road transport challenges india

REsEaRchstudy 2015

Road TRanspoRT challenges

In IndIa

PaRtI:WhIchEVOLutIONsFORINdIaNRaILWays?

Interview of Mr Vinod Bhatia, Director of the Railway Board at Indian Railways

IndianRailwayssetforaradicaloverhaul

Interview of Mr Kunal Singh, Research Associate at Centre for Policy Research

PaRtII:MaINchaLLENGEsFORtRucKsININdIa

Howtopreventtheincreasingproblemofoverloadedtrucks?

Interview with Volvo Trucks India

AnoverviewofRoadTransportChallenges

PaRtIII:tRucKsRadIaLIsatION

Radialtyreshavevirtuallyreplacedbias

Interview with Michelin India

Interview with Apollo Tyres

PaRtIV:ROad&INFRastRuctuRE

WilltheGadakri-ledroadministryliveuptoitspromises?

PossiblesolutionstorelievetrafficcongestiononIndianroads

BIBLIOGRaPhy

aBOutINdIatRaNsPORtPORtaL

TABLE OF CONTENTS paRT I:

WhIch evoluTIons foR IndIan RaIlWays?

thepowersoftheGovernmentofIndiainregard

toRailwayexpenditure.Itco-ordinateswithother

MinistriesoftheGovernmentofIndiaforintergrat-

eddevelopmentoftransportnetwork.

ThemaininitiativesofRailwayBoardare:

a) To partner with key stakeholders: States,Pu-

blicSectorUnit’s,multilateralandbi-lateralorga-

nizations&othergovernmentstogainaccessto

longtermfinancingandtechnologyfromoverseas,

theprivatesectortoimprovelastmileconnectivity,

expandfleetofrollingstockandmodernizeour

stationinfrastructure.

b) Indian Railways is envisaging investment of

$142 billion innextfiveyears.Thiscapitalwillbe

mobilizedfrommultiplesourcesi.eMultilateral

developmentbanks,pensionfunds.

c)Targeting operating ratio for2015-16at88.5%

against91.8%in2014-15:bestinthelast9years.

d) To speed up decision making, tightenac-

countability,improvemanagementinformation

systems:traininganddevelopmentofhuman

resource.

e) To Develop and introduce High Speed

ITP: You are director at the Railway Board, and

you will be a speaker at the 5th Annual Modern

Railways taking place in Indonesia. What will be

your key messages?

MR Vinod Bhatia: IndianRailwayshasunder-

takenthetaskofmodernizingthemassiveRail-

wayssystem.Thistaskinvolves,organizational/

managementsupport,substantialfunding,new

direction,newthinking,mobilizationofresources,

innovativePPPandnewbusinessmodels,anda

lotmore.GovernmentofIndiainAugust,2014has

permittedForeignDirectInvestmentinconstruc-

tion,maintenanceandoperationoftheidentified

areasinIndianRailways.Thereareunprecedented

opportunitiesinIndianRailwaysystem.IndianRail-

waysisinterestedincloselyinteractingandwork-

ingwithindustryandstakeholders.

ITP: What is the Railway Board and what are

your main initiatives?

TheRailwayBoardisthechiefadministrativeand

executivebodyfortheadministration,technical

supervisionanddirectionoftheRailways.TheRail-

wayBoardhasalsobeenvestedwithcertainpow-

ersoftheCentralGovernmentanditalsoexercises

INTRODUCTION WITH MR. VINOD BHATIA, DIRECTOR OF THE RAILWAY BOARD AT INDIAN RAILWAYS

� copyright India Transport portal Road Transport challenges 2015 5

areexpectedtoenhancethepassenger’stravel

experience.

ITP: Indian roads are still carrying most of the

freight. How would you comment the rail/road

freight transportation in this area?

Indianrailwaysistargetingtoincreaseitsfreight

sharefrom35%to50%.Thiswillbeachievedby

creatingcarryingcapacitythroughcapacityen-

hancementworksonHighDensityNetworksand

providingnewvalueaddedservicesonacustom-

izedbasis.Par-

ternershipwith

majorlogistics

providers,pro-

curementofHigh

speedandhigh

capacitywagons,closelinkageswiththecustom-

ers,strengtheningofitspositioninbulkcommodi-

tieslikeCoal,Cement,IronoreandutilizingInfor-

mationTechnologytomeetdeliveryschedulesare

someofmajorinitiativesundertaken

byIndianrailways.Twodedicated

freightcorridorsi.e.Easternand

Westernwillbeoperationalby2020.

Preliminaryengineering-cum-traffic

surveys(PETS)forfourotherDFCs

areinprogress.Thiswouldcreate

adequatecapacitytomeetthefreight

demand.Incentivestomajorcustomershavebeen

offeredtoinvestinefficientterminalhandlingsys-

temstoreduceturn-roundofthewagons.

ITP: What changes can we expect with the Rail

Budget 2015?

RailBudget2015marksbeginningofaFiveYear

ActionPlantotransformtheRailwaysbysetting

higherstandardsforGovernanceandTranspar-

ency.Amediumtermperspectivetoincrease

dailypassengercarryingcapacityfrom23million

to30million,increasetracklengthby20%from

1,14,000kmto1,38,000kmandgrowourannual

freightcarryingcapacityfrom1billionto1.5billion

tonnes

hasbeen

initiated.

Estab-

lishing

‘wasteto

energy’conversionplants,onlinebookingofdis-

posablebedrolls,provisionofbiotoilets,issuing

unreservedticketsthroughsmartphones,smart

cardsforticketing,e-cateringbyintegratingbest

foodchains,Introduction

of‘SMSAlert’toinform

passengersaboutup-

datedarrivalanddepar-

turetime,provisionof

conciergeservices,user

friendlyladdersforclimb-

ingupperberths,new

Brailleenabledcoaches,developmentof10Satel-

literailwayterminalsinmajorcitiesfordecongest-

ingthesecitiesaresomeofnewinitiativeswhich

“Indian Railways is targeting to in-crease its freight share from 35% to

50%”

� copyright India Transport portal

10.8billionhasbeenmarkedforHighspeedRail&

Elevatedcorridorand$2billionwillbeutilizedfor

enhancingPassengerAmenities.

ITP: In India, railways infrastructure is not as

discussed as road construction but how would

you describe it and the investment it requires?

Inlastfewdecades,theexpenditureonRailways

infrastructureasapercentageoftotaltransport

expenditurehasdeclinedconsiderably.Railwayex-

penditureaspercentageoftransportsectorexpen-

ditureusedtobeabout56%in7thPlan(1985-90)

whichhasreducedto30%in11thPlan(2007-12).

IndianRailwaysinlasttwodecadeshasremained

under-investedwhereastheroadsectorhaswit-

nessedasurgeininvestments.

TheshareofIndianRailwaysinoverallGDPhas

beenstaticat1%andhas,infact,gonedownto

0.9%in2012-13.Since1951,whilethefreightload-

inghasgrownby1344%andpassengerkilometers

by1642%,theRoutekilometershavegrownby

only23%andDoubling&Multipleroutelengthby

only289%.

Thereisalargeshelfofpendingprojectswhichis

estimatedat$80billiononthebasisoforiginal

estimatedcosts.Ofthese,fundrequirementfor

theprioritizedworkssuchasdoubling,newlines,

gaugeconversion,trafficfacilities,signal&telecom

works,workshopsandelectrificationisestimated

at$35billion.Overthenextfiveyears,Indian

Railwaysisenvisaginganinvestmentof$142bil-

lion.Outofthese,$16.67billionwillbeutilized

forStationredevelopmentandlogisticparks.$

Indian Railways set for a radicaloverhaul

“One of the main reasons that the Indian railways has survived is because is has no

competitors.”

� copyright India Transport portal Road Transport challenges 2015 �

technologythatitneedstocaterefficientlyand

effectivelytoIndia’steemingpopulation.

Thereisnodoubtineitherthegovernment’s

orthecommonpeoples’mindsthatRailways

needsamakeoverandhugeinvestment.Railways

hasbeenlosingtrafficshare,bothpassengerand

freight,foroverhalfacentury.

Sadly,thisvitalelementofinfrastructurehas

progressedabysmallyintheyearssincethefirst

trainranbetweenMumbaiandThanein1853

whereitcarried400passengers34kmataspeed

of28kmphinabout1.5hours.Nowthetrains

betweenthesetwodestinationsrunatanaver-

agespeedof50kmph.Perhapsoneofthemain

reasonsthattheIndianRailwayshassurvivedis

becauseithasnocompetitors.

ndianRailways’ricketycoachestrundling

pastill-maintainedstationsmaysoonbeathing

ofthepastsaysthenewgovernment.theloss-

makingnationaltransporterisexpectedtoseea

majorfaceliftwithambitiouspromisesofmod-

ernizationandbetteroperationalefficiency.

Thelifelineofmillionsofcommuters,theIndian

Railwaynetworkismassivealbeitatadrickety.One

ofthelargestemployersintheworld,thenational

transporterisreadytotakethe‘BigLeap’and

transformitselffromtheabysmalstateitisintoan

efficient,modernsystem.PeopleofIndiaareskep-

ticalaboutthefantasticpromisesvariousgovern-

mentshavebeenmakingovertheyears.Thisrelic

oftheBritishRajhasstoodthepassageoftimebut

hasbeenunabletointegratemodernandrequisite

mixedreactionsaboutthe‘radicalrailoverhaul.’

