A high-powered committee on transport development, headed by former Reserve Bank of India (RBI) deputy governor Rakesh Mohan, has suggested a unified ministry of transport with roads, railways and ports as its departments. It has also recommended raising the road cess on petrol to Rs 4 a litre from the existing cess of Rs 2 a litre.
According to the committee, investment in the transport sector has to grow from Rs 2.2 lakh crore in 2011-12 to around Rs 14 lakh crore by the 15th Plan (2027-2032), with the bulk of it going to railways. The committee will submit its report to Prime Minister Manmohan Singh on Saturday.
"In order to arrest the significant erosion in Railways in its share of traffic, there is a need for shift in emphasis toward greater investment in Railways," Mohan said while releasing the report on Friday.
On railways, the report said investment has to rise from 0.4 per cent of the gross domestic product (GDP) in the 11th Plan period (2007-08 to 2012-13) to almost 1.1 per cent of the GDP in the 15th Plan.
On taxes, the panel said that single-window clearance for all taxes and charges at state border will bring down transaction cost.
"While investment in roads, ports, and airports have shown an increase since the 1990s, it has been stagnant at around 0.4 per cent of the GDP in the case of Railways," said Mohan.
Planning Commission Deputy Chairman Montek Singh Ahluwalia said railways are in dire need of resources to fund their growth and expansion activities.
On airports, the Mohan Committee suggested the Directorate General of Civil Aviation (DGCA) should be replaced with Civil Aviation Authority. It also recommended that DGCA should be relieved from investigation into accidents, which should be handled by an autonomous Accident Investigation and Safety Board.
On ports, the committee said there is a need to have four-to-six mega ports with two-to-three in each coast and a new regulatory authority for the port sector. The Committee also suggested setting up of three new institutes for transport research and statistics and a common National Safety Board for road, railways and water/marine.
