Economics of Tianspoit

Appraisal" has studied various techniques to measure the

performance of transportation system

Kulshreshta, D K ^ has analysed many managerial

problems of road transport undertakings in our country He has

also suggested some measures to reduce the cost of vehicle's

operations and improve the revenue system in our economy

Baig Nafees and Iqbal B A"* in their book on

"Transport as a Contramt for the Agro-Iindustrial Development of

UP" have described the progress of the industiial economy and

various transport constraints They have analysed that these

' Jam, J K " Tranport Economics" Chaitanya Publishing House, Allahabad (1985) ^ Horrison, A J " Economics of Transport Appraisal" Cromm Helm London (1974) ^ Kulshreshta, D K "Management of State Road Transport in India" Mittal Publications Dcliu (1980) '' Baig Naiees & Iqbal, B A " Transport As a Constraint For the Agro-Industnal De\ elopment of U P F/0 Commerce, AMU Aligarh (1990)

Vlll transport constraints are great impediment in the growth of rural industiies in the stale of U P

Bhatnagai, K P , Agarwal D N and Gupta, S C ^ have highlighted the significance of various modes of transport in India They have also discussed the rural and urban transport and developmental aspects of road transport in India

Bonavia, M R ^ has examined the role and significance of transport system He has discussed the utility of good transport system from industrial political, social and cultural angles

Sri Vastava, S K ^ has studied the historical development of various modes of transport in India He has analysed the effect of efficient and well co-ordinated development of transport system on India's economy

Khan Akbar Ah, M D ^ has studied the various problems faced by the state road transport Corporations He has analysed the different aspects and methods of financial management of the State Road Transport Corporations in India

^ Bhatnagar, K P , Agarwal, D N and Gupta, S C 'Transport in Modern India" Kishore Publishing House, Parade Kanpur (1974) ^Bonavia, MR The economics of Transport James Nisbct and Co ltd Digsuicil Place, Cambridge (1936) ' Snvastava S k " Economic of Transport' S Chand & Co Ltd , New Delhi, 110055 (1981) ** Khan Mbar All, M D ' Financial Management of S R T C In India' Anmol Publishers New Delhi (1990)

vii Shankar, V/^ has highlighted the potential of

employment in road transport industry. He has described that road

transport has the highest employment potential. He has assessed that a unit of employment offers employment for 19 persons in railways, 17 persons in small scale industries and 100 persons in road transport industry. Every new vehicle on road creates employment for 12 persons.

Mathew'° has discussed the role of rail and road transport in India. He emphasizes that the degree of economy and

efficiency in the transport industry as a whole is determined by

organizational consideration in the context of unit sizes.

Singh and Kadiyali" have examined the present troubled state of Indian road transport. They emphasized on the absence of modern highways, traffic congestion, road risks, pollution and other problems of road transport. They are of the opinion that congestion leads to haulage of goods, time consuming and expensive. They also make specific suggestions to meet the problems of road transport.

^ Shankar V " Road Transport Industries Problems" mobile wheel 18, spoke 8. April 1, 1980.

Mathew, M.O., " Rail and Road Transport in India" Scientific Book Agency, Calcutta -1 (1964) " Singh & Kadiyali, L.R...... " Crises inroad Transport" Kanark Publishers, P\'t. Ltd., Delhi-110055 (1981),

Vlll Naidu. B V N has studied the cconoiny of motoi transport. He has analysed the state transport system of

Travancore and llydeiabad, the united motoi seivice oi

Coimbatore and the working of the London Passenger Transport

Board.

Tuff, Charles A ''' in his book " Commercial Motor

Transportation" has highlighted the magnitude of motor transportation, property-carrying aspects of commercial motor transportation and passenger-carrying aspects of commercial motor transportation in U.S.A.

Farooque, Abul Khair Muhammad'"' has described the geographic and economic back-ground of Mughal roads and communication system. He has also discussed the techniques of roads construction in that period.

Rama Chandram'^ Agnihotri'^ Pathak'^ Sachdeva'^

Chottopadhyaya''^ and Mahajan^" have studied the role of load

Naidu, B VN , Road-Rail Transport" Thompson & Co , Ltd , Pnnters Madras (1941) Taff, Charles A, " Commercial Motor Transporation" Richard D Irwm, Inc Homevvood Illinois, USA (1955)

Farooque, Abul Khair Muhammad "Roads and communication in Mughal India" ldarah-1 Adabiyat-I Delhi, 2009 Qasimjan St Delhi (1977) Ramachandram, V V " Road Transport in India" The university Publishers Ltd , Luclcnow (1948) Agnihotri, Sashi Prakash "The role of Road Transport in our Developing Econoni}" unpublished PhD thesis, University ofRajasthan (1963) Pathak, Moreshaw Ganjanan 'Roads and Road Transportation in Marathawada, Doctoral Studies in Social Sciences, part -II pp 3 (1969) Sachdeva, Narinder nath "Motor Transport in M P Agra University, Agra (1962)

Vlll transport in India while Chand^' and Jayadeva^^ have studied the

role and problems of nationalized road transport uiulertakings.

Prasad C^^ in his research report on " Role of

Transport Reference to India" has studied the various problems

faced by transport agencies which are involved in the development

of transport. He has also made some suggestions to solve the

problems of transport agencies.

Sri Vastava^'^ in his report on "yearly work description

of U.P.S.R.T.C. During 1991-92" has provided important

informations about the organization of U.P.S.R.T.C., zonal board

of directors of transport corporations, operations of U.P.S.R.T.C.,

human resource development of U.P.S.R.T.C. and its workshop

organization. He has also suggested some points to make the

condition of its operation good.

Kulkarni, S.^^ has analysed the working of transport

sector in Maharashtra, He has also suggested some measures to

Chottopadhyaya, Saty Saran.... "Organization and operation of Calcutta State Transport Corporation", Calcutta, Social Science Vol-III (1958-66). Mahajan C.C "Traffic Forecasting For Transport Planning," Transport Bombay Aug (1972). Chand, B " Rate making in Nationalised Road Transport." The Indian Journal of commerce, June (1969), ^^ Das D., Jayadeva...." Administration of the Kerala S.R.T.C., Unpublished Ph.D. thesis, Kerala University,, Trivandum (1969). ^^ Prasad, C " Role of Transport in Economic Development with special Reference to India. Bihar University, Muzaffarpur (1975). '' Shri Vastava, A.N "Yearly Work Description of U.P.S.R.T.C." Lucknow (1991-92) ^^ Kulkarni, S "Working & Problems of Passenger Road Transport in Maharashtra" unpublished thesis of Ph.D (1978)

Vlll overcome the various problems of road transport which are faced

by the passengers in the state of Maharashtra.

Singh, Katar^^ and Maheshwari Shri Ram^^ have

discussed the different policies about rural development while

John M. Riley^^ in his research book has clearly done painstaking

work about rural development. He has provided several insights on

how to improve the conditions of the rural poor. Parikh, Kirit S.^^

and Kumar Singh, Ajit^° in their reports have presented the true

picture of the over all development of India and U.P. respectively.

The National council of Applied Economic Research

(NCAER)^' conducted a survey on "Some Aspects of Goods

Transport by Roads in Delhi Region" m 1958. This council

studied the problems of lorry transport industry in a region. The special feature of the study was the careful analysis of the organizational features and operational problems of the goods vehicles operating in Delhi.

Singh, Katar "Rural Development - Principles, Policies and Management" Institute of Rural Management, Anaiid (1999) Maheshwari, Shri Ram " Rural Development m India' Centre for pohtical and Administrate e Studies, New Delhi (1995) Pankh, Kirit S "India's Development Report' Oxford L'nn crsitv Press. YMCA librar> building, N Delhi (2002) Kumar Singh, A|it '"U P 'S Development Report" New Ro\al Book Company, Lucknow (2000)

Vlll The committee on Transport Policy and Co-

ordiantion^^ in its interim report in 1961 and final report in 1966,

has made brief references relating to the problems of goods

transport by roads. The committee has also analysed the important

points of nationalization of goods transport by roads in different

states.

The Road Transport Taxation enquiry committee'^"\ set

up by the Government of India under the chairmanship of Dr. B.V.

Keskar, has studied the problems of road transport and the tax

element in the cost of operation of road transport. This committee has submitted two interim reports-First report covering inter-state transport in 1966 and the second report on octroi and other check posts as desired by the central government in June 1967.

Baig Nafees^'^ in his article "Development of Rural transport and its impact on Agro-Industrial Growth in U.P." has highlighted various dimensions of the problems of rural transport and has examined the effectiveness of rural transport system for agro-industrial development of U.P. He has analysed that the development of road transport system has increased production and productivity through optimum utilization of resources and has

XI1 brought about non-economic (social, cultural, legal, ethical and

technical) changes in the rural framework.

Hanumantha Rao, Chaudhry'^ in his article "Re-

Defining the role of STUs to encourage Private Sector

participation in Passenger Road Transport" has analysed that the

state transport undertakings have large fleet and employ a large

number of workers to operate the business. He has studied that

STUs have played an important role in the country today. He has

suggested that STUs should focus their attention more exclusively

on customers, their needs, their satisfaction and related issues of

customer service. He has also conducted an experiment on 'De-

regulation and privatization of road passenger transport in U.K.

Roy, Dilip^*' in his article "Surface Transport - A

strategic need for a total change'' has highlighted the objectives,

physical parts and special characteristics of transport. He has

analysed the strengths and weaknesses of road and railway

transport. According to him, short distance road transport may be welcomed in near future, chargeable battery operated small capacity vehicles. But for a longer distance there is a need to introduce fast motor ways and exhaust free public carrying units.

Xlll He has also expected a conceptual change in the total transport

system for a long term solution to environmental constraints and

threats.

Tripathy, P.C.,^^ in his article "Interface Between

surface Transport and Economic Development" has studied that infra-structure development is a pre-condition of industrialization and it creates a base on which the super-structure of economic activities is built up. He has examined that in Orrisa, State Govt, has played an increasingly greater role in the development of infra-structure. As regards plans' efforts of Orrisa Government about 70% of its plan expenditure has been incurred on infra- structure development. According to him, the main techniques for road construction and maintenance are budgetary supports, development and maintenance of roads on tool basis, creation of an extra budgetary fund by levy of specific user tariffs and private participation. But the only alternative on the horizon is private sector participation.

Meera Mohiadeen, P.M.'^^ In her article "Privatization of Roadways:- Pathways to Development" has high lighted that

India has the third largest road network in the world. She has

Articles from 34 to 41 have been published in the book "Surface Transporl in India" edited by Agarvval. S. P. and Malhur J.S., Printwell Publishers Distributors, Jaipur (1999)

Vlll studied that roads connect 70% of the rural areas, which is

otherwise detached with urban India. She has also analysed that

Maxico, China and Malaysia have experimented the concept of

privatization by infusing private sector capital and expertise in the road construction. Hence, it is the need of the hour to look-into the privatization concept in greater detail and know the future challanges to the Indian roadways.

Gawhane, S.H.^^ in his article "Road Transport-Some

Policy Issues" has discussed the growth of motor vehicle, strength of bus system and mass transit system. He has also felt the need for developing management information system for private sector.

Selvam, :in his article "Urban Road Transport

Scenario in India" has examined that road transport has played a dominant role not only in the economic and political sphere but also in the social sphere. He has presented the current situation of urban road transport. According to him, the urban population of

India is increasing at a much faster rate when compared with the increase in the total population. Big cities are becoming bigger due to increasing migration from the rural areas. He has also suggested some important measures to revamp the ailing urban road passenger transport system.

Vlll Mathur, J.S/' "In his article "STUs - Performance

Appraisal "has highlighted that there are 70 state transport

undertakings working in our country under different forms of

management. Out of them, 21 are functioning under the corporate

form, 31 as government companies, 8 under departmental form and

the rest as municipal undertakings. He has also analysed the

financial performance, social burden to STUs, taxes paid by STUs

and volume of operation and load factor.

On the basis of above literature, it can be easily

summed up that though there are a lot of books, reports,

statements, case studies and articles on the sub-subject, yet they

can not be considered as sufficient material for purposeful

analysis. My work to present this study on the 'Development of

Road Transport in U.P. and its Role in Rural Upliftment" can be considered as an addtion to what is already available on the subject.

LIMITATIONS OF THE STUDY

The study is conducted under the following limitations:-

• The first limitation of the study is the time factor and

financial constraints.

Secondly, the study has been undertaken to assess the impact

of road development programmes on the growth of rural

Vlll areas in U.P. The relationship between the two has been taken without considering other factors which might have played a role.

The third important limitation is the non-availability of data, which go to prove and establish the relationship between road development and rural development.

Fourthly, the duration and the period of study is also a constraint because in a study of this nature, a longer period is required to have a proper study of the road development aspect.

xvii p. AND ITS ROLE

Thesis Submitted for the award of the degree of

IN COMMERCE

UNDER THE SUPERVISION OF

M.Com., Ph.D., D.Litt. (Alig.), C.A.S.F (Manchester)

DEPARTMENT OF COMWIERCE ALIGARH MUSLIM UNIVERSITY ALIGARH (INDIA) T6056 (Prof. 9(afees (Baig Department of Commerce M. Com., Ph.D., D.Litt. Aligarh Muslim University CASF (Manchester) Aligarh -202002 U.P. (INDIA) Tel. 0571-2400661

Certificate

This is to certify that the Thesis entitled "Development Of

Road Transport In U.P. And Its Role In Rural Upliftment" submitted hy Mr. Abdul Rahman has been completed under my supervision. This work, in my opinion, is suitable for submission for the award of Ph.D. Degree in Commerce.

((prof %afees (Bai^f^py!^^ Supervisor

Residence: Nafees Manzil, 814, S.S. Nagar, Aligarh - 202002 (U.P.) INDIA #(0571) 2401468 Jt aCN'OWL'E'Dg'E^H'Em'

I Sow in reverence to Jifmigfity JlCfafi whose gracious BCessings gave mc tfie

requirecf devotion for tfie compfetion oftfiis worl{^ ^

I tal{e this opportunity to ac^owCedge my deep sense of gratitude and indeStedness to my research supervisor and [earned (prof. 9fafees (Baig, TormerCy

(Dean lacuCty of Commerce, and'ExsCft-oirman, (Department of Commerce, Jl.M.'V.,

Jifigarh. has Seen the fountain head in giving me constant encouragement, s^f^ufguidance and fervent supervision, through aCC the phases of this study. I owe to him for his vaCuaSC^ advice, ^en interest, high perception, enthusiastic support andvafuaSCe suggestions. J{e infact, is the driving force Sehindthis study.

I am afso thanlfuf to (Prof. Mushtaq Jlhmed, (Dean T/o, Commerce and chairman

I am equafCy thanl^uf to my esteemed teachers in the depaitment for their constructive andtimefy suggestions. SpeciaCmention in this connection may Se made of (prof. Qammaruddin pian, (Dr Jl. Q. Xhan, (Dr M. Mohsin %han, and (Dr

ImamidJdaque.

I am afso extremefy oSfiged to aff my fiends/fefCowers and coffeagues for their moraf support and encouragement. My particufar thanl{s are due to Mr

M^aseem %han, 9dr Zia-u-Isfam, 9dr Safaraz Jisif (j^dvocate), !Mn 'Waseem

Siddiqui, Mr Jltiq-ur-(l(ahman^and Mohd. Jirshadfor their cherished Co-operative moraC.support andhefpfuf comments, through the study

I wouCdafso fi^ to express my thanl{s to Mr Jifiyfasan, Mr Jinees jAhmadand other staff memSeri of the Seminar LiSrary and (Depaitment of Commerce, J^.M. V.,

Jifigarhfor their fiefp and Co-operation. Iflis wor^is the resuCt of Eefp amf co-operation received from my reverend teachers at the primary and secondary feveC and I have no word to express mj gratefuCness to aCC of them. J{owever, I ey^ress my sincere thanf{s especiaffy to 'Kaji.

Mumiaz Jlhmed, Ijn-'Principaf of MM Inter CoCfege, 9iagina, Mr J^Shai %umar

Jain and Mr

((Bijnor).

I vuouCd never forgive mysef if I fad to express my ine^pficahCe gratitude to my uncCe y{aji. flzmat-ufCah and my Cousin Jiamna, KjiCsoom, Mohammad Vmar,

Qari Shauqat Jifi and Mohammad JAR who provided me financiaf and mo raf support during the peiiod of study. I am aCso thanhfuCto my younger 6ivther and sisters for their inspiration, affection and constant encouragement. It was their Cove and affection that prompted me to engage myseff steadiCy in the compfetion of this wor^

TinaCfy, My parents deserve credit for providing me sufficient time and moraC andfinanciaf support to compfete this wor^ inspite of their poor fnanctaf position.

•^Uikvrui'il

_^[igarh ^duC^hman

(Date: ^^ CONTENTS

Page No.

Certificate Acknowledgement Introduction i-xvn

Chapter-I Economics of Road Transport 1-30 Chapter-II Pattern of Development of Road 31-99 Transport in U.P. Chapter-Ill Working and Performance of 100-155 U.P.S.R.T.C. and Its Role in the Development of Rural Areas of U.P.

Chapter-IV Rural Development of U.P. and 156-231 Road Transport Chapter-V Conclusions and Suggestions 232-264 Bibliography mirotfllClW"' CONCEPTUAL FRAMEWORK AND STATEMENT OF PROBLEM

The road transport is regarded as one of the most iiiiportanl infrastructures for the over-all growth and development of our economy. This sector has great importance in affecting a socio- economic change in the country because roads are the veins without which no development can take place. The same holds good for the state of U.P. where road transport has assumed a pivot position in the overall economic development of U.P. That is why the Central Government passed the Road Transport

i) To find out as to how the road transport affects the

agricultural and industrial development of U.P.

ii) To ascertain as to what kinds of roads are necessary for

the rural development of U.P. and examine the socio-

economic needs of road development in the state.

iii) To provide some guidelines and suggestions for a well

developed road transport system. iv) To provide an insight into the working and performance

of U.P.S.R.T.C. so that it may be compared with the

performances of some other States Road Transport

Corporations.

v) To suggest improvements and progress of the road

transport sector in U.P. so as to develop its economy on

a sound footing with particular reference to the growth of

U.P's rural sector.

HYPOTHESIS

To test the above hypothesis, the study is presented in

the following chapters:-

Road Transport Corporations.

The fourth chapter which forms the core chapter of the thesis presents the role of road transport in rural upliftment of

U.P.

Ill METHODOLOGY AND DATA-BASE

The study on the 'Development of Road Transport in U.P. and its role in rural uplifment' has been completed with the help of existing published literature and statistical informations. Relevant figures and necessary data have been collected from various secondary sources and some time visiting the relevant offices and branches of the U.P. Government eliciting informations relevant to the work. We have also taken recourse to meeting officials of the U.P. Government and discussing with them the possibilities of developing our rural economy with the help of road transport development.

U.P., various sections of rural economy such as agriculture, industries, service sectors, land, water and irrigation, employment, housing, education, banking institutions, rural infra-structure and

Vlll various developmental schemes have been thoroughly studied and examined.

U.P.S.R.T.C. and the Development Reports of the Government and

Semi Government Agencies, Statistical Abstracts and Economic

Surveys issued by the respective Departments of Central State and

District Level.

REVIEW OF LITERATURE:-

Road transport plays an important role in the development of an economy because socio-economic development of a nation largely depends upon the mode of transport.'Roads are the mirrors of all development of a country, "^oad transport is considered as a wheel of a nation's economic development when the wheels of economic growth move, it leads the economy towards faster growth. The increase in the mobility of men and materials has expanded its socio-economic significance. Road transport becomes more important in the sense that it provides feeder services to other 6 modes of transportation. On studying a number of books, articles and research-papers, it has been found that most of the books on the subject of road transport have covered and analysed the role of transport as a basis of social, political and economic development in our country.

Jain, J.K.' in his book entitled " Transport

Economics" has highlighted the condition of road transport before independence. He has analysed the socio-economic sugnificance and problem of road transport. He has also suggested some measures to bring efficiency in road transport sector.

Harrison, A.J.^ in his book " Economics of Transport

Appraisal" has studied various techniques to measure the performance of transportation system.

Kulshreshta, D.K."^ has analysed many managerial problems of road transport undertakings in our country. He has also suggested some measures to reduce the cost of vehicle's operations and improve the revenue system in our economy.

Baig Nafees and Iqbal B.A"* in their book on

"Transport as a Contraint for the Agro-Iindustrial Development of

U.P." have described the progress of the industrial economy and various transport constraints. They have analysed that these

' Jain, J.K.... " Tranport Economics" Chaitanya Publishing House,Allahabad (1985) ^ Morrison, A.J " Economics of Transport Appraisal" Cromm Helm, London (1974). ^ Kulshreshta, D.K "Management of State Road Transport in India". Mittal Publications, Delhi (1980). '' Baig Nafees & Iqbal, B.A " Transport As a Constraint For the Agro-Industrial Development of U.P. F/0 Commerce, AMU Aligarh (1990).

Vlll transport constraints are great impediment in the growth of luial industiies in the state of U P

Bhatnagar, K P , Agaiwal D N and Gupta, S C ' have highlighted the significance of various modes of transport in India They have also discussed the rural and urban transport and developmental aspects of road transport in India

Bonavia, M R has examined the lole and significance of transport system He has discussed the utility of good transport system from industrial political, social and cultural angles

^ Bhatnagar, K P , Agarwal, D N and Gupta, S C "Transport m Modern India' Kishore Publishing House, Parade Kanpur (1974) ® Bonavia, MR "The economics of Transport" James Nisbet and Co ltd Digsulell Place,Cambndge (1936) 'SrivastavaSk " Economic of Transport" S Chand & Co Ltd New Delhi 110055 (1981) ** Khan Akbar Ah, M D ' Financial Management of S R T C In India" Anmol Publishers New Delhi (1990)

vii Shankar, V.'^ has highlighted the potential of employment in road transport industry. He has described thai lond transport has the highest employment potential He has assessed that a unit of employment offers employment for 19 persons in railways, 17 persons in small scale industries and 100 persons in road transport industry. Every new vehicle on road creates employment for 12 persons.

Mathew'° has discussed the role of rail and road transport in India. He emphasizes that the degree of economy and efficiency in the transport industry as a whole is determined by organizational consideration in the context of unit sizes

Singh and Kadiyali" have examined the present troubled state of Indian road transport. They emphasized on the absence of modern highways, traffic congestion, road risks, pollution and other problems of road transport They are of the opinion that congestion leads to haulage of goods, time consuming and expensive. They also make specific suggestions to meet the pioblems of road transport

' Shankar V . " Road Transport Industries Problems" mobile wheel 18, spoke 8, April 1, 1980

Mathew, MO, " Rail and Road Transport m India" Scientific Book Agency, Calcutta - I (1964) " Singh & Kadiyali, L R , " Crises mroad Transport" Kanark Publishers, Pvt Ltd , Delhi-II0055 (1981)

Vlll Naidu. B.V.N.has studied the economy of motor

transport. He has analysed the state transport system of

Travancore and Hyderabad, the united motoi service of

Coimbatore and the working of the London Passenger Transport

Board

Tuff, Chailcs A in his book " Comnicicial Moloi

Farooque, Abul Khair Muhammad'" has described the geographic and economic back-ground of Mughal roads and communication system. He has also discussed the techniques of roads construction in that period.

Rama Chandram'^ Agnihotrl'^ Pathak'^ Sachdeva'^

Chottopadhyaya''"' and Mahajan^" have studied the role of road

Naidu, B V N , Road-Rail Transport" Thompson & Co , Lid , Prinlcrs Madias (1941) " Taff, Charles A, " Commercial Motor Transporation" Richard D Irwin, Inc Homcvvood lUmois, USA (1955)

Farooque, Abul Khair Muhammad "'Roads and communication in Mughal India Idarah-1 Adabiyat-I Delhi, 2009 Qasimjan St Delhi (1977) Ramachandram, V V " Road Transport in India" The univeisity Publishers Ltd . Lucknow (1948) Agnihotri, Sashi Prakash "The role of Road Transport m our Developing Economy' unpublished PhD thesis, University ofRajasthan (1963) " Pathak, Moreshaw Ganjanan 'Roads and Road Transportation in Marathawada, Doctoral Studies m Social Sciences, part -II pp 3 (1969) Sachdeva, Narinder nath "Motor Transport in M P ", Agra University', Agra (1962)

Vlll transport in India while Chand^' and Jayadeva^^ have studied the role and problems of nationalized road transport undertakings

Prasad C in his research report on " Role of

Transport Reference to India" has studied the various problems faced by transport agencies which are involved in the development of transport He has also made some suggestions to solve the problems of transport agencies

Sri Vastava^'' in his report on "yearly work description of UP.SRT.C During 1991-92" has provided important informations about the organization of U.P.S.R.T.C., zonal board of directors of transport corporations, operations of U P S R T C , human resource development of U.P.S.R T.C and its workshop organization. He has also suggested some points to make the condition of its operation good.

Kulkarni, S ^^ has analysed the working of transport sector in Maharashtra, He has also suggested some measures to

Chottopadhyaya, Saty Saran "Organization and operation of Calcutta State Transport Corporation", Calcutta, Social Science Vol-III (1958-66) Mahajan C C "Traffic Forecasting For Transport Planning," Transport Bombay Aug (1972) Chand, B " Rate making in Nationalised Road Transport " The Indian Journal of commcrcc, June (1969) ^^ Das D Jayadeva " Administration of the Kerala S R T C , Unpublished Ph D thesis Kerdld University,, Tnvandum (1969) ^^ Prasad, C " Role of Transport in Economic Development with specifii Rcfcrcncc to Indui Bihar University, Muzaffarpur (1975) Shri Vastava," A N "Yearly Work Description of U P S R T C " Lucknow (1991 -92) " Kulkarni, S "Working & Problems of Passenger Road Transport in Maharashtra" unpublished thesis of PhD (1978) overcome the various problems of road transport which are faced by the passengers in the state of Maharashtra.

Singh, Katar^^' and Maheshwari Shri Ram^^ have discussed the different policies about rural development while

John M. Riley^^ in his research book has clearly done painstaking work about rural development He has provided several insights on how to improve the conditions of the rural poor Parikh, Kint S and Kumar Singh, Ajit''° in their reports have presented the true picture of the over all development of India and U.P respectively

The National council of Applied Economic Research

(NCAER)''' conducted a survey on "Some Aspects of Goods

Transport by Roads in Delhi Region" in 1958. This council studied the problems of lorry transport industry in a region The special feature of the study was the careful analysis of the organizational featuies and operational problems of the goods vehicles operating in Delhi.

Singh, Katar "Rural Development - Principles, Policies and Management" Institute of Rural Management, Anand (1999) Maheshwari, Shn Ram. .." Rural Development in India" Centre for political and Administrative Studies, New Delhi (1995) Parikh KiritS "India's Development Report" Oxford University Press, YMCA library building N Delhi (2002) Kumar Singh, Ajit "U P 'S Development Report" New Royal Book Company, Lucknow (2000)

Vlll The committee on Transport Policy and Co-

ordiantion" in its interim report in 1961 and final report in 1966,

has made brief references relating to the problems of goods

transport by roads. The committee has also analysed the important

points of nationalization of goods transport by roads in different

states.

The Road Transport Taxation enquiry committee^\ set

up by the Government of India under the chairmanship of Dr. B.V.

Keskar, has studied the problems of road transport and the tax

Baig Nafees^"* in his article "Development of Rural transport and its impact on Agro-Industrial Growth in U.P." has highlighted various dimensions of the problems of rural transport and has examined the effectiveness of rural transport system for agro-industrial development of U.P. He has analysed that the development of road transport system has increased production and productivity through optimum utilization of resources and has

Xll brought about iioii-ccoiioinic (socicil, cultural, legal, elliical and technical) changes in the rural framework.

Hanumantha Rao, Chaudhry"^^ in his article "Re-

Defining the role of STUs to encourage Private Sector participation in Passenger Road Transport" has analysed that the state transport undertakings have large fleet and employ a large number of workers to operate the business. He has studied that

STUs have played an important role in the country today. He has suggested that STUs should focus their attention more exclusively on customers, their needs, their satisfaction and related issues of customer service. He has also conducted an experiment on 'De- regulation and privatization of road passenger transport in U.K.

Roy, Dilip^^ in his article "Surface Transport - A strategic need for a total change" has highlighted the objectives, physical parts and special characteristics of transport. He has analysed the strengths and weaknesses of road and railway transport. According to him, short distance road transport may be welcomed in near future, chargeable battery operated small capacity vehicles. But for a longer distance there is a need to introduce fast motor ways and exhaust free public carrying units.

Xlll He has also expected a conceptual change in the total tianspoit

system for a long term solution to environmental constiaints and

threats

Tripathy, P C in his article "Interface Between

surface Transport and Economic Development" has studied that

infra-structure development is a pie-condition of industnalization

and it creates a base on which the super-structure of economic

activities is built up He has examined that in Orrisa, State Govt has played an increasingly greater role in the development of mfra-stiucture As regards plans' efforts of Ornsa Government about 70% of its plan expenditure has been incurred on infia- stiucture development According to him, the mam techniques for road construction and maintenance are budgetaiy supports, development and maintenance of roads on tool basis, creation of an extra budgetary fund by levy of specific user tariffs and private participation But the only alteinative on the horizon is piivate sector participation

Meera Mohiadeen, P M In her article "Privatization of Roadways - Pathways to Development" has high lighted that

India has the third largest road network in the world She has

Articles from 34 to 41 have been published in the book' Surface Transport in India" edited bv Agarwal, S P and Mathur J S , Prmtwell Publishers Distributors, Jaipur (1999)

xiv studied that roads connect 70% of the rural areas, which is

otherwise detached with urban India. She has also analysed that

Maxico, China and Malaysia have experimented the concept of

privatization by infusing private sector capital and expertise in the

road construction. Hence, it is the need of the hour to look-into

the privatization concept in greater detail and know the future

challanges to the Indian roadways.

Gawhane, S.H.^^ in his article "Road Transport-Some

Policy Issues" has discussed the growth of motor vehicle, strength

of bus system and mass transit system. He has also felt the need

for developing management information system for private sector.

Selvam, M"®. :in his article "Urban Road Transport

Scenario in India" has examined that road transport has played a

dominant role not only in the economic and political sphere but

also in the social sphere. He has presented the current situation of

urban road transport. According to him, the urban population of

India is increasing at a much faster rate when compared with the increase in the total population. Big cities are becoming bigger

due to increasing migration from the rural areas. He has also

suggested some important measures to revamp the ailing urban road passenger transport system.

Vlll Mathur, J.S." "In his article ''STUs - Pcirormancc

Appraisal "has highlighted that there are 70 state transport

undertakings working in our country under different forms of

management. Out of them, 21 are functioning under the corporate

form, 3 1 as government companies, 8 under departmental form and

the rest as municipal undertakings. He has also analysed the

financial performance, social burden to STUs, taxes paid by STUs

and volume of operation and load factor.

On the basis of above literature, it can be easily

summed up that though there are a lot of books, reports,

statements, case studies and articles on the sub-subject, yet they can not be considered as sufficient material for purposeful

analysis. My work to present this study on the 'Development of

Road Transport in U.P. and its Role in Rural Upliftment" can be considered as an addtion to what is already available on the subject.

LIMITATIONS OF THE STUDY

The study is conducted under the following limitations:-

• The first limitation of the study is the time factor and

financial constraints.

• Secondly, the study has been undertaken to assess the impact

of road development programmes on the growth of rural

xvi areas in U.P. Tlic relalionship bclwccii (lie two has been

taken without considering other factors which might have

played a role.

• The third important limitation is the non-availability of data,

which go to prove and establish the relationship between

road development and rural development.

• Fourthly, the duration and the period of study is also a

constraint because in a study of this nature, a longer period

is required to have a proper study of the road development

aspect.

xvii Chapter-l Economics of Road Transport CHAPTER - I

Economics of Road Transport

This chapter portrays the picture of socio-economic significance of road transport in India with special reference to agricultural and industrial development. It also examines the possibilities and prospects of road transport and its experiences in the political, cultural and social sphere.

Road transport is one of the most important transport sectoisof our economy.' It has played a significant role in the development of our economy^ It accounts for a major share of energy consumption in India, especially of petroleum products^

The demand of this sector is growing with the increase in population, rapid industrialization, urbanization and growth in u agriculture. It has been growing in importance with the increasing integration of our economic life^ It has been our chief means of communication since a long time.^ It has always constituted an integral feature of our economy.'^In olden times, when there was no railways or airway's facility, roadway was the only means of communication. Although, the roads were not so standardised as they are today, since human porters and animal carts were used as a means of road transport^ At that time, transport was very costly and time consuming but the development of steam power resulted IC in rapid economic growth in some of the countries of the world. In

India also, the opening of railways in late fifties of 19"' century, opened the possibilities of Ihe establisliineiit of large sc;ilc industries, so we had to depend upon railways as our chief means II of transport and it continued to hold its position of primacy. The advent of motor transport and its increasing use both for public and private purposes has been resulted in the gradual diversion of IZ a good part of the traffic from the railways. Now, the growth of motor transportation on roads is one of the most significant economic developments of century.'^ The industries are continuing at an accelerating pace as more and more shippers and passengers come to rely upon it for convenient and flexible transportation service. The modern means of transportation , the trucks, the buses and the motor cars have proved to be the form and these are most easily adaptable to multiplicity of needs of the people because this transport service reaches into every phase of our daily living.

It is clear that in every process of growth, whether it is considered with backwardJinkage or forward linkage or d^and linkage, road transport has always played a significant role. The experience reveals that no country can be developed in the absence of sufficient roads.''^Roads are the important means of progress which contribute a large share in the dcvelopnienl of the

economy'^Without roads, neither the econoniv can be integrated

not the desired level of development be attained,'"^

In order to analyze the impact of road transport on the

economy of a country, it is necessary to examine the economics of

road transport, because the development of road transport is the

most important factor which helps the economy to develop. No

industrial and agricultural development can take place without the

development of road transport in our country because most of the

population of our country live in villages and most of them are

engaged in agricultural activities. Industries also neither can get the various factors of production, nor can supply the manufactured no

goods to different areas without the help of road transport,

Mobility of various factors of production is best determined only by the cheap and efficient system of transport. ^

The economy of road transportation is not contained solely in rates and charges lower than those available in other modes of transportation^ The savings in money that come from better transit time, market areas are receiving increased recognition. Generally, lower labour and packaging costs and the economy possible in truck transportation in loading and unloading shipments are other factors which are receiving greater attention. The truck driver and the helper usually will load and unload truck load shipments, whereas on rail-carload movements, the expense of loading and unloading usually falls upon the shipper or the consignee.'