ItmaytakeIndiadecadestorealisethedream

oftrainslikethelocalversionoftheShinkansen

runningthetracks.Modi’sDiamondQuadrilateral

lineswillhavetowaitandacompromiseofsorts

hasbeenarrivedat—semi-highspeedrailservice

thatwilllinkIndia’sbiggestcities.Chinaisexpect-

edtohelpwithexpertiseandfundingtobuilda

high-speedcorridorbetweenChennaiandDelhi,

whereasJapan’stechnologicalknow-howand

investmentwillbeleveragedtointroduceahigh-

speed

service

inthe

Mum-

bai-

Ahmedabadsection.Feasibilitystudiesare

underwayforninehigh-speedcorridorsthathave

beenidentified.WithIndiarequiringaninvest-

mentof$137billionoverthenextfiveyears,

otheradvancednationssuchasFrancearealso

keentobidforasharetoupgradeIndia’sun-

derdevelopedrailsector.TheDedicatedFreight

Corridor(EasternandWestern)projectisfacing

landacquisitionchallengesasofnow.DFCCisbe-

ingfundedbytheJapanInternationalCoopera-

tionAgencyandtheWorldBank.Workispicking

uppaceandthesecorridorsareexpectedtobe

completebytheendof2019(twoyearsbehind

schedule).“Dedicatedfreightcorridorswillfree

up70%ofRailways’carryingcapacity,”saidAdesh

IndianRailwaysischaracterizedbyoperational

inefficiencythatbeggarsbeliefanditsperipherals,

researchanddevelopment,andmanufacturing

unitsarealsoinvaryingstagesofunderutilization.

Indigenizationofmanufacturingshouldbeakey

focusareaofthegovernmentasitwillgenerate

employmentandhelpcutcostsincurredbyim-

portingcomponentssuchasLinke-Hofmann-BI-

uschwheelsusedforDurontoandRajdhani.After

gainingindependencein1947,Indiahasadded

about13,000kmtoitsextensiverailwaynetwork,

where-

as

China

added

14,000

kmin

justfiveyears(2006–2011).Indiamustfindwaysto

breathelifeintothissectorasitleadsto“improved

landuseandurbandensification,lowercarbon

emissions,reducedcongestionandenhanced

energysecurity”(DeloitteAccessEconomicsStudy,

2011).

TheNarendraModi-ledGovernmentrecognizes

thattherailwayssystemneedsreformslikenever

before.Thenewregimehasevenbeenambitious

enoughtoenvisionanIndiathathashighspeed

bullettrainslikeJapanandChina—anexpensive

proposition,saycritics,inacountrywheresomany

peoplelivebelowthepovertyline.Peoplehave

9 copyright India Transport portal Road Transport challenges 2015 10

privatesectorparticipationandnotprivatization

ortransferofownership.Mostpeoplearehappy

withrecommendationsthatrelatetosettingup

anindependentregulator,decentralization,track

accessandcommercialaccounting.Indianeeds

afairsystemtoregulateandsetpassengerfares

andfreightrates.Howdotheyplantomakethis

systemvibrantagain?IntheBudgetspeechin

February2015,theUnionMinisterforRailways,

SureshPrabhu,said,“Whatisimportantishowwe

sustaintheIndianRailways.Weneedtoregener-

atetheRailways.”Improvingthetravelexperience

seemstobeafocusareaforthisparty.Headded:

“AmajorpartofmyBudgetfocussedonpassen-

geramenitieslikecleanlinessandtoilets.Ifcus-

tomersrealisetheyaregettingsomething,they

willbereadytopay.Thedirectionisveryclear.

WewanttomaketheRailwayself-sustainable

andprofitable.Wewanttoputthemoneyback

intothesystem.”Theministryseemstohavekept

atleast39ofitspromisesifoneistobelievethe

pressreleaseinMay,includingimprovingthe

qualityoffoodandcleanlinessinthecoachesand

stations,settingupemergencyhelplines,making

bookingticketsandretiringroomseasier,signing

MoUstoimproveraildesign,obtainfundingand

Committeesovertheyearshaverecommended

thattheRailwayssplitfunctionsandaRailway

TariffAuthoritybeestablished;corporatizationis

importantandexpertsbelievethatsettingupa

holdingcompanyisthewayforward.TheDebroy

Committeeinitsinterimreport(April2015)said,

“Privateentryintorunningbothfreightandpas-

sengertrainsincompetitionwithIndianRailways

shouldbeallowedandprivateparticipationin

variousRailwayinfrastructureservicesandnon-

coreactivitieslikeproductionandconstruction,

shouldbeencouragedbytheministry.”Theseven-

memberpanelsaid,“Itisimperativetosplitthe

rolesofpolicy-making,regulation,andoperations.

Thereshouldbecleardivisionofresponsibilitybe-

tweenthegovernmentandrailwayorganizations.

TheNarendraModi-ledGovernmentrecognizes

thattherailwayssystemneedsreformslikenever

before.TheMinistrywillonlyberesponsible

forpolicyfortherailwaysectorandParliamen-

taryaccountabilityandwillgiveautonomyto

IndianRailways.”However,theRailUnionhas

rejectedtheDebroyreportandrailedagainst

railrestructuringthroughprivatizationmodelled

onthatusedintheUKandotherrailsystemsin

Europe.Theministryinsiststhatitispushingfor

mentthosealreadyawarded.IndianRailways

needsclosetoINR209,000crore(~USD33bil-

lion)forpriorityprojectsthatdealwith‘doubling

newlines,gaugeconversion,trafficfacilitiesand

electrification.’Therearependingprojectsworth

aboutINR492,000crore(~USD78billion).

ThisgovernmentisallsettoturnIndianRail-

waysintowhatitcalls‘anengineofeconomic

growth.’Theincumbentrailwayministerseemsto

bedynamicandreadytoimplementsomemuch-

neededmeasuresvitaltothemodernizationof

therailsector.Comparedwiththeexpectations

peoplehad,undoubtedlythereformshavebeen

modestsincetheNDAgovernmentcameinto

powerayearago,butnoonecandenythefact

thatithascertainlybroughtaboutanimpressive

waveoftransformation.nssuchasFrancearealso

keentobidforasharetoupgradeIndia’sun-

derdevelopedrailsector.TheDedicatedFreight

Corridor(EasternandWestern)projectisfacing

landacquisitionchallengesasofnow.DFCCisbe-

ingfundedbytheJapanInternationalCoopera-

tionAgencyandtheWorldBank.Workispicking

uppaceandthesecorridorsareexpectedtobe

completebytheendof2019(twoyearsbehind

schedule).“Dedicatedfreightcorridorswillfree

up70%ofRailways’carryingcapacity,”saidAdesh

Sharma,MD,DedicatedFreightCorridorCorpora-

tionofIndiaLtd(DFCCIL).

expediterailconnectivity,andintroducingtech-

nologyinsomespheres(surveillancecameras,

e-ticketing,e-concierge,mobilechargingfacilities).

SureshPrabhusaid,“Inthenextfewmonthswe

shouldbeabletoputinplaceacompleteblue-

print”toachievethesegoalswithoutdentingthe

railfinances.”

The$140billionrebootproposedforthenext

halfadecadetoenhancesafety,buildnewrail

linesandfinishpendingprojectswillrequireenor-

mousamountsofinvestment.Alongwithbudget-

arysupport,theministrywillbeaidedbytheLife

InsuranceCorporationofIndia(LIC),whichwill

provide$25billion(intheformofdebt)inthe

nextfiveyears—agreatstepforwardinattracting

privateinvestmentwithoutriskingthe‘publicdebt

dynamics.’Lastyear,thegovernmentdecidedto

allowFDIfor‘construction,maintenanceandop-

eration’ofcertain‘identifiedareas.’Variousgovern-

mentsrefusedtoincreaserailtariffsandinstead

uppedfreightrates,movesthatledtomorelosses

forthedecrepitrailsector.herearepending

projectsworthmillionsofdollars.Foreveryru-

peetheRailwaysearns,itspends96paise;thereis

barelyenoughtoreinvest.Theministryisactively

consideringmanyalternativesourcesoffunding

suchasmonetizationofrailwayland,approaching

multilateralfundingagencies,tax-freebondsand

jointventures(forsuburbanrail)withstategovern-

ments.Thedefenceministrymayfundrailprojects

alongtheIndia-Chinaborder.Therailministryhas

toincreasethepaceofprojectawardsandimple-

INTERVIEW WITH MR. KUNAL SINgH RESEARCH ASSOCIATE AT CENTRE FOR POLICY RESEARCH

forfreighttransportcarriedbyrailwayssoasto

cross-subsidisepassengertrains.Thisresultsinfr-

ieghtshiftingtoroadshavingdeleteriousimpacts

onboththeeconomyandtheenvironment.Till

veryrecently,thedieselwassubsidisedinIndia

thusprovidingalicensetopol-

lutetothevehicleowners.

So,whileIndiahastoin-

creasethedensityofitsroad

networkinordertoconnect

theunconnectedbutatthe

sametimedecreasetheshare

ofroadtransportcomparedto

railandwaterways.National

TransportDevelopmentPolicy

CommitteechairedbyDr.

RakeshMohanestimateda

freighttraffictoGDPelasticity

ratioof1.2andcorrespond-

ingnumberforthepassenger

trafficwas1.9.Usingtheseelasticityratiosand

expectedeconomicgrowthfigures,onecancal-

culatearoughestimateofroadnetworkin2020.

ButtherealchallengeiswhatIstatedbefore:

augmentingroadnetworkwhileaugmentingrail

andwaterwayswaymoresothatshareofroad

trafficdecreases.

ITP: What are the main evolutions the Indian

road transport sector will go through by 2020?

