Tribunal for road disputes

MID-TERM REVIEW OF THE TENTH PLAN EMPHASISES FISCAL DISCIPLINE, FLEXIBLE INVESTMENT NORMS

Suggesting private sector-friendly measures, the Planning Commission, in its mid-term appraisal (MTA) of the Tenth Five-Year Plan, has said that a separate law for dispute resolution and economic regulation should be enacted for the roads sector.

The private companies involved in road construction have complained of interminable delays as a result of time taken for sorting out differences between various parties.

About the roads sector, which has been one of the thrust areas for the government, the MTA said the ministry of road transport and highways should come up with a detailed programme to be followed in the next two years.

"The need to leverage available budgetary support to the brim and adopting an optimal mix of government and the build-operate-transfer (BOT) projects should be kept in mind," it said.

In case of ports, the Plan body has said that with more private players coming in, the role of Tariff Authority of Major Ports (Tamp) should be reviewed.

Tamp, at present, regulates tariff but the shipping ministry has proposed that its role be expanded to include issues like disputes among private operators.

The appraisal has also expressed concern over slow ship-acquisition programme of the government owing to a lack of fiscal incentives and difficulties in raising external commercial borrowings.

It, however, noted the shipping industry recovered with its tonnage rising by 75 lakh gross registered tonnage (GRT) in a span of 8 months to 7.7 million GRT in March 2005.

The MTA said to attract private investment to the ports sector, operational efficiency had to be improved by delegating more powers to ports. There was also a need to move ahead in efforts towards corporatising ports. At present, India has only one corporate port at Ennore.

It also said in case of capital-intensive activities like deepening of channels and increasing port depth, government support was required. The issue has been a bone of contention between the finance and the shipping ministry, with the latter being in favour of conducting dredging through private parties.

The Planning Commission, in the MTA of the Tenth Plan, has underlined the recommendations of the committee of infrastructure on the roads sector.

These include preparing model concession agreements for BOT projects and operation, tolling and maintenance projects, and enhancing the powers of the National Highways Authority of India.