Road transport thus, has played an important role in developing the economy by providing feeder services to other modes of transport such as railways, airways and waterways because the services of railways or airway are not complete. It is the road transport which completes their services and acts as a feeder to collect the goods and services provided by these means of transport.

Thus in a developing economy development of road transport system is highly essential. It is because mobility of various factors of production is determined by the availability of efficient system of transport. The maintenance and further development of efficient transport system is, therefore, of utmost importance to a country aspiring for economic development. It is common knowledge that prior to economic development, road transport system should be developed adequately to cope with the increased traffic created in the various sectors of the economy. If

' Taff Charles, A... "Commercial Motor Transportation" Richard D. Irwin, Inc. Homewood, Illinois, U.S.A. (1955) p-10 the pre-requisit is not satisfied, it will affect economic

development of the country adversely because a slight

improvement in the economy will call for huge carrying capacity

on the part of transport sector to haul the traffic. For instance,

during the mid year of the first 5 year plan, an upward trend in the

economy caused an acute transport bottleneck, and thereby

disrupted the economy as a whole. The movement of coal which provided energy to various industries became difficult and consequently the production plans of various industries were hampered. Thus, a slight shortfall in transportation contributes an inhibiting factor to achieve the planned target of industries as well as agricultural production and inevitably reduces the rate of economic growth. Infactl, transport is one of the two great nation building instruments which are having maximum influence upon the rate of growth, the other being education. The whole economic activities are lubricated and the rate of development is being pushed ahead. To operate efficiently, factories need continous supplies of fuel, raw materials and spare parts. A market and an easy, quick and cheap accessibility to it are also necessary to sell what IS produced in the factory. In the absence of transport facilities, factories are compelled to maintain excessive inventories at high cost and also the operation of the production unit may have to be totally closed for want of supplies or a factory may be able to utilize only a part of the installed capacity because

of non-arrival of fuels, materials, or of other inputs, in time. If transport is inadequate, investment elsewhere suffer. Though none

of the large scale industrial units had to suspend production completely, continuous working was hampered. Transport by itself does not produce or create any new wealth so as to add to the volume of the national dividend, but at best, it serves as a catalytic agent in the process of production. It is contributory factor which increases the place value of the product and gives impetus to production both qualitatively and quantitatively.

The process through which transport acts as a contributory factor can be explained with the help of division of labour, industrial location and market contribution. Economic activities of any society can follow either the principle of self sufficiency or the division of labour. If a community believe in the principle of self-sufficiency, it will try to produce all the requirements of sustenance from its own resources. On the contrary, if the principle of division of labuor is followed, each community will specialize in the production of particular commodity or service and will rely on the facilities of exchange to enable it to obtain other goods and services which are not produced by that locality. Consequently a coinnuinily winch bases its economic acitivity on the principle of self-sufficiency will be bac]

In the present economic system, the first principle of a sound economy is to make the best use of the available resources.

' Naidu, B.V.N. "Road Rail Transport"" Annamala University (1941) p-305 ' Ibid, p-306 The geographical divison of labour means a system of production in which each area tends to specialize the production of one or a limited number of commodities in which it has greater advantage.

In such circumstances, transport system helps very much to exploit fully the advantage of a particular area at low cost. But if efficient transport system is not available, cost of transport is very high which offsets the advantage of each place, then both the places are compelled to produce even that article for which they are not suited. However, the availability of cheap and efficient transport system facilitates specialization in the production of only such goods for which it has the greatest advantage. When this type of division of labour takes place, at that time, a community can purchase goods from outside at a greater cost than it can produce at home. It is done in order to enable itself to devote its all productive resources in the production of such goods for which its advantages are maximum.

Now-a- days economic activity is highly specialized.

Every consumer goods which raises standard of living, constitutes the labour and skill of many different workers, each of whom is specialist in one aspect of production./Specialization increases the productivity in industries and agriculture both.^ Industrial / revolution in developed countries was made possible due to vertical specialization and the availability of cheap and efficient

tiansport system made it easy Industrialization lequiies vanous

things which aie being made available with the help of tianspoit

services even from remote areas For example, duiing the Bntish

period, raw mateiials were supplied from India, while production

process was being peifoimed in Bntain and again finished goods were transported to India for consumption This kind of specialization was mainly responsible for a phenomenal rise in the

standard of living of the people, inspite of the foui fold inciease in population of England within a countiy ending 19"^ Centiiiy

But industrialization can not pioceed unless it is suppoited by other sectors of the economy It requires vanous agiicultuial products to feed non-agricultural sectors at low prices Scarcity of agiicultural goods will cause inflation in the economy and theieby cost of production in the non-agricultural sector will show upward tiend As a result, the country will be enable to compete in foieigii markets and eventually financing of improved machineiy would become a difficult task It is quite true that until under developed countries succeed in achieving and sustaining a leliable food surplus, they can not fulfill the fundamental precondition for

A M , Milne, Economics of Inland Transportadon' Sir Issac Pitman and Sons London p-4 economic growth ' All those countnes that ate developed today,

had a food suipius eithei Ihiough domestic piodiictioii oi impoits

However, a developing counti> cannot lely upon the imports on

account of foieign exchange ciises Theiefoie, it is desiied to

specialize or commercialise agriculture, transport system will

have to be developed Infact, "It is true that the strength of an

army lies in its legs, it is more true that the stiength of our

agriculture lies in our roads"

It has been seen that inspite of all the efforts of the

agiicultural and co-operative movement, Indian agriculture has not

been developed due to lack of good roads Some of the best

agricultural districts as Bijnor and Muzaffar Nagai in U P are cut

- off from trunk - loads and lailways and inaccessible foi most of

the rainy season "More than 30% of the perishable produce of

India runs to waste on account of limitation of transportation ^

All this indicates the importance of a well integiated and cheap means of tiansport to increase the productivity in agriculture, earnings of pooi fanneis and widening the maiket foi their produce by providing cheap and efficient services The inauguration of a transport system in an area opens up news vistas

' Nichollas, W H ' Agricultural Policv" - the place of agriculture m economic de\ elopment Edited by Kenneth Berrill, Macmillan, Lodon 1964 pp 366-367 ^ Jam J K ,' Transport Economics" Chattanya Pubhshing House, Allahabad (1985) p-338 ^ Indian Express, N Delhi 13*^ March 1968 p

10 of economic activity, gives a kick to doimant potentials, inspiies hope and life among the people on that aiea Ruial loads aie as much as input in agriculture as are seeds or feitilizers because in

India, most of the people live in rural areas having their dependence mainly on agriculture

Road transport provides opportunities to othei sectois to develop The increased productivity in othei sectors, of economy is useless unless it is traded on a wide area In the absence of a wide market, a community can not specialize in ceitain pioducts Foi specialization means a suiplus of a paiticular produce, which must be traded in order to get other products foi use This means that efficient load transport system is must foi budging the time and space gap In an country in which market for a product is limited, specialized machines and skilled woikeis ate at discount because demand of then products will be limited

Obviously, a countiy will be facing difficulties if it is too small to provide a domestic market for new products of a volume compatible with efficient operation, before they are able to compete favourably in the world market For a developing country, the entry of new product in the foreign market is veiy difficult It is only in the case of highly market oriented industiies or those sheltered by distance or transpoit costs that the new enterprise in the developing countries are likely to find entry easy.

However, extension of market is highly essential in order to

encourage the development of new industries and to accomplish

this task, the availability of cheap and efficient means of transport

will be of great importance.

Beside extension of market, the location of industries

is also influenced by the means of transport. The suitable location

of industries is very significant from the point of view of reducing

the cost of production. However, the location of industries is

determined by the factors such as market, raw materials, power or

fuel, labour and transportation facility. Transportation charges

make a significant impact on the orientation of industry in relation

to markets and raw materials. But the importance of transport

charges varies in accordance with the nature of industries. If the ratio of transport cost in the total cost of production of a commodity is significantly high, transport charges will be the determining factor in the location of industry. If freight rates constitute a small part of the cost of production, it may exercise practically no influence in the selection of the location of industry.

A production location is chosen where the total costs of transportation are minimized. In such a calculation, the

12 movement costs are counted, of course, for both inflowing inputs

(raw materials and other inputs) and outflowing outputs. And chances of in-transit losses, as in perishables, can be used to assign further cost differences between the locational alternatives.

Simplified in these terms, the placement of a production site does not count the differences in input unit costs. Possible locations of a production process are not like, of course, in their relation to raw material sources. Some of them involve longer transport distances to a certain source or a low-cost source of materials than others do. These differences can be expressed in another way.

When a certain radial distance is fixed for each possible location, costs of available materials are not alike between the alternate processing sites.' Measured in both transport and input unit costs, a production location can be the least-cost source within some area limits. Beyond these boundaries other output locations are more economical source of the product.^

All commodities, nevertheless, fall into either supply oriented or market oriented or foot loose category in terms of location theory. Supply oriented commodities are those in which the industrial processes tend to be located near the source of raw

' Troxel Emery.... "Economics of Transport" Rineliart and Com; Inc., New York (1993) p. "01 ' Ibid, p 302 materials or fuel. These commodities are for the most part, weight losing or weight saving in the course of processing or manufacturing. These may be the products manufactured with large fuel consumption at a stage where the weight of the fuel is important in relation to the weight of the product. Also, these may be, particularly in agriculture, such commodities which requires preservation, grading or standardization. These industries will be located near the supply of raw materials or fuel in order to reduce the processing cost. The caning and freezing of vegetables and fishes, cane crushing and grading of fruits are some of the examples of supply oriented industries.

The products which are of perishable nature have to be produced near the market. Besides, a number of industries have no strong location pull either to supply or to market. The reason may be that costs of transfer are relatively insignificant. In such circumstances, industries are located at either of the end of the transportation chain i.e., either at the source of raw material or at the market place but not between the two. This is so because long haulage of goods are always relatively cheaper than the short haul.

When a location is at the source of raw material or is proportionately more in this direction than the market place, the choice is said to be a case of raw material orientation. And by

14 changing the transport price ratio between the raw material and the finished product, a transporter can facilitate the choice of a raw material source as a processing location. When a plant site is nearer the selling place or market area than the raw material

source, it is said to be market oriented and if the raw material/finished product ratio of transport prices decreases, the

chance of market-place choice increases for an efficient distribution of goods production.'

As our economy is agro-based, the raw materials to various industries are supplied by the road transport sector. Suger industry is an example of such type. It is almost located in the

Sugercane growing areas of U.P. This industry has deeply penetrated into rural areas from where rural materials are supplied. Similarly iron and steel industry in Bihar is located on those places where raw materials, iron ore and coal are easily available. Besides, our economy is largely governed by agriculture. Various industries come up in the villages to process the produce, for preservation of fruits and vegetables. The processing units are to be located near the source of supply.

Hence, the need of road transport is highly desirable in order to beef up the agricultural resources of the country. The road

op., cit, p, 302

15 transport system was a major source of transportation in ancient time. It will continue to influence the establishment of industries and economic activities in future also, due to its cheap and feeder services.

The price of a commodity is also influenced by the means of transport. When industrial goods are pioduced in a very large quantities, the surplus can not be sent to other consuming centers/places in the absence of transport facilities and this cause a great fall in its prices. If adequate means of transport are available, the surplus may be transported to deficit areas. It enables the local market to maintain steady prices and prevent the price spiral of the deficit area from shooting up. When prices are spiral of the deficit area from, shooting up. When prices are stable, producers are happy as they are certain of getting a reasonable price throughout the year. In this way, transport helps in establishing and maintaining inter-related prices of commodities for the benefit of consumers and producers. In addition, cheap and efficient means of transport also influence the price.

In the absence of a good road transport system, there has been a wide gap between urban and rural commodities. There are various commodities which are used in urban areas but can not reach to the rural masses due to lack of roads. An efficient road

16 transport system ciin play a significant role in (he field of

distribution and in raising the standard of living of rural people.

"The motor vehicle is best adapted to the rural areas which can

bear only a light rate. The motor vehicle can very well thrive on a

light traffic and it can, by adjusting its time table, get as heavy a

load factor as it could. The first thing that any transport

undertaking should do is to get all the traffic it can. It could be

enabled to maximize traffic by quoting low rates. Traffic has first

to be got and nursed, before it could be made permanent."' In the rural areas, passenger traffic is sparse, and to build either a railway or a frame way would be out of the question. A road motoi vehicle would answer the purpose best.^

Agricultural development in India has been affected on a great extent by road transport, because most of the Indian farmers live in villages. They neither can get seeds and better agricultural equipments in the absence of road transport, nor sell their agricultural produce in other markets because railways or airways' facilities are not available in rural areas of our country, so they have to depend on road transport.

' Naidu, B.V.N "Road and Rail Transport" Annamalai University, 1941. pp. 315-316 'lbid,p.316

17 Agriculture not only provides food such as wheat, rice, fruits etc. but also yields a large quantity of raw materials like

Cotton, Jute and Oilseeds for the principal manufacturing industries. Development of agriculture completely depends on a regular supply of modern machineries, agricultural implements, better variety of seeds, manure and fertilizer insecticides for destroying pests and for rapid movement of agricultural produce to other markets.

When there was no motor - transport, animal and bullock carts were used to transport the agricultural produce.

These transport services took a lot time in transportation but today, the use of motor-transport has removed this limitation.

However, in most of the villages, where there is a lack of good roads and no other means of transport is available except road, bullock carts are playing a great role in such areas. The road transport has also affected the agriculture directly by enlarging the areas under cultivation. There is a two fold correlation between road development and increased agricultural production.

Many lands below the margin of production would come within the range of commercial production, if better roads neutralize their locational disadvantage. The road transport services, act as feeders to the railways, giving the inhabitants of the villages the

18 benefits of railway travel and the railway the advantage of increased receipts.'

Road transport has also encouraged (he production of goods of perishable nature such as vegetable, fruits, dairy products, milk and eggs etc. These types of things are mainly produced in the villages or in rural areas. These things are supplied to each and every corner of the state /country with the help of adequate and cheap means of transport i.e.; road transport because roads are existed every where in our country, whether it is a Kutcha road or pucca road. For example, the most important crop of U.P. is Sugercane and it is mostly produced in rural areas.

No railways or airways' facilities are available to the farmers to send the sugercane to the mills. Only road transport is possible in these areas. The villagers mainly use bullock carts or tractors to send the sugarcane to the mill's centers* and from these centers, the trucks are used to carry the sugarcane to the mills.

In this way, motor transport has been proved very significant mode of transport. Many farmers in the villages start gurr industries and this gurr is supplied to the urban markets only by the means of road transport. Without roads, no village can be

'op, cit.p-316 ' Sugar mills normally establish some centers in rural areas to purchase the sugarcane. These centers are set up by the mills on the basis of number of villages (Normally 9 or 10 villages per center)

19 connected with another village/lown/cily and (hercforc, a great effect on the development of the economy. No otiier means of transport can provide so extensive network of communication as road transport in the rural areas. The development of agriculture, largely depends upon the sufficiency and condition of roads.

In addition to agriculture, road transport has also played a significant role in the sphere of industrial development.

Industries are the foundation stones of every economy. If a country has more and more industries, she will be considered as financially strong. But the industries can not progress without a sufficient system of road transport. If the road transport is not adequate to meet the traffic demand of the industries, the development of the country will be adversely affected, because railways and other services are not available to all industries. If they are available, they needs road transport for providing feeder services.

An industry needs various factors of production such as raw materials, labour, continous supply of fuel and spare parts, to regulate the production. If there is a short fall in any factor of production, production will stop and the economy will suffer. To regulate the production and distribute it, to various parts of the country, industries also need a cheap and efficient means of

20 transport. Road transport is most suitable for this purpose because

it is available at all times and at all places of the country, while

railways or airways don't have this advantage. Thousand of

workers or labourers come from their houses to the factories daily

and go back after working hours. Railway transport also plays an

important role but it is not so important as road transport, because

roads are every where, whether it is city/town village. Road transport is the most important contributory service in modern productive organizaion. Today, large scale production and exchange economy lead to a qualitative and quantitative increase in wealth and this is made possible only by the means of road transport.

If a country has good and efficient road transport system, she will be developed economically. Industries will get raw materials and other factors of production cheaply and quickly.

Roads are also helpful in decentralization of industries. Small scale industries will feel no difficulty in rural areas if the roads have a closed touch with them. In this way, the development of small scale industries is possible only under the good road transport system. "The establishment of industries in new areas is practically impossible without road transport to bring the workers to and from the factories. Sub-urban motor transport helps in the

21 decentralization of over - crowded cities by cariymg the woikeis

to and from the ad)oining areas Thus, road tianspoit enables

industry to take advantage of untapped sources of labour and generally contributes to the moblisaiton of all available resouices

The lole of motoi tianspoit in the context of a modein state and planned ccononiy is peihaps so self - evidcnl of sca/ccly lo icquiic to be mentioned "'

In the absence of road transpoit, we can not imagine about the developed economy It has been seen that the strikes called by the road transport owners against the increase in the prices of diesel and petrol by the government in 1999, has shown a great impact on the economy and society There was a nil or very little supply of goods and services by the industries or from one market to another Thousands of workers who were dependent on the means of road transport couldn't attend their duties Thus, the growth of agro-industnes in U P depends to a large extent on the availability of facilities to take the finished goods of these agio based industries to the markets and to get the supply of raw materials from the fields to the factoiies Not only this, the migration of workers from the remote villages to the point of transaction, the mobility of tiaining facilities in the act of

Gupta, S C "Transport in Modern India' Kishore Publishing House, Parade Kanpur (1974)p-432

22 manufacturing agro-industrial products and the transfer of

Icclinology from the iirbcin nreas lo Ihc rural folk also (Icpeiuls to a large extent on the availability of transport facilities. The lack or insufficiency of road transport, thus leads to a number of crunchs in the growth of agro-industries in the country.

In all developed countries, the development of transport has played an important role in their soico-economic advancement. The cases of the U.S.A. and Britain are indicative of this. The construction of railways reduced the cost of internal transport and brought new areas and new products into the stream of commerce. The railway boom also increased the demand for railway supplies and equipment which in turn, further stimulated the industrialisation process by supporting development in other sectors such as coal, iron, steel, etc. On the same lines, transport has played an important role in the development of British economy. The development of her supporting industry gave a great fillip to her economy by providing the services of carrying the products of her industries to the world markets, by giving access to new resources and technical progress in primary producing countries and by creating world demand for her new products.'

' W.W. Rostow.... "The Economics of Take off into Sustained Growth" Macmillan, London (1965) pp-77-80

23 While improvements in her internal transport unified the economy, renewed barriers to urbanization, directly stimulated the development of her heavy industries.' It is only the road transport that can be expected to go right into the very heart of the country and tap the resources that the villages so abundantly offer.

Extensive road communications make for flexibility of traffic.

There is no restrictions, as to the routes to be followed or the areas to be served. Once a vehicle is purchased, the owner can run

It, wherever he chooses, provided he gets a licence from the

Public Authorities. Obviously, the scope is greatest in the rural parts which are ill served by communications of any sort. Our villages have, still at present, to depend upon animal transport for their marketing. The bullock-cart is therefore, the best suited in the south of India and generally in the plains. This system of transport must continue to be the central feature of our transport system for a long time to come.

Besides, road transport sector also contributes to other sectors of the economy by transferring the resources for economic growth. The development of transport increases the productivity of other factors of production by performing the contributory

' Phyllis Deave and W.A. Coal, "British Economic Growth" 1688 - 1959; Trends and Structure Cambridge University Press. London (1962) pp-238-240

24 services. It contributes to the economy in direct and indirect way.

The nationalised mode of transport (Corporatioirs buses)

contributes to the national coffer by way of creation of surplus

funds and paying dividends. The road transport sector also pays various types of taxes to the government as excise duty, passenger

tax, good tax, motor vehicle tax, registration fee, road tax etc. The

revenue received from road transport sector is continuously

increasing. Table No. 1.1 shows the revenue received from the

transport sector.

Table No. 1.1 Revenue From Road Transport Year (A) State Revenue Motor Sales tax Taxes on Total Vehicle on motor Passengers taxes and spirit and and goods fees lubricant traffic 1990-91 1374.3 631.5 884.9 2890.7 1992-93 2162.9 1338.3 1262.6 4763,8 1993-94 1526.7 1558.6 908,0 3993.3 1994-95 1988.8 1474.5 961.4 4424,7 1995-96 2554.5 1743.3 1536.2 5834.0 1996-97 3355.3 2711.7 1226.3 7293.3 1997-98 4853.9 3502.4 2003.9 10360.2 98-99 (RE) 5343.5 4132.2 2090.5 1 1566.2 99-2000 6173.2 4945.1 2677.1 13795,4 (BE)

Source:- Statistical Abstract of India, C.S.O., Ministry of

Statistics and Programme Implementation, G.O.I., N. Delhi, 2001

p-213

25 Revenue Form Road Transport - Concluded (Year Ending March 2000.) (B) Central Revenue

Year Motor Vchicle.s Ty re.s rii>jli x|)cc(l Motor spirit Tol a 1 (; rand and acccs.sorics a n (1 Diesel oil fuel Total Tubes (A + B)

Import Excise I. E. I. E. I. E. - - Duty Duty duty duty duty duty duty duty

1990-91 351.8 1510,9 - 803.4 - 727.6 - 1202,3 45 96,0 7486,7

1992-93 300.1 1591.5 - 83 6,6 - 776.9 - 1287.2 4792,3 9556,1

1993-94 459.5 1423.1 - 1280,1 - 856.0 - 1385,5 5377,2 9370,0

1994-95 706.3 1846,9 - 1553.4 - 12880 - 1523,6 6918,2 1 1342,9

1995-96 112.9 2246.1 - 1594.0 - 1235.2 - 1631,5 8032,7 13866,7

1996-97 1463.1 3201,2 - 1754.8 - 2084.7 - 2116,8 10620,6 17913.9

1997-98 1175.3 3825,8 - 1442.9 - 2197,2 - 2942,0 11583,2 21943.4

98-99 1080.7 3965.6 - 1403,2 - 3293.1 - 4420.0 14184.6 25750,8 (RE)

99-2000 1483.9 4949,9 - 1514.7 - 8003,7 - 5000,0 20352.5 34747,9 (BE) S0uftc6":- Sta-ti^cal Abst 'act Of IHDIA . c S 0'. Gi 0- De

Road transport in indirect way, makes it possible to utilize land,

labour and capital effectively to produce more and thereby,

generates higher income. It also provides the way for agricultural

and industrial development to a country.

The importance of road transport is also felt in many

other areas. It plays a significant role by providing an essential

communication link. Mail and other means of communication can

not reach the villages and remote areas in the absence of road

transport. In India, most of the population live in the rural areas,

and it is only the road transport facility, which is possible in

26 almost all the areas. It pays the way for economic and social development.

Road transport also influences the living styles of the people. A very significant influence that is made by the road transport system on community is the integration of various cultures, customs and different ways of living. There are various goods and services which are produced at one place and consumed at other places mainly with the help of road transport. It has become an important medium of exchange in carrying the persons from one place to another and in sending goods and services from one place to another, where these are needed by the people. This system has raised the standard of living by distributing goods and offering services. "It further helps in the spread of education by bringing articles, reports, books, study materials within the reach of students and by ensuring quick distribution of mails. Road transport, especially bus transport, has virtually destroyed the feeling of isolation among the people living in distant areas. The development of bus transport also creates similarity in social customs, manners of living, broadens the outlook of the people from one caste to another and from one religion to another by

27 which It eradicates the spint of sectananism ' It also plays a

Significant lole by providing medical facilities to the sick and

injured persons It removes the barriers of distance For example,

India has started the road transport service from Delhi to Lahore

in Pakistan, which is very helpful foi pooi people of the socities

of both the countries Road transport also helps in providing social security to the people and maintains law and oider situation of the country by providing help in capturing gundas or terrorists

There are thousands of communities which aie heavily dependent upon truck service for their every day needs their biead, meat, milk, groceries, clothing, fuel, icecieam and movies

There is very little in their day to day living, which does not come to them at least part of the way by truck All communities laige oi small, depend in some manner upon motor truck transpoitation for the satisfaction of their wants In addition, there are 25000 in the

United States which depend completely upon tiuck seivice to supply them with their needs ^

Road transport is also of great importance to those people, who are not in a position to pay for railways or airways, because it is a cheaper means of transport Roads are used by a

' Agarwal, S P "Surface Transport in India" Pnntwell Publishers Distributors, Jaipur 1999 p- 39 ^ Taff, Charles A "Commercial Motor Transportation" Richard D Irwin , INC , Homewood Illinois 1955 p-6

28 variety of traffic as pedestrians, animals, bullock carts, horse and camel carts etc. The roads are also used by the motor-vehicles, while the railways or shipping can be used only for a specific purpose by a definite type of vehicle in a definite manner. So, the usefulness of road is unlimited because they have alternative uses and they are useful for men, animals and motor vehicles.

Now-a-days the transport by road has become an important means to remove sectional feelings of the people because the people who make journey are of different sections.

They exchange their views with each other and therefore, the feeling of sectionalism is reduced. "There is a direct and intimate link between the availability of transport facilities and the ability of human being to create good environment in any country. Tlie availability of adequate transport facilities has contributed to the development of a nation in all fields' Good road system can link the rural areas to urban areas so as to enable the villages' people to reside in country side and work in cities and visit towns to enjoy modern facilities or to develop such facilities in their villages. This will help both ways,-the cities will have less concentration of population and hence less problems of socio-

l-Mathur, J. S. "Surface Transport in India" Printwell Publishers Distributors, Jaipur (1999). p 39

29 economic nature and the villages will have better opportunities of development.

Conclusion:

In conclusion, it can be observed that the development of road transport in India is essential for the overall development of our economy. As a matter of fact, we should also develop our roads which is necessary for the growth of road sector of our transport system. In view of this, the next chapter will focus on the pattern of development of road transport in U.P.

30 CbapteMi Pattern of Development of Road Transport in U.P. CHAPTER - II

PATTERN OF DEVELOPMENT OF

ROAD TRANSPORT IN U.P.

In the first chapter we have discussed the socio-economic significance of road transport in India. The present chapter will focus its attention on the pattern of development of road transport I m India' and U.P. It will also examine the possibilities and prospects of the development of roads and their experiences in the development of road transport in the state of U.P.

The history of roads In India is very old. Before

Muslim period, the excavation of Mohanjedoro in Sindh and

Harappa in Punjab have revealed that in these cities which existed in 3500 and 2500 B.C., there were broad streets with proper drainage system.' The Aryans on the other hand, initially concentrated in villages situated near woods, where good pasture was available. Trading centres were few, which explain the absence of references to roads in the earliest religious literature of

India. "Kautilya's Arth Shastra' written near about 300 B C. records that in Mauryan age. Chariot roads, royal roads and the roads leading to country parts and pasture grounds were 24'*^ feet in width, roads leading to military stations, burial grounds and Gupta, S C , Transport !J) Modern India, KisJiore PubJishers House, Kanpur (1974) p-^51

31 villages were 7 '/2 feet wide and loads for minoi quadiupeds and men were 3 feet in width ' Megasthenes, as lefeiied to by Aiyan and Stiabo, describes at some Icngdi (he loyal load o( the

Mauryans which connected Patliputra with the noith-western frontier of the empire ^It had a chain of lest - houses and posts indicating distances and directions

The "Sukraniti" also gives a wealth of information on road engineering Under Chandia Gupta Mauiya, theie was a regular department of communications, which looked to the proper maintenance of loads The gieat Mauryan, Ashoka decieed the laying out of convenient roads well provided with avenues of tiees and rest houses where all facilities were available to the travellers Emperor Ashoka also recognized the importance of highways for building up the strength and prosperity of his kingdom He gave the country a good network of roads It would seem probable that knowledge of the Achaemenian Centuty

B C ) Empire in Iran, particularly about the road and communication system developed by Cyrus (558-530 B C ) and

Darius Hystaspes (522-486 B C ) - whose territories extended to

' Op-Cit-, p-351 ^ Strabo, -' Geography" (Tr H L Jones), Vol VII London, 1930 p-17 ' Smith, V , "Early Histor>' of India' 0 U P r" Ediciton, 1914 p-135 See also Forbes R J ' Ancient Roads" Amesterdam 1964, p-88 '' Naidu, B V N - 'Road - Rail Transport" Thompason and Co Printers, Annamalai Universitv Madras, (1941) pp 7-8

32 the Ravi and Indus, had some impact in India. It is unlikely that the road systems developed under these rulers were unknown to the Mauryas, who had established a large central monarcy'".'

Later the Mauryas' road system must have been renewed by

Guptas (220-495 A.D.) and Harsha (606-647 A.D.).

After the fall of the dynasty of Harsha, the country was ruled by provincial Rajpoot dynasties, who were interested only in administering their own separate kingdoms, a task that did not involve the maintenance of a country - wide network.

However, A1 - Biruni, explains that long roads were a pre- requisite for the conduct of region-wide trade in northern India.

Taking Kannauj (U.P.) as the starting point, A1 Biruni founds two roads running to the north and north west. One went to Kashmir through Shirsharaha and Dahmala (Capital of Jalandhar), terminating at Rajkeri. Another road went to Ghazni (Afghanistan) through Panipat, Jhelum and Kabul. A third road ran from

Kannauj Via Ahilwara (Patan) and Bazama (the old capital of

Gujarat) to Somnath from Bazama, yet another road went to

Multan where it joined one running southwards to Loharani (Near

Modern Karachi). A1 - Biruni also refers to roads in India's north

Rawlinson, H.G.'india'-A short Hislory.Cultural History, London 1965 pp-S6-S7

33 eastern and south - eastern regions.' During Muslim Period, the

Ghaznavids (986 - 1173) developed direct routes between Ghazni

and Punjab, the most important ran through the Kurram, Tochi and

Gomal passes. Their invading armies marched beyond the

Sulaiman range via Multan Uch and upper sindh. This route's

development enabled carvans and merchants from eastern Iran and

Ghazni to travel to Gujrat where commercial contact was

established with the merchants of Chaulukya kingdom. In the

thirteenth century, the sultans of Delhi faced both internal and

external threat - from the north west a serious challenge from the

mongols while internally the Rajput chiefs persistently resisted

their authority. To meet the mongols challenge, the sultan built a

series of well garrisoned forts and outposts along the route to the

north western frontiers. Internally, powerful Rajput chiefs were

crushed and peace restored on the highways New roads were linked with old to facilitate the transfer of revenue collections.

These new routes played a significant role in connecting the

Sultanate's garrison towns with open market towns in provinces such as Lahore, Delhi and Awadhi.

Because of the Sultan's success in maintaining a good

system of roads and communications (At least in the regions of

A1 - Brinu Biruni's India (Tr. and Ed. By Edward C. Sachau)Delhi, 1964 Chapter XVIII.

34 powerful rulers like Balban (1265-1287); Ala-uddin Khilji (1296-

1316), Muhammad Tughlaq (1325-1351) and Firoz Tughlaq (1351-

1388), trade and Commerce flourished. Muhammad Tughlaq built a trunk road from Delhi to Daultabad. Ibn Battuta throws much light on the trading activities of that time. During his travel in

India, he found large markets in almost all the cities, he visited and in Delhi, the largest of all. It appears from the account of these travelers that the main roads and routes were well defined and these adequately served the country's administrative, political and commercial needs.

The Afghans, who retained their commercial interests after the establishment of Delhi Sultanate, founded several towns in the Punjab and elsewhere. New routes were established to link these, while old ones were repaired. The road system was protected so as to encourage Afghan immigrants to travel to and settle in the towns.

The administrative measures of Babur (1525-30) were firm from the beginning. He was well aware of political importance of communication and had particularly to ensure the regular flow of re-inforcements from Kabul. Thus, soon after the conquest he measured his conquered territory from Kabul to

Agra.

35 Humayuii ( 1530 - 1540 and 1555-56) had iiisulTiciciK

opportunities to show this ability as an administrator. Sher Shah

(1540-1545), the founder of 'Surs' dynasty and uniquely for

-sighted ruler, reorganized the country's entire administrative

system.

He spent most of his life in Bihar and Bengal, so he

was aware of their problems. Remote from Delhi, Bengal was a

land of innumerable ravines, nullahs, rivers and bad roads. Travel

by boat during the monsoon, provided that there was no serious

flood, was comparatively easy and swift, but was difficult by road,

Sher shah constructed the Grand Trunk Road from Attock to

DelM. Later extending it to Sonargoan which become its eastern

terminus.'

After Shershah, Akbar (1556-1605) during his rule,

constructed new roads, bridges and military posts which gave the

army greater mobility, also stimulated the flow of trade.

Under Mughals, provincial governers and districts

officers were responsible for the safety and improvement of roads.

Jahangir (1605-1627) ordered Zamindars,^ to plant trees on the routes between Agra and Attock on the Indus and between Agra

' Qanungam Life and Time of Shershah, Bombay, 1965, pp- 315-316 ^ Zamindars - The persons responsible for the maintenance of law and order in Mughal territories and Bengal. Zamindars along the road between Agra and Lahore

were ordered to erect a milestone every KOS (2 miles) and dig a

well every three KOS In this way, milestones, wells, icscivoiis

and sara is were provided along the roads. While attendants were

employed to keep sarais clean and habitable

The safety of the road over the Khaybar Pass to

Qandhar was threatened by the activities of marauding Afghan tribesmen, so a strong force was stationed at all important junctions on the roads, while local tribal chiefs were required to police and maintain the road "The policy of making such men responsible for the maintenance, repair and safety of roads seems to have succeeded greatly easing the movement of carvans and trave Hers.' This and other measures improved the condition of the roads. Travel bec.9.me easier and safe and communications between different parts of the country became quicker and more efficient

The road network in eastern India presented different problems.^ Though Shershah had brought about the some improvements in the roads of Bihar and Bengal, the rivecs still offered an easier and cheaper way of carrying men and goods.