Roadtransportrepresentuniquechallenge

toIndiaatthemoment.Whilethereiscertainly

aneedforaugmentingthecurrentnetwork,the

shareofroadtransporthastobebroughtdown.

Therearetwoissuesin-

volvedhere.Oneisthe

inevitabilityofroadnet-

worksolvingthelastmile

connectivityproblem.It

ismucheasiertobuilda

roadnetworktoallnooks

andcornersofthecountry

comparedtoarailnetwork.

Watertransportdepends

ongeographicalfactors.It

isalsoproventhatproxim-

itytoroadsincreasethe

socialwell-beingofthe

neighbouringtownsandvillages.Notonlythey

provideeasyaccesstomarketsforfarmproducts

butalsogreateropportunitiesfornon-farmem-

ployment.

Atthesametime,thesecondissueinvolved

hereistheincreasingshareofroadsintheover-

alltransportchoicesisbadforenergyefficiency

andcarbonfootprint.Wechargeveryhightariffs

hastoinvestinitsinfrastructure.Iftheprivate

companiescan’tdoit,theStatehastodoit.Wait-

ingisnotanoptionanymore.3/TheIndianroad

networkisthesecondlargestintheworldandis

ranked87thintheworldforitsquality.Howdo

youthinkIndiacouldimproveitsroadnetwork?

Whatarethemostimportantbarriersthecountry

faces?

Indiahastofocusonanumberofthings.The

regulatorysystemisamess.PPPhasnotproved

tobethekindof

panaceaitwas

presentedtobe.

Infact,theinsti-

tutionsareweak.

Theinstitutions

astheyexistare

unabletoenforcethecontracts.Thecasesendup

withthejudiciarywhichleadstoseveredelays

beforeanyconclusionisreached.Theregulatory

mazealsocreatesincentivesforprivategainsat

thecostofpublicgoods.Theentireregulatory

structurehastoberelooked.

Fundingisobviouslyanotherproblem.Itisa

problembecausepricingisapoliticalissuerather

thananeconomicissue.Tollboothshavebecome

thenewarenaforpoliticalshowmanship.Toll

boothsarepoliticallyunpopular.Pooroversight,

regulationandpolitickingcreatesenoughincen-

tivestonotpayattentionandresourcestowards

maintenanceoftheroads.

ITP: China is supposed to surpass India from an

economical point of view within the next years.

Is the transport sector involved in the Indian

growth? Can the lack of infrastructure (rail and

roads) be an obstacle to the Indian growth?

Indiawillonlysurpassingrowthfigures,notab-

soluteGDP.Transportsectorisobviouslyafactorin

India’sgrowth.TheGovernmentisfocusedonmak-

ingRailwaysasapivotaroundwhichhighratesof

growthcanbeachieved.ThechapteronRailways

intheEconomicSurvey

makesforaverygood

reading.Itcalculates

theimpetusthatthe

Railwayscanprovideto

theeconomythrough

itsforwardandback-

wardlinkages.Theroadsalsoprovidesignificant

opportunitiesforgrowth.Butthelatter“road”was

takenbythepreviousNDAgovernmentunderAtal

BihariVajpayeethatservedfrom1998to2004.In

fact,theEconomicSurveyrecognisesthisandtalks

aboutrecreatinginRailwayswhattheprevious

NDAgovernmentcreatedwithruralroads.

Thelackofinfrastructureisanimpediment.

Askanyinvestorandhewillstatethelackofin-

frastructureasoneofthetopthreereasonsthat

detershim/herfrominvestinginIndia.Itisnotjust

thetransportbutalsootherthingslikechronic

powercuts.Theinlandconnectivityfromportsis

notgood.Thelastmileconnectivityispoor.India

“Transport sector is ob-viously a factor in In-

dia’s growth”

copyright India Transport portal 11 Road Transport challenges 2015 12

tyislastonanyone’smind–resultinginsomany

deaths.Overloadedandunlicensedvehiclesply-

ingontheroadsonlyaddtotheproblem

ITP: What major improvements India should

go through in its rail sector by 2020?

TheInterimReportpresentedbyDr.Bibek

DeboryCommitteeisonthewebsiteofMinistry

ofRailways.Itpresentsacomprehensiveplan

forreformingtherailwaysectorfornextseven

years.Railwayboardhastoberestructuredand

DebroyCommitteehasusefulsuggestionsforit.

TheAccountingpracticeshavetobereformed.

Privateentryhastobeencouraged.Decentralisa-

tionfromBoardtotheZonesandthentoDivi-

sionsshouldbethewayforward.Settingupofa

regulatorandremovingsomeoftherestrictions

intariffsettingwillencourageprivateplayersto

operateinthisspace.

ITP: The Minister of Railways is willing to es-

tablish technonlogy collaboration with China

but is ready to consider some others with

Japan, France…What do you think of such col-

laborations?

Thecollaborationisgood.Withonecaveat.Some

ofthecollaborationisonhighspeedandbullet

trains.Whilethegovernmenthadannounced

thatitwilldeliverabullettrainfromMumbaito

Ahmedabad.Itshouldnotannouncemorebefore

takingahardlookatthefacts.Inmyopinion,

Anotherreasonissafety.Roadsafetyiscompletely

neglectedinIndia.Whiledesigningtheroads,

safetyislastonanyone’smind–resultinginso

manydeaths.Overloadedandunlicensedvehicles

plyingontheroadsonlyaddtotheproblem.

ITP: The Indian road network is the second larg-

est in the world and is ranked 87th in the world

for its quality. How do you think India could

improve its road network? What are the most

important barriers the country faces?

Indiahastofocusonanumberofthings.Theregu-

latorysystemisamess.PPPhasnotprovedtobe

thekindofpanaceaitwaspresentedtobe.Infact,

theinstitutionsareweak.Theinstitutionsasthey

existareunabletoenforcethecontracts.Thecases

endupwiththejudiciarywhichleadstoseverede-

laysbeforeanyconclusionisreached.Theregula-

torymazealsocreatesincentivesforprivategains

atthecostofpublicgoods.Theentireregulatory

structurehastoberelooked.

Fundingisobviouslyanotherproblem.Itisaprob-

lembecausepricingisapoliticalissueratherthan

aneconomicissue.Tollboothshavebecomethe

newarenaforpoliticalshowmanship.Tollbooths

arepoliticallyunpopular.Pooroversight,regula-

tionandpolitickingcreatesenoughincentivesto

notpayattentionandresourcestowardsmainte-

nanceoftheroads.

Anotherreasonissafety.Roadsafetyiscompletely

neglectedinIndia.Whiledesigningtheroads,safe-

hereisnopointrunninhighspeedorbullettrains

inIndiaifithastobesubsidisedbytheGovern-

ment.

ITP: Is Make In India a project which could reig-

nite growth in the transport sector?

Yesandno.Yes,becauseintransportsector,we

haveadomesticconsumptionsectorthatcan

supportinitiativeslikeMakeinIndiawhenglobal

demandisfalling.No,becausetherearemany

hiccupsinthefull-fledgedsuccessofMakeinIndia

program.Thereareavarietyofreformsonland,

labourandcapitalthathastogothrough.The

regulatoryinstitutionshavetoberelookedat.The

judicialsystemhastobeagileandeffective.The

juryisoutonthisone.

copyright India Transport portal 13 Road Transport challenges 20151�

HOW TO PREVENT THE INCREASINg PROBLEM OF OVERLOADED TRUCKS?

paRT II:

MaIn challenges

foR TRucks In IndIa

Road Transport challenges 2015 1�

Bengaluruhasshownthat4,000drivinglicenses

werecancelledin2013forvehiclescaughtplying

onfootpaths.

“Thesearecomprehensiveeffortsbythegovern-

menttocrackdownonoverloadingandpro-

trudingbesidessafeguardingpedestrianrights.

Bringingtheconsignees,commoncarriersand

transportagentsunderthislawwillputanend

tothepractice,whichisaseriousthreattoother

roadusers”,saidSPSinghofIFTRT,aDelhibased

thinktankontransportissues.

Twooverloadedtrucksrecentlyoverturnedon

theBareilly-Haridwarnationalhighwaynumber

30nearNisraVillageinthePilibhitdistrict.The

highwaybecameblockedresultinginahuge

trafficjamlastinghours.

The Indian government want zero tolerance on

overloaded vehicles, the illegal plying of “over

dimensional” vehicles and vehicles carrying pro-

truding items such as metal rods. A high penalty

has been proposed for those who fail to comply

with the new rules, with a suspension of permits for

one month upon first offence and a cancellation of

permits if the offence is repeated.

Overloadingdamagesthequalityofroadsandcan

bethecauseoffatalcrashes.In2013,approximate-

ly38,370peoplewerekilledasaresultof‘overload-

ing’.Tosafeguardpedestriansandcyclists,thebill

willintroducefinesofRs2,500($40)forfirsttime

offendersandRs5,000($80)forarepeatoffence.If

avehicleisparkedonthesestretchesorifvehicles

arecaughtdrivinghere,fineswillalsobeimposed.

trucksbacked by

strongAftersales

Support–robustservicenetworkandcustomized

serviceagreementsbothinoff-roadandon-road

applicationsegments.Lastyearin2014,wehave

launchedallnewtechnologicallymostadvanced

VolvotrucksrangeinIndia.

