National Highways Authority Of India

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NHDP Benefits Economic Stimulus
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NHDP Benefits

• Major economic social benefits
• Vehicle operating cost saving
• Travel time saving
• Fuel saving
• Benefits to trade especially movement of
  perishable goods
• Saving in maintenance costs
• Reduced accidents
• Area development

As per World Bank Estimated benefits Rs.8,000 crs
/annum on GQ only
3
NHDP Economic Stimulus Cement Steel and
Equipment

• Annual Average Requirement 2001 2004
• - Cement 30 - 40 Lakh Metric Tonne
• - Steel 3.0 Lakh Metric Tonne
•  Assumptions for cement and steel consumption per
  km are
•     
•  

• Equipment
•    Tippers 5100 (All domestic)
• Tractors 1020 (All domestic)
• Excavators 170 (All domestic)
• Graders 140 (50 Domestic)
• Rollers 280 (50 Domestic)
• Small Batching Plants 35 (All domestic)
• Tractors 1020 (All domestic)
• Transit Mixers 100 (All domestic)

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NHDP Economic Stimulus Employment Generation

Workers (Skilled Unskilled) 2,50,000
Persons per day 40 persons
per Km. per day Supervisors 10,000
staff per day 2 Supervisors per day By
December 2003 18
crore mandays (completion of NHDP Phase I)
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NHDP Economic Stimulus contd..
Impact already being felt (As per figures of
press note from press information bureau,
Government of India) Category

Growth Cement 8.1 Steel 6.8 Comm
ercial Vehicle (mainly goods carriers)
53
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MAJOR GOVERNMENT INITIATIVE FOR HIGHWAY
DEVELOPMENT

•  Incentives
•   Income-Tax exemption for 10 years from NHDP
  earnings has been given.
•   Total Custom Duty Exemption on Road Building
  Equipment, for NHDP
•    In BOT Schemes, Grant upto 40 can be
  given.
•    The NHAI Bond exempted from Capital Bonds.
•  Model Concession Agreement(s) for projects less
  than and above 100 crores
  (available at
  http//www.nhai.org).
•    Bonus of 1 upto 6 months for early
  completion.
•  Faster decision making, operational issues and
  award of contracts delegated to NHAI.
•   Prompt payment within 15 days.
• Dis-incentives
•        Liquidated damages for delay in
  completion(1.5 per month, maximum upto 10)
• Monitoring
• Proactive Monitoring System
• Periodical reviews by Honble Prime
  Minister
• Regular reviews site inspection by
  Honble Minister
• Field offices connected to Head Office
  through E-mail
• Daily Progress Report sent to H.Q. from
  field units

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Value addition
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Value Addition and Safety features

• 2-Lane dual carriageway
• Service Roads to cater to local traffic
• Grade Separators
• No Railway level crossing
• Highway Traffic Management System
• Highway patrolling Ambulance Services
• Way side amenities

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Thank You