' This policy was formulated and implemented with \'igour by shershah. Shiqd.irs And other officials even at village level, were required to maintain the roads and care for the safety of tra\ elci s Am harm or loss to a traveller had to be compensated by them If they fail to produce the culpiit or replace lost property, they were severely punished This practice was followed by mughal emperors ( See Tareek- 1-Shers'hahi (pp 220-21) and Tareek-I-Daudi, Ahgarh, 1954) ^ Moreland, W H "Front Akbar to Auraangzeb" Delhi 1972, (pp 25-26)

37 However, from Agra to Patna via Banaras, the land route was

busy, Jahangir built a road linking these towns. Peter Munday,

who used it during the rainy season, encountered some

difficulties, but completed his journey. Aurangzeb also linked

Agra with their provincial capitals. The construction of bridges,

canals, sarais and postal chawkees indicate that the roads were not

only cleared but also extensively kept up. Under Firoz Tughlaq

alone, hundred of buildings for public use were constructed on the

main highways and roads. This, naturally, would not have been

possible without an effective road network.

During British period in India there was a well

planned system of roads and organization in control. But it took

some time even for the British to inaugurate their schemes of road

building. As Mac George say it is not easy to account for this

extreme backwardness even after the advent of British rule.

"Beyond 20 miles from Calcutta, the roads communicating with the principle stations of the upper provinces were in no better

state than in the time of Mughals.

During the British period, the maintenance and

construction of roads were under the supervision of military

engineers and a number of trunk roads were constructed

connecting important commercial and military centres. Change in

38 policy was inaugurated in the regimes of Lord William Bentink and Lord Dlahousie, when the military board was superseded by the public works department in 1855, because railway was introduced by Lord Dalhousie in 1853. Smiths says "A particularly inefficient body called the military board, which was supposed to look after public works was suppressed and the Public Works

Department (P.W.D) was constituted nearly in its existing form

The expenditure on public work was enormously increased and the works of great magnitude such as the grand trunk road were undertaken.'

Public works department was created because roads were necessary to develop the Railways. Roads were also necessary to carry the goods and services from the railway stations to their needed/respective places. In 1927, a Committee known as Jayakar Committee was also appointed by the British

Government. This committee was headed by M.R. Jaykar. The

Committee studied the financial and management aspects of road development and submitted its report to the Government in 1928.

In 1928, Royal Commission on agriculture in India was also set up to look after the condition of roads, because there was a worse condition of roads after first world war The commission reported

Bhatnagar, K P "Transport In Modern India" Kishorc Publishing House. Kanpur (1574) p-314

39 that "Transportation is an integral pari of marketing. And modern

commercial development tends anywhere to enhance the value and

importance of good road communication." The progressive

policies of Lord Rippon and Lord Mayo also gave an increase to

the development of road transport in India.

Nagpur Plan was started in 1943 by the Government as

20years Road Development Programme to join the villages/agricultural areas with the main roads. Its object was that in developed agricultural area, no village should be at a distance

of more than 5 miles from the main roads and in under developed agricultural area, the village's distance from the main road should not be 20 miles. This plan was of great importance but could not succeed because of the partition of the country in 1947,

The Central Government of India took over the financial responsibility to construct and maintain the roads. The

National Highway Act was passed to give effect to the recommendations of Nagpur plan by the Government of independent India.

After British period when India got freedom, the

Government of India considered that roads were the back -bone of the country. Without roads, no development is possible. So, it was decided to make 5 year planning system to develop the roads of

40 the country. In every 5 year plan, central Government provides

funds to the states to develop the roads in their respective regions.

On 1st April, 1951, first 5 year plan was started by the

central Government of India to develop the position of roads by

considering the needs and requirements of people of the country.

Sufficient attention was given to develop the road transport

system because no nation coul_d progress in the absence of road

transport.

In 1st 5 year plan Rs. 131.3 crores were allotted by the

Central Government of India for various programmes which were

helpful in the maintenance and construction of roads, but Rs. 155

crores were spent on the programmes for road development.

Roads in this plan were classified as National Highways, State

Highways, inter-state roads and village roads. Responsibility to

develop the national highways was fixed and taken over by the

Central Government. States were responsible to develop the roads except National Highways.

Second 5 year. Plan was started in 1956 with a view to develop the agriculture, trade and back -ward areas. Main attention was drawn on the needs of backward areas. Central

Government provided Rs. 246 Crores for road development. Rs. 25

41 Crores were also provided by the Central Road Fund. But only 224

Crores of rupees were spent on road development programmes.

During second 5 year plan, 40 new bridges were built,

1030 Kms of missing links were constructed and 7, 562 Kms of existing roads were repaired.

In third 5 year plan, special attention was drawn on the under - developed areas and hilly regions to develop the roads.

This plan also got success in its aim. It was started in 1961 and

Rs. 440 crores were spent on the maintenance and construction of roads during the plan. This plan might be called a success plan in its aim of road development in back-ward areas and hilly regions.

Third 3 year plan provided 66 major bridges 61 1 Kms

Of missing links and about 1,55,953 Kms. of constructed roads and 5,310 Kms of improved roads to the country.

Fourth 5 year pan was started mainly to develop the rural roads. Rural roads were considered the back-bone of the country, because most of the population of India live in village and their main occupation is agriculture. Agricultural development is possible only when the rural areas would have the roads and efficient means of transport. So, it is necessary to develop the rural roads for the development of agriculture and economy.

42 During lourlli plan, Ks. 4IX crorcs were piovided lor the development of National highways and Rs. 453 crores were distributed to various states and union territories for road development programmes. But only a total sum of Rs. 826.94 crores wc^;; spent on various road developmental programmes. In this plan, existing national highways were improved and many

State Highways were constructed, deficiencies in missing links and urbridged river crossing were also removed and various weak bridges were also reconstructed.

Fifth 5 year plan was started with a view to complete the fourth 5 year plan's work which was under progress. A sum of

Rs. 1397.44 crores was allotted by the Government of India for road development. In this plan, may bypasses were constructed and railway level crossing was replaced by over and under bridges and various missing links were also improved.

In sixth 5 year plan, main attention was given to meet the growing needs of road traffic and to develop the additional capacity of road for passengers and freight traffic purposes. Rs.

830 Crores were provided by the Central Government for the development of National Highways, 2700 Kms of roads were upgraded as National Highways. 196 Kms of missing links, 9 missing bridges and 52 bypasses were constructed and there was a

43 a double laning of 4224 Kms and widening of 4 lane of 130 Kins

of roads in Central Sector.

While in the state sectors, rural roads were considered necessary under Minimum Needs Programme. A sum of Rs.

1164.90 Crores was provided for the development of rural roads and Rs. 1444.06 crores for the development of other roads. In this plan, 18000 villages were connected with the roads.

Seventh 5 year plan provided on outlay of Rs. 5200 crores for the development of roads and road transport. The plan provided Rs. 1020 crores for Central Sector roads and Rs. 4180

Crores for the state sector roads including union territories. The plan had the following objectives to fulfill:-

(a) Removal of deficiencies in National Highway and State

Highways and upgrade them, instead of the continued

expansion of the road network.

(b) To make provision of roads under the minimum needs

programme under which about 24000 villages would be

connected by the roads,

generating employment.

(d) Conservation of energy; and

44 (e) ImpiovcineiU in Ihc road coiislriiclioii system lo bring

about better productivity in the road transport sector.

This plan gave more priority to the rehabilitation of present road system through various upgradation programmes.

This was resulted in greater productivity, faster travel and energy conservation. Missing links and bridges were also given high priority.

The seventh plan completed its term on march 3 1,

1990, Hence the eighthplan should have logically commenced from

April, I, 1990. However, due to political uncertainly at the Centre and sever economic crises in the country needing immediate attention, this schedule could not be kept and the eighthplan was delayed by two years. It could commence on April 1, 1992. the intervening two years between seventh and eightiiplans were years of plan holidays.

In eight 5 year plan, transport sector got only 12.9% of total resources. Considering the fact that transport bottlenecks has arrested development activity in the past, such a 'Constraint on growth was very much real also during the eighth plan.

45 TABLE NO. 2.1

PUBLIC SLCTOR OUTI.AY - 8"' PLAN

S.No, Head of Development Plan outlay % of total (Rs. In

crores at 1991-92

prices)

1. Agricultural and allied 22,467 5.2

activity

2. Rural development 34425 7.9

3, Special Area Programme 6750 1.6

4. Irrigation and flood 32,525 7.5

control

5. Energy 115561 26.6

6. Industry and Minerals 46922 10,8

7. Transport 55926 12.9

8. Communications 251 10 5.8

9. Science, technology and 9042 2.1

environment

10, Social services 79012 18.2

11 Others 6360 1.4

Total 4,34,100 100.00

Source: 5 year Plan, 1992-97 Vol. I, Table 3.18, pp-59-62

46 The eighth plan laid emphasis on a co-ordinated and

balanced development of road network in the country under - (i)

Primary road system covering state high ways (ii) Secondary

feeder road system covering state high ways, major district roads

and other district roads. Substantial outlays were proposed for

roads development in the rural and tribal areas. For the eighth

plan; an outlay of Rs. 2600 crores and 10610 crores was approved

for central sector roads and state sector roads respectively. During

the plan, Rs. 3200 crores was spent on central sector roads and

Rs. 12,622 crores was spent on state sector roads.'

In the eighth plan, industries no where figured in the priority list because the planners did not want to initiate the process of industrialization without making the necessary preparations. For that industries were accorded a high priority under the mahalanobis strategy of development and because the second plan adopted this strategy, allocation of resources to industrial sector was next only to transport and communication.

Transport and communication provided basic infra-structure for overall economic development and no progarmme of industrialization would have any chance of success if transport bottlenecks develop in the country. It is the reason why in the first

As per five year plan, Planning Commission, G.O.I, New Delhi, (1992-97).

47 four plans, this sector had received the highest allocation of resources. However, in S'*" plan (till 1995-96) the total road length

(compirising both unsurfaced and surfaced roads) had increased up to 33,19,600 Kms, while at the beginning of first 5 year plan,

India had, 1,57,000 Kms of surfaced roads and about 2,43,000

Kms of unsurfaced roads. The National Highways now encompass a road length of 34,500Kms and carry 40% of total road traffic.

The rural road network now connects 64% all weather roads. Since the inception of planning, the road network has expanded from 4 lakh Kms to 33.2 lakh Kms or an average by about 4.8% per year.

The development of mechanized transport has taken place at a rapid pace for instance, the number of vehicles registered in India has increased by seven times during the period

1981-97. in 1981, the total number of motor vehicles stood at

53.91 Lakh which shot up to 375.81 lakh in 1997.

The eighth 5year plan, completed its term on March

3 1,1997 and the ninth 5 year plan officially commenced on April

1, 1997. However, the ninth 5 year plan document was released by the Planning Commission only in March 1999. In this plan, priority was given to agricultural and rural development with a view generate adequate productive employment and eradication of poverty.

48 Table No. 2.2 PUBLIC SECTOR OUTLAY BY MAJOR HEADS OF DEVELOPMENT IN NINETH PLAN (1997-2000)

S.NO. Out lay (Rs. Crore ) Outlay Percentage to (Rs.Crore) total 1 Agriculture and allied 37,546 4.4 activities 2 Irrigation and flood control 55,598 6.5 3 Rural development 73, 439 8.5 4 Special area programme 3,649 0,4 5 Energy 215,545 25.1 6 Industry and minerals 69,972 8.1 7 Transport 121,324 14, 1 8 Communication 47,616 5.5 9 Service, technology and 25,529 3,0 environment 10 General Economic services 150,38 1.8 11 General services 11,940 1.4 12 Social services 1,82,005 21.2 Total 8,59,200 100.00 * Communication also include information technology

Source: Ninth 5 year plan, Vol., I, Annexure 3.2 p-178

It is clear from the table that 25.]% (1/4) of total public sector outlay has been earmarked for the energy sector.

Transport and communication is another sector which provide the necessary infra-structure for agricultural and industrial development.

As noted by plan, the country's transport system is facing the capacity saturation. The model mix of transport has been continuously shifting against the railways with the result that bulk of the freight (over 60%) and passenger traffic (over 80%) is

49 carried by road. The ninth plan points to the necessity of cxpaiuling and sli cnglhciiing Ihc load nclwoik lo iinpiovc accessibility of hinterland, especially the rural areas and to facilitate the integration of the isolated parts of the countiy, the focus of the road development programme in ninth plan would be on

(a) Strengthening and improving the crucial sections of the

highway network through phased removal of deficiencies

and multi-laning of high density corridors.

(b) Improving the road communication in remote areas such

as the north - east; and

and promoting energy conservation, safety and

environment protection.

Private sector participation will be encouraged in road development • BOT (Build-operate-Transfer) schemes will be launched Thus the ninth plan would be proved as a success plan if its objectives are attained adequately, this plan includes everything that is desirable for the economic development of a country. This plan allocated Rs. 7,929.04' Crores for the whole road sector programme.

As noted by 9"' Five Year Plan, Planning Commission. G 0 I, N Delhi (1997-2002)

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52 NO A typical approach, BOT was developed at the end of

1970's as a way for country with severe budgetary restrains to acquire needed infra-structure. At present there exists no Act in

India, which governs the process of BOT approach, hence, first and foremost requirement would be to set up such a legislation for project formats such as BOT. Some of the salient features of the provision of BOT law are as follows-.-

Area in which private participation would be allowed;

Terms and conditions and standardization of bidding documents and contracts; extent of ownership of projects; competitive bidding; format for operating the projects, technology transfer;

Grounds on which direct Government guarantees could be available; eligibility criteria defining the manner in which the bids could be evaluated and contracts awarded; ensuring a rate of return, arrangement for collecting tools, fees, rent etc; Grounds on which a project can be terminated by either of parties; and setting up of regulatory agencies.

The Kerala Government, represented by the Greater

Cochin Development Authority (GCDA) has signed a built operate transfer (BOT) agreement with Gammon India Ltd, for the construction of what will be the first bridge in the state under

BOT route (Mattancherry, Bridge). According to the BOT agreement. Gammon Indian will have a concession period of 13 years and 9 months, inclusive of the time taken for construction, from the GCDA to recoup the project cost of Rs. 29.14 crore, by tolling vehicles using the bridge after that time frame the bridge will be handed back to the

GCDA.'

In the road sector, the huge investments are needed for constructing new roads. Private entry into road maintenance, road construction and road transport operation is necessary to generate additional resources. The Union Government has already amended the National Highway Act, and declared the road sector as an industry. Private sectors have been invited to finance, construct, maintain and collect toll taxes on highways and bridges projects.

The Government identified 27 road projects and bypasses. These involve a large investment of Rs. 14,213 Crore.

In addition to private investment additional budgetary support is also being obtained through loan assistance from international agencies, A budgetary allocation of Rs. 200 crores^ has also been provided in 1996-97 in Union budget to strengthen its capital base. Tamil Nadu Government has earmarked Rs. 7500

' "The Economic Times", New Delhi, Friday, 29"' Oct, 1999 p-5 ^ The Economic Times New Delhi Friday, 29 Oct. 1999, p-5

54 Crores outlays for cievelopinciit of roads in its 9"' five year plan. It has also embarked on a major project for construction and reconstruction of 104 bridges.

Inaugurating logistics 99, the second International exhibition - cum-conference on logistic management organized by

CII, the state minister for electricity, Arcot N. Veerasamy, said that the task force of Cll has estimated an investment of Rs, 2150

Crore per year for road development. Since the government doesn't have the resources to make such a large investment, it has taken steps to utilizes the assistance from HUDCO and NABARD.

Of the 104 bridges, 50 are being built at a cost Rs.

99.5 crore with a NABARD funds and 54 with HUDCO for Rs.

260.71 crore. The state is encouraging privatisation of core projects to attract more foreign capital and raise efficiency levels.'

The National Highway Authority of India (NHAl) is going ahead with the Rs. 50,000 crore National Highways

Development Project (NHDP) involving four-lanmg of 1300 Kms of the highway connecting four metropolitan cities and traverses through almost all states.

^Z'... _ ' /If Ibid Economic Times, N. Delhi, 29"' Ocl, 1999 p-4 V'. .

- ' ^ •

55 The Mage project to be implemented completely in 10 years, is expected to be funded by a host of financing resources.

"The various means include enhanced budgetary support, sourcing from external funding agencics such as A DIB, OECT and world bank, borrowing from the market through special purpose vehicles

(SPVs) and private project financing through BOT schemes. "The budgetary support mostly cess on petrol diesel, is expected, to meet around 15 percent of the total project cost.

National Highway Authority of India has already set up two special purpose vehicles. These special purpose vehicles are expected to raise another Rs. 10,000 crore. It has already awarded work on 32 stretches including 19 on north-south and east-west corridors. This involved a total of 833 Kms. costing around Rs. 2,500 crores. NHAI has also finalized model concession agreement which has been developed under consultation with Ministry of Finance. The contentious issues such as concession fee which was the cause of high added cost of road development on BOT basis have been completely withdrawn from the model agreement"'.

Recently, in the tenth five year plan, (2002-2007) with its hands full with the National Highway Development Project

The Economic Times, New Delhi. Tuesday, 31" Aug., 1999 p.4

56 (NHDP), the Road Transport and Highways Ministry has declared

that it will not announce any new national highway project during the lO^*" plan, instead will place emphasis on developing the existing network.

According to the ministry estimates, the cost of improving the existing national highway network, at the current prices, will work out to be staggering Rs. 1,64,345 crore'. The ministry has decided that it will not divert the available resources by initiating new highways but will concentrate on completing the work already undertaken by it.

The outlay for the Central Sector roads for the 10^'' plan has been fixed at Rs.59, 490 crore while a total of Rs. 34,790 crore will be allotted as gross budgetary support, the remaining

Rs. 24700 crore has to come from internal and extra budgetary resources.^

According to the draft lO"' plan document cleared by the cabinet, the ministry will mobilize resources for its ambitious

National Highway Development Project and other projects through direct and indirect user charges to bridge the gap between requirement and funds availability.

' The Indian Express, New Delhi, Tuesday, Nov. 19, 2002 p. 12 - The Indian Express, N. Delhi, Tuesday, Nov, 19, 2002 p -12

57 Growth of National Highways in India and Central Government Expenditure Incurred thereon (As on 3f' March 1947-48-1996-97) Year Length of Expenditure on national (Rs. in National highways Lakh Total) and Development Maintenance Highways (Knis) 1947-48 19634 62 178 240 1960-61 23798 1001 548 1549 1970-71 23,838 2181 1535 3716 1980-81 31,671 10,013 3782 13795 2; 1988-89 32,964 31486 14635 46121 0 > 1990-91 33650 39007 16922 55929 1991-92 33666 46367 18137 64504 1992-93 33,916 45,774 16,867 62,641 1993-94 34249 48644 20709 69353 1994-95 34262 63030 24690 87720 1995-96 34508 60431 28444 88875 1996-97 34849 62386 37130 99516 1960-61 2343 100.17 48,74 148,91 1988-89 2754 3869,79 1456,63 5326,42 C y 1996-97 2883 7200 3377 10577

Source: Basic Road Statistics, Transport Research Division Ministry of surface transport G.O.I. New Delhi (1988-89) and

Statistical Abstract of India., C.S.O, Ministry of Statistics and programme Implementation, G O.I., New Delhi 2001.

58 Table No. 2.5 (ToUil Ix'iigtli ofNiiUoiial iligliWiiyN in India) (As on 31'* March 1951-1997) Length in Kms

Year 1951 1961 1971 1981 1988 1991 1995 " 199() 191)7

Total 1981 23,790 23,838 31671 32,446 33,650 34262 34508 34849

Surface 21046 23,276 31,520 32,232 33,399 34046 34291 34637

Un surfaced 2744 562 151 214 251 216 217 212

Contd. Total Length of State Highways in India (As on March 1971-1997)

Year 1971 1981 1988 1991 1995 1996 1997

Total (Kms) 56,765 94,359 1,27,311 1,27,311 134085 135187 137119

Surfaced (Kms) 51,744 90,250 1,12,969 1,24,847 1,31,506 1.32.862 1,34.802

Unsurfaced 50,21 41,109 3,020 2,464 2,579 2,325 2,317

(Kms)

Contd. (Total Length of other P.W.D. roads in India) (As on sr* March 1961-97)

Year 1961 1971 1981 1988 1991 1995 1996 1997

Total 257125 276833 421895 484052 509435 511046 716967 768257

Surfaced NA 198640 301230 376095 390931 414320 567397 608827

Unsurfaced - 78193 120665 107957 118504 96726 149570 159430

59 Contd. Total Length of Pachayat Raj Roads (As on 31'* March, 1961-97)

Year 1961 1971 1981 1988 1991 1995 1996 1997

Total 1,9,7194 3,57,498 6,34,545 8,64,414 931,288 10,63,790 10,21.807 1053.539

Surface NA 64,823 154044 250717 308,150 4,34,089 3,58,491 3.91,780

Contd. (Total Length of Urban Roads in India) (As on 3r' March, 1961-97) Kms

Year 1961 1971 1981 1988 1991 1995 1996 1997

Total 46361 72120 123120 143537 186799 204577 212920 232234

Surfaced 31,863 53359 85877 103209 136644 148672 156124 176321

Unsurfaced 14,498 18,761 37,243 40,328 50,155 55,905 56,796 55,913

Contd. Total Length of Project Roads in India (As on 31"' March 1971-97)

Year 1971 1981 1988 1991 1995 1996 1997

Total 130893 185511 207332 209737 225481 245673 239879

Surface 6106 20755 250407 30368 40393 45091 47714

Unsurfaced 124787 164756 181925 179369 185088 200582 192165

60 Contd. Total Roiui Length in India (As on 3r' March 1951-97)

Year 1951 1961 1971 1981 1988 1991 1995 1996 1997 Total 399942 524470 917947 1491101 1847770 2331086 3059317 3283072 3381887 Surfaced 156000 234000 397948 683676 900629 1091043 138024! 1477458 1577263 Unsurfaced 243942 290470 519999 807425 947141 1240043 1679076 1805614 1804624

Source Data Collected by • Basic Road Statistics Transport Research Division, Ministry of Surface Transport, G O I, N Delhi (1955, 1958, 1964, 1974-75 to 78-79 and 1988- 89) • Statistical Abstract of India, C S 0 , Ministry of Statistics Progarmme implementation, G 0 I, N Delhi (1999 and 2001)

The National Highway Development Project Compnses

the 5,846 Km. Golden quadrilateral (GQ) and the 7,300 Km

North-South and the East-West Corridors. The golden

quadrilateral connects, New Delhi. Mumbai, Chennai and Kolkata,

while the NS-EW corridors link Kashmir to Kanya Kumari and

Silchar to Porbandar.

The golden quadrilateral is scheduled for completion

by the end of the next year (2003) and the NS-EW corridors by

2007 and will involve an investment of Rs. 54000 crore. '

The ministry also proposes to associate the private

sector in the maintenance of roads. Private sector's reponse,

however, has been poor so far, particularly under the built operate

' Tlie Indian Express, N Delhi. Tuesday Nov, 19, 2002 p-12

61 and transfer mode. Uncertainly about revenue from toll collection

has discouraged investors from coming forward with BOT

proposals.

The plan document has advised closer examination of

the concern of private sector investors regarding uncertainly of

future toll receipts in order to make the BOT mechanism more

investor friendly, and accordingly to the document, sharing of downside risk of traffic flows is one possibility which can be explored during the plan.

The development of National Highways is the responsibility of the central Government. The length of national highways in 1997 was about 34.849 thousand Kms. Currently the

National Highway Authority of India has announced that it will be implementing a Rs. 50,000 crore' project to four - lane our national highway network. This is not enough given the fact that in few years, with quantitative restrictions on the import of second hand cars going, the automobile revolution will hit India hard.

More and more Indians will own quality vehicles and will require roads for these. In the rest of the world, where the density in lower than ours, they have six, eight and even ten laned roads. The width of roads is in proportion to the amount of traffic it carries.

' The Economic Times, New Delhi. Thursday. 2 Sept. (1999) p 10

62 There is no need to believe that four-laned roads, pan-India, will

suffice and there is another reason. The National Highways of

India are not really 'National Highways'^ they are rural roads for

some stretches and urban roads when they pass thorough a town.

Real highways don't have habitation built on them and they are

reserved for motorized vehicles of specified quality. These four

laned national highways of NHAI will be carrying farm vehicles in the slow lane with buses and trucks hogging the other. There will be no space for quality motorized traffic. India will still not have real highways.

It is therefore essential that there should be a separate programme for building expressways. They should be open to the private sectors and state-owned highway companies like the

National Highway Authority should be carporatised to enable them to complete on a equal footing. All tolls should be paid through shadow tolling, for which various road funds at all levels should be set up. Under socialism, roads were severely under - supplied public goods. In a market economy, rural and urban roads can be treated as public goods but express ways should be seen as private goods. Towards that end, this four - laning should be treated as the supply of rural and urban roads deserving better budgetary support from the state, what else are tax revenues for?

63 The road fund should be kept for express ways. Then after Sher-

Shah Suri, India will again have rulers who deliver roads.

A survey conducted by the Central Road Research

Insitiute (CRRI) has revealed that 98% of the national highways in

India werenon-motorable by world standard. In order to improve

the condition of National Highways, the Highway (Amendment) bill, 1992 makes provision for levy of fee on notified sections of the National Highways to augment resources through mobilization of extra - budgetary support.

Besides, India is having less availability of roads in comparison with other countries which reveals that in terms of area, availability of roads in India is better than many other countries like Algeria, Kenya, Moracco, Brazil, Venezula and

Australia but in relation to population, India is at the lowest end.

India is not only inadequate in route - length but also deficient in width, crust thickness and quality of roads,'

The lack and unimproved condition of roads becomes the main cause of accidents. The total estimated economic loss including damage to property due to road accidents is estimated at

Rs. 6000^ crore per year.

' Report of Naitonal Transport Policy Committee 1980, p-167 ^ Aggarwal S.P. - 'Surface Transport in India' Printwell Publishers Distributed, Jaipur (1999) p - 38

64 In India, total vehicle population is 1% where as road accidents were 6% of the total accidents in the world, causing deaths of about 62000 persons every year and lakhs of injured persons are suffering due to disability, trauma, polytraum and many other diseases.'

In India, several Government agencies- judiciary, police, road authorities, motor vehicles department STRUs, hospitals and social departments are involved in road safety. So, there is a need to establish National Institute of Road Safety in our country with the objective to carry out research on the road safety, to conduct training to various agencies and departments, to develop an accident data network through computers througbutthe country, to make research in designing the vehicles and road geometries for minimizing accidents and improving road safety-

Table No, 2.6 shows the intensity of road traffic in India,

Ibid., p-37

65 Table No. 2.6 Intensity of Road Traffic

Year No of Road Human No of No of vehicles length in Population Vehicles vehicles in lakhs Lakh in Crores /lOO of per lakh Kms roads people 1951 3 06 3 99 36 77 85

1961 6 65 5 25 44 127 151

1971 18 65 9 18 55 203 340

1981 53 91 14 89 68 362 789

1991 213 74 21 40 85 891 2,526

1993 235 07 21 65 86 1086 2,734

1995-96 252 99 22 00 87 1150 2,897

Source -

• Economic Times, India File 1995, p-58 • India - 1997, Ministiy of Information and Broadcasting, G O I , N Delhi

It IS clear from the table No 2 6 that the road length in

India in comparison of incieasing population is veiy low

Population of India is increasing at a higher rate, while the

development of roads can not be taken place in sufficient quantity

There is a lack of roads m India, which is the most impoitant

constraint in the developing economy So there is a uigent need

for road development in our country Investment on roads is also

66 much less as to compare the number of vehicles. The number of

mechanized vehicles have been increased from 3.06 lakh in 1951

to 213.10 lakh in 1990-91 and 335.57526 lakh in 1995-96, But the

investment on roads is declining. Expenditure on roads during

first 5 year plan was 6.8% of total plan expenditure which

declined to 2.9% during the Vll"' plan period. Similarly, the

expenditure on road transport has also declined from 7.5% in first

5 year plan to 1.1% in VIl^'' 5 year plan. This shows a very gloomy

picture and calls for an urgent need to improve the situation by

accelerating investment in roads and road transport. Table no. 2.7

shows the public sector plan investment on roads.

Table No. 2.7

Public Sector Plan Investment on Roads

Plan Period Investment Percentage (Rs. In Crores) Share 1st five year plan 1951-56 145 6.9

11"'' five year plan 1956-61 224 4.8

Iir'' five year plan 1961 - 66 440 5.3

Annual Plans 1966-69 309 4.7

IV five year plan 1969-74 862 5.5

V five year plan 1974-79 1701 4.3

VI five year plan 1980-85 3806 3.5

VII five year plan 1985-90 6334 3.5

67 Contd.

Annuals Plans 1990-92 3778 2.8

Vlll five year plan 1992-97 13210 3.0

IX five year plan 1997-2002 7929,04 -

Source:- Centre for Monitoring Indian Economy

Table No. 2.7 shows that public sector investment on roads is decreasing, while the population and the no. of vehicles are continuously increasing. Therefore, it is necessary to improve the road length to handle the problems of passengers' traffic and freight traffic and to provide the safety and security to the passengers. The following table gives the demand profile for road development

Table No. 2.8 Demand Profile for Road Development

Length Funds Required (Kms.) Purpose $ Billion Rupees in Crores Increasing network 32,000 10.7 38,520 Two laning , 5,500 1.85 6,660 Four - laning. 14,000 18.20 65,520 Strengthening, 17, 500 4.70 16,920 Bypass (Nos) 44 0.44 1584 Bridges (Nos) 470 1.97 7092

Total - 37.86 136296

Source: - CMIE

68 Table No. 2.8 shows that for increasing the network of

32000 Kins, a huge amount of 38, 520 crore would be required and

four-laning of road will require Rs. 65,520 Crores. Total amount required for the development of roads and for the construction of bypasses and bridges will be almost Rs. 1,36,296 Crores.

Table No. 2.9 Finding Sources (Rs. In Crores)

Sources 1996-2001 2001-2006 (A) Super National and National @ Government 11,000 18,500 budget B Private sector 10,000 23,000 C Multi- 4,000 11,000 lateral/bilateral loans (Extra - budgetary) D Tools and 2000 4,500 Commercial loans Total 27,000 61,0000 (B) State Highways @ Government 7000 10,000 budget B Multi- 3000 4,000 lateral/bilateral loans (Extra budgetary ) C Private Sector 3000 3000 Total 13000 7000 Source : Surface Transport in India Printwell Publishers Distributors, Jaipur.

Above table shows that the funding sources of

National Highways for the year 1996-2001 will be Rs. 27000

69 croies and foi the yeai 2001-2006, they will be Rs 61,000 cioies

while the funding souices foi state highways will be Rs 13000

Crores in 1996-2001 and Rs 17000 Croies foi the yeai 2001-2006

Road transport as the most important and chief means

of transport provides its services to the passengeis by carrying

them from one place to another It also supplies the goods and

services from the areas where these are produced to the areas of consumption It also acts as a feeder service to all othei modes of transport

Because of its importance, a gradual transformation for rail dominated transport to road-dominated transport has been witnessed in the last few decades As on 31" March, 1992, the total road length was more than 30 times the railway route-length

The share of railways has decreased from about 36% of the total passenger kilometers (PKM) in 1980-81 to about 16% in 1993-94

During the same period, the share of railways foi fieight transpoit

(Tonne Kilometers or TKM) declined from 62% to 42% Domestic air transport had a very little share of about 0 2% in the case of passengers transport and about 0 1% in the case of freight transport in 1993-94

70 Table No. - 3.1 Trend in Modal Split (%)

Passenger Rail Road Air (Domestic) traffic 1993-94 16.4 83.4 0.2

1980-81 36.4 61.5 2.1

Freight Traffic

1993-94 42,3 57.6 0.1

1980-81 61.8 38.1 0.1

Source : India 1997, Ministry of Information and

Broadcasting, GOI, N. Delhi

Due to this rapid growth during the last few decades, road transport has rapidly gained importance in the overall transport system of our country. The total number of all types of mechanized motor vehicles increased from 3 lakh in 1950-51 1o

192 lakh in 1989-90 and 333.57 lakh in 1995-96. Table no. 3.2 shows the latest position of registered motor vehicles on roads.

71 Tabic No. 3.2 Registered Motor Vehicles in India

Year Two Car/Jeeps Goods Ruses All wheelers and Taxis Vehicles Vehicles Trucks 99,6/Pvt, 1950-51 27000 159000 82,000 34000 306000

1955-56 41000 203000 119000 47000 426000

1960-61 88,000 310000 168000 57000 665000

1965-66 2,26,000 456000 259000 73,000 1099000

1970-71 5,76,000 682000 343000 94000 1865000

1980-81 25,99,000 1 147000 542000 159000 53,36,000

1985-86 620,7000 1758000 848000 223000 10490,000

1990-91 14047000 3013000 1411000 333000 21310,000

1991-92 15026000 3130000 1425000 341000 22583000

1992-93 15241000 3194000 1538000 354000 23027000

1993-94 18338000 3617000 1650,000 419000 23605000

1994-95 20831428 3840549 1793574 423383 30294656

1995-96 23111385 4189,367 1784787 448970 33557520

1996-97 25693206 46,61,924 2260052 488169 37447526

1997-98 28341732 50,55632 2529548 534765 40939035

Source;- Basic Statistics and Motor Transport Statistic Government of India, New Delhi (1998).

Above table shows a great increase in the number of motor vehicles. The growth rate is the highest for two wheelers

72 and then for Cars, Jeeps and Taxis The No of tuicks was decreased fiom 1793574 in 1994-95 to 1784,787 in 1995-96 But the number of trucks on roads was increased up to 2600,000 in the year 2000* Buses are also shows a good performance

Table No. 3.3 Salient Features of the Performance of Indian Road Transport

Details 1993-94 1980-81 Change% 1970-80 P A in 1980-94 Passenger Transport 1500 353 11 77 7 43 PKM (billion)

No of vehicles (000) 27,227 5,336 13 36 10 35

No of two wheelers (000') 18338 2599 16 22 16 22

No of cars, jeeps and taxis 3 617 1147 9 24 5 01

(000)

Share of two wheelers (%) 67 35 48 71

Share of public buses in 29 91 44 03 (1991- total no of buses (%) 92) Freight Transport TKM 350 98 10 29 3 08

(billion)

No of trucks (000') 1650 542 8 94 3 76

Energy Consumption 1076866 442590 7 69

(TJ)

Source: Data compiled by various sources such as Annual Report of Ministry of Surface Transport, Economic Survey of India, Motor Transport Statistics and Statistical Abstract of India

The Economic Times, New Delhi 25 Feb, 2000 p-I

73 Table no. 3.3 shows that traffic handled by road in

1993-94 was about 350 billion TKM. The growth rale has increased by more than 3 times in the eighties as compared to seventies. Such a tremendous growth can be correlated to the growth in the number of trucks whose growth rate during the

1998-2000 was more than three-fold as compared to the growth rate in the seventies. The energy consumption per T.K.M. affected by trucks has been nearly five time more than the corresponding value for rail transport.