ITP: According to you, what are the biggest

challenges for road transport in India? (Freight,

road construction, road safety…)

Roadtransportationis

thepredominantchoice

forfreighttransport

inIndiacontributing

toaround60%overall

freightmovementand

passengertrafficaswellisincreasingconsistently

overaperiodoftime.Butthereareseveralchal-

lengeswhichareimpactingtheroadtransportef-

ficiency–delayedroadconstructionprojects,poor

qualityofroads,urbanroadsheavilycongested,

ruralareahaveverybadconditionofroads,fluctu-

atingfuelpricesbutfreightratesnotproportion-

ateetc.Also,majorityofthetruckingindustryis

fragmentedwithsmallfleetoperatorsoccupying

amajorportionresultinginoverloadingoftrucks

toreapindividualbenefits.Severalotherissueslike

ITP: Volvo Trucks is the leader of the pre-

mium trucks manufacturers in India.

How do you explain such a success? What

are your next steps for India’s market?

VolvogroupinIndiahaveinitiateditsoperationsin

1996andnowwithover17yearsofourpresence

inIndia,Volvotrucksbeendeliveringthebestin

classSafety,Uptime,Fuelefficiency,Productivity

andsuperioroveralllifetimeprofitabilityforour

customersandhencethemarketleaderinpremi-

umtruckssegmentwith

astrongmarketshare

ofover60%asofendof

2014.Evenbeforesetting

upamanufacturingunit

in1998,westartedour

workshopandadrivertrainingcenterwhichshows

ourcommitmenttowardsAftersalessupportand

driverdevelopment.Volvolauncheditsfirsttruck

modeltheFH123406x4TractorinJune1998with

amissionto“DrivetheChange”intheIndianCV

industry.Thiswasthefirsthighperformance(HP)

heavydutytractorwithstateoftheartfeatures

andtechnologyatatimewhenmajorityofCVin-

dustrywasruledbylowhorsepower(120-160Hp),

lowtechnologytrucks.Sincethenwehavebeen

drivingprogressintheindustrythroughintroduc-

tionofinnovativeandtechnologicallyadvanced

1� copyright India Transport portal Road Transport challenges 1�

INTERVIEW WITH VOLVO TRUCKS INDIA

“Safety is one of Volvo’s core values”

NirmalKumarVishttoldTimesofIndiathatover-

loadedtruckscarryingsugarcanemoresothan

oftencausetrafficjamsonthisparticularroad.

Hesaidthattruckownersandsugarmilladmin-

istrationshavebeenwarnedseveraltimesand

thatlegalactionhasbeentakenbefore,buttruck

operatorscontinuetooverload.

ThereviseddraftoftheRoadTransportandSafety

billstatedthattheroadtransportministryhas

broughtthesecategoriesofvehiclesunderthe

term“overloadedvehicles”.Plus,thelistofpeople

whocannowbeheldresponsibleforsuch,now

includesnotonly

thedriverbutthe

vehicle’sownerfor

allowingtheirve-

hiclestoply,com-

moncarriers,good

transportagentsand

consignees.Roadtoll

operatorscaneven

beheldresponsible.

PenaltieswouldbeashighasRs35,000($560)

forminitrucksandbuseswhereasthefinesfor

heavytrucksandlargerbuseswouldincreasetoRs

50,000.Plus,peoplewillfaceaonemonthpermit

suspensionforthefirstoffenceandarepeatof-

fencewouldresultinaRs50,000($800)fineand

acompletecancellationofpermit.Ifadriveror

ownerfailstosubmittheirvehicleforweighing,

thepresentfinestandsatRs3,000($50).

unorganizedtollsystems,delaysincheckposts,

trafficcongestionetc.leadtolowaveragespeeds

andthusaffectingthefleetoperatorsprofitability

andthuseconomy.Aboveall,Safetyisthebig-

gestconcernwitheachyearIndialosingupto

3percentofitsGDPduetoroadaccidents.The

newroadtransportandsafetybillproposedby

theMoRTHwouldlikelyaddressmanyofthese

challenges

ITP: Poor road conditions in India seem to

damage trucks. How can India prevent this to

happen? How Volvo trucks could respond to

this challenge?

Roadsqualityisnotbeingmaintainedprop-

erlyinIndiaanditalsoaffectsthetrucksbadly.

Poorlymaintainedroadswillleadtolowaverage

speeds,break-downofthevehicle,increased

wearandtear,poortyrelifeandalsoincreases

thedriverfatigue.Withthelowaveragespeeds

andbadroads,fuelconsumptionalsowould

likelyincrease.Inall,theaverageoperationaland

maintenancecostsgoup.Volvotrucksarebuilt

robustwithruggedchassis,highperformance

enginesmatchedtooptimizeddrivelineandsus-

pensionsystemsthatoffersmoothridehandling

andcomforteveninbumps/badroadconditions.

(GDP).

ITP: How Volvo trucks is tackling road safety

and driver’s safety in India? Which steps could

be taken in India to improve road safety and

stop trucks from overloading?

SafetyisoneofVolvo’scorevaluesandDriver

Productivityakeydeliverable.Weconductthe

extremelytoughcabcrashtestsatourcollision

centreinSweden.AllcabsmeettheSwedishcab

strengthstandards–thetoughestintheworld.

Thevehicleisequippedwithlistoffeaturesto

ensurehighlevelofactiveandpassivesafetye.g.

bettervisibility,powerfulheadlightbeam,sun-vi-

sors,extrafootstepsetc.

Twonewintroductionswithourtechnologically

advancedtrucks-thenewVolvoFMX,FM&FH

are“RedSafetyBelt”and“ElectricParkingbrake”.

RedSafetybeltbringsmorefocustowardsthe

drivertousesafetybeltwithoutmiss.

Theparkingbrakeactivatesautomaticallywhen

theengineisturnedofftoensurehighdegree

thedrivernowhastofocusonlyonmanoeuvring

thevehicle(Handsonwheel–Eyesonroad)

Inadditiontothis,outofthetwentyrequire-

mentsprescribedbyDGMSthroughCircularNo.

05dated13thOctober2010,fifteenareprovided

asstandardfeaturesinVolvoFMX.

Followingfeaturesareofferedasaccessoryfit-

mentbasedoncustomerrequirement.

-FireSuppressionSystem

-Proximitywarningdevice

-RearVisionSystem

-LoadindicatorandRecorder

-Autodippingsystem(isnotavailablecurrently

andisunderdevelopment).


andinvestmentofthetransportsector

becomesintegraltorealisingthevision.

Railandroadaretheprincipalmodesof

transportinIndia.Roadtransportconti-

nuestobethedominantmodeoftrans-

portinIndiadespitethec

ountrybeinghometooneofthelargest

railnetworksintheworld.Poordesign

andmaintenanceoftheroadscoupled

withrashdrivinghasmadeIndia’sroads

themostunsafeintheworld.Corrup-

tionandpoortrafficmanagementadd

tothesector’swoes.Roadtransportis

theprimarylogisticsproviderinIndia.

Intermsofpassengertraffic,theshare

ofroadtransporthassteadilyincreased.

Inthelastfewyears,roadshaveover

takenrailintermsoffreightmovement.

Asthebackboneofaneconomy,the

logisticssectorhastoprovidecost-ef-

fective,promptandreliabletransporta-

tionofgoodsIndiaisyettofullyrealise

theimmensepotentialofitswaterways

andextensiverailnetwork.Indiahasto

re-apportionfundstoensurethatthe

railshareinfreighttrafficincreasesto50

percent.AnalystssaythatIndiawillhave

tocomeupwithanationalpolicythat

will‘reduceeconomicwasteandimprove

TheeyesoftheworldareonIndia,aneco-

nomicpowerthatissteadilygrowingin

strengthandinfluence.Overcomingits

roadtransportationhandicapsisvitalifthe

countryistorealizeModi’svision.Increasing

levelsofradialisationinthetruckingseg-

mentisperhapsahintoftheprogressthat

willprovi-

deamuch-

needed

filliptothe

commer-

cialsector—oftenconsideredanindicatorof

economicgrowth.

Indiaisallsettowalkthepathofeconomic

progressandattainsustainablegrowthin

thenexttwodecades.Whenthecountryas-

pirestoachievefourtimestherealpercapita

incometodayby2032,thedevelopment

Road transport accounts for 65% of freight in India

AN OVERVIEW OF ROAD TRANSPORT CHALLENgES

source: http://www.kpmg.com/in/en/issuesandinsights/articlespub-

Road Transport challenges 21

energyefficiency.’GivenIndia’sneedtomanage

energyissuesandcontrolemissions,shiftingthe

excessivedependencefromroadtorailwillbe

criticaltoachievingsustainablemobilityinthe

future.Indiareliesheavilyonitsroadsfortrans-

port–roadsaccountforabout65percentand45

percentoffreightandpassengertraffic,respec-

tively.Thehighlyfragmentedandunorganised

logisticssectorisallsetforacompletetransfor-

mationwiththerenewedfocusonthissector.

Roadtransportislargelyinthehandsofprivate

parties,eachwithasmallfleetoftrucksofthe

single-axletype.MosttruckownersinIndiahave

lessthanfivetrucks;

the‘ownership

profile’hasgiven

risetoanumberof

middlemenexerting

varyinglevelsof

influenceonprofita-

bilityandefficiency.

Asignificant

playerinthe

movementof

goods,thetruckingindustryishighlycompeti-

tive.Truckoperatorprofitsdependonoperating

costsandfreightrates.Factorsthatplaguetruck

transportincludelowcapacityutilisation,poor

roadquality,vehicleoverloading,hightransit

times,barrierstofreemovementandsafety

concerns.Lowutilisationresultstypically

fromtrucksbeingoverloadedandunder-

powered.Thefatalitiesthathaveresulted

duetotruckaccidentshaveledtonotonly

alossoflivesbutalsoeconomicloss(GDP).

