The draft integrated transport policy has recommended reduction in octroi and sales tax levels to promote the flow of road transport.
The draft policy has also recommended to set up a non-lapsable metropolitan transport fund, in line with consortium approach to finance urban transport projects. The fund would be supplemented by other levies, the draft said.
The policy also pointed out the need for developing Asian High Network to promote trade relations with neighbouring countries and upgrading high density corridors both in width and quality, taking into account the programme of Railways. The sources said while the recommendations regarding road sector has been cleared by the task force on infrastructure, those on urban transport, ports and coastal shipping and inland water transport are likely to be cleared by the task force at its meeting scheduled for 16 May.
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The recommendations were made by the sub-group headed by the Planning Commission member Montek Singh Ahluwalia. On port sector, the draft policy recommended two modern gateway/transhipment ports in Mumbai and Chennai and provision of inter-modal linkages via efficient rail and road services between these two ports to ensure faster movement of large transhipment containers.
The sources said after the 16 May task force meeting, each ministry would be asked to prepare the respective drafts for placing the final draft before the Cabinet.
It has also been decided to prepare two separate set of recommendations for coastal shipping and inland water transport. At present, the combined recommendations called for private sector participation in infrastructure and operation of services. The draft policy said a comprehensive policy for this sector is important.
Other recommendations of the draft policy on road sector said utilisation of budgetary resources to leverage private investment for improving the viability of projects and evolving a system of user charges to create a source of revenue for road construction. It also called for modernising high density corridors by introducing new technology in the design, engineering and construction methods.
On ports, the draft policy stressed the need for developing a series of specialised minor ports along the coastline to divert traffic from congested major ports which in turn would increase the port productivity. Also, a focus on port technology and organisational changes in terms of corporatisation for ensuring efficient management, institutional funding and private and foreign collaboration.
For promoting urban transport, the draft recommended for developing mass rapid transport system to discourage growth of personalised transport. The policy also called for awarding planning and implementation of metropolitan projects to an institution managed by professionals.
For Railways, the draft policy has recommended to set up an independent regulatory authority for fixing fares and freights. The proposal has been put on hold following reservations by Railway Broad officials who wanted an integrated regulatory authority for the transport sector. The task force will take up the issue again in presence of Railway minister.
On civil aviation, the draft policy recommended for converting inland air travel tax and foreign travel tax into a common civil aviation cess and later creating a national civil aviation fund for infrastructure development financing.
Also, upgrading Delhi and Mumbai airports to world class international airports standards and same for air traffic service and ground infrastructure.
The Recommendations
* Cut octroi and sales tax to promote road transport
* Asian high network to boost ttrade with neighbouring countries
* Use budgetary resources to woo private investment
* Levy user chanrge to create fund
Railways
* Widen the scope of private sector participation
* Split six manufacturing units into independent profit and cost centres, thus corporatise and privatise
* Independentt regulatory authority for fixation of fears and freight put on hold
* Correct pricing policy to regain share in freight
* Reduce speed differential between freight and passenger services, mechanise track maintenance and introduce state-of-the-art locos
Ports
* Improve productivity by developing a series of minor ports to divert traffic from major ones
* Set up two transshipment ports in Mumbai and Chennai and provide inter-modal linkages for movement of large containers
Civil Aviation
* Upgrade Delhi and Mumbai airports to warld standards
* Modernise air traffic services and ground infrastructure
* Merge IATT and FTT into a common civil aviation cess and create a national civil aviation fund for infrastructure financing
* Restructure airports at Delhi, Mumbai, Chennai and Calcutta via long-tterm lease to private sector
Urban Transport
* Mass rapid transport system to discourage personal transport
* Non-lapsable metropolitian transport fund