Because of its inherent flexibility and the advantage in connecting the remote, hilly and rural areas, road transport is projected to increase in future. It is estimated that this mode of transport, which accounts 83% of passenger traffic and 57% of freight traffic will account for 87% and 65% of passenger and freight traffic by the end of the year 2000.'

Pattern of Development of Road Transport in U.P.

U.P. is a land locked states. The main occupation of almost 78% of the population of U.P. is agriculture. The state has not only to cater for intra state traffic but also for transit traffic.

The inter-state traffic starting from eastern states of Assam,

Bengal and Bihar meant for Delhi, Punjab and Rajasthan passes

As per table no. 3.8

74 through this state. The National Highways' are the arterial roads of the country for inter-state and strategic defence movements

They traverse the length and width of the country connecting the national and state capitals, major ports and rail junctions and linkup with boarder roads and foreign highways. State Highways^ on the other hand, are the arterial roads in a state for intei-distnct movements. They traverse the length and breadth of a state connecting the state capital, district head-quarters and important towns and cities and link up with the national highway and adjacent state highway. District roads'* are the branch roads of the state and national highway to serve as the mam roads for mtia- district movements. They traverse the length and breadth of a district to connect the areas of production and marketing in the district to one - another and to connect the National and State

Highways and railways. Village roads'^ serve as the feeder roads for inter - village movements. They pass through rural areas connecting the villages or group of villages to one-another and to the nearest district roads, state highways, national highways, railways or river ghat. The feeder roads are generally low cost roads and are used for light traffic.

National Highways -Land 45 82 m - 76 2 m ^ State Highways - Land width 30 48 in - 45 20 m, formation widtli 9 75 m ^ District Roads - Land width 20 9 m - 30 48, Fornation width 7 31 in - 9 14in '' Villages Roads - Land width 4 58 m, Formation width 3 65 m - 4 87 m

75 Table No. 3.4 Total Road Length in U.P. (Total Length of National Highways in U.P.) (As on 31^' March 1961-97)

Year 1961 1971 1981 1986 1989 1990 1992 1997 Total 2343 2455 2474 2739 2754 2754 2754 2883 Surfaced 2256 2455 2474 2739 2754 2754 2754 2883

Unsurfaced 87 ------

Contd. Total Length of State Highways in U.P. (As on March 1997)

Year 1961 1971 1981 1986 1989 1992 1997

Total NA 7802 7967 7769 9424 10,494 9647

Surfaced NA 7802 7967 7769 9424 10,494 9647

Unsurfaced NA ------

Contd. Total Length of P.W.D. Roads in U.P. (As on 31'' March 1947-11997)

Year 1947 1955 1966 1974 1980 1987 1989 1995 1997

Total 11,489 19,838 29,416 37,167 58.5 97 70,272 78,308 88,200 1,10.000

Surfaced/ 7,857 15,294 24145 31,558 45,463 49,802 53,487 70,260 78170 Metalled

Unsurfaced 3632 4,554 5,271 5,609 13,134 20,470 24,821 17.940 3 183 0

76 Contd. Total Length of Zila Parishad Roads in IJ.P. (As on March 1976-1997)

Year 1971 1976 1981 1986 1988 1989 1997

Total NA 25518 24,370 24659 24659 24659 10,721 Surfaced NA 4306 3198 3205 3205 3205 356

Unsurfaced NA 21,212 21,172 21,454 21,454 21,454 7160

Contd. Length of Village Pachayat Roads in U.P. (As on March 1976-97)

Year 1971 1976 1979 1986 1988 1989 1997

Total NA 34059 33850 NA NA NA 31,993

Surfaced NA 1675 1675 NA NA NA 5,853

Unsurfaced NA 32,384 321,75 NA NA NA 261,140

Contd. Length of Urban Roads in U.P. (As on 3V' March 1971-97)

Year 1971 1976 1981 1986 1988 1989 1997

Total 1,1034 19,468 20,694 20,511 20,613 20,930 50,909

Surafaced 9153 15,215 16,266 16169 16294 16541 41,237

Unsurfaced 1881 4,253 4,428 4,342 4,319 4,389 9,672

Contd. Length of Project Roads in U.P. (As on 31'* March 1971 - 97)

Year 1947 1947 1976 1981 1986 1989 1995 1997 Total 11489 62642 143858 146725 172963 188076 214146 255467 Surfaced 7857 35712 56146 68636 78266 87123 117570 148303 Unsurfaced 3632 26930 87712 78089 94697 100953 96576 107164

Source: Data collected by various issues of Basic Road statistics and Statistical Abstract of India (1999and 2001) ^wff

> « 77 / L J J* History of road developinent in U.P. is very old. It is

full of references to the road policy and road construction in

Mauryan and Muslim period. But the true pace of developnieiit oi"

roads was accelerated after the appointment of Jayakar

Committee in 1927 and the starting of Nagpur plan in 1943. After

independence in 1951, five year planning was started to develop

the economic resources of the country. This planning proved very

successful in developing the roads' condition in the country.

By the end of March, 1997, the length of roads in U.P. was about 2,55,467 Kms, out of which 1,48,303 Kms. of roads were surfaced and 107164 Kms of roads were unsurfaced, while the road length in 1947 was about 1 1,489 Kms; out of which 7,857

Kms of roads were metalled and 3,632 Kms. were unmetalled.

The road kilometerage in 1997 can be regarded as an indication of sizeable growth of road building activities in U.P. However, the position of roads in terms of area and population can not be said as satisfactory because the road kilometarge is very low.

Table no. 3.7 shows that the registered motor - vehicles in U.P. has increased from 21,380 to 32,02,771 during the period 1947-97 (Almost 149.8 fold increase) while the road length has increased from 1 1,489 Kms to 2,55,467 Kms (The increase in road length is only 22.23 fold since independence). The

78 percentage of surfaced roads is 58.05, U.P.'s share in total and

surfaced road length in India is about 7,55% and 9,4%

respectively while the share in total number of motor vehicles is

about 11.69%.

The progress of roads in U.P. is not satisfactory in

comparison of population growth. The population is increasing at

a higher rate. The average density of population is 689 persons per

Sq.Km in U.P. as compared to 324 persons in all India during the year 2001. The Growth of population in India and in U.P, since

1901 is shown in the following table. 3.5

Table No. 3.5 Growl th of Population Population in Lakh Density of population per Sq. Kms Year U.P. India U.P. India 1901 486 2363 165 72 1911 482 2521 164 77 1921 467 2514 159 77 1931 498 2790 169 85 1941 565 3187 192 98 1951 632 3611 215 111 1961 737 4391 251 134 1971 883 5479 300 178 1981 1109 6581 377 220 1991 1390 8443 472 267 2001 1660 10270 689 324 Source: - India 1999, Ministry of Information and Broadcasting, GOI, N, Delhi and Statistical abstract of India, C,S,0,, G,0,I,, New Delhi (1999 and 2001).

79 However, the relatively higher pressure of population

in the state ensures ample supply of labour, which may be taken

as an advantage in developing economy to grow faster. Since the

state's economy is basically agro-oriented, so there is a great need

to invest in rural areas rather than the Urban areas.

According to table No. 3.4, the total length of

National Highways in U.P. in 1996-97 was about 2883 Kms. While

in 1971-72, it was about 2455 Kms. Which shows no satisfactory

progress within 20 years. A survey was also conducted by the

Central Road Research Institute (CRRI) for the improvement of

National Highways. The survey had revealed that 98% of the

National Highways in India'^non-motorable by world - standard. In

order to improve the condition of National Highways,

(Amendmend) bill, 1992 makes some provision for levy of fee on notified sections of National Highways to augment resources through mobolisation of extra budgetary support.

After National Highways, Inter states Highways also play an important role. Inter - state highways link and touch the boundaries of one state which its neighbouring states. The state of

Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan,

Haryana and Delhi are the neighbouring states of U.P. Boundaries

80 of these states are touched and linked with U.P. The state of U.P.

has fairly good road connections with these states. The following

table shows the inter-state routes of U.P.

Table No. 3.6 Inter - States Routes in U.P.

Name of State Name of Identity of Roads (Ad joining) Routes 1. Bihar 5 (l)Gorakhpur - Tamkohi Bethiah

(2) Gorakhpur-Karia-Tamkohi

Mobhari

(3)Lucknow-Ballia-Chappra

(4)Varanasi- Sasaram

(5) Varanasi-Ghazipur - Arrah

2. Himachal 1 (i) Dehradun - Herbertpur- Nahan

Pradesh

3. Madhya ~ 7 (i) Lucknow- Jhansi - Sagar

Pradesh (ii) Allahabad - Rewa

(iii) Varanasi - Rewa

(iv) Jhansi - Shivpur

(v) Etawah - Bhind

(vi) Jhansi - Naogoang

Chatterpur

(vii) Banda-Mahoba-Chatterpur

81 Name of State Name of Identity of Roads (Ad joining) Routes 4. Punjab (i) Muzaffar Nagar - Shamli-

Panipat

(ii) Saharanpur - Ambala

5. Rajasthan (i) Mathurs - Bharatpur

(ii) Agra - Fatehpur Sikri -

Bayana

(iii) Agra - Tantpur - Karoli

6. Delhi (i) Agra - Mathura - Delhi

(ii) Agra - Bharatpur - Delhi

(iii) Ghaziabad - Meerut - Delhi

(iv) Saharanpur - Loni-Shahdra

7. Uttranchal (i) Najibabad - Kotdwar

(ii) Najibabad - Haridwar

(iii) Muzzafar - Nagar - Barla -

Rurrki and Haridwar

(iv) Nagina Barhapur

Kotdwar

(v) Dhampur - Sherkot-

Kashipur and Nanital

(vi) Afzalgarh - Kalagarh

82 State Highways, on the other hand, are the main arteries of commerce and industry within a state and there are connected with the national highways, or with the highways of adjacent state. The important cities within the state are linked by them. It is the responsibility of the state Government to construct and maintain the state highways. The table no. 3.4 shows that the position of state highways in U.P. is not satisfactory as compared to the position of other states in the country. In 1971, U.P. had about 13.74% of State highways of the total state highways in

India while 1989, U.P. had only 7.65% of the total state highways.

There was a slight increase in the state highways' length of U.P. from 7769 Kms. to 9647 Kms. during the period 1987-97.

"District Roads connect the areas of production and distribution with one another within the district and with the State

Highways, National Highways and Railways"' Under Nagpur plan,

District roads were under the administration of District boards.

The pattern of development in Nagpur plan for these roads should have at least one lane-water bound macadam carriage way. But, where the traffic 'is heavy and funds permit, these roads should be black topped and even connected wherever necessary. But now, it

1. Bhatnagar, K.P. "Transport in Modern India" Kishore Publishing House, Kanpur (1970) p-356

83 is the responsibility of the local board to construct and maintain the district roads.

The position of many district roads is not good, many of them are unmetalled and have no linkages during the rainy season. Lack of maintenance on the part of the Public Works

Department (P.W.D.), increasing vehicular traffic and land slides have together created conditions that pose a threat to travellers on various routes. Every year, during the monsoon or even during heavy rain in winter many roads are cut at several points causing danger and unconvenience to the people.

Village roads are the back -bone of our country, because agricultural development is possible only through the village or rural roads. These roads connect villages with each other, with the district roads and with the highways. Village roads are one of the basic infrastructure,^-of agrarian economy.

Rural development has been taken place because of the development of rural roads. These roads help in providing social justice, national integration and economic upliftment. Rural roads also provide one of the keys in the successful implementation of integrated rural development programme (IRDP). These roads act as feeders linking villages with each other as well as with the nearest district roads, or national highways. Development of

84 t/)

15 o| •w • JS o o VI 01

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J o o o o u 03 oq U ^ tN N rural roads received encouragement only after the appointment of a committee on luial loads in 1967, which siibmidcd ils icpoit in

1968 As a result, dunng IV"' plan, special piovision was made toi the development of rural roads and other district loads

Development of rural roads also received encouragement during

V"' plan period, as a pait of Minimum Need Piogiamme But luial roads got a great incentive in Jawahar Rozgar Yojna, in Jawahai

Rozgai Yojna, About 8,00,000* Kms of roads have been constructed till the end of 2000, 20 year Road Development

Programme was also formulated by the Indian Road congiess for the period 1981-2001 The salient features of this plan are

(i) All the villages or groups of villages with a population

of 500 and above, should be connected by all weather

roads by the year 2001 for villages with population of

less than 500, all weather roads should be available

within 3 Kms in the plains and within 5 Kms in the

hills

(ii) The road density for the hill areas should be 40

Kms/100 Sq Kms upto an altitude of 2100 meters and

15 Kms/100 Sq Kms for areas at altitude higher than

^ India 2001, Research, Reference and Training Div Ministry of Information and Broadcasting G 0 I New Delhi

86 2100 meters. In the plains, it should be 30-80 Kms/100

Sq.Kms.

On the basis of these norms, the road length in U.P. by the year 2001, should be 3.55 lakh Kms by the village connectivity criteria. But against the target of 3.55 lakh Kms of road length to be achieved by the year 2001, the total road length achieved in U.P. by March 1997 was only 2.55 lakh kms.

Although, there has been a great increase in the number of roads, yet this increase is not satisfactory as compared to areas and population of the state. There is still a great need to construct and maintain the roads in U.P. to develop its economic resources.

Road Transport in U.P. has played a significant role, because most of the population of this state is living in rural areas. Agricultural is their main occupation. In rural areas, no railways or airways facility is available. Only road transport is used by the farmers to send their agricultural products to the market centres.

In villages, bullock - carts are used to transport the agricultural products. Most of the rich farmers also use tractor- trailors. The bullock carts, horse carts and tractors provide almost

100% traffic needs for agricultural products to the farmers. Motor

87 - transport has also great significance by providing door to door services to the people. A motor vehicle is free to go to any part of the country, of course, subject to certain limitations mostly of good roads. The transport of perishables like fruits, vegetables and dairy products directly from the farms to the consuming urban centres is an example to point. Road transport' share in traffic is continuously increasing. Table No. 3.8 shows a true picture of roads share in traffic.

Table No. 3.8 Share of Roads in Traffic

Year Goods Traffic (%) Passenger s Traffic (%)

1950-51 12.00 25.8

1960-61 28.5 42.2

1970-71 34.5 58.9

1980-81 38.1 62.8

1991-92 53.4 79.2

1994-95 60.0 80.0

2000-01 65.0 87.0

Source; - Data compiled by India's development reports and

India 2000, 2001 and 2002

88 Table shows that the share of road transport is

increasing very rapidly. In 1950-5 1, the share of road transport in

good traffic was only 12%, while this share has increased now upto 65% which shows a significant role of road transport in commodity movement. The share in passenger traffic has also made a significant increase from 25,8%. in 1950-5 1 to 87% in

2000.

In U.P., Private vehicles play an important role in transporting the passengers and goods. Trucks are the most important means of freight transport, which carry the goods and services from one village/town to another, from one district to another and from one state to another. Bullock - carts and tractors play a key role in rural areas while motor transport is most suitable in urban areas. In rural areas also, where the roads are in better position motor transport has got a great significance.

In U.P., U.P.S.R.T.C.'s buses and private buses, cars, jeeps, and taxis are providing services to the passengers. Buses are used for carrying passengers traffic while jeeps, cars and taxis are used by their owners mainly. There are thousands of private buses in U.P. which are satisfying the needs of the people of state.

But in some rural areas, there is a lack of transport services.

Passengers have to wait many hours for passengers traffic.

89 So, transportation is vital to both tiade as well as manufacture.

Tradeables need to be tiansported and even manufacture at a given location requires the trade of raw materials and components as well as the sending out of the finished product. A state with a poor transportation network has no hope of being a success either as a trader or a manufacturer. Further, Just as ants built ant-hills, humans build towns and cities. From these colonies they obtain their needs by securing a vast hmterland. It is said that great cities sit like giant blobs of jelly. On the map, with poor connectivity. This will not do for a country that wishes to be prosperous. Transportation requires the primaiy attention of the state. It is woeful today. This effects our quality of life directly by forcing us to crowd into primacy - ridden cities, while in reality this is a vast state and there could be enough space for all if only the space was colonized by transportation. Poor transport makes life unsafe. If we don't pay attention today on road transport, will pay a heavy price tomonow.'

Roads in U.P. are also a major disaster. They have been systematically undersupplied by planners, who diverted public money from public goods. Their quality is very poor.

Adequate traffic regulation is missing. This requires to be urgently addressed at all levels. At the top, the focus should be to institute a policy frame work that allows private investment into interprises. At the state levels, the focus should be on public

The Economic Times, New Deliii VoJ. 39, No 2002 Tuesday, 26 Oct. 1999 pp-10

90 goods. Our cities and towns urgently need to escape the 'primacy-

syndrome, when primary cities bloat and satellite towns do not

develop owing to inadequate transport links. The municipalities

should focus on making roads safe for all roads users for this

purpose, municipalities should be serious about raising resources.

In order to make an efficient and systematic

development of transport facilities, the Government both at centre

and state, should set the objectives keeping in the view the present

and future need of transport facilities properly considered in view

of economic, social, military and administrative needs of the

country, regional requirements of the transport facilities in view

of the volume and nature of traffic, available and potential

resources of the country, balanced development of all modes of

transport, initial costs and costs of operation and full utilization

of all modes of transport. The Government should also formulate the policies to attain these objectives. The proper formulation of

National or State Transport Policy, will bring uniformity in action by properly guiding the persons and will save time and money. It will also restrict the scope of individual discretions and judgement and will pave the way for proper organizations, co-ordination and control. While the absence of national/state transport planning naturally results in slow and lop-sided development, under

91 utilization of existing transport facilities and unsystematic and patchy development of transport.

Therefore, the Government of India has issued certain policy issues to be modified or amended in the 9"' plan for developing the rational road transport system. These policy issues are as follows.

In case of motor vehicle taxation, the reason for imposing passenger tax on STUs by State Government was mainly to reduce the burden of income tax paid to Central Government on the profit earned. At the same time for profit making STUs, there was a rising demand from the labour force for increase in wages.

Now, this approach needs to be reconsidered.

• The poor man's transport (Bus) is taxed more than the

luxurious goods. Subsidiaries are being offered on the

luxurious items like television, electronic goods and other

industries in the area of liberalization and privatization.

Therefore, it is suggested that tax on two wheelers should be

higher in the proportion of percentage of two wheelers in the

total vehicles, whereas passenger tax on SRTUs' buses

should be removed to promote healthy growth and encourage

mass transit system.

92 • The percentage share of two wheelers in the total vehicles is

about 70% which is followed by 13.28% of the 4-wheelers

and goods vehicles. The total tax collected from all types of

vehicles was Rs.11566.2 crore' during 1998-99. Policy

should be more tax revenue levied on these vehicles than

buses. Percentage of buses-public and private sectors adds

only 1.54% in the total vehicle population in the country.

There is also a need for developing Management

Information system for private sector. Presently, public sector bus system is always compared with private sector without availability of any comparative reliable data of Private Sector

Passenger Road Transport. SRTUs have well developed

Management information system. Therefore, the State

Governments can monitor the performance of public sector. There is no data available about physical parameters, financial performance, infra-structure, provided for passengers and carrying maintenance of buses in Private Sector Passenger Road Transport.

Thus, it is essential to organize system to develop MIS for the private sector passenger road transport, so that a meaningful comparison of with the public sector transport can be made. At the

' Figures are extracted from statistical Abstract of India, C.S.O, Ministry of Statistics and Programme Implementation, G.O.I., New Delhi (2001).

93 same time, produ.ctivity and efficiency of private sector can be

evaluated to identify weaknesses and strengthen them for better

service to the traveling public.

The Motor Vehicles Act 1988 needs several

Amendments for the purpose of healthy growth of transport both

in Public Sector as well as in Private Sector.

The issue of contract carriage permits is to be

reviewed in the light of miss use of permits by private operators.

Early provisions of contract carriage permits may be included in the Motor Vehicles Act.

Infra-structure such as bus stations and passenger amenities created by public sector are utilized by private sector buses. Provisions should be made to the effect that whatever infra- structure is created by SRTCs shall be exclusively used for SRTCs to prevent malpractices of agents of private operators, such offences should have provision for various penalties under Motor

Vehicles Act. Private sector should create their own infra- structure, passenger amenities and invest some share of profit for I development of infrastructure to serve themselves.

Amendments in the Motor Vehicles Act for minimizing road accidents are also necessary, especially in over dimensional cargoes, engineering of vehicles, deciding scrapping age of the

94 vehicles, deciding scrapping age of the vehicles, as well as strict provisions for transporting hazardous goods. The speed control with the chassis manufacturer is required and (he legislalive enforcement is a must.

Motor Transport Workers Act 1.961 which was enacted by the Parliament with the objective to provide welfare and medical facilities and condition of employment such as hours of work. All Public Transport Sectors are rigorously following the provision of this Act, but private bus operators are not following a single provision of the said Act. Therefore, it is necessary to make major changes to improve the manpower productivity of the

SRTUs.

Road Transport Corporation Act, 1950 was enacted with a view to promote efficient, adequate, economical and properly co-ordinated road transport service in the states by forming the Road Transport Corporations and bring in a phase wise total monopoly in the passenger road transport. But after the enactment of M.V. Act 1988, most of the provisions of the R.T.C.

Act became contradictory for the healthy growth of transport operations. Due to the erosion of the autonomy of the SRTUs by politicians, it is difficult for SRTUs to function properly. Several

95 amendments to the RTC Act are required for smooth and efficient functioning of SRTUs.

Trade Union Act J 926, was also enacted with the objective that employer should not indulge in the unfair practices with employees and unions. Time to time, the Act was amended till today. Due to collective bargaining and non cooperation of trade unions, the Management could not increase the productivity.

Due to poor productivity and inflations, costs have gone up substantially. Presently, Trade Unions are indulging in unfair practices and exploiting management. There is a need to abolish the Act or amend it for the healthy growth of industry in the country, which adopted the policy of privatisaiton and globalisation.

Thus, bus transport system is the cheapest. It requires to be strengthened by formulating deliberate strategy to reduce the growth of other modes. PresentIy-3 wheelers and 4-wheeIers are also emerging as major modes having poor occupancy leaving seats unoccupied. Indirectly, it is national wastage. Some incentives or disincentives may be offered to such vehicles encouraging them to carry maximum passengers in four wheelers also. If the two wheelers will grow abnormally and occupy most of

96 the road space, there will not be any road space left for pedistrains

and higher capacity vehicles for free flow of traffic.

Apart from the congestion on the road, use of two

wheelers and four wheelers is responsible for high consumption of

petroleum oil per capita, which India is buying form Gulf

countries for valuable foreign exchange. The petroleum producl is

a scarce commodity. Thus, it is necessary to save the petroleum

product by framing policy in favour of bus transport of Mass

Trasit System (MTS). It is high time that such a policy should be

framed and enforced with determination to save the transport

environment in the country.

The motive power used in the field of road transport can be classified as human power, animal power, diesel, power, petrol power and gas. In the primitive societies, human power was the only motive power and all the commodities were earned by man on his back or head. Today also, its use for transport purpose can be seen in mandis, in very backward societies at hill stations and at the railway stations. Animal power was considered a great improvement over human power because the load was transferred to the back of the animal from the back of the man. In hilly and back-ward areas of U.P., animals still play an important role as a motive power of road transport vehicles.

97 With the introduction of steam power, revolutionary

changes came in the field of Iransporl, but (his powci wns replaced by petrol power, due to its heavy steam carriages and the problem of carrying water and coal. Petrol, now is used as motive power on a large extent. It is widely used in scooter, auto- rickshaws, motor cars trucks and buses. Except petrol, diesel is also extensively used in motor vehicles, It is the recent power which is in extensive use in modern mechanical road vehicles.

This motive power is cheaper than petrol and has great motivating force. Natural gas has also been recently introduced in the field of road transport. It is mostly used in DTC's buses. The buses of

U.P.S.R.T.C are not using this motive power till now.

Conclusion:

In conclusion, it may be observed that for developing the economy of the state, it is necessary to have a well developed road transport system Tliere is a need of good network of state roads connecting the remotest areas of the state to the city centres.

There are a number of villages which have no link with the urban areas and hence these villages remain cut off from the main areas.

To cope with this network of roads, there is also a need of a well organized fleet of buses and trucks etc. to be plied on these roads.

It will go in a long way for bringing the state in line with other

98 developed states. With this conclusion, my endeavour in the next chapter will be to assess the working and performance of

U.P.S.R.T.C. and different problems and difficulties faced byitin its operations. The performance of U.P.S.R.T.C. will have a direct bearing on the development of rural areas as it provides a network of road transport in the State which may be used for the growth of agriculture and industry in the rural areas of (J.P.

99 Chapter-Ill Working and Performance of U.P.S.R.T.C. and Its Role in the Development of Rural Areas of U.P. Chapter III

Working And Performance Of U.P.S.R.T.C.

And

Its Role In The Development Of Rural Areas Of U.P.

In the previous chapter, we have discussed the pattern of road transport in U.P. This chapter will highlight the working and perform ance of U.P, State Road Transport Corporation

(U.P.S.R.T.C). It will also focus on the problems faced by

U.P.S.R.T.C. in its operations and the reasons behind such problems. It will also show the role of U.P.S.R.T.C. in the development of rural U.P. In India Public Sector Road Passenger

Transportation is provided by the State Transport Undertakings

(STUs). The STUs are one of the major public utilities and important constituents of the nation's infra-structure. STUs generally provide city and inter-State cost effective and efficient public transport services to the country's poor and middle income groups. They carry people from their far-off scattered locations of house holds to work-centres, improve mobility, minimize regional disparities -poverty and untouchablity and also contribute to the over all socio - economic reconstruction of the economy. These important positive facets of the STUs necessitate their healthy

100 development. It assumes more importance specially during the current drive for economic reforms which are likely to be affected, if there are transport bottlenecks. Thus development of healthy transport system, specially STUs is a pre-requisite of economic development .

In U.P., the State Government in 1947-48 decided that the passenger road transport services should be nationalized by the

Government to provide cheap and efficient facilities to the passengers. Several other states also followed the policy.

Therefore the State Government of India, amended the

Motor Vehicle Act, 1939 (which was passed to regulate the motor transport in India), giving power to the State Governments to acquire exclusive rights for operating road transport services.

The Road Transport Corporation Act was passed in

1948 to enable the State governments to form Corporations for running the passenger services. The Act having been declared ultra-vires, Another Act known as Road Transport Corporation

Act, 1950 was passed in Parliament with a view to provide autonomy, uniformity and efficiency of administration in running the State Road Transport Services.

101 The U.P. Government started a purely Governinenl

Concern and commenced operations since May, 1947, on a trial

and error basis. The whole State was divided into nine-regions

(now 18). The first route was taken up by the Government buses in

may 1947. The scheme has now been developed to a great

extent to serve a model for other states. The scheme has been proved very successfully in providing efficient and cheap transport facilities, stability of rates and services condition

(Because private hauliers are always changing their rates and fares according to the demand for their services). Routes of public importance, though unremunerative can be served by this scheme, while private owners ply in order to earn profit - They will never ply motor buses and trucks on routes which are unremunerative.

The scheme has also increased the operational efficiency, better facilities to the staff, better Co-ordination and control.

Transport Department of the U.P. Government is under the charge of Transport Minister of the State. Transport Minister is assisted by a Deputy Transport Commissioner and Assistant

Transport Commissioner. The Service Managers are responsible for the maintenance of the regional workshops and supervision of servicing stations in their regions. Senior and assistant foremen,

102 supervisors and an adequate technical staff, work under him.

Traffic Managers look after the traffic side and are assisted by senior station superintendents, Junior station in charges and booking clerks in each region. Traffic and Assistant traffic inspectors are responsible for checking on the routes. One conductor is provided on each running buses. General manager is assisted by the Secretary and the accounts are under an Account

Officer. Both of them have sufficient staff to help them.

The entire staff of the Roadways Department of U.P.

Government has been strictly instructed to extend utmost courtesy to the passengers. Complain books are provided at all booking officers and on the running buses. Prompt action is taken for redressing the grievances of the passengers. Good suggestions for improvement are also taken. The buses run according to well- planned timetables and have achieved a high degree of punctuality. Amenities are provided to the passengers on open roads in the form of drinking water, passengers sheds separate booking offices for men and women, lavatories etc. There is no over-crowding of passengers in the buses because a limited number of tickets are issued according to the seating capacity of the bus. The stoppages and halts take place at notified places.

103 Seats inside the buses are comfortable and have ample space-

Separate seats are reserved for women passengers. The design of buses are being constantly improved.

At the time of establishment of Corporation , it had a fleet of 4253 buses which were operating on 1123 routes, over a total of 122 thousand Kilometers of road length at an average route length of 109 Kilometers. The Corporation 's earned kilometers operated at that time were 228.8 million kilometers while the total number of passengers carried by its buses totalled

251.3 million.

By the end of the decade, the fleet of the Corporation had attained a strength of 5679 buses, the operations had increased to 1782 routes over a road length of 263 thousand kilometers, while the average route length increased to 148 kilometers. As a result of this increases in operations, the earned kilometers totalled about 396.2 million kilometers while the total numbers of passengers carried were over 449.1 million.

The end of the Vl"^ five-year plan saw a further increase in all operational parameters being achieved by the

Corporation. With the increase in fleet strength of 6198 buses, the

104 earned kilometers of the Corporation rose to All.1 million

kilometers.

During the VII five -year plan, emphasis was placed

on strengthening the fleet of the Corporation. By the end of the

plan period, the fleet had risen to 8161 buses from the initial

strength of 6198. During the plan period, 5191 new buses were inducted in the fleet, 3228 for replacement and 1963 for augmentation. This increases had to be made in order to compensate for the gradual discontinuation of about 1000 hired/undertaking buses which were operating on the nationalized routes of the state, under control of the Corporation.

During the VIII*'' five-year plan, 2722 buses were replaced with new buses. However, 3142 buses were auctioned. In the IX*'^ fi ve year plan (1997-2002), the Corporation has panned to replace 3500 buses. The plan proposes an investment of Rs.

3118.0 million on the purchase and fabrication of new buses, Rs.

733.2 million on renovation of old road worthy buses, Rs. 150 million on additional passenger amenities for its passengers and modernization of its workshops, Rs. 50 million on procurement of new tools and equipment and Rs. 48.8 million on computerization.

The recourses for these investments shall be available from

105 financial institutions (L LC., LD.B.L etc.), Commercial banks and

public funds through issue of bonds. The Corporation has also

assumed a Stategovt. Contribution of Rs. 680- million during the plan period to compensate against the operation of socially obligatory unviable routes. Further, in view of the paucity of founds to replace the aged fleet, the Corporation hired buses to operate on nationalized routes under its control. By the end of

2000-2001, around 1200 private buses were being operated under this scheme.

106 earned kilometers of the Corporation rose to 427.7 million

kilometers.

During the VII five -year plan, emphasis was placed

on strengthening the fleet of the Corporation. By the end of the

plan period, the fleet had risen to 8161 buses from the initial

strength of 6198. During the plan period, 5191 new buses were

inducted in the fleet, 3228 for replacement and 1963 for

augmentation. This increases had to be made in order to

compensate for the gradual discontinuation of about 1000 hired/undertaking buses which were operating on the nationalized routes of the state, under control of the Corporation.

During the VIIl*^ five-year plan, 2722 buses were replaced with new buses. However, 3142 buses were auctioned. In the IX*'' five year plan (1997-2002), the Corporation has panned to replace 3500 buses. The plan proposes an investment of Rs.

3118.0 million on the purchase and fabrication of new buses, Rs.

733.2 million on renovation of old road worthy buses. Rs. 150 million on additional passenger amenities for its passengers and modernization of its workshops, Rs. 50 million on procurement of new tools and equipment and Rs. 48.8 million on computerization.

The recourses for these investments shall be available from

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13 Table No. 4.6

Comparison of Taxes paid by U.P.S.R.T.C. and some other

STUs s. Unit Rate of Motor vehicle tax No.

1. U.P.S.R.T.C. (1) For passenger buses with seating

capacity more than 6 but less than 20

persons exclusive of river seat, Rs. 662/-

For the first 6 seats, plus

(a) 'A' class routes = Rs. 50 per every

additional seat in excess of 6 seats

(b) 'B' Class routes ^ Rs. 33 per every

additional seats in excess of 6 seats

(c) 'C class routes = Rs. 28/- per every

additional seats in excess of 6 seats.

(2) For passenger buses with seating

capacity of more than 20 persons and 32

person excluding driver

(a) Buses playing on 'A' class routes -

Rs. 1419/- + Rs. 61/- for every seats

114 Cordol- s. Unit Rate of Motor vehicle tax No. in excess of 20 seats,

(b) Buses playing on 'B' class routes -

Rs. 1139/- + Rs. 50/- for every seats

in excess of 20 seats,

(c) Buses playing on 'C class routes -

Rs. 974/- + Rs. 33/- for every seats in

excess of 20 seats,

(3) For passengers buses with seating

capacity of more than 32 persons The

taxable for the first 32 seats excluding

driver as mentioned above, + an additional

tax for every seats in excess of 32 seats

a) 'A' class routes Rs. 116/-

b) 'B' class routes Rs 83/-

c) 'C class routes Rs 50/-

Annual tax Rs. 980/- fo the first 18

passengers + Rs 145/- for eveiy additional

15 CcmJoi s. Unit Rate of Motor vehicle tax No. passengers. The bus is allowed to carry

conductor and driver excluded from the

number licensed to carry.

2. D.T.C. Annual tax Rs. 980/- for first 18 passengers

+ Rs. 145/- for every additional passengers.

The bus is allowed to carry conductor and

driver excluded from the number licensed to

carry.