Theauthoritieshavebeenlaxinenforcing

overloadingandlicencingregulationsand

therearenoincentivesforusingmulti-axle

trucks.Fluctuatingfuelpricesandhightoll

chargesincreasetherunningcostsofthe

trucks.Tyremaintenanceisalsomajorfactor

indecidingoperatorprofit.Customerchoice

inthecommercialvehiclesegmentisslowly

tiltinginfavourofradial

tyresasthesetyrescan

enhanceprofitsasthey

offerbettermileage,du-

rabilityandperformance.

Overloadingrestrictions

andgrowthofmulti-axle

trucksaugurwellforra-

dialtyremanufacturers.

Therearepositivesignsof

economicrecoveryworld

overandthe

that,“Radialtyre,byvirtueofitspeculiar

structure,employsitsconstituentmaterials

andstructuralcomponentstodotheintend-

edworkmoreefficientlythancrossplytyres.

Performanceenhancementintermsofwear,

rollingresistance,durabilityandcomfortis

easilyrealisedbyauserbyshiftingtoradials.”

Headded,“Forexample,inabiastyre,only

about30-40percentofthetreadcompound

isactuallyuseduptoprovidingthemileage

whenradialsutilisecloseto50-60percent

bythetimeofremovalforretreading.Slower

rateofwearenhancestyrelife,delayingthe

replacementdemandandthisisexpected.

Butthefearsareunwarrantedconsidering

theoverallbenefitstothecustomeraswellas

totheenvironmentintermsofcostofopera-

tionandemissions.WiththefirstIndianradial

tyrefromJKTyrehittingthedomesticmar-

ketsin1977,onewouldexpectthecommer-

cialvehiclesector,whichgotitsfirstradialin

1999fromthesametyremaker,toshowthe

nearlycompletelevelofradialisationseen

inthepassengervehiclesegment.Thelevel

ofradialisationinthetrucksectorIndia(~20

percent)isnotonparwiththatofChina.Ac-

cordingtotheVicePresident(R&D)ofCEAT

TyreLtd.UnnikrishnanG,thereasonradialisa-

tioninIndialagsbehindChinaisbecausethe

aftershocksoftheglobalcrisisarebecoming

lessintenseinallsectors.Thecommercialve-

hicleindustry,generallyconsideredanindica-

torofeconomicgrowth,hassteadilygrownin

termsoftechnologicalinnovationsespecially

inemergingmarketsinAsia,AfricaandLatin

America.TruckmakersfromChinaandIndia

havetailoredtheirmarketingstrategiesand

productdesigntosucceedinthelow-cost,

high-growthcountries,effectivelymaking

themsignificantcontendersintheglobalmar-

ket.FrenchtyregiantMichelin,thepioneerof

radialtechnology,believesthatradialisationin

theIndianCVsegmentwilltouch50percentby

2020.TyremakersinIndiasuchasApolloTyres

areincreasingtheproductionoftruck-busradi-

als(TBR)tomeetthegrowingdemandsthat

havecomewitheconomicprogress.Unfortu-

nately,cheaperChinesesurplusradialshave

beenfindingtheirwaytoIndianmarketsand

upsettingthebalance.Radialtyresaffordsig-

nificantadvantagesintermsoffuelefficiency,

safetyandlongevityoverbiasorply.Iadial

tyresshowlessertransverseslip,transfermore

powertothegroundanddonottransmitside-

wallflextothetread.Theseflexibleandstrong

tyresabsorbshocksbetterandallowthedriver

toenjoyabetterdrivingexperiencethancross-

plytyres.Lowerresistanceresultsinimproved

fueleconomyandtherebyreducedemissions.

TheApolloTyresHeadofDesign&Develop-

ment,GlobalR&D–CV,PradeepKumarNsaid22 copyright India Transport portal

comparison between a radial and a bias tyreSource: http://www.bridgestone.co.in/TyreKnowledge.aspx

paRT III:

TRucks RadIalIsaTIon

Itlookslikeradialtyreswillbethefuturebecauseofthemulti-

pleadvantagesofthesetyresoffer.Radialisationinthecom-

mercialvehiclesectorissettoimprovewithpeoplebecoming

awareofthebenefitsandinnovationsradialsoffer.

What radial tyres have more to offer? Developedin1946bytheFrenchtyregiantMichelin,radialtyres

haverevolutionizedthetyremarket.Unlikeabiastyrewhichhas

aninterdependentcrownandsidewall,thetreadandsidewall

inaradialtyrefunctionindependently.Flexibleradialplytyres

absorbshocksbetterandallowformoreroadcontactthanbias

plytyres.Aradialtyreisdefinedasatyreinwhich“theplycords

extendingtobeadsarelaidatapproximatelyrightanglestothe

centrelineofthetread.”Radialshavepolyestercordsthatare

“wrapped”perpendiculartothetreaddirection,whereasasbias

havediagonalnylonweavesthatmeetatthecenterline.Radial

tyres,whichcomeinattractivedesigns,canbeeithertubeless

radialsortube-typeradials.

Radial tyres and drop centers rimsInthetube-typetyres,thereisatubewithavalveandrim;

whenthetyregetspunctured,airleaks.Intubelesstyreswhere

thevalveisplacedontherim,thereisahalobutylinnerliner

andthetyreitselfisatube;inthecaseofapuncture,thetyre

deflatesslowlytherebyprovidingmorestability.Tubelesstyres

offeradvantagessuchasbetterhandling,addedfuelsavings,

easymountingastheyhaveasingle-piecewheel,lesserweight,

longercasinglifeandreductionofrunflats.Tubelesstyreshave

higherwheelclearancethatleadstolessergenerationofbrake

marginsarelowandthemarketentrybar-

riersandinitialinvestmentarehigh.Also,

theChinesegovernmentprovidedstrong

incentivestopromoteradialisationatthe

startofthelastdecadeanditbeganphasing

outbiastyres.InChina,roadqualityisbetter

andthecostofoperations,rawmaterialsand

capitalislower.Radialsoftenfailtodeliver

inIndiabecausepeoplecontinuetoviolate

overloadinglaws.Indiawillhavetooffer

domesticplayerspolicysupporttoenhance

radialisation.Increasingcus-

tomerawareness,focusingon

R&D,‘phasingout’oldauto-

mobiles,improvingthequality

oftheroadsandloweringthe

capitalexpenditurewillboost

theadoptionofradialsinthe

commercialvehiclesector.Ra-

dialisationinIndiawillsurpass

thatinChinainafewyears

sayanalysts.“Radialisationis

thereforeaninevitableforward

stepinadevelopingmarket

wheredemanddelaywillbe

compensatedbyhigherdemandbyincreased

economicactivity.Fastervehicles,runningon

radialswillconsumetyresmorefrequentlynar-

rowingthegapinreplacementtimebycover-

inglargerdistancesinshorterdurations”,said

“Michelin, the pioneer of radial technology, believes that radialisation in the In-dian CV segment will touch

50 percent by 2020.”

source: http://www.kpmg.com/in/en/issuesandinsights/articlespub-

RADIAL TYRES HAVE VIRTUALLY REPLACED BIAS

2� copyright India Transport portal Road Transport challenges 2�

consumersaboutsustainablechoices.2.By2020,

wecansupposeIndiawillhaveimproveditsroad

transportasthecountrywouldhaveovertaken

Chinafromaneconomicalpointofview.Howdo

youpictureit?

TheprogressmadeinthetransportsectorinIndia

hasbeensignificant.Howeverto

meettherisingdemandsandalso

pushinfrastructuredevelopment,

therearenewsreportsaboutthe

government’splantoinvestsignifi-

cantlyinroadprojectsthisyearas

itlookstomorethandoublehigh-

wayconstructionto30kmperday,

whichwillconsequentlyincrease

overalltransportdemand.

ITP: We spoke with Michelin in 2012 about radi-

alisation in India (see the interview here: http://

indiatransportportal.com/michelin-fuel-radiali-

sation-15436.)How did the situation progress

since? What are the barriers if they do exist?

Withthecountry’sroadinfrastructuredeveloping,

ourmanufacturingplantoffersopportunitiesfor

ustoimprovetransportationofpeople,goodsand

ITP: Road transport is the dominant mode

of transport in India. However Indian roads

are reputed to be the most dangerous in the

world. What are the most important handi-

caps for India’s road transport system? How

can the country improve it?

WhileIndiaremains

oneofthefastest

growingautomotive

marketsintheworld,

ourtransportinfra-

structureisyetto

catchupwiththeris-

ingdemand.Factors

thatcanpropelour

roadtransportsystem

includeincreaseincapacityutilization,improved

roadquality,reducedornovehicleoverloading,

controlledtransittime,environmentconducive

freemovementandsafety.

Pressureforpositivechangefromtheindustries

thatunderpinIndia’seconomicgrowthcandrive

pro-environmentlegislation,increasegovern-

mentattentiontoinfrastructure,andeducate

INTERVIEW WITH MR. MOHAN KUMAR, COMMERCIAL DIRECTOR AT MICHELIN INDIA

source: http://www.henkorim.com/eabout.asp?key=10clespublications/investing-in-india/pages/tl-june12.aspx2�

2� copyright India Transport portal Road Transport challenges 2015 2�

drumheatwhichconsequentlyimprovesthe

beaddurability.Unliketube-typetyres,tube-

lesstyreshaveimprovedlateralstabilityand

bettersidewallandcrowndurability.Inlow

aspectratioradialtyres,thesectionheights

arelesserthanthesectionwidths;theyoffer

keyadvantagesintermsofsidewallcurb

damage,steerand

trailaxletreadwear,

weightandlateral

springrate.Formany

applications,lower-

profileradialswithan

80percentaspect

ratioarethemost

economicalofalltyres.Longhaultrucks

andurbantrucksoftenuseultra-low-profile

radialswithanaspectratioof70percent.

Thebasicqualitiesoftruckradialsareload

capacity(resultofverticaldeflection),heat

resistance,andadequatetreadcontactarea

forroadgripandsteeringcontrol.Typically,

vehiclesuserimswiththedropcentersde-

signorwheel-baseddesign.Thedropcenter

ortherimdropallowstheeasymounting(or

demounting)oftheradialontherimofthe

wheel.Optimumperformanceofdirectional

trucktyresrequiresthemtobemountedon

thecorrectsizedrimwheel.Theselectionof

arimordiscwheeldependsontheoperat-

ingconditionstowhichitwillbesubjected.

Off-the-roadtrucktyreshavedropcenter,

semi-dropcenter,fulltaperedbeadseat

andflattypesofrims.Smallloadersgener-

allyusedropcentrerims,whereasgraders

andloadersusuallyusesemi-dropcenter

rims.Rimdropsareusedasareferencewhen

mountingtrucktyres.Typi-

cally,tubelesstruckradials

havea5°or15°dropcenter

steelwheel.Thedifficultyin

assemblingthewheeland

servicingdependsonhow

farthedropcenterisfrom

thewheel’slipandhow

deepitis.Radialtyresoffernumerousadvan-

tagesthatenhancethedrivingexperience

whencomparedwithtraditionalbias–high-

erspeed,endurance,traction,lesserheat

generationandstability.Thesetyreshave

lowerrollingresistanceandasaresultcon-

tributesignificantlytoensuringfuelecono-

my.Radialshavemorepotentialforretread-

ingandarelesspronetotreadpunctures.

Radialtyreshavevirtuallyreplacedbiasply

tyresbecauseoftheirinherentadvantages.

roadsafetyinIndia.Theseimprovementswould

bedriveninparticularbyanevolvingshift

towardsradialtyresandhigh-qualityproducts

manufacturedbyMichelin.

TheIndiantruckandbusmarketisadopting

radialisationatasteadypace.Giventheclear

benefitsoffuelsavingsandlongevityofradial

technologyandsafety,moreandmorecus-

tomersareswitchingtoradialtyresowingto

reductionoftheoverallcostoffleetownership.

Today,aroundone

fourthofalltrucks

onIndianroads

areonRadialtyres,

whichwasunder

1%in2005.India

hasalsomadea

notableprogressin

adoptingtubeless

radialtechnology

forTrucksandBuses

duetotheimprovedroadconditions.

MichelinTyres,theworldleaderintyretechnol-

ogy,estimatesthatabout76billionlitersoffuel

canbesavedannuallyshouldalltrucksrunning

onbiastyrestodayswitchtousingMichelin

radialtyres.Fuelsavingsofthismagnitude,in

thefaceofsignificantlyrisingoilprices,could

potentiallyhaveanimpactontheoverallbal-

anceoftradeforthegovernmentaswell.

GiventhebenefitslikeincreasedtyreMileage

andFuelsavingovertheTubetyperadialtyres,

Indiancustomersarequicklyswitchingtowards

TubelesstyresespeciallyinBussegments.This

trendwillcontinueandweseegreatopportu-

nityindrivingtheradialtransformationstoryin

India.However,therearefewbarrierslikeroad

infrastructure,lackofknowledgeaboutbenefits

ofradialtyresthathindergrowthofradialisation

inIndia.

ITP: Cheaper Chi-

nese tyre imports

flood India’s mar-

ket. How to deal

with these new

competitors?

What Michelin

has more to of-

fer?

WebelievethatavastmarketlikeIndiaoffers

alevelplayingfieldforallmajorcompanies

providingequalopportunitiesforalltogrow.

WeareinIndiawithourlongtermstrategyand

areconfidentthatourproductofferingsare

thebestbalancebetweensafety,longevityand

fuelsavingsforthecustomersinIndia.Michelin

hasbuiltitsleadershiponinnovationforover

125years.InIndia,withacomprehensiveradial

“Michelin, the pioneer of radial technology, believes that radialisation in the In-dian CV segment will touch

50 percent by 2020.”


channelslikeMichelinTruckserviceCenter

(MTSC)andpostsalesserviceslikeRecamic

-retreadingcomplementand

differentiateourproductoffer.

Michelin’sonestoptruckser-

vicecentre,MTSC’sarecom-

mittedtoprovidecustomers

withqualityandcomfortable

environmentforcomprehen-

siverangeofprofessionaltechnicalservicesto

improveoperationalefficiency,suchaslesser

downtimefortyremaintenance,lowervehicle’s

operatingcosts,improvedoperationalcontrol

andefficiency,highqualityMichelinproducts

andclearproductpricing.

Michelinsretreadingcentres(Recamic)provide

qualityretreadingsolutionsforallkindoftruck

andbustyres,helpingreduceoperationalcosts

offleetownersbyimprovingonmultiplelives

ofthecasings.Designedandcertifiedtoof-

ferretreadsforallcasings,ourstate-of-the-art

plantsoffertheMichelingroupbrandRecamic

treadforuseonallMichelincasings.ture,lack

ofknowledgeaboutbenefitsofradialtyresthat

hindergrowthofradialisationinIndia.

thecasings.

ITP: Several types of radial tyres coexist in

the Indian market. How different are they?

Should Indian fleet owners particularly focus

on one type?

Indiaisstilllargelyabias

tyremarket,withradialisa-

tiongrowingatasteady

pace.WithmostOEMsnow

offeringnewvehicleswith

radialtyres,weseethepro-

cessofradialisationfurther

speedupinthecomingyear.Tubelessradial

tyresscorehigherinfuelsaving,safetyandtyre

mileage,leadingtoreductioninoperatingcost

ofthefleet.Atyrebeingamajorcomponent

ofafleet’soperatingcost,Indianfleetowners

shouldcarefullyselecttyresbasedontheirop-

erationandroadconditions.

ITP: Can you explain more about drop cen-

ter’s interest on trucks tyres?

TheIndiantruckIndustryhasseenatremen-

doustechnologicalprogressinthelastdecade

intermsofvehiclegeometry.Thetechnological

updateontyresespeciallyondropcenter(tube-

less)wasslowerthanexpected.Thisismainly

uetolackofknowledgeonbenefitsoftubeless

tyres,inconsistentgrowthofthecommercial

vehiclemarketandlackofproperserviceinfra-

structureforthesetyres.

hasexpandedfromapproximately4.2million

kmin2007-08to4.8millionkmin2011-12,at

aCAGRof3.4%only.Ruralareasarelagging

behindinaccessibilitytoroadswhereasurban

roadsaremorecongestedwithonly1.27Km.of

roadper1000persons.Theavailabilityofgood

roadinfrastructure,poormaintenanceofroad

andvehicleconditionare

responsibleforhigherrateof

removaloftyresdueexternal

damage,lossofpotential

fuelsavingandreductionin

recappingcapability.These

threeitemcausinghugeloss

tothecustomerandcountry

2007-08to4.8millionkmin

2011-12,ataCAGRof3.4%

only.Ruralareasarelagging

behindinaccessibilitytoroadswhereasurban

roadsaremorecongestedwithonly1.27Km.of

roadper1000persons.Theavailabilityofgood

roadinfrastructure,poormaintenanceofroad

andvehicleconditionareresponsibleforhigher

rateofremovaloftyresdueexternaldamage,

lossofpotentialfuelsavingandreductionin

recappingcapability.Thesethreeitemcausing

hugelosstothecustomerandcountry

ITP: We spoke with you in 2012 about radiali-

ITP: According to you, what are the main

challenges for India’s road transport? Which

challenges concern particularly the tyre mar-

ket?

Acountry’sdevelopmentisstrongly

linkedtoitsinfrastructurestrengthandability

toexpandtrade,copewithpopulationgrowth,

reducepovertyandpro-

duceinclusivegrowth.

Lackofhighqualityin-

frastructurehasbeenan

impedimentinIndia’s

economicgrowth.India’s

roadinfrastructurecarries

60%offreightand87%of

passengertraffic.

Therehasbeena

staggeringincreaseinthenumberofmotorized

vehicles,buttheexpansionintheroadnetwork

hasnotbeencommensuratewiththisincrease.

Withgrowingpopulationthereisaneedto

providematchingtransportinfrastructureto

avoidovercrowding,overloadingandpoor

maintenanceoftheavailableinfrastructure.

Whilethemotorvehiclepopulationhasgrown

from105millionin2007-08toover159million

in2011-12withCAGRof11%theroadnetwork

hasconstantlyendeavoredtoofferproducts

thathelpfleetownersmaximizetheirreturnon

investments.Onesuchendeavourwasourin-

troductionofthedropcenter(tubeless)tyresfor

commercialvehiclesinIndiawhichhavebeen

wellassimilatedbytheIndiantruckowners.We

expectaformidablegrowthintubelesstyres

fortrucksandbusesinthecomingyearsfrom

Indianmarket.

INTERVIEW WITH APOLLO TYRES

comparison between Radial and Bias tyres by Michelinhttp://www.michelinag.com/Innovating/Radial-vs.-Bias-technology


sation in the TBR market. How did the situa-

tion evolved since?

EventhoughIndiahasachievedover95%

radialisationinthepassengercarsegment,the

countryremainslargelyacross-plymarketbe-

causeradialpenetrationsincommercialvehicle

segment,whichaccountsfor65%(byweight)of

themarket,isonlyslowlygainingpace,which

isnowaround

30to35%.Ifyou

lookatthepat-

ternofradicaliza-

tioninallradi-

alisedcountries

youmayobserve

thatitisfollowed

thepathofan

S-shapedcurve.