3. B.S.R.T.C. Rs. 1 123/- per bus per quarter.

4. Haryana Rs. 550/- per seats per annum subject to a

State minimum of Rs. 35000/- per annum.

S.T.H.A.R

5. Punjab State Rs. 500/- per seat per annum

(i) S.T.P.J.B

(ii) P.R.T.C.

6. Andhra (1) Ordinary slab

Pradesh Rs. Per , If the distance

116 ^ild s. Unit Rate of Motor vehicle tax No. A.P.S.R.T.C. Quarter per

covered by the seat MOFUSSIL bus

perday.

a) does not exceed

100 kms.

191

b) Exceed 100 kms

But does not exceed 160 kms

267

c) Exceeds 160 kms but

does not exceed 240 kms

342

d) Exceeds 240 kms but

does not exceed 320 kms.

401

e) Exceeds 320 kms

438

117 s. Unit Rate of Motor vehicle tax No. (2) Express

a) does not exceed 320 kms

504

b) Exceeds 320 kms

656

(3) spare vehicles -Rs. 144/- for every

passenger which the vehicle is permitted to

carry.

7. O.S.R.T.C. a) upto 160 M. V. tax Add M.V.

kms tax Rs. 143/-

Rs. 480/-

(0)

Rs. 746/- b) 161 kms Rs. 163

to 240 (E)

kms Rs. 600/- Rs. 796 c) 241 kms (0)

to 320 kms

18 s. Unit Rate of Motor vehicle tax No. Rs. 955

d) More than Rs. 933/-

320 kms (E)

Rs. 796/-

(0)

Rs.1296/-

(E)

Rs. 955/-

(0)

Rs. 1455/-

(E)

Source :- Indian journal of Transport Management, Vol. 21, No. 6

June - 1997.

NOTE :- Rate of Passenger tax is also shown with the fare structure. Other taxes such as excise duty, sales tax, Import duty and Octroi etc. are not included.

119 Table No. 4.2 indicates that Kerala State Road

Transport Corporation has the highest pcrcenlagc of accidcnis. In the year 1975-76, its accident rate was 2.5, while Haryana State

Transport Corporation has 0.16 accident rate, which is the lowest of all the S.R.T.Cs. U.P.S.R.T.C.'s accident rate was 0.30 in

1975-96, which was decreased to 0.27 in 1976-77, but it was again increased in the year 1977-78. In 1991-92, U.P.S.R.T.Cs accident rate was 0.23.

As shown by table No. 4.3, Maharashtra State Road

Transport Corporation has the highest number of fleet size in

India. After M. S. R. T.C., Andhra Pradesh S. R.T.C. ranks second in the number of fleet size. Gujrat S.R.T.C. has third position and

U.P.S.R.T.C. has fourth number. Total staff of U.P.S.R.T.C. is

56,864, while Andhra Pradesh S.R.T.C. has the highest number of staff. Total staff of A.P.S.R.T.C. is 1, 19,630, which is more than the Maharashtra S.R.T.C. Total number of M.S.R.T.C. is

1,1 1,979.

The financial, physical and cost performance of

U.P.S.R.T.C. shows that adequate replacement has not taken place and the number of buses scrapped is far below the number of buses purchased. The Combined effect has been that the average

120 age of operating fleet has been rising steadily giving rise to

increasing maintenance cost and decreasing reliability of service.

This situation has come about because of the severe resources

crunch being faced by U.P.S.R.T.C. in the recent years. The

capital contribution provided by the Central Government and State

Government was almost stopped since the beginning of this decade

and U.P.S.R.T.C. was expected to manage its finances through its

own recourses. On the other hand, it was forced to operate all the

social obligatory routes irrespective of the losses incurred in the

process. No attempt was ever made to quantify its social costs and

pressurize the Government to reimburse it. The high level of taxes

paid by U.P.S.R.T.C. has also been partly responsible for this

unprecedented increases in losses.

It is absolutely essential for the future survival of

U.P.S.R.T.C. to figure out ways to reduce its personnel cost. Since

the U.P.S.R.T.C. operates a very larger fleet and employs a large

numbers of workers , the union always work towards protection of rights and interest of workers. As a result, the cost of operation has gone up steadily without adequate increase in productivity.

Since, U.P.S.R.T.C. was granted monopoly right under the nationalization scheme, it got used to the mono policy and

121 enjoyed and lost customer focus. Il is only in llic last few yeais

that the awareness abut the emerging competition has started

sinking in and realization has dawned that the what the passenger

is looking for a reliable, Comfortable and adequate level of

service and is willing to shift loyalties to the one who provides

them the best.

Augmentation of fleet through a hiring scheme can help the

U.P.S.R.T.C. to consolidate its position in the emerging

competitive scenario and can provide an improved quality of

service to the passengers. It is also in the line with the

Government's directives to encourage private sector participation

in the Passenger Road Transport Sector. Since, the revenue is

being collected by the U.P.S.R.T.C. through its conductors, a

certain amount of control is exercised on the owners and drivers

of the hired buses. Certain clauses may be added in the hiring

contract to make this control more effective. Since the owners

cover these buses through comprehensive insurance, the

U.P.S.R.T.C. does not have any liability is case of an accident or a mishap. The owner of the bus is obliged to maintain the bus and make it available for operation half an hour before the start of the

schedule prepared by the U.P.S.R.T.C. He is also obliged to pay a

122 penalty if he fails to provide the bus for operation or does not

complete the scheduled kilometers. These hired buses may be

painted in the same colour scheme as the respective

U.P.S.R.T.C's. buses. So that the passengers may not be able to

differentiate between the two. In such an arrangement, the

U.P.S.R.T.C. provides the marketing support and collects revenue which the owner of the bus gets paid according to the kilometers operated of-course, the rate of payment has to be fixed in such a way so as to make the scheme attractive for the bus owners.

It is essential to device a mechanism to control the quality of these hired bus owners. The problem with single bus owner may be that if the bus is off road over a long period of time due to a mishap, he might not be in a position to provide a replacement .It may also become difficult to control a large number of single owners. To overcome these difficulties, only owners providing five or more buses may be considered under the scheme. Certain monitoring mechanism would also need to be involved to ensure a minimum standard level of maintenance for these buses. About the maximum percentage of buses, a workshop conducted by CIRT on hiring of buses recommended that the

123 percentage of these hired buses should not exceed 25 percent of

S.T.U.'s fleet.

The U.P.S.R.T.C. was one of the first STU's to hire

buses to augment its fleet. The scheme was linked to income in the

sense that the owner had to ensure a minimum earning per km. For

the bus. This minimum amount was arrived at by adding the rate quoted by the owner to the administrative expenses specified by the Corporation. If the earning of the bus was less, than this minimum amount, the Corporation would still deduct the administration expenses and pay the rest to the owner. As an incentive, another target was given and the income earned above the target was shared 50-50 by the owner and the Corporation.

This income linked scheme was extremely useful on short distance shuttle routes, when there was sizeable amount of clandestine operation. By linking the payment to income, the

Corporation expected the hire buses' owners to deal effectively with these clandestine buses. The objective being to fight fire with fire. Another objective was to bring down the cancellation of trips on these shuttle routes. Since the owner was being paid according to the kilometers operated he was likely to complete the schedule.

124 Moradabad is a districl hcadc|iiarlcr in U P., lainoiis for its brass industry. Since this industry is labour intensive, a large number of workers come from neighboring areas, to work in the factories. The courts are also situated in Moradabad given rise to large movement from neighbouring areas. Chandausi is Tehsil head-quarter situated 38 kms away from Moradabad. Moradabad was a highly paying route for U.P.S.R.T.C. before the buses on the route became unreliable and a large number of clandestine buses started operating on this route. These buses used to operate from a stand-right in front of the U.P.S.R.T.C.'s bus stand. Since a shuttle route does not give a good vehicle utilization owing to trip cancellation, proper measures were never taken to improve the frequency and reliability on the route. As a result, the passengers started using the clandestine buses for their journeys. Although the number of scheduled buses was quite large, not even half of them were actually operating on a given day, probably due to unwritten policy of allocating the oldest buses in the depot to short distance shuttle routes.

In Jan 1994, U.P.S.R.T.C. decided to put hired buses in this route. The number of these buses went up from 1 in

January, 1994 to 19 in Jan. 1995. A comparative statement month wise is given in table No. 4.7

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127 The monthly figure of 1993 shows operational results when only

Corporation buses were operating, while the figures for 1994 and

1995 show operational results when both Corporation and hired buses were operating.

An analysis of the percentage increase in total income over the last years shows that from May, 1994, when 10 hired buses joined the fleet to May 1995, when 19 hired buses were operating, the increase ranges from 35% to 120%. The average yearly increase in revenue fo 1994 over 1993 was 57% and for

1995 over 1994 was 26%. The reasons for this increase are quite obvious. When these 19brand new hired buses together with a few

Corporation buses were operated on this route with a very high frequency, the passengers were assured of a service with a small waiting time and they started patronizing the STU's services. The clandestine operation on the other hand, reduced substantially, partly because of lack of passengers and partly because of the threats from the owners of the hired buses. The actual potential of this route was realized and revenues shot up. Although there was a fare increase of about 24% in Jan. 1994, the effective increase in revenue realization over the preceding year was substantially more.

Table No. 4.8 shows cooperative incomes of the hired buses and the Corporation buses on the same route.

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CD c: D) o ro O) C CD o C3> o CO CD CJ) CO CD CO CD (D O CO CD CO IT) CM o M O Gi CD CD Q- CL o CM o CO O) CD CJ) 00 00 o CD CO O CM CM CM CM T— CM T- O CM 0 CO ro o > 1- T3 o "O O) CJ) cn CD cn CJ) CJ) CD CD CD 00 0) I T— T— T— T— T— T— T— T— T— 1 1 c o o CD C x: g o C/) "CV—D CD w o CO CO CO CO CO in O CD Q. (/) O o XI O C/D o sz CD > 6 "cD d c c "iZ CD c d) cL c5 CD CD CD Q. < 0) o 0 z o < =3 -J C/3 O •5 -J LL —3 Z Q 1- The table No. 4.8 clearly shows that the income per Km. Of the

hired buses has been higher than the Corporation buses. This

difference cloud be attributed to the better condition of hired

buses and their punctuality. The utilization of a hired bus was also

much higher than that of a Corporation bus indicating that the

total revenue collected per day per bus was much higher in the

case of a hired bus.

Human Resource And U.P.S.R.T.C.

Uttar Pradesh State Road Transport Corporation

provides employment to a large number of people Currently, it has

47,369 employees. These include 352 officers, 1938

administrative staff, 12472 technical and workshop employees,

24,564 drivers and conductors, 8278 operations staff and 117 part

timers. But the number of employees is continuously decreasing

due to losses incurred by the U.P.R.T.C. every year. At the end of

Dec. 1997, there were 36097 persons employed on traffic, 14098

on work shop and maintenance, 3,321 in administration and accounts. The total staff was 53,516 in 1997, 51,091 in 1998 and

49, 648 in 1999.

Table No. 4.9 shows the human resource position in the

U.P.S.R.T.C.

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CD zo Y o U) CM CO CO

132 The number of personnels in U.P.S.R.T.C. is continuously decreasing every year. It is because "40% of the total cost in STUs is on personnel cost. Therefore, manpower productivity is an important item which contributes to the profitability of the STUs.

It is defined as the number of effective Kms. Operated per employee per day. On this front, STUs performance has not been satisfactory because it decreased from 38.7 Kms.in 1985-86 to

37.9 Kms During 1995-96"'.

In case of recruitment, apart from officers, direct recruitment in the Corporation is at the levels of drivers, conductors, L.D.C. cleaners and mazdoor, compilers, Jr. accountants. Essential and desirable qualifications are advertised time to as and when recruitment takes place. Government rules relating to reservation for various categories of applicants are applicable. The process is computerized and fully transparent, owing to over staffing. No recruitment, apart from special drive for reserved categories and eligible apprentices, has taken place in the last decades.

U.P.S.R.T.C. provides free travel on Corporation buses for employee's family 2 free passes and 3 P.T.Os p.a. (Calendar

Mathur, J.S. "Surface Transport in India", Prinlwell Publisliers, Jaipur, 1999 p-60

133 year) to working employees, 1 free pass and 2 P.T.Os p.a.

(Calendar year) to retired employees. Two medical facilities. A

dispensary equipped with requisite medical facilities, having specials doctors, 1 physician and 1 eye specialist and 1 homoeopath is established at H.Qr. for free checkups, treatment and consultation to employees. All employees are provided a fixed monthly medical allowance as per Govt, rules, Reimbursement of hospitalization charges in special cases of serious illness. 3 group insurance scheme. All employees are covered under the Group

Insurance Scheme of L.l.C. workman Compensation Act (WCA) and exgratia- Compensation to all employees covered under WCA on injuries in accident as per schedule IV of WCA. Payment of

Ex-gratia is made to all eligible employees.

Employment welfare fund (E. W. fund) is created for budget for funding various requirements of employees. Membership is voluntary. Initial contribution is Rs. 10 and monthly contribution is Rs.2. Matching Contribution is made by Corporation Committee comprising of 6 officers and 7 employees decides financing of employees from the fund based on the merits of the case to manage the funds.

134 An employee retires normally on attaining the age of

58 years and is entitled to the balance in his PF a/c, GIS, encashment of leave, gratuity and pension (if applicable).

For importing training to drivers and technical staff, a

Training School is established in Kanpur. This school trams the inexperienced drivers and other technical staff to provide safe journey to the passengers of U.P.S.R.T.C.'s buses.

U.P.S.R.T.C.'s role in Tourism

Uttar Pradesh occupies an important place in the field of tourism.

The State is replete with places of tourist attractions. The Stateis rich in places full of natural beauty on one hand and tourist spots of historical, religious and cultural importance offering better prospects for the promotion of tourist industry on the other. The

Tourism department is poised to top these prospects by way of planned and integrated programmes.

Following expansion and rapidity of the most modern means, tourism has become a phenomenon all over the world and the people are travelling in large numbers. Besides promoting regional and international understanding, tourism offers more and more opportunities of employment, ensures development of farflung areas, increases foreign exchanges and helps preserve

135 cultural heritage. "The tertiary sector, led by finance, trading and

tourism activates, accounts for growing share of F.D.I, in

developing countries".'

Link many parts of the world, tourism is steadily

growing in India. Tourism industry is also a foreign exchange

earner. It is the achievement of the tourism. Hotels, travel

agencies and transport companies are providing opportunities of

direct and indirect employment. Keeping this in view, tourism has

been declared an industry in U.P., U.P.S.R.T.C. and private

entrepreneurs are being encouraged for greater involvement with

stress on all round development of the State under the new tourism

policy.

To attract the tourist, U.P.S.R.T.C. observed that its

long route buses to halt at an en-route wayside dhabas of the

crew's choice, where the crew had their food but this was

inconvenient to its passengers/tourists in the absence of required facilities at the dhaba and poor quality of available edibles. The

Corporation thus evolved a novel concept of regulating and

authorizing wayside dhabas on selected long routes. These dhabas would be entering into an agreement with the Corporation

' World Investment Report, 2001, Indian Edition, 2172, Niran Kari Colony, Delhi, 110009. p-129

136 regarding provision of passengers facilities as per agreed terms, as

well as, pay a nominal token royalty to the Corporation . In turn

the Corporation shall ensure that its long routs buses half are

only on dhabas and not on other dhabas. The owner of the dhabas

is thus also benefited in getting captive customers transported to

its dhabas by the Corporation. The scheme was evolved on the

concept of public-private participation to enable the provision of

better tourist facilities without any long term capital investment.

In the first phase keeping in view the discomforts

faced by the tourists, the Corporation decided to identify certain

places on its important long routes where arrangements have been

made to cater to the needs of the tourist. The selection of these

dhabas was based on the space availability, place for parking of

vehicles and important facilities made available at these dhabas

Following provisions are made to attract the tourists.

Regulating rates and quality for sale of eatables,

availability of fresh food, snacks and items of general use related to travel-books, fruits etc. availability of fresh drinking water

arrangements for seating facilities with fans etc. first aid facilities

separate toilets/ urinals for gents and ladies, P.C.O./Fax facilities, round the clock security, generator facilities for uninterrupted

137 power supply, television for entertainment, suggestion / complaint box for passengers/tourists. In addition of the above-mentioned facilities, the owner of the dhaba has also been responsible for making arrangements for cleanliness and minor repairs of the

Corporation vehicles such as tire puncture, inflation of tyres etc.

However, the private travel agencies have placed a significant role in increasing the tourism than U.P.S.R.T.C. because of their chep modernized and efficient services to the people U.P.S.R.T.C.'s buses are not so modernized and don't have so much facilities as private travel agencies. The U.P.S.R.T.C. should provided attractive, comfortable and adequate facilities to the people to attract customers/ tourists.

U.P.S.R.T.C. And Movement Of Passengers In Urban As

Well As In Rural Areas.

The buses of U.P.S.R.T.C. are primarily operated on nationalized routes of the State and neighbouring states. In addition, a limited number of buses are also operated on some non-nationalized routes/segments on permit basis, depending upon the demand of passengers.

The U.P.S.R.T.C. operates around 7400 buses on the nationalized route network covering over 2 million Kms. a day.

138 Each day U.P.S.R.T.C.'s buses ply 90 single or 45 up-down trips

on each nationalized Km. Or there is at least I up-down trip on

each nationalized Km. In every 30 minutes U.P.S.R.T.C. operates

its services in Uttar Pradesh as well as in Uttaranchal. With a

view to extend the benefits of its services to the largest traveling

population, the Corporation operates a verity of services suited to

passengers with different travel needs.

Short distance services are operated on the village- tehsil- district centre network. The adequacy, frequency of

services and economy is the criteria for these services apart from

efficiency of services and passengers comfort. These services are provided mainly for the people of rural areas.

Express and long route services generally cater to the passenger surplus of the railway network. Efficiency of services and passengers' comfort is the corporate criteria for long route services. The fare charged in express buses is 10% higher than ordinary buses.

Delux and semi-delux services provide convenient and comfortable transport to the passengers' and are generally plied on long routes or shuttle services connecting satellite towns connected to a business centre as the nucleas. Standards for the

139 passengers comforts are fixed and compliance is ensured,. The fare charges on semi-delux buses is 25% higher and that on deluxe buses is 70% higher than that on ordinary buses.

The Corporation also operates direct services to the important cities of adjoining States, like Ambala, Karnal, Rohtak,

Ludhiyana, Patiyala, Amritsar, Pathankot and Hoshiyarpur in

Punjab and Haryana, Shimla and Nahan in H.P, Udaipur, Ajmer,

Bharatpur, Alwar, Jaipur Balaji and Nathdwara in Rajasthan,

Khajuraho, Gwalior, Sagar, Reva and Satna in M.P., Raxaul,

Patna, Gaya and Bhabua in Bihar, Delhi and Chandigarh. The

Corporation on an average operates around 1700 services on over

400 inter Stateroutes.

To cater the needs of passengers residing in the hills of the State (now Uttaranchal, where road transport is the exclusive mode of transport, the Corporation operates hill services from Dehradun, Kumaon and Tanakpur regions in view of its social commitments. However, buses plied on hill routes have a lower seating capacity and the high operational cost due to higher wear and tear owing to the terrain of operations. As a result, these operations are subject to planned losses. On an average, the

Corporation operates around 450 buses on 180 hill routes

140 incurring a loss of around Rs 60 million pei annum on these operations

By providing several types of services the Corporation

's aim is to cater the travel needs of urban as well as rural people

The existing structure of STUs has the advantage of full control on the operations since the management own all the resouices

With the public sectoi inteivention in the load passengei tianspoit business, many fai flung lemote areas were connected by bus services and thus the people fiom such remote aieas enjoy the benefits of mobility The employes of STUs are also benefitted greatly in terms of better pay packet, comfoitable working conditions, desirable welfare schemes and implementation of labour legislation in the tiue spirit "The public sector intervention has also given use to professionalism in load transport sector, creation of infrastructure facilities like bus terminals and many other attendant benefits to the society at large" ^

Urban transportation involves the movement of people as distinguished from that of vehicles, and is mass transportation

(generally defined as transportation by a public earner duiing a

' Op Ci1,p-79

141 year of passengers equal to the population of the city seived) ' To

make the movement of people efficient and adequate, the

Corpoiation has 418 bus stations of which 244 aie in owned premises and 174 in rental premises For the convenience of passengers, the bus stations have been classified in accoidance with facilities available at them in four categories A, B, C and D,

These facilities are as follows

(1) Drinking water-Taps and India Marks -II pumps,

(2)Lighting, passenger sheds and station-,

(3)Fans in passenger's sheds

(4) Benches and chairs ,

(5) Display of T T and fare list ,

(6) Booking and inquiry counter ,

(7)Suggestions and Complaint box ,

(8)Toilets and urinals,

(9) Canteens/ Book stalls/general merchant shops,

(10) P C 0

(11)Passenger lounge^

' Taff, Charles A "Commercial Motor Trdnsportation" R D Irwm, INC , Homewood, Illinois, 1955 ,p-631

142 (12)Public address system-

(13) Clock room ,

(14)Generator .

(15)Television.

In the above items 1 to 8 are from category 'D', 1 to 1 1 from

category 'C, 1 to 12 from Ceategory 'B' and 1 to 15 from

category 'A' ,

The Corporation has also initiated seats reservation

system in buses at 50 identified bus stations on selected services,

but this system in roadways buses received a low response from

passengers.

A large number of passengers are moved by

U.P.S.R.T.C.'s buses on a concessional rate. The children are allowed free travel upto five years of age and the children more than 5 years but upto 12 years of age are provided 50% concession in fare while the categories of distinguished citizens are permitted to travel free in Corporation buses, the expenses of their travel are paid by the concerned departments of the administration.

These citizens are the Members of Parliament-Lok Sabha/ Rajya

Sabha and one Co-passenger, Members of the legislative Assembly

43 U.P. and one co passenger, Members of municipal Corporation of

U.P. and one co-passenger Dislingiiislicd Rcporlcrs, Freedom

fighter and one co passenger, Ex-member legislative Assembly o f

U.P. and one Co-passenger, and Ex-member of Municipal

Corporation of U.P. and one co-passenger. Except these, the

citizens who have been decorated with bravery awards are

permitted to travel free of charge in Corporation's buses. The

extra charges and the taxes other than the fare of the buses are to

be paid by them.

The persons who are totally blind or are partially blind

(According to the definition of Physically Handicapped Public

Act. 1995), those who are dumb, deaf or both (According to the

definition of Physically Handicapped Act, 1995), those whose one

arm or leg or both are amputated, those whose one hand and one leg or both hands or both legs are handicapped (Paralyzed), those who are mentally retarded or challenged and leprosy free physically handicapped can avail free travel on the production of the certificate given by the Chief Medical Officer. They can have one co-passenger traveling with them free of charge of the bus fare. The travel is only allowed in the ordinary buses of the

Corporation . But such persons and their co-passengers have to

144 pay taxes and surcharges other than the fare. Their travel cost is reimbursed to the Corporation by the "Physically Handicapped

Welfare Directorate". U.P.S.R.T.C. also provides concession facilities to the people of rural areas. The student of the rural areas are allow^ed monthly pass on 30 single Journeys in rural area's buses. The facility of Janta pass is also available on ordinary buses in rural area. Under this concession as against 60 up and down trips, fare is charged for 40 trips only, but passenger tax is to be paid for 60 trips.

The number of passengers moved by U.P.S.R.T.C.'s buses in 1997 was 832.20 lakh, while the no. of passengers carried till Oct. in the year 2002 was 1395.39 lakh. There is a great increases in the number of passengers moved by U.P.S.R.T.C.'s buses during last 5 years. Thus, U.P.S.R.T.C. has played a significant role in the movement of passengers and has helped the disabled persons by provided them free of cost services. It has also provided assistance to the rural poor people of the Stateby providing concession in fare to them and has raised the standard of living of the rural people because there are many rural areas in

U.P., Where private bus owners don't ply their buses due to bad

145 condition of roads. It is the U.P.S.R.T.C. which is providing its

services there, inspite of incurring huge loss.

U.P.S.R.T.C. And Agro- Industrial Development

At the time when U.P.S.R.T.C. was established^its main aim was the development of the road transport sector correlated to which would be the overall development of trade and industry,

Co-ordination of the road transport services with other modes of transport and providing or causing the provision of an adequate, economical and efficiently Co - coordinated road transport services to the residents of the states. Today, in view of the vital role, U.P.S.R.T.C. plays in the overall process of socio-economic transformation of our developing economy and because of the fact that U.P.S.R.T C- is one of the vital public utilities, its management, finances and overall control are entrusted to the public enterprises considering the following three major factors.

i) Public enterprises are interested in promoting public

welfare rather than aggrandizing profits.

ii) Public Utilities (like U.P.S.R.T-£:) require a large

proportion of their total investment or overheads, which

can be met only by public enterprises.

146 iii) A public enteipiise enjoys monopoly position as a lesult

of which It can adopt an appropriate piicing policy

without causing any harm to the public welfaie"' '

As U P S R T C plays a great role in the movement of passengers It has no role in moving agriculture or industrial products from one place to another because it has no good vehicle for such purposes It is also a reason that U P S R T C is incurring losses every year inspite of improvement in its performance

During 1989-90, it incurred a loss of Rs 24 75 core which rose to Rs 40 42 crores in 1990-91 During the period

2000-2001, the total revenue of the Corporation was Rs

27,876 16 lakh while the total cost was Rs 36,318 lakh The loss of Rs 442 52 lakh "The losses of all the STUs for the year 1995-

96 have crossed the one thousand crore mark The figuie as estimated in the Journal of Transport Management was Rs

1035 24 crore But "K S R S T C has embraces infotech in a big way All its depots are linked online to enable date flow

Performances are evaluated online by the management It also has put in place a GSM based system to monitor movement and

' "Indian Journal of Transport Management", vol 20, No 11, Nov 1996 ^ "IndianJournalofTransportManagement", vol20. No 8, Aug 1996

147 punctuality of buses Its call centre at Banglore handles ovei 1000

calls a day from the public At a time when all State Governments

are funding ways and means to cut deficits, the success of KSRTC

is definitely worth emulating" '

U P R S T C is incurring losses while the owners of

the private Vehicles aie gaming There are a lot of reasons behind

this Firstly, U P S R T S's main aim is not to eain a huge piofit

but to provide cheap and adequate facilities to its passengers

While private vehicles owners' mam aim is to eain profit

U PS R T C has also social responsibilities to serve the masses It

issues passes to secretarial employees, freedom fighters, MPs

M L y\ s and dis-abled persons The U P S R T C 's buses allow passes to these persons and perform this service on loss basis

This is a major point m my opinion, which becomes a cause of loss to U P S R T C

Secondly, U P S R T C also operates its vehicles m remote and backward areas where private vehicles' owners have the fear of loss That is way, there is a great loss of U P S R T C every year As this Corpoiation has social responsibilities, it accepts losses by providing cheap and efficient seivices to its

The financial Express, Monday, Dec 2, 2002 p 9

148 passengers. Some times the U.P.S.R.T.C. allows private vehicles to operate because of lack of management .

Thirdly, U.P.S.R.T.C. has no goods vehicle to operate.

Goods vehicles, which are the most important sources of revenues in this business world are only plied on by the owners of private vehicles and they earn more benefits than U.P.S.R.T.C.

Fourthly, it has also been found that some of the

U.P.S.R.T.C.'s drivers have mutual understanding with private vehicles owners on many places. At the allotted time of

U.P.S.R.T.C.'s vehicles, private vehicles take up the passengers of

U.P.S.R.T.C.'s buses. This is done when the U.P.S.R.T.C.'s bus drivers delays its bus by 5 or 10 minutes. This cause a great loss to U.P.S.R.T.C.'s because of the same fule consumption only very less number of passengers are transported.

Fifthly, the U.P.S.R.T.C.'s buses are also facing serious competition with privates well maintained video coaches.

Passengers react to travel by the U.P.S.R.T.C.'s vehicles for long distances because of broken windows and unmaintained buses.

Sixthly, many routes which are profitable to operate,

permits on

149 these routes are issued to the private vehicles' owners by

receiving bribe from them. Private vehicles' owner on these

routes, charge higher amount than appropriate. At some places,

where permits are not issued to the private vehicles' owners,

they ply on their vehicles on roads by giving weekly or monthly

bribe to the police or the district administration. This causes a

great loss to the U.P.S.R.T.C..

Seventhly, many conductors of the U.P.S.R.T.C.'s buses receive the amount of tickets from the passengers but they do not issue the tickets to the passengers due to unsuitable and improper checking system of U.P.S.R.T.C.

To remove the limitations of U.P.S.R.T.C. the first lesson for the U.P.S.R.T.C. will be to live with competition and to improve in relation to what the market is demanding. In order to succeed in the new paradigm, U.P.S.R.T.C. will be forced to improve its bottle level services. At least, the new decade should begin with new strategies of marketing. The IT revolution is yet to comprehensively influence U.P.S.R.T.C..Net working of the depots to sell tickets from any where to any where should be the immediate priority. It is interesting to know that a small private operator in Pune City has more than 100 outlets for selling his

150 tickets. Unless tickets are available in reachable placescs,

U.P.S.R.T.C. may not be able to survive in competition. There arc

scale advantages to large organizations which are yet unperceived.

This bring to the reforms of ticketing system. Looking back, it is strange that inspite of its size, U.P.S.R.T.C. chooses the methods of ticketing which are suited to single bus operators.

Smart cards are the answer and passengers should be able to change over buses without buying fresh tickets. This will considerable increases utilization of the rolling stock without

Committing a majority of buses to long routes with varying degree of loading pattern.

U.P.S.R.T.C. should also start an effective checking system in road ways, buses to check the tickets of passengers so that the honesty of the conductors could be Judged. There should also be a check of private vehicles , which are plying on without the permission of the Government U.P.S.R.T.C. should also start its business in congested areas of cities. The buses of the

U.P.S.R.T.C. should be well maintained and in good condition to complete the private vehicles.

But, the problems of public transport infrastructure do not come to an end with the establishment of facilities by

151 mobilizing funds from various sources, but setting the tariff structure, meeting operational expenses and debt servicing from the operating revenues are equally important issues to be dealt with. In other words, the creation of transport infrastructure alone will not result in economic benefits, unless equal emphasis is placed on continued maintenance and effective management of traffic. Till these gaps are not examined well in advance, the economic viability of the project can not be ensured.

The setting up of an effective management control system will also help the STUs to improve their performance.

Management control has two aspects namely - management control system and management control process which are intimately inter-related. The management control system outlines the authority, responsibility and delegation to important responsibility centres, like depots divisions, regions, zones and various other position in the field and corporate office. It also indicates the relationship among various organizational units, criteria and methodology for performance evaluation rewards and punishments for achievement and non-achievement of target etc. The management control process involves establishing goals or target or standards, performance measurement and evaluation, taking

152 remedial action and implementation of the decisions taken in the review meetings in order to achieve the targets in the future period etc.

The management control system provides the necessary feed back and other relevant informations. The effectiveness of the management control process is dependent on the quality of feed back received and the way. It is used the top and senior management for performance appraisal. The criteria for judging the management actions in an effective control system has both efficiency and effectiveness. Efficiency is measured by the amount of output produced per unit of out put. The number of

Kms. run per litre of diesel oil, the number of Kms. obtained per tyre etc. are some of the examples of efficiency. Effectiveness is the relationship between the output and the objectives of the organization. Improving the market share on a route in a highly competitive environment indicates improved effectiveness.

The process of management control includes the

following steps -

a) Establishing the criteria in the form of standards or targets

or norms for units and the origination ;

153 b) Measurement of actual performance or results of various

units and the organization ;

c) Evaluation of performance by comparing actual performance

with standards or targets. ;

d) Analyse variances like excess cost by cause and

responsibility ;

e) Taking remedial action against the causes and the persons

responsible for variances ;

f) Recycle the informations and actions at regular intervals ;

g) Re-organize if standards or targets are not achieved even

after a few months of operations and if targets are

considered to be achievable ;

h) Change the criteria or targets if they have been surpassed or

found difficult to achieve after taking all effective and

remedial actions ;

Conclusion

The U.P.S.R.T.C. is facing a severe resource crunch today, which has led to shortage of spare parts and another material for its day today operations. Such a situation resulted in deterioration of the health of its fleet, which forced it to defer its

154 replacement plans and rise in the average age of its buses.

Inability to augment the fleet of U.P.S.R.T.C.in its turn, has

resulted in both legal and illegal competition, which lead to a

general decline in the service, quality and dis-satisfaction among

passengers. To improve the quality and reliability of its services

U.P.S.R.T.C. need to augment its fleet and match its services to the needs of the passengers. Hiring of buses is a strategic alternative at the prevailing by which U.P.S.R.T.C. can augment its existing services without investment free from the additional burden of employing extra staff and maintaining the hired buses.

Some of the managerial efforts could be diverted into understanding the needs and preference of passengers and catering to them more effectively. U.P.S.R.T.C. should also ply goods vehicles and should not leave the movement of goods only for the private vehicles. It is now clear that though the U.P.S.R.T.C. is performing well but also so far as the development of rural areas is concerned much remains to be done to bring the rural areas and villages of U.P. under the close purview of the U.P.S.R.T.C. . In the next chapter our aim will be to discuss, examine and analyse the role of road transport in general and in the development of rural areas of U.P. in particular.

155 Chapter-lV Rural Development of U.P.

Road Transport CHAPTER - IV

RURAL DEVELOMENT OF U.P. AND ROAD TRANSPORT

In the preceding chapter, a detailed account of the working and

performance of the U.P.S.R.T.C. was made. It was found that

there was a number of problems faced by the U.P.S.R.T.C. in the

operations of its fleet on road lines. In this chapter, we will

concentrate on the role of road transport in rural areas of the state.

Almost 80% of the population of U.P. is living m villages where their main occupation is agriculture. Several means

of transport are used in these villages to carry on the passengers

and agricultural products from one place to another or from rural

areas to the urban centre/market, but road transport is the best means of transport in rural areas. It has played a significant role in the rural upliftment of the state. Animals, animal carts like bullock carts and camel carts and tractors are the principal means of communication in the rural areas.

Although the use of motor transport is rapidly increasing, yet the bullock - carts continue to be the most significant and popular means of rural transport even today. India is a country of carts and not of cars. Cars and motor trucks can not become so effective in most of the villages as bullock - carts.

156 because of non - availability of pucca roads. In the absence of road transport, railway too can not beconic a populai' means ol' rural transport, because it has a different sphere of transportation

- of carrying heavy and bulky commodities for long distances and from one station to another. The bullock carts are therefore, inevitable under Indian Conditions and can not be replaced even by the motor transport. They occupy premier place among all the means of rural transport".'

Bullock- carts in rural areas have played a significant role, because most of the villages' roads are narrow, earthen, rough and uneven, therefore unsuitable for motor transport.

Bullock carts can easily ply on these roads. These are used for agricultural operations and remain idle for several months in a year. When these are used for marketing purposes^ these involve no extra capital and running expenses, while there will be a great loss of motor vehicle if it remains out of use for a longer period.

The maintenance and running cost of motor vehicle will also be higher than bullock - cart. Bullock - cart may also be owned and used at the convenience of the people of rural areas. These may be owned with much less cost even by the poor villagers. These carts

Jain J.K...... "Transport Economics" Chaitanya Publishing House, Allahabad (1990) p-3()0

157 act as a regular system of rural transportation. These are locally constructed and repaired and there is no difficulty of availability.

While motor transport can not act as a regular transport system in rural areas. The rural transport is short distance transport from one village to another or from villages to the markets, mandis and fairs. Therefore, the time factor is not so important as in the case of motor transport.

Bullock - carts therefore, have a significant effect on the rural economy. These are very widely used for varying purposes and therefore indispensable means of rural transport. The carrying capacity of an Indian bullock cart ranges 3.5 quintals to

14 quintals depending upon the strength of the bullocks and the condition of the roads. These carry goods like foodgrains, vegetables, manures, seeds and household commodities from villages to cities/markets. Bullock - carts thus, are an integral part of our rural economy. These do equally important services as the railways. These carts can not be ended because of their cheap and convenient services, their low manufacturing and repairing cost, easy availability and suitability to ply over villages' narrow and rough roads.

Camel carts are mostly used in western U.P. for carrying goods from one place to another. These carts carry goods

158 traffic upto a range of 50 to 70 miles. Horse driven carriages are occasionally used in transporting passengers between villages and cities. These are also used in transporting goods and services from one place to another.

Except animals and animal carts, mechanized road transport has also been introduced to a certain extent, in rural areas- "Motor transport services render a great service in rural areas by breaking down the isolation of the villages and bringing about better social and economic intercourse between the villages and towns".' Apart from the quick movement of men and materials, motor transport creates a sense of activity, alertness and machine mindedness in the people and an urge not to waste time but to produce more and raise the standard of living^. But motor transport can provide its services if there are good roads. The development of motor transport in rural areas is linked up with the rural road development. So long as our roads remain as bad as these are today, motor transport shall be unable to render any effective rural transport service.

With the development of roads, the role of road transport in opening up the countryside is significant in providing

' Gupta S.C. and Bhatnagar, K.P "Transport in Modern India" Kisiiorc Publishing House, Kanpur. p.432 ^Ibid p-394

159 an essential communication link. Without road transport, the mail and other means of communicalion hardly reach the villages and remote areas and without communication there can be little hope of economic development in a state like U.P. with 80% of its people still living in rural areas.

It can be said that there is no escape from motor transport. It represents a technological advance in the transportation field, which has made a truly revolutionary impact on the economic development of a country, which has allowed modern road transport to make it contribution and has developed it and nurtured it and the rewards have amply justified the investment, 'linking thousands of communities today and forming an integral part of the passenger transportation system is the inter- city motor bus operation. Paralleling to a great extent the improvements in our vast highway system, inter-city bus operations have developed so rapidly that it is little short of phenomenal. The services rendered by these companies have become the accepted standard for thousands of passengers each year'. In India too, modern road transport can make a significant contribution in the development of rural roads.

' Ttiff, Charels A •Commercial Motor Transportation' Richard D Irvin, IC, Homcwood Illinois, USA (1955)p-577

160 In U.P., road transport has played a vital role in the all

round development of the state. The U.P.S.R.T.C. which was

incorporated under the Road Transport Corporation Act, 1950 on

June, 1972 has been consistently making efforts to provide

maximum benefits and amenities to the passengers travelling by

buses. It is operating long distance and shuttle services in

different parts of the state. Shuttle services are mainly operated to

join tehsils/block headquarters and other important rural areas with district headquarters. Express or long distance services are

operated by the Corporation to connect important towns with each

other in the state. Deluxe and semi - deluxe services, inter state

services, mela - services, city-bus services and bus services to hilly regions are also provided by the U.P.S.R.T.C. The

Corporation also provides concessions to the students of rural areas. Monthly pass on 30 single journeys is allowed on rural areas basis. The facility of Janta pass is available on ordinarily buses in rural areas. Under the concessions as against 60 up and down trips, fare is charged for 40 trips but passenger tax is paid for 60 trips".'

Besides roadways' buses, private buses are playing a

U.P. Annual, 1996-97. Information and Public Relations Department, U P.. Lucknow, p-298

161 significant role by providing cheap and complete services to the people of rural areas. Private bus owners provide concession to the students and some other people who travel daily on the route.

In district Bijnor of U.P., private buses are playing an important role in the upliftment of rural areas. The town 'Barhapur' which has a population ol" nearly fouily (housaiul is siiiioiind by more than 20 villages. It has a good network of private buses. On

Barhapur-Nagina route whichisH km long, there are more than 25 buses which are providing timely and adequate services to the people of rural areas. In almost 50% of the villages which are connected from the town in some way, the Jugarrs (which are like long cart and have an engine) and cars are the principal means of transportation. Bullock carts, tractors and trucks are also used to carry the agricultural products like sugarcane, Bajra, Wheat,

Maize and Rice from the villages to the towns/cities or markets.

But it has been seen that 50% of the villages have no road to connect the market with good transport and the rest 50% of the villages which are connected to urban centres have not good quality of roads. Therefore, to improve the quality of life in vast rural areas of U.P., a basic road network in the rural areas is essential. All sectors of rural development including agriculture, health, education, small scale industries, trade, commerce, dairy

162 farming, postal services, banking environinenl and social wcllarc

depends on good communication/ transportation facilities. For the

agricultural based economy of the state, rural roads play a prime

role in providing inputs for the agriculture, marketing of

agricultural produce, crop diversification, overall modernization

of the agriculture, development of horticulture and flori-culture

and development of export oriented agriculture and agro processing. Rural roads facilitate processing of agricultural produce in the same areas where these are produced, thus adding value to the produce as well as creating much needed employment opportunities in rural areas. Neither agro-related nor small scale industries come up in accessible areas resulting into unemployment in these areas.

Rural roads thus, work as a catalyst to the overall socio-economic development of rural areas. They increase the reach of the market and its multifarious services to the hinterlands. Rural roads are also important for equitable distribution of benefits and for maintaining a proper rural and urban balance. If our rural masses are to join the mainstream of the more privileged urbanities without exodus to towns and cities, the most essential pre-requisite would be to provide an adequate network of roads. Rural roads construction and maintenance

163 activities are highly labour intensive and create direct employment for the millions of rural poor, close to their homes and stop urban migration.

In U.P. only about 50% of the total villages are connected with all weather roads. The remaining villages depend mostly on earth tracks and footpaths. These tracks generally follow winding alignments with a very poor riding surface often caused by deep ruts cut by solid wheeled animal drawn carts. The cross drainage works, i.e., bridges and culverts are mostly lacking.

These problems are compounded by lack of proper maintenance. In their present form, these tracks are not suitable to motorized traffic and to cater to the increased traffic generated by various rural development schemes. During fair weather, these tracks cater to the rural traffic to an extent but during the rainy season, they become practically unusable. Consequently, many villages are cut- off from the outside world for a considerable period of time and the rural population is deprived of even the basic facilities.

Most of the existing rural road net-work in U.P. consists of earth and gravel surface with poor quality. It also has several deficiencies as it has been developed in stages, from the usages of several years rather then any proper design. It is suffering from the consequences of several years of deficient

164 investment and lack of comprehensive planning. The rural road network is under developed, poor in quality, low in standard, inadequate in capacity, overloaded both by volume and weight of traffic, antiquated in design, structurally weak, poorly maintained, heavily deteriorated and grossly inadequate to meet the present traffic demands. The rural road network needs major upgradation programmes in addition to fresh construction. "Road transport ,of- course, provides mobility on which a number of developmental programmes depend. There can practically be no revolution in other sectors without a revolution in road transport."'

An efficient transport System is absolutely necessary for a suitable economic development. Inadequacies and imbalances in transport system threatens to constrain economic growth and the quality of life in both urban and rural areas.^

Development of Rural Infra-Structure

The prosperity of a state/country depends directly upon the development of agriculture and industry. Agricultural production however, requires power, credit, transport facilities etc. Industrial production requires not only machinery and equipment but also skilled manpower, management, energy, banking and insurance

^ Indian Journal of Transport Management. Pune, Vo., 19, No. 6, June 1995. p-433 ^ Annual Plan - 2001-2002, Planning Commission, G.O.I. New Delhi p-25

165 facilities, marketing facilities, tianspoit facilities which include railways, roads, shipping and communication facilities etc All these facilities and services constitute collectively the infra- structure of an economy and the development and expansion of these facilities are an essential pre-condition foi increasing agricultural and industrial pioduction m a countiy" '

Energy and the road transport are the important parts of our rural infrastructures The availability of energy is the most important single factor which can act as a constiaint on economic growth of a state Broadly, there are two types of energy Viz ,

Commercial energy and non-commercial energy The energy in rural areas consists of non-commercial energy It includes fuel wood, agricultural wastes and animal dung Rural energy meets the basic needs of cooking and domestic lighting Fuel wood is essential for cooking and it is extensively used in our villages and towns Agricultural wastes such as straw, are piesently used as feed and fooder, roofing material, organic matter for compost making and as fuel for cooking purpose Dried dung of animals is also extensively used in our rural areas

In the hilly and rural areas of U P as in town

' Sundharam, K P M and Ruddardatt - 'Indian Ecomony' S Chand and Co Ltd , Ram Nagar N Delhi 2001 p-104

166 Barhapur of district Bijnoi, fuel wood is the only source of cooking, not only of cooking but also a source of employment to a large number of people of the town There is no industry in this area, therefore most of the people are earning then livelihood by selling the fuel wood in the maikets Bullock caits, Hoise-dnven carts and at some places tiactois aie used foi this pmpose Di

Pathak of Punjab Agricultural University studied the potential of agricultural wastes in a rich village m Ludhiyana district and found that after all the fooder needs of the village were meet, the energy potential of the remaining crop wastes and animal wastes was enough to meet all the energy requirements of the village and still leave a surplus In a situation where supplies of conventional energy sources like firewood, aie decreasing and as alternatives like kerosene are not within the reach of many, this increase m energy supplies will benefit the society in general and rural poor in particular '

Except energy, rural roads occupy the most important part of rural infra structure About 80% of U P 's population live in rural areas Their mam occupation is agriculture In the absence of rural roads, no one can imagine the progress of agiicultuial and

'op ,cit ,pll2

167 socio-economic development of rural areas, because in the absence of road there will be no transportation/marketing of agricultural or industrial product. Therefore, rural roads occupy the premier position in the development of rural areas A proper development and improvement in village to market roads will render the cost of production and marketing to a minimum level.

Road improvement would largely contribute to a decline in both average and marginal costs of goods by encouraging the use of more productive inputs and manufacturing techniques as well as by reducing the costs of holding inventory of inputs and of processing inputs from the market. Improved transport and mobility provided by village to market roads would expose the inhabitants of rural areas to modern techniques of production and marketing that have proved profitable elsewhere.'

Development of rural roads is thus highly rewarding in economic terms. An improved tarmac or all weather surface can bring buses, electricity, telephone, piped water supply and better access to markets, to health facilities and schools, offices and shops, all tend to be at the sides of main roads. Thus for a systematic economic progress, according to the needs of the rural

' J.S. Mathus and S.P. Agarwal. "Surface Transport in India" Printwell Publishers Distributes, Jaipur. 1999 pp.90-91.

168 people, the concentration should be on making rural roads. These roads should be connected with all weather roads because

connectivity allows access to all the services that one needs, it

attracts business and generates employment, it fulfils social needs,

creates job and generates income for meeting other needs to.

Paradoxically enough, urban centres enjoy high connectivity and rural areas suffer from poor connectivity, the real price to pay for mass transportation system is far more in cities than in rural areas. The same is true for sanitation, water supply and many other services. So infrastructure can be constructed much cheaper in rural areas than cities. Rural areas offer a better environment too. However, it is from villages that people migrate and it is to cities that they go. So, only cities have enough people to provide a market for infrastructure services. Villages can not support infrastructure, however, much cheaper it may be to construct it there. The only key to this problem is that our rural areas should be so attractive as cities, then we can build infra- structure at a small fraction of city costs and yet have enough demand to support them.

Modern business and industry need large business districts and a comprehensive range of services. At present, rural areas do not support either large business districts or high quality

169 services. This is why modern business shy away from rural areas and leave them poor. If rural areas can offer similar facilities, businessmen will find such rural areas more economical than congested cities. They will, then naturally redirect their investment away from cities to such rural areas. Then the solution to India's rural poverty lies in identifying a method for empowering rural areas to support large business districts and comprehensive services.

Business districts evolve wherever transport and telecommunications connectivity is high with latest technologies.

Telecommunication services can be provided in rural areas (jt^ the same costs as in large cities. So poor transportation connectivity becomes the main reason why rural areas do not support large business districts in the ways cities do. Conversely, once rural areas are empowered to offer large transport connectivity, there is no reason why they can not grow as well and as fast as cities do.

Backward linkages are important to both foreign affiliates and domestic (linked) enterprises.' Linkages raise output and employment in linked supplier enterprises. The indirect effects on supplier capabilities are probably more important. Linkages can be

World Investment Report India Ed. Book well 2172 Nirankari, Colony, Delhi - 110009, p-129

170 powerful channels for diffusing knowledge and skills between firms. Inter-firm linkages nearly always entail an exchange of informations, technical knowledge and skills. Strong linkages can promote production efficiency, productivity growth, technological and managerial capabilities and market diversification in supplier firms. They can often promote exports by linked enterprises and under the right condition domestic firms may develop to become global suppliers. The strengthening of suppliers in turn lead to various indirect effects and spill overs for the rest of the host economy. Spillovers can take place through domestic effects, mobility of trend labour, enterprises spin-offs and competition effects.'

Communication infra-structure has also made great strides in the rural areas. By providing necessary information about the market. The communication system helps in bringing the buyers and sellers together effectively and helps in accelerating the growth of the economy. Accordingly, the modern communication system has become an integral part of the development process in rural areas. Postal system, which is expanded through out the country gives special emphasis on the

Ibidp-129

171 rural, hilly and remote tribal areas. The main objective of postal department is to locate a post office within 3 Kms, of every village and to provide the facility of a letter box in every village with a population of over 500. This Department has introduced a scheme (Panchayat Sanchar Sewa Scheme) which will provide postal services to needy areas with less Government expenditure and will generate employment opportunities in such areas. In providing postal services, road transport has played a great role.

With the good transportation system, the postal services can reach the right person at right time without any delay. But in the absence of road transport facility, the message can not reach the person at a right time.

The telephone has also been proved a significant mean of communication. In every hexagon, a public phone is available which enables telephonic contact with any part of the world.

However, as rural areas grow, the demand for personal telephone connection is growing which needs to be met.

Rural Development Schemes

Rural India is where three fourth of our countrymen live. The nation or state can, therefore, be strong and prosperous only when all villages are freed from backwardness and poverty.

The Government of India and the State Governments are

172 committed to the cause of bringing about rapid and substantial development in rural areas.

The Ministry for Rural Development is engaged in implementing a number of schemes, which aim at enabling rural people to improve their living standards. Eradication of poverty and the ushering of speedy socio economic progress is the goal, with which the development programmes are being implemented through a multi-pronged strategy, reaching out to the most dis- advantaged sections of society. High priority is being accorded to provide clean drinking water, rural house and road connectivity.

The efforts made for socio-economic development of villages are much significant in the context of all round development of the country. In the context of U.P., it assumes greater significance. For about 80% of the State's population mainly lives in rural areas, keeping this fact in view, over 70% of the State's financial resources are invested on the development of rural areas. The importance of road transport can be emphasised with regard to the execution of rural development programme. The

National Transport Policy Committee had recommended for the integration of rural road programmes. The committee viewed that this integration would contribute to the fulfillment of transport needs of small and medium villages. It is felt that by improving

173 the communication link to villages, the rural development efforts can be optimized.

As per the fiver year plan, alleviation of rural poverty has been one of the primary objectives of planned development. Rural development implies both the economic betterment of people as well as social reformation, improvements in health education, drinking water, energy, sanitation and housing coupled with attitudinal changes facilitate social development.

Rural development schemes generally provide a direct attack on poverty through Special Employment Programmes and lands

Reforms.

• Under Integrated Rural Development Programme (IRDP),

those living below the defined poverty line in rural areas are

identified and given assitance for acquisition of productive

assets or appropriate skills for self-employment. The scheme

was launched in 6"' five year plan. The poverty line was

based at Rs. 6,400 per annum, but those eligible for

assistance under IRDP had to have an annual income of Rs.

4,800 or less. This programme is being implemented all over

the state from October 2"'^, 1980 to raise small/marginal

farmers, landless labourers, rural artisans freed bonded

labourers etc above the poverty line (Rs. 1 1000 per annum).

174 A new holistic Self-Employment Programme namely. "Swarn

Jayanti Gram Swarozgar Yojna", was launched on April 1st,

1999 with a definite aim of improving the family incomes of the rural poor and at the same time, providing for a flexibility of design at the grassroots level to suit the local needs and resources. The objective of re-structuring is to make the programme more effective in providing a sustainable income generation through micro enterprise development, both land used and otherwise.

A Rural Water Supply Programme under State Sector provides facilities of drinking water in rural areas. The

Central Government endeavours to supplement the efforts of the states by providing assistance under the Centrally sponsored accelerated rural water supply programme.

Powers have been delegated to states, to plan, sanction and implement the rural water supply scheme. An investment of about Rs.35,000 crore has been made in the Water Supply

Sector. So far, status of coverage of rural habitations as on

1st April, 2001, is as follows - 2,35,759

Fully Covered - 12,35,759

Partially Covered - 1,66,832

Not Covered - 2,0073

175 91% of rural habitations have access to drinking water

facilities. The number of hand-pumps and piped water

supply scheme is about 38 lakh and 1 1 lakh respectively.

"National Rural Employment Programme" (NREP) was also

started for rural development. As per this programme the

entitlement of each state to the Central fund was based on

the incidence of poverty and the population of agricultural

labourers, marginal farmers and marginal workers. The

Centre and State Government share the expenditure equally

on 50:50 basis. In 1989, NREP was merged with the Jawahar

Rozgar Yojna (JRY), which was started to generate

additional employment on productive work like rural infra-

structure. In this scheme, 80% is Centre's contribution and the rest of 20% is state's share. Central assistance is provided for the state on the basis of proportion of rural poor in the State. Road construction was the primary activity under Jawahar Rozgar Yojna.

A Centrally sponsored scheme has been launched, called the

"Pradhan Mantri Gram Sadak Yojna" (PMGSY) on 25"' Dec.,

2000, which seeks to provide connectivity to all unconnected habitations in rural areas with a population of more than 500 persons through good all weather roads by the

176 end of five yeai plan In older to achieve the objectives

of the piogiamine, a icqimcincnl ol Rs 60,000 tioic has

been estimated

• The "Pradhan Mantn Gramodhogya yojna" is a part ot the

'comprehensive' Pradhan Mantn Gram Modhya Yojna'

introduced during 2000-01 to achieve the objective of

sustainable human development at the village level During the

2001-02, Rs 280 crore was made available for implementing the

'Rural Shelter' component of PMGY An amount of Rs 126

Crore has been released so for during 2001-02 To meet the

requirements of EWS and LIG groups in rural areas and to

improve the out reach of housing finance in rural areas, the

equity support to HUDCO has been increased from 5 crore to

355 crore during Ninth Five Year Plan

Table No. 5.1

Sectoral Expenditure Under 5 year Plan in U.P.

Sector 5'" Plan Plan 7"' Plan 8'" Plan (1974-79) (1980-85) (1985-90) (1992-97)

Agriculture 393 10 360 81 1006 63 2031 65 and Allied (13 5) (5 5) (8 4) (9 2) sectors (% total expenditure) Co-operation 32 27 26 209 01 106 00

(1 1) (1 2) (1 7) (0 5)

177 Sector Plan 6'" Plan 7"^ Plan 8"^ Plan (1974-79) (1980-85) (1985-90) (1992-97)

Rural - 458.00 1062.1 1 1899.15

Development - (6.9) (8.9) (8.6) Irrigation of 682.90 3257.99 4,925.33 10,333.85 Water (23.5) (49.4) (41.2) (47.0)

Industry 178.99 430.77 694.70 595.50

(6.2) (6.5) (5.8) (2.7)

Transport 246.66 255.81 1278.18 2090.53

(8.5) (677.90) (10.7) (9.5)

Education 107.97 255.81 546.97 1520.90 (3.7) (3.9) (4.6) (6.9)

Health 112.43 336.57 455.67 547.57

(3.9) (5.1) (3.8) (2.5)

Sanitation 110.04 475.54 994.83 944,21

and Water (3.8) (7.2) (8.3) (4.3) supply

Miscellaneous 7.13 67.85 318.00 1935.64 (0.2) (1.0) (2.7) (8.8)

All sectors 2909.23 6594.29 1 1,948.72 22005.00

(100.00) (100.0) (100.0) (100.0)

Source:- U.Ps. Development Report, New Royal Book Company,

Lucknow, 2000, p-9

178 Table No. 5.2

Central Assistance to U.P. for Basic

Minimum Service (1999-2000)

S.No. Particulars Amount Sanctioned

(in Lakh)

]. Primary Education 45,576.00

2. Health Services 15, 413.57

3. Drinking Water 53,215.00

4. Housing 1195.00

5. Rural Connectivity 108,102.00

6. Nutrition 4500.00

7. P.D.S 10.0

8. Others 0.00

Total 23801 1.57

Source:- Mid Term Appraisal of 9"' 5 year Plan, G.0.1 Planning

Commission, New Delhi, Oct, 2000, p-159

79 I able 5.3

Central Assistance to U.P. in Five Year Plan

Rs. in Crore

Particulars Agricultural Rural Special Irrigation of

and Allied development Area Flood

Activities Programme Control

Ninth Plan 3070.38 4742.80 575.00 3290.12

(Agreed (6.63) (10.23) (1.24) (7,10)

Outlay)

Annual 510.45 857.06 115.00 626.01

Plan (1997-

98)

(Approved (7.04) (11.83) (1.59) (8.64) outlay)

Actual 406.82 682.53 115.00 618.19

Expenditure

Annual 716.19 1066.87 420.00 835.02

Plan (98-

99)

(Approved (6.98) (10.40) (4.09) (8.14) outlay)

Anti 475.86 831.39 269.12 608.59

Expenditure (7.39) (12.92) (4.18) (9.46)

Annual

Plan

(1999- 839.45 1035.84 460.00 1005.32

2000)

180 Cor, l.;i Particulars Agricultural Rural Special irrigation of and Allied development Area Flood Activities Programme Control

(Approved (7.36) (9.09) (4.04) (8,82) Outlay)

Revised 363.73 532.1 1 427.47 589.13

Outlay (7.13) (10.43) (3.75) (11.54)

Energy Industries Transport Communica and tion

minerals

Ninth Plan 7544.14 526.65 1006.72 0,00 (Agreed (16.28) (1.14) (21.59)

Outlay)

Annual 1819.12 101.12 915.69 0.00

Plan

(1997-98)

(Approved (25.10) (1.40) (12.64)

outlay)

Actual 1131.46 93.25 809.33 0,00

expenditure (20.02) (1.65) (14.32)

Annual 2289.72 151.86 1326.35 0.00

Plan (1998-

99)

(Approved (22.32) (1.48) (12.94)

Outlay)

Anti 1182.96 136.47 1218.94 0.00

Expenditure

181 Particulars Agricultural Rural Special Irrigation of and Allied development Area Flood Activities Programme Control (18.38) (2.12) (18.94) Annual Plan

(1999- 2108.02 74.76 1522.30 0.00

2000)

Approved (18.49) (0.66) (13.35) outlay

Revised 896.30 53.28 961.92 0.00

Outlay (17.56) (1.04) (18.85)

Science and General Social General Grand total

Technology Economic Services Services

Services

2074.60 2103.58 12,277.97 128.03 46,340.00

(4.48) (4.54) (26.50) (0.28) (100.00)

65.86 521.62 1595.85 118.75 7426.53

(0.91) (7.20) (22.02) (1.64) (100.00)

32.98 80.95 1665.54 16.30 5652,35

(0.58) (1.43) (29.47) (0.29) (100.00)

327.22 900.44 2191.22 35.11 10260.00

(3.19) (8.78) (21.26) (0.34) (100.00)

34.53 71.32 1588.65 19.34 6436.57

182 r Science and General Social General Grand total Technology Economic Services Services Services

(0.54) (1.11) (24.67) (0.30) (100.00)

251.47 1664.19 2415.00 23.65 1 1400.00

(2.21) (14.60) (21.18) (0.21) (100.00)

20.29 24.56 1229.21 6.08 5104.08

(0.40) (0.48) (24.08) (0.12) (100.00)

Source:- Mid Term appraisal of year plan, Government of

India, Planning Commission, N. Delhi, (Oct. 2000), p-473-474.

• Under "Ambedkar Gram Vikas, Yojna" the Public Works

Department had launched a special scheme of connecting

schedule - castes/tribes dominated villages of the State with

the main link roads during 1995-96. The construction of link

road in 1500 Ambedkar Villages was started by the P.W.D.

in 1995-96. The department generated an amount of

Rs.97.37 Crore from its own and other resources. This

amount was utilizedin linking 703 villages upto the paved

level and 461 villages up to the brick paved level. During

1995-96, an amount of Rs.lOl Crore was spent and about

728 Ambedkar villages were connected with the paved level

183 link roads. During Ihc year, 1997-98, About 1116 Anihcclkar

villages were connected with the paved level link roads.

Target was fixed to 600 to 1000 villages with claygrit level

roads in June, 1998 between August and October and the

cost of connecting 2,781 villages with link roads during

1997-98 was estimated at Rs. 305.18 Crore.

• In Prime Minister's Rural Road Scheme, The Central

Government has devised a well conceived and time bound

programme for rural road which aimed at connecting within

the 3 years, every village that had a population of more than

1000, through good allweather roads. By 2007, every village

with a population of more than 500 will be similarly

connected. Government allocation for the project in its first

year is Rs. 5000 Crore. The Ministry of Rural Development

is the administrative ministry, responsible for the

implementation of the rural roads component in the form of

Prime Minister's Rural Road Scheme.'

According to 1991 census around 3.1 million households were without shelter and another 10.31 million households were residing in unserviceable Kutcha houses.

As noted by India - 2001, Ministry of Information and Broad Casting, G.O.I., New Delhi

184 Considering the magnitude of the problem, a National Housing

Habitat Policy was announced in 1998 which aimed at providing

House for all and facilitated the construction of 20 lakh additional housing units (13 lakh in rural areas) annually with an empahasis on extending benefits to the poor and deprived. Government was committed to the goal of ensuring shelter for all by the end of 10^'' plan period.

• "Indira Gandhi Awas Yojna" was also started to provide

assistance to the below poverty line households, belonging

to schedule castes/tribes and free bonded labour categories

The Central Assistance under the lAY for the year 2001-02,

is Rs, 1618 Crore for construction / up gradation of 1.3

million houses. So far, an amount of Rs.l098 crore has been

released during 2001-02.

• "Sampoorna Grameen Rozgar Yojna" (SGRY) was launched

in Sept. 2001, to provide wage employment in rural areas as

also food security, along with the creation of durable

community, social and economic assets. The scheme is being

implemented on a cost sharing ratio of 75:25 between the

Centre and State Government. The ongoing Employment

Assurance Scheme (EAS) and Jawahar Gram Samridhi Yojna

(JGSY) were fully integrated with scheme with effect from

185 April 1, 2002.

• The "Accelerated Rural Water Supply Prograininc"

(ARWSP) currently implemented through the Rajiv Gandhi

National Drinking Water Mission in the department of

Drinking Water Supply, has been in operation since 1972-73

to assist the state to accelerate the pace of coverage of safe

and adequate drinking water supply facilities to the rural

population. The currently allocation for this programme has

been enhanced from Rs. 1960 Crore in 2001-01 to Rs. 1975

Crore in 2001-02.

• The Provision of Safe Drinking Water Supply and Sanitation

facilities is a basic necessity of the life and a crucial input

in achieving the goal of "Health For All". The ninth five

year plan envisages provision of potable drinking water to

every settlement in the country on a sustainable basis and

the pursuit of all possible measures for the rapid expansion

and improvement of sanitation facilities in rural and urban

areas. Provision of safe drinking water of sanitation is a

state subject and it is the primary responsibility of the state.

However, the Central Government has been supplementing

the efforts of the State through financial and technological

inputs under Centrally Sponsored Schemes.

186 • "Jawahar Gram Samridhi Yojna" (JGS) was introduced in

April, 1999 by re-structuring the Jawahar Rozgar Yojna. It

is being implemented as a Centrally Sponsored Scheme on a

cost sharing ratio of 75:25 between Centre and State

Government. Its objective is the creation of durable

productive community asset and the generation of wage

employment for the rural unemployed poor.

• The "Employment Generation And Poverty Alleviation

Programme" has continued its emphasis upon specifically

designed programmes in rural and urban areas for

employment generation and poverty alleviation. In the year

2001-02, a budgetary outlay of Rs. 9,765 Crore was

provided under plan provisions by Ministry of Rural

Development for rural development, rural employment and

poverty alleviation programmes as compared to Rs.9,270

crore in 2000-01, excluding Pradhan Mantri Gram Sadak

Yojna, for which Rs.2500 crore were separately allotted in

the year 2001-01 and 2001-02.

• The "Rural Electrification Programme" is viewed as a prime

mover for rural development. Electricity is not only the

basic requisite for industrialization but it also contributes

significantly in increasing agricultural productivity and

187 other jobs and income generation activities, besides enhancing the quality of life in rural areas and in controlling migration from rural urban areas. Out of 587, 258, total inhabited villages in the country (as per 1991 census)

506,916 villages (86.3%) have been declared electrified by

March^ 2000. Remaining about 80,000 villages are still awaiting the basic amenity. Thirteen states have been declared 100% electrification of feasible villages.

Remaining unelectrified villages of the country are mostly in states Viz., U.P. 29.62%, Bihar 24.54, Orissa 14.75%,

W.Bengal 10.5%, Assam 7.09%, Meghalya 3.72%), Arunachal

Pradesh 1.88%, M.P. 3.98% and Rajasthan 3.05%. Out of about 80,000 villages that remain to be electrified in the country, about 62000 villages could be connected with the grid using conventional means. The remaining 18000 villages lactated in remote areas would have to be electrified using non-conventional sources of energy. It is proposed that 100%) electrification of 62000 villages would be achieved by the end of lO"" plan. The electrification of

62000 villages would be achieved by the end of 10^*" plan.

The electrification of remote villages numbering around

18000 is proposed to be achieved by the end of eleventh

188 plan."

A 'National Agricultural Insurance Scheme or "Rashtriya

Kirishi Bima Yojna" was started in 1999-2000 to protect the

farmers from natural calamities. This scheme envisages

coverage of all food crops (Cereals and Pulses), oilseeds,

horticultural and commercial crops. It covers all farmers

(Loaness and non-loaness). The premium rates vary from

1.5% to 3.5% of sum assured for food crops. In case of

horti-cultural and commercial crops, farmers are entitled to

a subsidy of 50% of the premium charged. The subsidy is

shared equally between the Government of India and the

States. Under this scheme, each state will be required to

reach the level of Gram Panchayat at the unit of insurance in

a maximum period of 3 years.

The important decision.<; about the "Kisan Panchayat and

Sharamik Panchayat" were also taken by the U.P.

Government in Feb., 2001. Under Kisan Panchayat, the

Note :- Figure are collected from various sources such as Statistical Abstracts of India and Mid term Appraisal of 5 year plan. Govt, of India, New Delhi

189 following steps were taken:-

o A regular 12-hour power supply to farmers;

o Withdraw of tax from tractor-trolleys;

o Exemption of registration of certain vehicles which are

used in agricultural sector;

o Withdraw of trade tax from phosphate and potash

fertilizers;

o An additional 300 mw of electricity from the NTPC to

ensure an uninterrupted power supply.

In "Sharamik Panchayat" (Under the National labour

scheme) in U.P., 302 schools are opened for child labourers,

17,487 such childrens are studying in these schools and are

being provided free refreshments, lunch and a scholarship of

Rs. 100

Agricultural Development

The transport system in U.P. consists of different modes of transport - rail, road and water. The most important among these, in relation to agricultural development is the method of moving goods and passengers through roads. Development of road transport system affects the agricultural development by

increasing production through optimum utilisation of resources

and by bringing about non-economic changes in the rural

190 framework. With an improved system of road transport, llicre is likely a reduction in the cost of agricultural product transported from one place to another. It results in the movement of goods with speed, safety and dependability. Thus the proper utlisation of resources would lead to an expansion of agricultural development in the state.

U.P., which is called the country's agricultural heartland and has plenty of rich alluvial soils and abundant ground and surface water, is not only the most populous state with more than 173 million people, which is 16% of India's total population but also larger than most of the countries in the world. Almost

80% of its population live in villages/rural areas, having the agriculture as their main occupation. Table number 5.4 shows the percentage of rural people in U.P. as against India.

191 Table No. 5.4 Population Census - 2001

U.P. India Particulars Population Percentage Population data Percentage data Total 16,60,52,85 102,70,15,247 population 9

Male 87466301 52.67 531277078 51.73

Female 7,85,86,558 47.33 49, 57, 38,169 48.27

Rural 13,15,40230 79.22 74,57,38,169 72.21

Urban 34512629 20.78 285354954 27.79

Literacy

Male - 70.23 - 65.38

Female - 42.98 - 54.16

Density of 689 324

population

(Per.