Initiallythecon-

versionrateisveryslowtillitreaches9to15%

andthenitmovesveryfasterratetillitreaches

80to90%.ButinthecaseofIndianmarketitis

observedthattheslopeofthecurveislowafter

reachingtheinflectionpointinspiteofthefact

thatenoughmanufacturingcapacityisavailable

inthecountrytofeedthemarket.Thismaybe

duetofollowingreasons:

- Cash availability

- Poor road and vehicle condition

- Frugal vehicle design, especially suspension

system

- Overloading condition

- User Education

- After sales service

- Repair and Retread Infrastructure.

- Poor inflation maintenance

ITP: How the transportation sector could

gain from radialisa-

tion (performances

on fuel savings, car-

bon emission, road

safety etc.)?

Transportsectorwould

havebenefitedim-

menselyduetoradiali-

sationasiswitnessed

indevelopedcountries

byitshighermileage,betterfuelefficiency,less

punctures,andgoodspeedcapabilitywhen

comparedtoasimilarcrossplytyre.However

togettheoptimumperformancefromthe

comparativelyexpensivetyre,roadinfrastruc-

ture,vehiclesuspensionsystemandfacilitiesto

providetheserviceofrepairandretreadshould

alsohavetosimultaneouslyevolvetothede-

siredlevel.

ITP. How Apollo Tyres is different from com-

petitors? (domestic, international, Chinese

brands…)

ApollotyresisonecompanyinIndiawhoiswork-

ingverycloselywiththecustomertoprovide

solutionfor360°operation.Eventhoughwehave

enteredintothetruckradialmarketverylate

butwehavegained

theconfidenceofthe

customerbyprovid-

ingtyreswithhigh

mileageandsuperior

casingforrepeated

retreading.Theseare

themajorrequire-

mentofIndianradial

customers.

Itisourendeavortocontinuouslyeducatethe

customertogetbestoutoftyresandalsoto

helpthemtoprovideproperadviceandfacility

torepairandretreadthetyresontime

ITP: Apollo Tyres has begin the construction

of a new facility in Hungary? What are your

goals in new countries in terms of innova-

tion/performances?

“ProductSegmentation”bestsuitedforthe

serviceconditionand“ApplicationtoFit”to

realizeoptimalperformance,beenoursuccess

33 copyright India Transport portal Road Transport challenges 2015 3�

“Radial penetrations in com-mercial vehicle segment is only slowly gaining pace, which is now around 30 to

35%”.source: http://www.sanasecurities.com/stock-analysis/apollo-tyres

as a satellite CV R&D center. R&D center – Asia

with base at Chennai will continue to develop

the products in collaboration with the satellite

R&DcenterinEurope,basedattheNetherlands.

Withtheevolvedretreadingpractice inEurope,

we are sure that our customers will appreciate

the multiple ser-

vice lives with

Apollo tyre’s su-

periorretreadabil-

ity and realize re-

markable benefit

inCPKM.

paRT Iv:

Roads&

InfRasTRucTuRe

analystssaythemomentumintheroadsectorisunparalledwiththeNdagovern-

mentgoingallouttoreducecostescalationsthatcomewithinnumerabledelays,to

getridofthefundingconstraintsandtoprovidethenecessaryimpetusforitsroad

infrastructureprojects.

Indiaboastsofthesecondlargestroadnetworkintheworld—overfour-and-a-halfmil-

lionkilometresofroadandstillcounting!Overtheyears,theconnectivityhasimproved

somuchthatabout85percentofthetotalpassengertrafficand60percentoffreight

movementisviaroadtransport.Indiaispoisedfortremendousgrowthandclearlyneeds

robustinfrastructuretohelprealizeitsimmensepotential.Analystssaythatby2019,the

IndianroadindustrywillbewortharoundUSD19.2billion.

Modi’sgovernmentiszealouslytryingtorevivetheailingroadsectorandgetseveral

stalledprojectsgoing.InSeptember2014,NitinGadkari,MinisterforRoadTransport

andHighways,said,“Intwoyears’time,theRoadTransportandHighwaysSectorwill

undergorevolutionarychanges.TransportandShippingsectorswillcontributetoat

least2percentincreaseinthecountry’sGDPintwoyearsspan.”Whileaddressingthe

medialastyearaftercompleting100daysinoffice,Gadkarisaid,“Weinheritedalegacy

where189projectsworthRs1.5lakhcrorewerestuckonaccountofregulatoryhurdles

includingenvironmentandforestclearances,mostofwhichhavebeenremovedand

arerolledout.”AccordingtoGadkari,only12kmofroadareconstructedeverydayasof

now;however,NationalHighwayInfrastructureDevelopmentCorporationLimitedhas

setatargetof30kmperdaywithintwoyears.Thecash-strappedsectorhastheCentre

scurryinghighandlowforfunds.Earlythisyear,Gadkarisaid,“Infiveyears,therewillbe

investmentofRs5lakhcrore.”Gadkariintendstobuildcementroadsinsteadofbitumen

astheyarecheapertoconstructandmaintainovertimes.

WILL THE gADKARI-LED ROAD MINISTRY LIVE UP TO ITS PROMISES?

Road Transport challenges 2015 3�

3� copyright India Transport portal Road Transport challenges 2015 3�

“According to Gadkari, only 12 kms of road are built everyday

as of now“

ThePublicPrivatePartnership(PPP)modelhas

failedtoworkintheroadsectorrecently.The

governmentwillnowlowerinterestratesand

useotherpolicyinstrumentstoattractprivate

investors—inthelasttwoyears,20projects

worthaboutINR27,000crore(USD4.2billion)

foundnotakers.Untiltheeconomyimproves,

thegovernmentwillawardmostprojectsvia

theEngineering,Procure-

mentandConstruction

(EPC)route.Theroadmin-

istryhasdecidedtoallow

privatedevelopers‘totake

outtheirentireequityfrom

aprojectaftertwoyearsof

startoftollcollection.’This

moveisexpectedtore-

viveprivateinterestinthe

sectorand‘unlockatleast

Rs4,800croreofprivate

equitystuckatpresent

inapproximately80PPP

(private-publicpartnership)

highwayprojects.’Asourcefromtheroadmin-

istrysaid,“Wearenotgettingprivateplayersto

bidforPPPprojectssincetheydon’thaveequity

toraiseloanfrombanksandfinancialinstitu-

tions.WitharoundRs5,000croreofequityback

incirculationweareconfidentofrollingout

morePPPprojectsduringthisfinancialyear.”

Officialssaythat80projectsoutofthe115

awardedviathePPProutecantakeadvantage

ofthisdecision.Agovernmentofficialadded:

“PMhasobservedthatwhileallowingthedevel-

operstoavailthisscheme,ministryshouldkeep

trackofhowthisequityisbeingutilizedbythe

developers.Theministrywillneedtohavesome

mechanismtoseethattheequityisploughed

backtotheroadprojects.”TheCentrewillinfuse

fundsequalingINR16crore(USD2.5million)for

half-completeprojects

thatwerestuckasbanks

refusedtogiveloansto

privateplayerswhose

coffersrandry.“Banks

arenotprovidingfund

forthesestuckproj-

ectsandtheyshould

notobjecttothisnew

schemesincenoprog-

resswouldforceNHAI

toterminatecontracts.

Inthatcase,theprojects

wouldbecomeNPAand

lenderswouldgetthe

maximumhit,»saidsourcesintheministry.This

movecouldalsoencourageforeigninvestorsto

competeforapieceofthepie.

Agovernmentofficialsaid,“Foreigninvestorsare

notcomingastheydon’twanttoriskofdelayin

construction,whichimpactstheirinvestmentre-

covery.Butwhencompletedprojectswillbeon

theofferwewillseeoverseasinvestorsvyingfor

theseprojects.Thereisnoriskofcashflowsince

tollinghasbeenonforovertwoyears.”

The“hybrid”model(amixoftheEPCandBOT

models)isexpectedtobreathelifeintotheroad

infrastructuresector.

Inthis

model,the

develop-

erswillnot

haveto

tieup100

percentof

theirinvestment(amixofdebtandequity)in

thehighwayprojectsandNHAI’sinitialcapital

inflowwillalsobelesser.HighwayMinistrySec-

retaryVijayChibber,said,“Underthenewhybrid

annuitymodel,notonlywilltheNHAIsupport

40%oftheprojectcostinfiveequalinstalments,

thegovernmentwillalsobeartherevenuerisk

inprojectswithalowanticipationoftraffic

flow.”ThirteennewprojectsworthINR14,422

crore(USD2.25billion)arelikelytobeawarded

underthehybridmodel.Underthismodel,the

governmentwillhavetoacquireallrequisite

environmentalclearancesand90percentofthe

landpriortoawardingprojects.

WemightprobablyseeaPublicContracts

(ResolutionofDisputes)Billinthenextfiscal.

“Ifthedisputeresolutionprocessisexpedited

andfreesupthestuckcapitalunderarbitration

claims,theliquiditypositionofsomedevelop-

erscouldimprovesignificantly.Therehasbeen

demandforsettinguparegulatorforthesector

forresolutionofdisputesbetweencontractoror

developerandNHAI,astheyfeelthatthepres-

entdisputeredressalmethodistimeconsuming

andcostlythusinefficient,theintroductionof

thisBillcouldaddress

theirconcern,”said

RohitInamdar,ICRA’s

SVP.NHAI’sinde-

pendentsettlement

advisorycommittee

(ISAC)willlookto

resolveroadprojectsworthnearlyINR26,000

crore(USD4.1billion)caughtindisputes.