Sq.Km.)

Annual 2.30 1.93 exponenti al growth rate

Source : - Figures collected from India 2002 and Economic Survey

of India 2001-2002

192 The percentage of rural population of U.P. was as high as 86% as compared to 80% of the country as a whole in 1971. while in

1991, the rural component of the state's population was 80.16% as against the urban component of 19.84%. In 2001 as table no.5.4 shows, the percentage of rural population was 79.22% as against the rural component of the country of 72.21%). There is a continuous stream of flow of rural population into the urban areas in search of a better living. But agriculture is still the main occupation of the rural people.

The economy of U.P. primarily agrarian in nature, has

29.8 million hectares of reporting area and in terms of spatial extent is fourth in the country after Madhya Pradesh, Maharashtra and Rajasthan. On account of variety of soils and climatic conditions, the state has nine agro climatic zones which show variation in productivity of various types of food grains.

The significant contribution of U.P. in food grains and commercial crops is due to its rich alluvial soils (61%) of total) and vast irrigation network contributing 69% of the net cultivated area as against 38% of the country. The state is on the top in total cropped area (26.1 million hectares) and contributes 23% to the

National Food Basket. The net cultivated area of the state is

© s © © '•w r-) iJ fS 00 G u O ON G cf\ 3 ro ON (N a^ T) (N (N O O O CNl o H (N o a o o Td3 o C o o g -3 O ON (N 0 d I/) -o 3 • O CI

(c/U3 ryi

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194 around 17.5 million hectares and the cropping intensity is 149.5% which is well above that of the nation (132.7%)'.

Table no. 5.5 shows that U.P. is the largest producer of foodgrains in India. It produced 37% of country's total wheat,

15% of the total rice, 12.37% of total course cereals and 19.4% of the total pulses in the country. Its contribution in the production of rapeseed and mustard is 18.79%) in sugarcane, 38.56%) and in the production of potato, its contribution is 42.34% in the total production in the country. "It has about 10 million tones of surplus food grains after meeting its households and other requirements of food. The state has achieved a record production of 452 lakh M.T. food grains, during 1999-2000 surpassing all previous records.^

Horticulture Development

Horticulture includes a wide range of crops namely fruits, vegetables, tuber crops, flowers medicinal and aromatic plants, mushrooms, plantation crops and spices etc. Horticulture development in the country continues to make steady progress in the production of agricultural products. India is the largest procucer of fruits and vegetables in the world. It leads the world

The Times of India, New Delhi, Saturday Feb., 17, 2001 p-19 • The Times of India, New Delhi Saturday Feb., 17, 2001 p-19

195 in the production of mangoes, bananas, spotas and acid limes. By

the end of VIIl"" 5 year plan (1996-97), the coverage under the

fruits, vegetables and potatoes cultivation was 8.10 Lakh hectares,

9.97 lakh hectares and 4.25 lakh hectares respectively and the production was 81.78 lakh tones, 155 lakh tones and 84 lakh tones respectively. The productivity of these crops was 10.09, 15.94 and

19.76 tonnes per hectare.

In U.P. there are 16 belts of mangoes, guavas and aonlas. The area and production of fruits in the first five year plan is estimated to have been 1.00 Lakh hectare and 5.00 lakh metric tones respectively. It increased to 6.98 lakh hectares and 56.60 lakh metric tones at the end of Vf" five year plan. In the seventh plan, with introduction of a number of area based fruit crop schemes, the level of area and production of fruits appreciably increased. The area, production and productivity of fruits in different years is shown in table no. 5.6

196 Table No. 5.6

Area, Production and Productivity of Pruits in H.P

Year Area(Lakh hec.) Production (lakh m. Productivity

tones) (m.tones/hec.)

1984-85 5.80 38.39 6.62

1986-87 6.25 49.45 7.91

1988-89 6.75 52.61 7.79

1989-90 6.98 56.60 8.10

1996-97 8.10 81.78 10.09

1999-2000 8.38 85.00 10.14

Source :- U.P. Annual 1996-97 and the Times of India, New Delhi

Sat, Feb, 17, 2001 p-17

Table No. 5.6 shows that in 1984-85, 38.39 lakh tones of fruits were produced while in 1999-2000 the production of fruits was increased up to 85.00 lakh tones. These fruits are sent to each and every corner of the country by the means of road transport.

In the field of fruits and vegetables' production, India occupies the second position in the world. In India U.P. has a significant position in the production of fruits and vegetables- It contributes 8% of fruits and 20% of vegetables of the country's total.

197 The area under vegetable production in the first five

year plan was 1.00 lakh hectares, which increased up to 7.41%

lakh hectares at the end of sixth five year plan. At the end of 8"'

five year plan, this area increased up to 9.97 lakh hectares. Table

No. 5-7 shows the area, production and productivity per hectare of

vegetables in different years.

Table No. 5.7

Area, Production and Productivity/Hec of Vegetables in U.P.

Year Area (Lakh Production Productivity

hectare ) (lakh M. tones) (M.tones/hec)

1984-85 7.41 89.92 12.13

1986-87 7.71 100.46 13.03

1989-90 8.30 108.40 13.06

1996-97 9.97 155.00 15.54

1999-2000 10.4 165.00 15.86

Source - U.P. Annual 1996-97 and the Times of India, New Delhi,

Sat; Feb., 17, 2001 p-17

Table no. 5.7 shows that during the year 1999-2000. 165 lakh million tones of vegetables were produced while during the year

1984-85, total vegetable production in the state was only 89.92 lakh m. tolies. Vegetables in U.P. are mostly sown in rural areas and they are of perishable nature, so they need regular and speedy

198 mode of transport. Road transport is the most important means of

transport for speedy and completely movement of vegetables.

Hundreds of tonnes of vegetables move from U.P. to Uttranclial

every year through the mode of road transport because railway transport is not possible in many of the hilly regions.

The production of potatoes in U.P, has been outstanding; Although. Up to the IV^*" five plan, the area and production of potato had been consistently increasing, yet the impact was not sustainable. The area upto the IV"' plan increased to 1.87% lakh hectares as against a meager of 0.97 lakh hectares in the first plan. By the end of VI^'' plan, however, the areas under potatoes increased to 3.05 lakh hectares registering a sharp jump of 1,18 lakh hectares. On the production side, the trend was similar. The level of production of potatoes in the first five year plan was 6.86 lakh metric tones, which rose to 17.20 lakh metric tones by the end of IVth five year plan. From the Vth plan onwards, a steep rise in production started and by the end of

VIII'^ five year plan, it reached upto 84.00 lakh metric tones. U.P. is, thus a leading state of the country in respect of potato production. The Government is laying stress on increasing productivity in place of expansion in cultivation area - High yielding and diesel disease - free potatoes' seed is being

199 distributed through 21 departmental firms. In all, 37000 quintals

potatoes' seed was distributed during 1996-97. During 2000-2001,

U.P. accounted for 41.82% of total potato production in the

country. Table No. 5.8 shows the area, production and productivity/hectare of potato in different years

Table No. 5.8

Area Production and Productivity

Hectare of potatoes in U.P.

Year Area (Lakh Production Productivity hec.) (lakh. m. (M. tones/hec) tones) 1984-85 3.09 52.56 17.00

1986-87 2.83 54.65 19.33

1989-90 3.37 61.78 18.33

1996-97 4.25 84.00 19.76

1998-99 6.45 95.34 14.76

1999-2000 5.18 104.60 20.19

2000-2001 3.99 84.97 21.29

Source: Figures coutcMrom U.P. Annual (1996-97) Information and Public Relations Department, U.P. Lucknow and Statistical

Abstract of India, C.S.O., Ministry of Statistics & Programme

Implementation, G.O.I., N. Delhi (1999and 2001).

200 Table no. 5.8 shows that the production of potatoes

during the year 1984-85, was 52.56 metric tones, which was

increased upto 104,60 metric todies in the year 2000. Road

transport is the only mean of transport in moving the extra production to the places of consumption m all over the country.

U.P. is the largest sugercane producing state in the country. The state alone accounts for 50% cane area of the country, 40% of the cane production and 30% of the sugercane production^ about 36 lakh cane growers supply cane to 119 suger mills in the state through 170 co-operative cane development societies elected by them. During the year 1996-97, cane was sown in the areas of 25.14 lakh hectares and about 1480.86 lakh td^es of cane was produced. Similarly, 434.92 tonnes of cane was crushed and 24.20 lakh tdlies of suger was produced during the year. "Targets were fixed to sown cane in the area of about 24.20 lakh hectares and produce 1488.30 lakh tolies of cane during the year 1997-98'. Out of this 550.65 lakh to'hes of cane was to be crushed by suger mills in order to achieve the target of producing

49.56 lakh tolies of suger during the period. It may be recalled that the state earned the distinction of being first in the country in

U.P. Annual 1996-97. Information and Public Relations Department, U.P. Lucknovv, p-120

201 the production of suger.

Keeping in view the fact that sugeiinills and cane

growers are complementary to each other, the Government

announced a three year long term cane supply policy in the

interest of both. Under the new dispensation, the cane growers will be aware af the quantum of cane to be purchased by the suger mills during the crushing season. Thus, they will grow that much

cane in their fields. A special membership drive has been launched to ensure 100% coverage of cane growers. Arrangements have also been made to ensure purchase of upto 85% cane by the sugermills.

It was estimated that 1625 lakh to'hes of cane will be produced by the end of five year plan in order to cater the needs of suger mills.

U.P. thus, is the largest producer of sugar cane in the country having sugarcane average of 2.38 million hectares 117 suger mills having total installed capacity to crush 0.283 million tonnes of sugercane per day. Table No. 5.9 shows the cane production, Its area and average productivity.

202 Table No. 5.9

Cane Production, Its Area and Average Productivity

Year Cane area Production Average

productivity

(Tonnes/hec)

1992-93 18.07 1004.22 55.58

93-94 18.60 1099-93 59.13

94-95 20.53 1228.39 59.84

96-97 25.14 1480.86 58.90

98-99 19.02 1163.03 61.12

2000-01 19.47 1065.88 54.74

2001-02 26.21 1625.00 61.99

Source - Figures collected from:-

• U.P. Annual (1996-97);

** Statistical abstract of India, C.S.O., Ministry of Statistics

and Programme Implementation, G.0.1, New Delhi (1999-2001).

Above table shows that the production of sugercane

has increased from 1004.22 Lakh tones in 1993 to 1480,86 lakh

tones in 1997. The increase in the production of suger cane, vegetables, potatoes, fruits and food grains is due to the role of

road transport because it provides better quality of seeds.

203 fertilizers and pesticides, farm inachinery and modern technology to the people of rural areas.

The food industry is of a special interest as it is one of the most linkage intensive industries and also of great importance in many developing countries. It generates extensive and strong local linkages as a result of the use of perishable agricultural inputs such as milk and vegetables. Difficulties in importing the required inputs, coupled with restrictions on land ownership in many countries can make it necessary for foreign affiliates in food processing to rely on sourcing from domestic producers and to engage in efforts to develop new and upgrade existing suppliers.'

Filed Research conducted by UNCTAD in India in

2001 involved interview with four leading foreign affiliates of

TNCs in the Food Processing Industry Of India (Pepsi Food Ltd.,

Glaxo smith kline, Beecham Ltd., Nestle India Ltd. And Cadburg

India Ltd.).It revealed that each firm on average sourced locally

93% of their raw material (tomato, potato, basmati rice, ground nut, cocoa, fresh milk, suger, wheat flour etc). This high level was achieved in part as a result of comprehensive efforts by these

' World Investment Report, 2001, Indian Edition, Bookwell, 2/72, Nirankar Colony, Delhi - 110009, p-145

204 companies to assist in the development ol" local supplies.'

A report based on the impact of a number of food

processing projects by foreign affiliates indicated that foreign

affiliate has contributed to better farming practices (e.g., hybrid

seeds and transportation innovation) that resulted increasing

incomes and yields^.

Road transport, a basic and fundamental necessity of mankind thus, functions in an exceptionally flexible and diversified manner, supplementing other modes of transportation, opening up new areas and offering new services. Door to door collection and delivery is possible in the case of road transport.

Goods are loaded directly to the vehicle and carried to their destination without further handling. The risk of damage and theft is much less. It results in saving of both time and costs. It is faster over shorter distances than rail. It is of particular advantage to the farmers. Good roads help the farmers to move their produce, particularly perishable products like vegetables and fruits quickly to the mandis and market places. Sugarcane is supplied from the fields of farmers to the purchasing centres of sugar mills only by the bullock carts and tractors. Trucks are used to carry this

' Ibid, p-145 ^Ibid., p-145

205 sugarcane from the purchasing centres to the mill. Road transport, thus, brings the villages into contact with the towns and cities.

The road transport network under private sector reaches almost every nook and corner of the state and carries both passengers and goods. A good deal of the volume of inter-state and intra-state goods traffic is handled by Private Sector Road Transport

Operators Or Truck Union. Unlike railways, airways and water transport, which maintain official records of goods movement, no such record is kept by road transport operators. But various survey reports reveal that major goods traffic of the state include wheat, rice, sugarcane, vegetables and other agricultural and industrial products. In the words of economist Jeremy Benham. "Roads are the veins and arteries of a country through which channels every improvement circulates." Road transport thus, play a great role in inter-state and intra-state movement of agricultural products in the state and provides a great potential of export of agricultural produces to the state, which makes up 21% of India's total export.

206 INDUSTRIAL DEVELOPMENT

Keeping in view the important role of road transport in industrial

development of the rural areas, the State Govt, is doing its best

for a balanced and speedy development of industries by creating

favourable conditions for installation and expansion of industrial

development. The Government offers immense possibilities of

establishing agro-based industries such as processing of cereals,

pulses, oilseeds, foods and vegetables. In food preservation and

processing, the agricultural produce has resulted in generation of

employment, earning of foreign exchange and increase of incomes

in rural areas. It is therefore, necessary to induce the industry to

rural areas with good roads and better transport system where the

raw material is available.

U.P. Occupies the first position in the production of

sugar in the country. A large quantity of cane produce in the state

is used for the manufacturing of Khandsari. Khandsari units in the

small-scale industries sectors have given strength to rural

economy of the state. Early varieties of cane are being developed

on large scale by way of the efforts made for their development, wide publicity and optimum use of fertilizers and insecticides. A

comprehensive scheme of construction of inter village roads has been taken up for ensuring quick supply of fresh cane to

207 sugermills Currently, the total crushing capacity of 117 suger

mills IS 4,33,883 T C D Besides, 46 letteis of intent have been

issued by the Govt of India for opening of new sugar mills Of

these, the licensed crushing capacity of only Begrajpur sugar mill

in District Bijnor is 5000 T C D The licensed crushing capacity of the rest of sugar mills is 2500 T C D Thus, the letters of intent for the creation of additional licensed crushing capacity of

1 17,500 T C D m the new sugar mills have also been received'

U P IS also the largest milk pioducei in the countiy with a total milk production of 112 million tolies Milk procurement has reached a record with more than 14 lakh litres of milk purchased by P C D F in the year 2000, making the largest contribution to the National milk grid^

Considering the surplus availability of milk in the state, there is considerable scope for setting up of milk processing project in eastern U P for manufacturing of value added products, including lactose casein, whey protein, weaning foods non-dairy codes whitener, baby food, butter and Cheese There is vast potential for setting up units based on the agricultural produce in the state of U P An effort in this direction is the Paddy

' U P Annual, 1996-97, Information and Public Relations Sept, U P Lucknow pp 121 122 ^ The times of India New Delhi Saturday, Feb , 17 2001 p 19

208 Processing Complex in Gorakhpur and Basmati Processing Project

in Muzaffar-Nagar.

Traditional small industries like Khadi and handloom, village industries, handicrafts sericulture, coir etc., which play an important role in the rural economy of U.P. in terms of employment have recorded a high rate of growth since independence, in spite of stiff competition from the large sector and not so encouraging support from the Government. Though, they cannot provide full time employment to workers, but instead can provide only subsidiary or part-time employment to agricultural labourers and artisans. Among traditional village industries, handicrafts posses the highest labour productivity.

Besides, handicrafts make a significant contribution in earning foreign exchange for the sate. On the other hand, traditional village and small industries are largely carried on by labourers and artisans living below the poverty line, while modern small industries can provide a good source of livelihood. Hence, if with an expansion of employment, the number of persons living below the poverty line has also to be reduced, then a rapid and much larger expansion of the modern small sector will have to be planned. Table No. 6.1 gives the figures of investment, employment and no. of villages and small scale units in U.P. since

209 independence.

Table No. 6.1

Village And Small Scale Industries In U.P.

Particulars Units Employment Investment (No.) (No.) (Rs. in Crores) (1-^' yr. Plan) 1,647 29,898 1 1.50 0951-56) (2"' 5^' yr. Plan) 2,824 48,382 19.72 (1956-61) yr. Plan) 4,842 1,14,431 33.83 (1961-66) (4'' 5yr. Plan) 12,851 1,60,027 45.94 (1969-74) (5'' 5yr. Plan) 42,035 4,75,180 294.00 (1974-79) (6^' 5yr. Plan) 1,10,710 9,20,756 6,76.00 (1980-85) (7'' 5yr. Plan) 2,16,251 14,450,60 1320.00 (1985-90) Annual Plan 2,62,945 14,58,662 1558.94 (1991-92) (8^' 5yr. Plan) 2,96,338 14,76,097 2,597.00 (1996-97) (9'' 5yr. Plan) 4,04,617 15,69,892 3,991.22 (March, 1999)

Source: Data extracted from Indian planning experience-A

statistical profile, Govt, of India, planning commission 2001 and

India's Development Report-University Press, YMCA Library building, Jai Singh Road, New Delhi (2001-2002).

210 Table No-6.2

Production of some traditional industries of U.P.

Production in '000 tonnes Lakh '000 metric

meters tonnes

Year Sugar Vegetable Cotton Cotton yet

Oils Cloth

1989-90 2512 165 1102 1 16

1990-91 3015 148 1048 127

1991-92 3264 183 1044 123

1992-93 3669 206 684 111

1993-94 2710 210 415 112

1994-95 3609 232 296 103

1995-96 4378 231 253 101

1996-97 4076 N.A. 158.86 N.A.

1998-99 3727 N.A. - 59.396

1999-00 5457 252 299.96 N.A.

2000-01 5309 270 N.A. N.A.

2001-02 5250 N.A. N.A. N.A.

Source U.P. Annual-1996-97 and India-2002.

The growth of all agro-industries/ village industries in U.P., thus, depends to a large extent on the availability of facilities to take

21 the finished goods of these agro-based industries to the markets and to get the supply of raw material from the fields to the factories. Not only this, the migration of workers from the remote villages to the point of transaction, (he mobility of training facilities in the act of manufacturing agro-industrial products and the transfer of technology from the urban areas to the rural folk also depends to a large extent on the availability of road transport facilities. The lack or insufficiency of rural road transport will lead to a number of crunchs in the growth of agro-industries in

U.P.

RURAL MARKETING

The U.P.'s rural market with its vast size and demand potential offers great opportunities to marketers. Almost 80% of U.P. consumers live in rural areas and more than half of the state income is generated from rural areas. In terms of business volume, rural market is a big market for food items, agricultural inputs and even for non-food items. The rural market of U.P. has grown steadily through the years. Besides growth, the composition of the demand has been changing significantly. The rural market provides vast potential as many new products have already made their entry into the rural consumer basket. The market for clothing, cosmetics, toilet soaps, washing soaps, books, household

212 utensils, torches and batteries, sewing machines, electrical goods, bicycles and other consumable durables has grown spectacularly in the rural areas. The upper segments, in particular, have started buying and using a variety of modern consumer products which were till recently unknown in the rural market. The rural market has been growing in magnitude for both traditional and modern consumer goods and services.

Road transport which is an important and integral part of rural marketing structure, helps to broaden the market for goods and adds time utility and place utility to the products. It assumes greater importance particularly, in rural marketing. It facilitates the free flow of rural produce to consumer centres and agricultural inputs and consumer goods to rural areas. The growth of rural marketing to a great extent, depends upon the availability of rural road transportation infra-structure. Before developing a marketing and distribution strategy in rural areas, the producers must consider the system of transportation that they can adopt. In deciding the system of transportation, many factors like rural roads networks and types of roads, mode of transport, nature of product, distance to be covered, speed with which the goods are transported, cost of transportation etc., must be taken into account. Among these factors, the main factor which greatly

213 affects Ihc rural Iransporl system and in turn rural marketing, is the availability of rural roads network,

U.P. is essentially an agrarian economy and road constitute a critical element in the transportation structure. Road transport plays an important role in the economy of the state, as it is quick, more convenient and more flexible. Many companies prefer to transport their goods by road to sell in rural areas.

Further, India is a country of villages and it is only roads which can connect villages. Absence of a proper and adequate network of rural roads is the main constraint in rural transport which in turn, affects the market potential in rural areas. The position of rural road network in U.P. is very poor as several parts of rural U.P. are not accessible to the markets. About 36% of the villages in the country do not have road connection and over 65% of villages are without all weather roads.' Direct delivery of goods to even the top one percent of villages, costs twice as much as servicing urban markets. It shows that unless all weather roads network is available in rural areas, the transportation of goods and commodities to and from rural areas is a difficult task. Today, many villages in U.P. have only Kacha roads, which become

' Sundharam, K.P.M "Indian Economy", S. Chand and Company Limited, New Dcliii p-126 ^ Gandhi, J.C., Marketing. Tata Mc Grwa - Hill Publishing Ltd, New Delhi, 1991 p-8()

214 unserviceable during the monsoon and rainy seasons, leaving the rural people totally unconnected. Rural markets are handicapped in the absence of good road transportation system.

Despite the above characteristics, the rural markets have been undergoiug vast changes in the last few decades. It was observed that the rural market in India started showing its potential from 1960's and 93's are going to see the full blossoming of the rural market of lndia"\ Rural prosperity and the discretionary income with the rural consumers is directly tied up with agricultural prosperity. Due to improved irrigation facilities and methods of cultivation success of green revolution, white revolution and green revolution, income of rural people increased considerably in recent years. Rural society is being transformed into a modern, forward looking economy, thanks to the spread of education mass communication and transportation, increased interaction with urban people^rural electrification etc".^

Gorakhpur, a district headquarter in the eastern U.P. and an important commercial centre, handles a large volume of trade by roads from distant places in U.P., Punjab, Rajasthan,

Ramasvvaim. V S and Nama Kumari -Marketing Management'', Indian Context. Mc Millan India Ltd , New Delhi - 1990, p-49 ' Sanath Lahiri, Evoh'ing an effective strategy tapping the rural markets "Capital"" (Supplement) 22, July 1982

215 Bihar, W.Bengal and Assam. This mandi is popularly known as

Chauria Sahebganj Mandi. It performs "primary assembling

functions of commodities brought direct for sale by producers

from villages situated with an average distance of 20 miles. Since

the hinterland of this market specializes, is commercial crops like

sugercane and oilseeds. As it is not self-sufficient in food grains,

the function of sending out the former from, and bringing in the

latter to the market assumes great importance. Large quantities of

commodities received direct from the producers are sent out to

other assembling and distributing centres from this mandi by the

means of road transport.

Trucks play a very significant role in meeting the

transport requirements in the Mandi. Bullock-Carts, tractors, auto- rickshaws and hand-drawn thelas are used for transporting goods from the rail head to various traders and also from one trader to another in the market area. These vehicles also transport goods of one retailer and then to some localities in the sub-urbs which fall within a radius of 8 to 10 Kms. from the market. Thelas and auto- rickshaws meet the entire needs in the market yards. They handle the entire goods traffic from the market yard to the godowns and mills. The traffic from the market yard to the rail head is shared by bullock-carts, auto-rickshaws, tractors and trucks etc.

216 Of the road-borne traffic, the whole of which comes by

pucca roads, bullock-carts, tractors and trucks play an important

role, Bullock carts are most marked in the case of food crops. In

the case of outgoing traffic, goods are generally transported from

this mandi by trucks as they take shorter time, whereas a lot of

time is taken by carts. The suger mill owners also prefer to

employ trucks. Since cane can be delivered right upto their mill

gates without much delay in transit, however, the bullock carts are

preferable in the following circumstances;-

• Where, there are narrow and katcha roads, which are not

suited for trucLs;

• When consignments are of small sizes;

• The bullock - carts are utilized not only for transportation

of goods but also for farm operations. In villages, carts are

mostly used for transportation of manure to the fields.;

• The carts provide a subsidiary source of income for

cultivators of small holdings who carry their own produce

and also those of others on hire.

But, inspite of the above importance of bullock - carts, the "trucking industry has been able to record its rapid advance because of its inherent ability to provide and render advantageous services in competition with other modes of

217 transport. Speed of service from the platform of the consignor to the door of the consignee is one of the most important advantages possessed by the trucking industry. The shorter transit time by motor carrier has played a major role in increased patronage. The importance of trucks can be understood with the example that the movement of goods across the country came to a virtual standstill as trucks stayed off the road on the first day of the indefinite strike called by the All India Motor Transport Congress, seeking rollback of the 35% hike in diesel prices. "The prices of vegetables and fruits started creeping up as a fall out of the strikes by the A.I.M.T.C., which represents 32 Transport Federations and over 22 lakh operators. The strike has paralysed goods movement in most of the States.'

Roads transport thus has played a pivotal role in the overall development of the state. It is not only a means of production, it is itself an object of Consumption. Travel is undertaken not only for the purpose of reaching a destination but for the enjoyment also which travel affords. As a mean, transport is a part of the costs of production of the national dividend of goods and services and the object here to be achieved is to bring

The Times of India, New Delhi, Friday, Oct. 23. 1999, p-1

218 these costs to a minimum. On the other hand transport as a

consumption service, as a source of enjoyment in a different category. The objective of the economic system is to minimize the cost of production and to maximize the output of consumption goods and services- The greater the extent to which consumer tastes for travel can be gratified, the higher will be the quantum of economic well being. ^ Road transport, thus on the one hand promotes quick movement of men and materials and on the other it creates a sense of activity and alertness and machine mindedness in the people and urge not to waste time but to produce more and more and raise the standard of living.

Development of Banking Institutions

Agriculture being the main occupation of the region,

80% of the working population is engaged in this traditional and under developed agriculture. The farmers don't have so much finance to meet their agricultural needs. They need loans/credits to buy seeds, fertilizers and implements, to pay taxes to the

Government, to make permanent improvement in lands such as digging and deeping of wells, fencing of land etc. They also borrow for unproductive purposes such as for celeberation of

' Milne, AM & MA,OBE,- "The Economics of Inland Transport"' Sir Isaac Pilman & Sons Limited, London, 1955, p-28

219 marriages, births and deaths and for litigation etc. These types of needs are satisfied by money - lenders, traders, commission

agents, landlords, friends and relatives of agricultural workers and cottage entrepreneurs. Notwithstanding the positive role played, the moneylenders exploited the illiterate agricultural workers and cottage entrepreneurs by charging exorbitant rate of interest.

In view of the multi-practices associated with the traditional system of rural finance in the country, a number of organized financial agencies have been assigned the job of meeting financial requirements of farmers and cottage industries in rural areas of the country including U.P.- NABARD, S.B.I.,

C.Bs and Co-operative banks are some of the organized agencies which now cater to the needs of rural finance. These banks have the motives of raising productivity, adding to rural industrialization, providing greater employment, inducing balanced regional growth and maximizing economic welfare of the rural masses.

The Co-operative Movement was also started in India largely with a view to provide funds to agriculturists and protect them from the clutches of moneylenders. Primary agricultural credit societies were started with ten or more persons normally belonging to village. The national Commission on agriculture

220 recommended the organization of farmers' service societies to provide not only credit but aJso agricultural inputs and technical guidance to members for forming large-sized multi-purpose societies.

State Co-operative Bank forms the apex of the credit structure in U.P. It finances and controls the working of the

Central Co-Operative Banks in the state. It serves as a link between NABARD from which it borrows and the Central

Cooperative Banks (Some times known as District Co-Operative

Banks are the federations of Primary Credit Societies in specified areas normally extending to the whole district) and Village

Primary Societies.

The Commercial banks have played a prominent role in

U.P.'s rural development. These banks lend at a low rate of interest to the weaker sections, prepare district credit plans, search for the small borrowers and provide help to a large number of sick and un-economic units.

The regional rural banks were started to provide credit and other facilities particularly to the small and marginal farmers, agriculture labourers, artisans and small entrepreneurs so as to develop agriculture, trade , Commerce, industry and other productive activities in the rural areas. Initially, two regional

221 rural banks were setup on Oct2, 1975 at Moradabad and

Gorakhpur in U.P. These banks differ from commercial banks in the following respects.

• The area of regional rural banks is limited to a specified

region comprising one or more districts of the state.;

• These banks grant direct loans and advances only to the

small and marginal farmers, rural artisans and

agricultural labourers and others of small means for

productive purposes.;

• The lending rates of R.R.Bs are less than the prevailing

lending rates of Co-Operatives Societies In A State.

Thus, regional rural bank have an important role to play m our rural economy as they have to act as alternative agencies to provide institutional credit in rural areas. They have been active participants in programmes designed to provide credit assistance to identified beneficiaries under the new 20 points programme ,!•

R'D.P. and other special programmes for schedule castes and tribes. The National Bank (NABARD) also provides credit facilities for agricultural and rural development. It provides credit facilities (short term, medium term and long term) to State Co- operative Banks, RRBs, : LDBs and other financial institutions approved by R.B.I for the promotion of agriculture, small scale

222 industries, Cottage and village industries, handicrafts, other rural

crafts and other allied economic activities in rural areas. It is a

single integrated agency for meeting the credit needs of all types

of agricultural and rural development activities. Its refinance

assistance under IRDP is specifically to help weaker sections of

the rural community for minor irrigation, dairy development,

sheep / goal rearing, fisheries, small business etc. Land

Development, command Area development, Plantations and

Horticulture, Poultry and Sheep breeding etc are more important

schemes which are financed by NABARD. It has played a great

role in promoting investment in the agricultural sector in the less

developed areas of U.P.. It has given a tremendous push to

agricultural credit and has promoted agriculture and rural

development. Overtimes, formal credit provision has been

increased in rural areas of industrial and some developing

countries. Increasing prosperity among farmers^ better rural

infrastructure, integration of rural and urban financial system and

the development of complementary institutions such as formal

credit histories or collateral system for rural borrowers which lower the costs of lending, have all contributed to this increased

223 access to formal credit.' But in many developing countries (like

India) effective and accessible formal rural financial institutions are still rare-largely because of the lack of complementary institutions^ and bad roads.

Finance is the life blood of industry and as such no industry can prosper until and unless it is properly financed. The importance of finance for cottage industries is as fundamental as elsewhere. Therefore the banking institutions provide medium and short term loans to the villagers for the purchase of bullock-carts

,camel carts., tractors traillies procuring working capital and fixed capital for cottage industries. They also provide crop advances for digging and repairing wells, tube-wells, pump-set, agricultural implements, purchasing of seeds and fertilizers, milch and draft animals to be purchased, sheep rearing, gober gas plant, land improvement and small trading business.

The use of advances by small farmers and cottage entrepreneurs for the purchase of these inputs, have had favourable impact on the development of U.P's rural economy.

These advances have therefore made a small but perceptible impact on the development of each district's economy. For

World Development Report, Oxford Univ. Press. INC., 200 Madison Avenue N. York - 10016 2002 p-39. ^ Ibid, p-39

224 example the bullock-carts and tractors made available to farmers

by these bank have helped in the development of rural economy,

not only by bridging the transportation gaps (For goods to be

moved from the village to mandis) but also by giving them access to most lucrative market. It further, enabled them to offer the

services to others as well. Table no. 6.3- shows the number of tractors which were purchased on credit supplied by banks in different states by the farmers.

Table No. 6.3

No. Of Tractors Sold In Different States

State Year (1999-2000) Year (2000-01) U.P. 69,665 68,354 Punjab 27,679 24,397 M.P. 28,815 23099 Bihar 13,230 1803 1 Haryana 21,100 17,978 A.P. 16,911 17,958 Maharashtra 18,742 16,733 Rajasthan 26,664 15,447 Gujrat 17,747 12,365 Karnataka 8, 245 11,801 Other 24,383 28,662 states/Uts/Export etc. All India 2,73,181 2,54,825

Source:- Data complied by various sources such as India's Development Report

U.P.'s Development Report and India 2001 and 2002

225 Development Of Land, Water And Irrigation

The economy of U.P., primarily agrarian in nature, has 29.8 million hectares of reporting area and in terms of spatial extent is fourth in the country after M.P., Rajasthan and Maharastra. The significant contribution of U.P. in food grains and commercial crops is due to its rich alluvial soils. (61% of total) and vast irrigation network contributing 69% of net cultivated area as against 38% of the country.

U.P. is on top in total cropped area (26.1 million hectares) and food grain production (45.2 million tones) and contributes 23% to the National food Baskf, The net cultivated area of the State is around 17.5 million^ 149.5%) which is well above that of the nation (132.7%).

The Ground Development and Water Resource

Department approved the fallow land development programme, under which approximately 12,790 hectares of land have been reclaimed at a cost of Rs.6.70 crore in the financial year 2000-01'

With an aim towards providing better irrigation facilities in the financial year 2000-01, under the silt cleaning programme of canals, 16,267 Kms of river and 2260 Kms. of Raj

The Times of India, N.Delhi, 23 Feb; 2001. p-15

226 Bahe were cleared as against a target of 20454 Kms. of river and

4,979 Kms of Raj Bahi. The U.P. Ground Development and water

Resources Department, at an expenditure of Rs.5.5 crore.'

has developed 11,640 hectares of land for cultivation. This was

done under the Drought Oriented Land Development Programme

in the financial year 2000-01.

Tractor a mutli-purpose means of transport, has played a great role in the development of land, v^ater and irrigation in rural areas. Many farmers who don't have electricity connection use tractors to lift the water from the wells and thus irrigate their fields. Tractor is now used on a large scale by the farmers to plought their fields. It can easily be used on Kutcha and Pucca roads carrying goods agricultural products or people from one place to another.

Development of Housing

Housing section is very promising from the point of view of meeting the basic needs of every individual and rural income generation provided maximum is made of the local building materials and the use of factory made materials is kept to the bare minimum. Proper use of building material and construction

The Times of India, New Delhi 23 Feb. 2001 p-15

227 technology can provide safe, cheap and convenient houses, in

addition to generation of employment and income in the rural

areas.