ThisMayGadkarisaid,“AtotalofRs15,000crore

ofroadsprojectswillbeawardedbytheendof

thisyear.Ofthis,Rs6,000croreofroadsprojects

wouldbedevelopedinArunachalPradeshand

Rs2,000croreworthofprojectseachinMegha-

layaandNagaland.Theremainingprojects

wouldbespreadacrossotherstates.”Headded:

“Wehavedesignedanewpolicyfordevelop-

ingroadsprojectsintheNortheast.Ifthestate

governmenttakescareoflandacquisitionand

environmentandforestclearances,thecentral

governmentwillbuildstatehighwaysatitsown

cost.”Theministersaidthenewhighwayswill

encouragelocalcontractorsandgenerateop-

portunitiesforemploymentthatwouldcome

withtheinfrastructureprojectsandindustries

thatcropupduetoimprovedconnectivity.

OneofIndia’sbiggestproblemsregardingtransportisthecongestionthatmillionsof

commutersfaceeachdayontheroads.delhiisoneofthefastestgrowingcapitalcities

intheworldbutisinthetop10listofcitieswiththeworsttrafficjams,accordingtoIBM’s

globalcommuterPainstudyin2013.

Causesoftrafficcongestionincludefactorssuchasthecountry’spublictransportinfra-

structure,whichisfailingtokeepupwiththerapidlygrowingdevelopmentsinthecities

thatrequirepeopletotravelinandoutonadailybasis.Thereisanestimatedonelakhof

vehiclestravellingonDelhiroadsperday;thisincludesmixedtrafficsuchascars,trucks,

two-wheelers,animaldrivencartsandpedestrians.Allthishasnotonlyledtoobviousde-

laysandjams,butahighrateofaccidentsandfatalitiesthroughoutthecountryaswellas

increasedairandnoisepollution.

Asitstands,Indiadoesnothaveaformalnationalroadsafetypolicy.Sinceitbeganin1988,

theNationalRoadSafetyCouncil(NSRC)hastriedtoformulatethisbutisyettosucceed.

Roadsafetypolicieswereagainattemptedin2003bytheMinistryofHighwaysandTrans-

portandin2004attheAnnualSessionofIndianRoadsCongress,theministryintroduced

11elementsforroadsafetypoliciesunderthetitle‘SaferRoadsforEveryone’.Thesedealt

withtheoverallframeworkforroadsafety,componentsoftheroadtrafficsystemandsup-

portforroadsafetyforexamplesafetyeducationandenforcement.

Thereareanumberofinitiativesthathavealreadybeensetupindifferentpartsofthe

countrytorelievetheproblemofcongestion.TheIntelligentTransportSystem(ITS)and

DelhiIntegratedMulti-ModalTransitSystemLtd.(DIMTS)areworkingtoprovidesafeand

accessiblepublictransportforcommutersinIndia.TheIntelligentTransportSystemhasre-

centlybeenintroducedinDelhiandhasprovidedsolutionsforcertaintransportproblems

throughtheuseofcomputerandcommunicationstechnologies.

39 copyright India Transport portal Road Transport challenges 2015 �0

POSSIBLE SOLUTIONS TO RELIEVE TRAFFIC CONgETIONS ON INDIAN ROADS

Theministersaidthenewhighwayswillencour-

agelocalcontractorsandgenerateopportuni-

tiesforemploymentthatwouldcomewiththe

infrastructureprojectsandindustriesthatcrop

upduetoimprovedconnectivity.Gadkarisaid,

“ThecostofroadconstructionintheNorth-east

isfourtimesthatinotherpartsofthecountry.

Mostprojectsarebeingdevelopedbycon-

tractorswhodonotbelongtothesestates.To

ensurelocalparticipation,wehavedecidedto

identifysmallprojectsofuptoRs50croreand

wewillpayinadvance20percentofthecostso

thatlocalyouthcanbecomeinvolvedindevel-

opmentalworks.”

Improvingruralconnectivityisakeyfocusarea

fortheNDAgovernment.“AsianDevelopment

Bankisprovidingabout$2billionloansthrough

itsthreelong-terminvestmentprogrammesto

buildandimproveruralroadsinfivestatesof

Chhattisgarh,MadhyaPradesh,WestBengal,

OdishaandAssam,”saidTeresaKho,ADB’sCoun-

tryDirectorforIndia.Thesupportisexpected

tohelpconstruct31,000kmofruralroadsin

thesestates.Theroadministryisalsoplanning

10newprojectsinKarnataka—thatis,about

1,572km—bytheendofthisyear.Threehigh-

waywideningprojects(PPProute)worthmore

thanINR5,500crore(USD860million)havebeen

giventhegreensignalbytheUnionCabinet

forUttarPradesh,MaharashtraandHaryana.In

aninterviewwithNDTVinApril2015,Gadkari

said40projectsthatwereidentifiedasunvi-

ablehavebeenterminated.About26projects

needgovernmentinterventionastheminis-

tryhasbeenunablespurtheirexecution.He

addedthatprojectsworthoverINR1,40,000

crore(USD21.9billion)havegotclearance.The

newMotorVehiclesActwillensurebetterroad

safety,amatterofgraveconcerninIndia.Will

Gadkari’sambitiousplansofachievinginfive

yearswhatthepreviousgovernmenthadnotin

25yearsbearfruit?

“Delhi’s Master Plan 2021 is set to encourage 80% of commuter to use public transport by 2020”

�1 copyright India Transport portal Road Transport challenges 2015 �2

Someexamplesincludeadvancedtrafficman-

agementsystems,wirelesstrafficsignalcontrol-

lers,CCTVjunctionsurveillance,electronictoll

collectionsystems,advancedvehiclecontrol

systemsandvideoincidentdetection.

Constructionhasrecentlybegunona$50bil-

lionhighwayprogramthatissettoimprove

upto40,000kmsofIndianhighways.However,

thesewillnotbeeffectiveuntilcompletion,as

theyhaveseentoincreasetheamountoftraffic

fatalitiesduetopoorroadconditionsinsome

areasduringconstruction.

TheWorkingGrouponUrbanTransportisalso

workingonmea-

surestomanage

congestion.The

lackofurban

planningandinef-

ficiencytoimple-

mentregulations

hasledthemto

suggestthecreationofacompletelynewinfra-

structurethatwillincludetrafficsignals,more

lanesandtheintroductionofone-waystreets.

Theyhavealsobeguntopromotetheuseof

publictransport.Metrorailisalreadypresentin

citiessuchasNewDelhiandBangalore.

heJawaharlalNehruNationalUrbanRenewal

Mission(JnNURM)city-modernisationscheme

waslaunchedinDecember2005.Thisisaseven-

yearplanwithatotalinvestmentof$20billion

thatwillupgradethesocialandeconomicstruc-

tureincities.PartofJnNURMistoredevelopthe

innercitiestoreducecongestion.

Othersolutionsthathavealreadybeenintro-

ducedinclude:

-ThecompletionoftheDelhiMetrosystemthat

willprovideaccessfromthecapitaltocities

suchasGurgagon,NoidaandGhaziabad.Phase

3issetforcompletionbetweenMay2015and

December2016.

-ThismonthsawtheintroductionbytheDelhi

TransportCorporation(DTC)ofmorethan3,500

busesontheroads,includingcorporatesector

buses.

-Theon-go-

ingconstruc-

tionofnew

roadsinthe

country,in-

cludingthe

wideningof

existingroad

networks,flyoversandfootbridgesforpedes-

trians.TheAsianDevelopmentBanklastmonth

lent$2billionforroadconstructioninfivestates

thatwillimproveruralconnectivity.

-Theconstructionofringroadbypassesinsome

areasthatwillallowasignal-freeflowoftraffic.

India’srapidlygrowingpopulationhascalledfor

thegovernmenttointroducepoliciesregarding

thedevelopmentofurbaninfrastructure.Delhi’s

MasterPlan2021issettoencourageupto80

percentofcommuterstousepublictransport

by2020.Ithasbeenestimatedthatby2021,

therewillbeademandfortransportby27.9

millionpas-

sengersin

comparison

with13.9

millionin

2001.

TheGov-

ernment

havealso

exploredfur-

therpossi-

bilitiestoreducecongestionandloweraccident

ratessuchaspromotingtrafficsafetythrough

educationinschools,thestrictenforcementof

trafficregulations,designingseparateroadsor

lanesforvehiclesofdifferentsizesandweights,

improvingandupdatingIndia’spublictransport

system.

Whenitcomestopoliciesandregulations,the

Governmentareduetotakea‘zerotolerance’

approachtorulebreakers.Already,thelawhas

beenamendedtomakewearingahelmeton

two-wheelerscompulsory,andtheoutcome

hasworkedwellthusfar.Intermsofcongestion

withinthecities,theGovernmentareexploring

theintroductionofastrictparkingpolicyand

anincreaseinparkingchargesthatmatchesthe

greaterdemand.

Thereisalsoanincreasedneedforseparate

lanesfordifferentvehicles,particularlyinDelhi

wherelandavailabilityfortransportisless.APIL

hasrecently

beenfiled

inGurgaon

thatasksfor

anencroach-

ment-freelane

forcyclistsin

thecity.

Whetheror

notsuchmea-

surestakenwill

beeffectivedependsontheGovernment,road

usersandsuitableenforcementofthelaw.Cur-

rently,Indiastillfacesmajorproblemsregard-

ingtrafficcongestionandhowtocombattheir

needforamoresustainableinfrastructureto

suittherapidlygrowingpopulation.

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