Better roads and transportation facilities, multi media

technology, T.V. and audio visual technologies have also played a

great role in educating the vast number of our children spread all

over the country. Thousands of students of rural areas attend their

educational institutions in urban areas daily by the means of road

transport. Therefore, the success in the area alone can bring

revolutionary change in the social and economic status of the

state.

With the help of good road transport system, modern

advances in medical sciences including preventive medicine have provided cost effective diagnostic tools, medicines and treatment methods to control epidemics, disease and malnutrition. All these have resulted in increasing longevity. The standard of health in rural people can substantially be increased if the level of health care is improved and made effective through the aid of better transportation facilities to rural people. Thus, not only in the economic field but also in the political and social sphere, road transport has considerable influence. It has increased standard of living of rural people. It has a direct and intimate link with the

228 ability of human being to create a good environment in a state.

The availability of adequate transport facilities contributes to the development of a state/nation in all fields.

Thus, the process of development in rural areas of

U.P. has many components and none of them is sufficient in itself to bring about the improvement in living conditions. Better health, education, industrialization, better administration and willingness to accept new ideas are some of the factors that together foster development. Out of all these, inter - related activities, the way^ people and goods moved have a special significance to the pace of development. Road transport alone, is not the key to progress but it facilitates other objectives. As road transport is a necessary ingredient of nearly every aspect of economic and social development, it plays a key role in getting land into production, in marketing agricultural commodities and in making forest wealth accessible.

Despite overall progress. Per capita consumption in the state of U.P. has grovv^n at only 1.4 percent per annum in the

1990's as per world bank report. Many of the erstwhile, poor are just hovering just above poverty line and remain highly vulnerable to shocks that could plunge them back into poverty. Though literacy in U.P. increased from 42% in 1991 to 57% in Feb. 2001,

229 it is still well below the All India average of 65% and female

literacy too at 43% is below the All India average of 54%.

Although enrollments are rising, the children of the poor are still

less likely to be attending schools, even at the primary level, than

the offspring of better off. By the end of 1990s,only half of the

girls from the poorest 20%of the population were enrolled, as

compared to 80-90 %of girls from the wealthiest households. The poor condition of the State reflect in the health of its people as

well and mortality is high at 707 deaths per 100,000 live births,

compared to 408 in India as a whole. Childrens are particularly

more vulnerable and three out of 10 youngsters have never been

immunized.'

Conclusion

In conclusion we can say that the agenda from improving the

quality of life in rural U.P. can not be completed without the effective Rural road transport component. The key for rural development lies in strengthening rural roads and rural road transport. Road transport which has played a pivotal role in the overall development of the state, acts as an authorised ambassador of a region as a link between two places, as a boon to a number of

The Indian Express, New Delhi, IT^ Nov., p-10

230 unemployed youths, as a sustenance of bread and butter to a large number of people, as a back bone of each and every activity, whether it is social, economical, industrial, cultural or political, as a source of massive tax revenue to the state exchequer etc. It has played a significant role in the supply of foodgrains, sugercane, vegetables fruits etc. from the villages to other towns/cities/mills/markets or factories etc.

We can now shift to make a conclusion of this work and attempt the findings and put concrete suggestions and recommendations of this work on rural development and the role of road transport. The next chapter would, therefore, be a resume of the findings of all the preceding chapters.

231 Chapter-V Conclusions and Suggestions CHAPTER - V

CONCLUSIONS AND SUGGESTIONS

In the preceding chapter, we have discussed the role of road

transport in rural upliftment of U.P. Now, this chapter will

provide the concluding part of the thesis. It will contain the

summary of earlier chapters and also the findings and suggestions

for future development.

It is common knowledge that road transport is a vital

infra-structure and a dominant mode of transport for the growth,

developmental process and sustenance of our economy. It is both,

cause and effect of social and economic development. It offers a

number of other advantages such as accessibility, flexibility, reliability and competitive resource cost. It is a major component of the national economy and a important factor in shaping our life styles. It provides both place and time utilities and plays a pivotal role in the overall development of a country - as an authorized ambassador of a region, as a link between two places, as boom to a number of unemployed youths, as a sustenance of bread and butter to a large number of people, as a back-bone of each and every activity whether it is social, economic cultural or political and as a source of massive tax revenue to the state exchequers etc.

Road transport system performs a variety of useful functions and

232 plays a significant role in the supply of input factors enlarging the

size of markets, fetching better prices, promoting labour mobility,

providing a fillip to the establishment and development of

industrial enterprises etc. This sector is gaining more popularity

and acceptability which is evident from the fact that "over

85% of passengers and over 65% of freights move by roads.'

Road transport today plays a significant role in the movement of passengers and goods. It can function in an

exceptionally flexible and diversified manner, supplementing other modes of transportation, opening up new areas and offering new services. It results in saving of both, time and costs. It brings the villages into contact with the towns and cities.

Buses, the most pre dominant mode of public transport for a majority of low and middle income group in the state, form a vital part of the economical and social fabric all our towns and cities enabling people to work, to shop to get to educational institutions to socialize and to many other activities. Travel demand in a region is the result of socio-economic and administrative inter-actions among the various cities, towns, and villages- Some villages have the services like schools, hospitals

' Agarwal, S.P. and Mathur "Surface transport in India" Printwell Publishers distributors Jaipur (1999) p.65

233 marketing centres, agricultural service units and so on, which attract people from the nearby settlements. Similarly, the towns that have better services like higher educational and medical facilities, agricultural marketing units and so on, can attract travel from longer distances. Extending this argument further, cities, with the specialized facilities in the agriculture, industry, education, health care and so on, attract travel from still far of places. The resulting pattern of travel in a region, therefore, comprises of layers of inter village travel, village level service centres to higher level centres and inter-city movements.

The number of motor-vehicles registered in U.P. during the period 1947-97 increased from 21380 to 32,02, 771

(almost 149.8 fold increase) while the total road length in U.P. during the same period increased from 11,489 Kms. to 2,55,467

Kms (only 22.23 fold increase) out of which 148,303 Kms of roads

(58.05%) were surfaced. The percentage of National Highways and

State Highways in U.P. in 1971 was 3.91 and 12.45 of the total road length, which was reduced to 1.12 and 3.77 respectively in

1997. The percentage of other P.W.D. Roads in 1997 was 38.15,

Urban Roads 19.92 Project Roads 19.23 Villages Panchayat Roads

- 12.52 and the % of Rural Roads constructed under J.R.Y was

5.29 of the total length in U.P. In Urban Roads, the share of

234 Municipal Roads was 94.31%, Railway Roads 2.42%, M.E.S. roads

- 3.46% while in project roads, the share of Forest Department was 42.25%, Irrigation Department - 49.17% Electricity

Department - 0.48% and the share of Sugarcane Development

Authority was 8.07% in 1997.

In India, the number of registered motor vehicles during the period 1951-97 increased from 306000 to 37447526

(about 77.15 fold increase), while the total road length during the same period increased from 399,942 Kms to 3381887 Kms (only

8.45 fold increase). The percentage of surfaced roads increased from 39% in 1951 to 46.63% in 1997. The share of National

Highways was 1.03%, State Highways-4.05%, P.W.D. roads

22.71%,, Village Panchayat roads 31.15%, Urban Roads 6.86%,

Project Roads 7.07% and the share of Rural Roads and constructed under J.R.Y was 27.08% during 1996-97.

The share of U.P. in total and surfaced road length in

India was about 7.55% and 9.40% respectively in 1997, while the share in the total number of motor vehicles in India was about

11.69%. The No. of motor vehicles on roads is increasing gradually but the rate of expansion of road network is not that fast^ leading to congestion and road accidents. The condition of all types of roads, particularly major district roads and village roads

235 is very bad in the state. A large number of rural roads are cut due to heavy rain in the rainy season and have no connection with urban markets. There are more than 20 villages around the town

Barhapur in district Bijnor, which have no link with the town in rainy season. The reasons are heavy flow of water in the river and lack of bridges and the non-availability of pucca roads. The

Kutcha roads are changed into mud (Gara and Keecharr) and therefore no connection between the rural and urban areas. The road from Barhapur to Nagina, Barhapur to Kotdwar, Nagina to

Kiratpur, Nagina via Bundki to Najibabad and the road from

Nagina to Bijnor are closed during heavy rain, due to bad condition of roads and lack of bridges. A bridge on Gangan river at Nagina-Bijnor route, which was built during British period, was broke in 1999 with two trucks on it, has not been constructed till now, but it has been reconstructed at paper. It creates a lot of problems in rainy season for the passengers and goods traffic. The same is the position in Muzaffar-Nagar, Meerut and other districts of U.P.

However, U.P.S.T.R.C and other private operators are playing an important role in moving the passengers and other commodities from one place to another-U.P.S.R.T.C operates long distance and shuttle services in different parts of the state. These

236 services are mainly operated to connect important towns with each

other in the state and to join tehsils, block head quarters and other important rural areas with district headquarters. Delux and semi- deluxe services, inter state services, city bus services and bus services to hilly regions are also provided by the UPSTRC. It also provides concessions to the students of rural areas. Monthly pass on 30 single journeys is allowed on rural areas basis. The facility of Janta-pass is available in ordinary buses in rural areas.

U.P.S.R.T.C also issues concessions to handicapped/disabled person and his one fellower.

In Oct, 2002, U.P.S.T.R.C. has 6219 average number of buses on road. Fleet utilisation was 90,8%. After Maharshtra,

A.P.S.R.T.C. and G.S.T.R.C., U.P.S.T.C. has the highest number of fleet size in India and provides employment to a large number of people (49,648 at end of Dec, 1999) in the state. 1359.39 lakh of passengers were moved by U.P.S.R.T.C.'s buses and the number of passengers carried per bus per day on road was 133.

The total revenue of U.P.S.R.T.C was Rs. 31461.66 lakh in Oct.,

2002 and the total cost was Rs. 37479.64 lakh\

U.P.S.R.T.C., a public utility and important constituent of the nation's infrastructure is thus, providing city

Figures collected by vro'w.UPSRTC.com

237 and inter-state cost effective and efficient public transport services to the poor and middle income group of the state. It has played a great role in carrying people from their far-off scattered locations of households to work centres, in improving mobility, minimizing regional disparities-poverty untouchability and also contributing to the overall socio-economic reconstruction of the economy.

As far as the rural development is concerned, road transport had contributed a large share in the process of development as most of the population of the state (almost 80%) lives in rural areas, where their main occupation is agriculture.

All their agricultural produce is moved by road transport from their fields to the places of consumption. In 1998-99, 1 1,61,6000 tonnes of rice, 2,31,69,000 tonnes of wheat, 6,36,000 tonnes of

Barely, 2,31,000 tonnes of Jwar, 9,48,000 tonnes of Bajra,

9,25,000 tonnes of Maize, 2,17,000 tonnes of Ragi 1,28,000 tonnes of small millet and 22,69000 tonnes of total pulses and

40,14,5000 tonnes of total food grains were produced in the fields and were moved from the places of production to the places of consumption/markets. In the same year, 83 crore nuts, 9,20,000 tonnes of rapeseed and mustard, 52000 tonnes of linsed, 1073000 tonnes of total oil seed, 6000 bales of cotton, 1000 bales of Jute,

238 163000 tonnes of tobacco and 15000 tonnes of dry chillies were produced and transported to different markets/centres in the state and the country. 1 1,63,03,000 tonnes of sugarcane was moved to various gurr/sugar mills for gurr/ sugar production and to the

Urban markets for the purpose of Juice. In carrying the sugarcane, wheat, rice and other agricultural/industrial products from one place to another, bullock carts, house-driven carts, tractors and motor trucks were mainly used. In 1997, almost 1,03,653 goods

(Motor) vehicles and more than 20,95,6000 bullock carts were used in the movement of goods and services and agricultural produce.

Road transport has also played a significant role in the marketing of milk, eggs, raw wool and forest produce. In 1996-97,

69066,000 tonnes of milk was produced in 1996-97. in U.P. which was distributed to various dairies/markets in the country. 67.1 crore nos. of eggs and 2.1 thousand t6^es of raw wool were produced during the year 1997-98, which were moved to each and every corner of the state/country. In 1995-96, 4,03,203 cu meter of timber and poles, 20,7,410 tonnes of fuel wood, 1,85,85 1 nos. of bamboo, 72,539 tonnes of resin, 1163 tonnes of gums and 408

' NOTE : Figures have been collected from "Statistical Abstract of India" C.S.O., Ministry of Statistics and Programme Implementation G.O.I., New Delhi. (1999 and 2001).

239 tonnes of cane were produced. All the forest produces were moved

to the places of their consumption only by the means of load

transport, because no railway or airway service is possible in

forests except road transport means such as bullock carts, Camel carts and tractors etc.

In March 1999, there were 4,04,617 village and small scale industries in U.P. Road transport in this content, played a great role in bringing the workers/Jabourers from their homes to the work-places. It distributes the industrial products to different villages/markets/Urban centres, thus providing employment to a large number of unemployed persons in rural areas. A survey report shows that about 600' people travel per bus per day in rural areas.

But only road transport is not the key to progress.

There are many components in the process of development and none of them is sufficient in itself in bringing about the improvement in living standards. Rural development implies both the economic betterment of people as well as social reformation

Improvements in health, education, drinking water, energy, sanitation and housing coupled with attitudinal changes facilitate social development Rural development schemes such as IRDP,

Indian Journal of Transport Management Pune Vol. 23. No.l, June, 1995.

240 J.R.Y., D.R.A.P., N.R.R.P, l.A.Y; S.G.R.Y, A.R.W.S.P., J.G.S.Y., land reform, Community development, rural energy and other miscellaneous programmes provide a direct attack on poverty and backwardness of the region. The way, people and the goods moved, have a special significance to the pace of development.

But road, transport as it is necessary ingredient of nearly every aspect of social and economic development, plays a key role in getting land into production, marketing of agricultural and industrial products/goods and services and in making forest wealth

accessibleVt-^ W W kJ J. c/ A W ,, thus th1.J.XeW keXVWy^ foXV/Xr ruraA W-X l ruraX M X lX developmenV* V/ * W X Vy X4.1. Xl tV lieXXWLs^ iXXnX the strengthening rural transport. Infact, Road transport plays an important role in all situations namely, either for succejs; s or failure.

• It has been found that most of the existing rural road

network in U.P. consists of earth and gravel surface with

poor quality. It has also, several deficiencies, as it has been

developed in stages, from the usages of several years rather

than any proper design, it is suffering of deficient

investment and lack of comprehensive planning. It is under

developed, poor in quality, low in standard, inadequate in

capacity, antiquated in design, structurally weak, poorly

241 maintained, heavily deteriorated and grossly inadequate to

meet the present traffic demand.

The existing planning practices are based on ad hoc criteria,

which are not good enough basis for planning major rural

road programmes. They mostly define the numerical targets

of village connectivity to be achieved within a given time period. Even though such targets look specific, they don't give any direction about the manner in which the targets should be achieved. There is no guidance as to where the villages should be connected? What should be the design and construction standard? Which villages should be connect first? These decisions are left to local interpretations.

Consequently, haphazard growth of rural roads manifests into several forms resulting into sub-optimal utilization of the funds.

It is common to see the rural roads which lead from no where to no where, roads without cross-drainage works

(culverts and bridges etc) loose soil being dumped on a winding alignment; multiple road connections being provided to a village while other villages don't have even one road connection^ All these result into colossal wastage of funds which can only be ill afforded.

242 The responsibility to mnke plans for construction,

maintenance and development of roads lies on the State

Government. But in our state (U.P.), the government does

not really know how many roads in the state need repair. It

even does not have information on how many roads repair

work has been started and how many of them are left half

finished.'

More than 1000^ crore of rupees are spent annually on the

construction of roads, but how much actually is spent for the

purpose is any body's guess. It is no longer a secret that in

the name of laying of new roads, crore of rupees go into the

pockets of politicians, officials and contractors, the unholy

trinty which works in unison. There are many instances of

roads being constructed only on papers. The roads for

Barhapur to Najibabad, Barhapur to Afzalgarh and Kotdwar

are the instances of roads constructed on papers. Similar is

the position in Varanasi, Faizabad, Jalaun, Hathras and other

districts of U.P.

It is interesting to note that during 1947-97, the road length

in U.P. has been increased only 22.23 times while the

' The Times of India, New Delhi, 23 Feb., 2001 p ^ The Times of India, N. Delhi, 27 Feb., p. 10

243 vehicle population has been increased 149.8 limes over the

same period. This inadequate road network has lead to

higher transportation cost, w^hich has severly eroded

international competitiveness of the economy. "Commercial

vehicles in India are able to run only 200-250 Kms per day

as compared to 500-600 Kms per day in the developed

countries\

The present scenario of road transport is a combination of

bad vehicles, bad roads, unsatisfactory crew coupled with

poor managerial attention and poor financial viability. It

appears that many circumstances and events have conspired

against the provision of a satisfactory level of road

transport. If one expects road transport operations to

expand, the environment needs drastic changes and

congenial policy postulated. The present outcome is the

result of the present policies which need total revamping.

Road transport is obstaucted by a number of barriers created

by a host of tax collecting agencies like municipality, sales

tax department. Entry - tax collectors, enforcement agencies

like police. Forest Department etc. These barriers not only

hampers free and speedy movement of goods and services

Mathur J.S. "Surface Transport in India" Parintwell Publishers Jaipur (Rajasthan) 1999. p-18

244 but also cause wastage of oil and provide opportunity for

harassment and extortion.

It has been found that neither U.P.S.R.T.C. has achieved

profitability, nor the passengers' satisfaction has been

achieved in the rural operations. The reasons are inadequate

growth of services, old fleet and inadequate infrastructure facitlities, absence of rational fare policy, high incidence of motor- vehicle taxes, poor customers' services, inadequacy of professional and committed managers, absence of co- herent policy frame-work, unsuitable and improper checking system, permits to private bus owners on profitable routes, large scale clandestine operations and wide variations in performance.

The basic obstacle for the advancement of agro-industries in

U.P. is the lack of all weather village to market roads. There is a paucity of road links from village to market places.

Most of the roads linking villages to the nearest surfaced roads are mere tracks unsuitable for vehicle movements. The result of all this has been a sustained lack of development in the agro-industrial potential of these rural areas;

Despite the ever-increasing attention to rural roads since independence, only about half of the villages are yet

245 connected with rural roads. The remaining villages require fresh construction involving an expenditure of a huge amount. But at present level of availability of funds, it may take several decades to complete the road connection of the villages. It is imperative to find much larger funds for rural road programmes than are available at present.

The rural road organization generally construct rural roads without ensuring their proper maintenance. Major part of the rural road network is either in failed, poor or critical condition. It is breaking at a very fast rate. The huge capital investments and concrete efforts made over the several decades in building the rural road network are now endangered. There is a real crisis in rural road maintenance.

Modern business and industry needs large business districts and a comprehensive range of services (Business districts evolve wherever transport and telecommunication connectivity is high). At present, rural areas do not support either large business districts or high quality services, that is why, modern business shy away from rural areas and leave them poor. If rural areas can offer similar facilities, businessman will find such rural areas more economical than congested cities. They will then, naturally redirect their

246 investments away from cities to such rural areas Thus, the poor transport connectivity becomes the main reason why rural areas do not support large business districts in the ways cities do.

Since a number of different programmes and projects have been taken up in the country and the state to develop the rural areas and to improve the standard of living of people as Community Development Programmes, Area specific programmes, Target Group Specific Programmes,

Employment Generation Programmes, Ganga Kalyan Yojna,

Jawahar Rozgar Yojna, Indira Awas Yojna, Rural Sanitation programme and employment Assurance Scheme etc., to develop the agricultural and industrial sectors and to provide the health, housing and education facilities to the people of rural areas. But these programmes and schemes have not been implemented completely.

There are no linkages between different programmes. There has been a lack of co-ordination with other departments as well. IRDP and allied one are not sufficiently emmeshed in the overall strategy of sustainable agricultural development or rural industrialization strategy or with the resource-base of the area. Infact very few loans have been given for buying

247 land. The absence of integration together with lack of

technological and institutional capabilities puts a question

mark on the very strategy and design of programmes.

A field study of rural development schemes in Meerut

district makes a quick evaluation of rural development

programmes and reports of J.R.Y. that works were executed

as biased towards benefitting general cast areas; the deducted material-labour ratio of 70 :30 indicating greater propensity to spent on materials, quality of work was bad in three out of 5 samlpe villages, inadequacy of funds at Gram

Panchayat level led to rise of pressure groups fragmenting the village society, there was a lack of transparancy and the book-beeping was also poor, local labour was not available for J.R.Y. works; market wages were higher than the wages paid on these works and labour contractors usually fudge muster rolls extending the actual days of work done. EAS was by and large redundant scheme in a labour deficit district like Meerut. Utilisation of funds under this scheme was very poor. Almost all works were arranged from outside the Block departing from norms. lAY funds were exclusively reserved for S.C. community. Only one third of beneficiaries were below poverty line. Most of the

248 beneficiaries reported having paid bribe to get their

applications processed. Interestingly, IRDP performance has

been gender sensitive as over 50% of beneficiaries were

women. But corruption was rampant and loans were given to

not -so- poor beneficiaries. As per BPL survey, the number

of eligible families has become small as most villages have

reached a sanitation point. D.W.C.R.A. groups were reported

to be unstable due to high dropout rate. Banks were reluctant

to lend to those groups in the absence of collateral.

Activities under the scheme did not yield sufficient returns.

NMBS beneficiaries got the money after delivery and very

few actually spent it on improving their diet. They wanted

food to be given in place of cash. NOAPS beneficiaries

wanted their pensions at a shorter interval than six months

as at present. NSAP was generally a bribery- free

programme.'

Planning Commission Report (Oct.2000) Govt, of India, New Delhi. P. 141.

249 Suggestions And Recommendations

Considering the importance of road transport in recent years and

increasing growth of both passengers and freight traffic the

present road network should be strengthened and upgraded. The

State government should give urgent consideration to the

following points.

A) Black topping of state high ways and major district roads

with high traffic density.

B) Construction of bye pass with service roads for all district

head quarters.

C) Re-construction and replacement of weak and narrow

timber bridges with R.C.C. bridges on priority basis.

D) There are several level crossing along the National

Highways requiring over bridges. There are also several

bridges whose load carrying capacity is limited. Such weak

and damaged bridges should be immediately reconstructed.

• The existing surfaced roads (State Highways and Major

District Roads) should be properly maintained. Timely

up-keep and maintenance prolongs the life of road assets.

Properly maintained roads reduce vehicle operating cost by

providing good riding quality and prevent road accidents.

250 Though considerable amount of fund is sanctioned for rural

road development by the Central Government every year, the

condition of rural roads in U.P. is beyond dcscriplion. Il is

generally seen that there are different organisations like

P.W.D., Zila Parishad and Pachayat Samities etc- to look

after the development of rural roads. There should be a

single agency to co-ordinate and implement the rural road

development programmes.

In the context of shortage of funds in the rural road

development, rationalization of road user charges, re-

structuring of road finance and diversification of finance muse be considered. Scope for greater public participation and tapping of non-governmental sources has to be explored. "Road Maintenance Fee" should be charged from different vehicles and this fund should be used for road maintenance. Roadside plantation of fruit trees could also be an added source of revenue generations besides providing nutrition to the local community.

The existing design standards for road layouts need to be reviewed and revised so that these are more relevant for improvement of existing earthen tracks/rural roads in agricultural areas. Instead of undertaking improvement of

251 the whole length of the track as is conventionaliy done, only

spot improvements can be undertaken at major bottlenecks

to the traffic. These bottlenecks can be identified through road condition surveys. The spot improvements include provisions of missing cross drainage w^orks, improvements of drainage, raising of the road formation in poorly drained areas, improvement of road sections passing through marshy areas or weak soils, selective provision of hard pavement crust and improvement of sight distance. Such improvements will be very cost effective and ideally suited to low budget situations as is generally the case in rural areas.

A large number of local materials including laterite, moorum, kankar, natural soil gravel are available in the country which can be effectively used for road construction.

Good quality earth and gravel roads could be very conveniently constructed in most parts of the country by using the local materials. These roads are ideally suited to rural areas where the initial level of traffic is generally low and a policy of stage development is to be adopted. These roads require low initial capital investment and low maintenance cost. With the growth of traffic, these roads could be suitably upgraded.

252 Simply quality assurance procedures can be developed and

introduced in rural road construction to increase the overall

service life of rural roads. This could be achieved through

setting up quality control laboratories in rural areas with

simple equipment for quality control and necessary training

to the field staff in performing various tests related to

quality control.

For efficient planning of roads the State Government should

set up a 'Road Maintenance and Construction Department"

in each district to look after the maintenance, construction

and improvement of roads. This Department should be given

the responsibility of construction and improvement of roads.

If there is any defect in roads or mis-use of funds provided

by the Government, this department should be responsible

for that. As in Mughal period, if any accident took place due

to the defect in road, the Zamindars (The persons who are

appointed to look after the construction and maintenance of

% roads) were responsible for that loss.

Road surface decays and deteriorates under the constant use

of vehicular wheels. The damaging effect of vehicle load is

' See "Roads and Communicatioi«'«Mv4ghal India". Edited by Farooque, Abul Khair Muhammad, Published by Idarah-I-Adabiyal,(2009/Qasim Jan Street, Delhi, 1977

253 cumulative in nature. The more the traffic and higher the wheel loads, the more will be the deterioration and consequent need to strengthen the road crust. Since pavement design in based on cumulative number of standard axle loads over the design service life, higher axle loads cause premature distress of road pavements. This means higher operating cost of vehicle and need for increased outlay for maintenance of roads. It is therefore, necessary for the enforcement machinery to check over loading of the vehicles so that cost of maintenance of roads may be minimized.

A proper policy guideline is required to arrive at the optimum combination of public as well as private operations in road transport.

Un - necessary checks, and restrictions on the movement of goods and services should be minimised.

Integrated transport policy will have to address the issue of inefficiency, both in the context of vehicle productivity as well as workers' productivity. For this, necessary steps are proper maintenance, up gradation of the existing technology and on the job training of workers.

254 In order to raise the necessary capital, the road transport sector should be declared a priority sector and the financial institutions should be encouraged to lend for the modernization of the sector.

The various purposes for the detention of vehicles should be clubbed so that a single detention may serve all such purposes. The standards of discipline of the enforcement staff and others involved should be of highest order.

Qualities like honesty and integrity should mark these men.

Surprise checks by Senior Officers should be carried out and stringent punishment be given to those who don't measure to the standards of discipline. The enforcement staff should recognise the importance of time in transportation and importance of speedier movement of goods for the economy as a whole.

The Central Government should make available wayside amenities like parking place, repair shops, godowns and booking offices, security and safety on roads to the truckers;

Construction of by-passes, fly-overs, over bridges at railway crossings where-ever necessary will ensure free movement of vehicles.

255 • Traffic Department should be strengthened to conduct

different types of surveys periodically and to provide

adequate and effective services according to the passengers'

needs in rural as well as urban areas.

• Divisional Managers and Regional Managers should monitor

the monthly performances of the Checking Inspectors and

effective disciplinary action should be taken against in-

efficient hostile inspectors.

• U.P.S.R.T.C. should start courier business of small size

letters and parcels. It should ply goods vehicles on roads. It

will pay a rich dividend to U.P.S.R.T.C.

• U.P.S.R.T.C. should review its strategy from pleading with

the government to reduce taxes & social concessions or

merely to increase fares. The new strategy should be to take

a major part in rural development and claim from the

budgetary allocations their capital needs on the promise of

providing rural transport. It should sign memorandum of

understanding with Panchayat Samities & Zila Parishads on

the level of service to be provided in rural areas and in

return seek capital grants for purchase of buses & provision

of passengers amenities. Without adequate transportation,

256 the process of development itself would be slow, halting &

unexciting.

A suitable "Maintenance Management System" should be

developed and implemented in rural areas for maintenance

and planning of the rural road network. Maintenance management system involves inventorization of existing rural road network, periodic condition surveys of the network to identify various deficiencies, development of a criteria suggesting what maintenance activities are needed to rectify various deficiencies in the network along with their relative priorities, identifying maintenance needs of the network according to the above criteria and preparing a maintenance plan according to the availability of funds.

For the development of appropriate technologies for rural, road, "Management Information System" should be developed at the national and state level. The relevant data for rural roads including road length, road type, village accessibility, construction costs and general condition of rural road network, details of various structures, maintenance history, traffic funding, unit rates, progress of rural road, development in various regions and traffic safety should be stored in the data bank. A "Rural Road

257 Information Centre", should also be established in the

country and state and this information centre should ensure

inflow of data processing, structuring of data, analysis of

data according to the user needs and an efficient delivery

system.

The staff engaged in rural development should be imparted

comprehensive training through training courses and

workshops, so that awareness can be created among them

about the latest technological development, planning and

management issues, cost consciousness and about significant

experiences available in various other countries.

Once the roads are constructed, they must be maintained.

The scarce resources for rural road maintenance should be applied where they are needed the most.

Panchayat Raj institutions at district, block and village levels should play an increasing pivotal role with regard to construction and management of rural roads.

A 'Rural Road Research Board' should also be established.

This board should have representatives from Ministry of

Rural Areas and Employment, Ministry of Surface

Transport, Ministry of Environment, Ministry of petroleum,

State Government, Academic Institutions, Planning

258 Commission, Material and Construction Industry, Rural and

Co-operative Banks and other organizations dealing with

rural roads. This board has to serve as a 'Think tank' for

rural road development.

All villages are to be provided with all weather roads on

priority basis. For this special programmes must be

envisaged in 5 year plans.

More emphasis must be given on rural roads in rural

development programmmes like J.R.Y., I.R.D.P. etc.

All the existing roads in rural areas must be properly

maintained to make them serviceable, mainly in rainy season

for transportation.

New material like polymers, ceramics and composites should be utilized in rural construction, fabrication housing and road building activities.

A concerted effort should be made to improve the rural road transport system. The improvement in the rural road transport would stimulate the establishment of agro industrial plants near the market and would promote balanced regional development of these industries by the establishment of factories very near to the sources of inputs.

259 Programmes of rural development should not put under the

charge of Panchayats. Instead, "Special Development

Councils", should be set up in which majority representation

should be given to the small and marginal farmers, the

artisans and landless labourers. Unless the structure of

Development Councils is revolutionised, it would not be

possible to implement the policies designed for the poor.

All the development programmes should be taken in a

phased manner. The first phase should consist of collection

and compilation of data on natural and human resources and

preparation of integrated micro-level plans on all aspects of

economic development taking into consideration the need of

the people and by involving them and their representatives

in this process and recruitment and training of different

categories of personnel from within the district, blocks and villages for developmental tasks in the district. The second phase should be the execution of plans in the different sectors through the various State Agencies and the task force and its personnel trained for the purpose. A committee at state level under the chairmanship of the Chief Secretary will provide a system for periodic monitoring and evaluation of the plans and their execution in the district.

260 A time-bound "Action Plan" must be prepared jointly by

NABARD, Co-operative banks and the concerned State

Government for improving the resource position of the co-

operative banks and restoring their financial viability. The

'Action Plan' must be implemented along with an exit policy for the w^eak banks. Wherever Primary Agricultural Credit

Societies (PACS) are defunct or dormant, it should be possible to expeditiously wind up such societies and form new societies to serve these areas.

Relief and guarantee funds at the National and State Level must be expeditiously constituted and the stabilization funds of the co-operative structure must be strengthened for providing relief to borrowers affected by natural calamities.

Effective linkages have to be established between production and marketing through the processing units, commodity boards state corporations etc. Effective active support may be provided for recovery of loans and establishment of recovery tribunals, The range and scope of the 'Crop Insurance Scheme' must be made more comprehensive.

Rural tourism needs to be given an impetus by earmarking funds for pilot projects on the basis of model plan for each

261 state for the purpose. These villages can be taken up for priority development particularly if the projects can be linked with restoration of heritage properties in the area.

This would provide a boost to local performing arts and help to conserve the local culture from preventing rural urban migration.

Local people in the rural areas should be encouraged to participate in tourism related projects, which may preferably be formulated by the tourist officials in consulation with local and NGOs. These projects could be in the nature of providing glimpse of the village ambience and the tourist presented with local cuisine art and culture by persons in local customs engaging in moderate, but clean accommodation for tourist should be constructed by villagers in traditional design and architecture. Bank finances should be made available at attractive terms and conditions for promotion of such projects.

Integration and co-ordination of various Centrally Sponsored and State Programmes for rural road is essential to create durable assets and eliminate duplication of efforts and avoidable wastage of limited resources. It is also important that there should be a single agency in the state to

262 implement and co-ordinate all rural development

programmes.

A "District Planning Committee" should make assessment of

available resources financial and otherwise for the

implementation of the district development plan. It should

not only be equipped to efficiently negotiate for the

development resources developed from the state but should also draw up appropriate credit plans for moblising maximum of institutional finance for implementation of the district plans. It should prepare the composite budget for the district including all components.

We find that there are serious gaps in the data-base for the road transport sector at the state and district level.

Systematic information on traffic flows is not available because of multiplicity of transport agencies, predominance of single vehicle owner and absence of traffic recording procedures. In this context, following points may be taken into consideration.

For systematic study of traffic flows by road, our data base should be strengthened and updated. The Ministry of Surface

Transport and Planning Commission should carry on inter regional road traffic survey regularly.

263 • At the State level, Transport Survey and Planning Cell

should published its report on commodity movement more

regularly and the State Government should make fund

available to the concerned department for the purpose.

Finally, it may be observed that the principle mode of

transport for passengers and goods movement in U.P. will

continue to be road. Railway can not connect each and every

corner of the state, while road transport has the advantage of

door to door service and may be extended to hilly areas. It

can transport goods of interior area and even load the goods

of agricultural farms and industrial units located in remote

areas. It provides the basic infra-structure for bringing the

majority of people who live in far-off villages by connecting

them with the rest of the country.

Therefore, the roads (mainly rural roads) should be properly developed, it will result into developed agricultural and industrial rural economy. There will be a good transportation system to carry on agricultural and industrial products from one area (from the places of production) to another (to the places of consumption), hence socio-economic development of the rural areas will be ensured by this activity.

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