6th Five Year Plan
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28 || Appendix

Chapter 17:

Transport, in India, plays a crucial role in ensuring sustained economic growth and is vital for the development of the various segments of the economy. The need for according high priority to the transport sector flows virtually from the 'size of this country as well as from the geographical dispersal of its natural resources. Transport services, unlike other commodities, are neither tradeable nor can they be stored. Transportation is also an aggregate of many linear situations and, as such, highly susceptible to cumulative chain reactions. It is subject to wide fluctuations in demand intensities. Investments in transport infrastructure usually have to be in fairly large indivisible units which prevent precise or continuous 'matching' of demand and supply. All these factors, combined together, make it desirable, as far as possible, to provide a certain amount of flexibility and cushion in the transport system, to prevent bottlenecks and the consequent chain reactions in the economy.


17.2 The principal modes of transport in India have been the railways and roads. Passenger traffic by rail increased from 66 billion passenger kilometres in 1950-51 to 177 billion passenger kilometres in 1977-78 and freight traffic from 44 billion to 163 billion tonne kilometres. In the same period, passenger traffic by mechanised road transport is estimated to have increased from 23 billion to 250 billion passenger kilometres and freight traffic from 5.5 billion to 77 billion tonne kilometres. In the total freight traffic! carried by railways and road the percentage share of road increased from 11 per cent in 1950-51 to 32 per cent in 1965-66, while that of railways came down from 89 to 68 per cent. After 1965-66 however, the 'proportion remained at about the same level i.e. 68:32 in 1965-66, 66:34 in 1970-71 and 68:32 in 1977-78. In the case of passenger traffic, the proportion between rail and road changed from 74:26 in 1950-51 to 43:57 in 1968-69. From 1970-71, when the proportion was 41:59, it has remained more or less at the same level upto 1977-78. The passenger traffic cleared by airways h'as grown steadily from 0.3 billion passenger kilometres in 1955-56 to 3.4 billion passenger kilometres in 1977-78. Coastal Shrplping and inland water transport accounted for a small proportion of the total traffic.

17.3 In the non-mechanised transport sector, it is estimated that there are presently about 80 million work animals in the country, including 70 million bullocks. The total number of bullock carts is estimated at 13 million. The volume of freight traffic handled by animal power annually is estimated at about 10 billion tonne kilometres.

17.4 The railways have been, and are likely to remain the backbone of the country's transport infrastructure in the foreseeable future, more so in view of the emerging energy situation. The 'performance of the railways, in terms of output and efficiency norms, is therefore particularly important. Assessments made in this respect indicate that, by and large, the utilisation of assets has shown an improvement over the years and the physical outputs have increased at an equal if not higher pace than the physical inputs.1

17.5 Although there has 'been an increase in traffic cleared by the railways in absolute terms, the fact remains that there have been frequent bottlenecks when even important commodities particularly coal, fertilizers, cement, etc. have not moved adequately while the clearance of non-priority traffic has generally been inadequate. This has been mainly due to insufficient resilience in the railway system to absorb unforeseen shifts in the traffic pattern and other unavoidable fluctuations.

17.6 The problem of capacity being inadequate to meet the demand has not been confined to railways alone. A similar situation has prevailed in respect of two other major sectors e.g. road transport and ports. Severe shortage of trucks was experienced when the rail system was not able to meet the full demand. Likewise, major ports, particularly Bombay, remained frequently congested leading to long waiting periods for berthing of ships.

17.7 Another sensitive segment of the transport sector where constraints of cap'acity have been greatly in evidence, has been the airports. The congestion at the airports in India, specially during peak periods, has now become a major factor affecting tourist traffic and thus the foreign exchange earnings of the country.

Rsport of the National Transport Policy Committee (May 1980) (para 9-3)

17.8 The above review of the actual experience in the recent past confirms what has been mentioned earlier regarding the need for transport infrastructure, especially the more vital sectors of it like railways, ports and roads, being allowed to develop in a manner commensurate with the growth of the economy, particularly of segments witn a high transport coefficient, and to have, as far as possible, certain amount of flexibility in investment planning to avoid its becoming a serious bottleneck in the development of the economy.


Transport and Energy

17.9 The transport sector is one of the largest consumers of commercial energy, consuming nearly 33 per cent of the total. In assessing therefore, the desirable level of inter-modal split of freight traffic bet-wean railways and roads, and while making resource cost comparisons in this context, appropriate weigh-tage has to be given to the relative energy intensities.

17.10 As a long term goal, efforts will have to be made for the railways to develop the capacity to clear (i) all train load traffic for long, medium and short distances and (ii) all non-train load traffic (i.e. piecemeal traffic) for long and medium distances (except for certain commodities). This would broadly leave all short distance piecemeal traffic for the road transport. While capacity will have to be developed by tlie railways to do so, and while fiscal measures would be in keeping with the above objectives, the choice of transport mode will, to a great extent, be conditioned by the consumers'' preferences as regulatory or legal measures will be difficult to implement, and could lead to misuse of the regulatory processes.

17.11 Within the railway system, it would be necessary to decelerate the pace of electrification in the interest of more efficient energy utilisation and in order to 'save use of diesel. Efforts will be made to phase out steam locomotives as early as possible, not only from the point of view of better railway operations but also from the point of view of better utilisation of scarce, resources of coal. It is estimated that coal used through electric traction is nearly five times more efficient than its direct use on steam locomotives.

17.12 Vigorous measures will be taken to improve the fuel efficiency of the diesel based road transport vehicles which would include improvement in vehicle design, installation of speed control devices, improvement in the condition of roads, and truck trailer combinations on selected stretches of national highways.

17.13 The transport modes which are relatively more energy efficient like coastal shipping, inland water transport and pipeline tran'sp'ortation and also those dependent on human or animal energy like cycles, bullock carts etc. would be encouraged, and efforts will be made to utilize their full potential.

17.14 Steps will be taken to expand and strengthen the public transport system and thus reduce the level of 'personalised motor transport which is highly energy intensive. Efforts will also be made to introduce slec. trie based public transport in urban areas, like electric multiple unit (EMU) rail services and electric trolley buses.

17.15 Abolition of octroi in a phased manner and putting other check posts together are desirable objectives. They will reduce the impediments in the smooth flow of road traffic which is important, keeping in view the highly adverse cumulative effect o£ these stoppages on fuel consumption and fleet utilisation. It will be necessary therefore for State Governments to take suitable steps in this direction.

17.16 Renewed and vigorous efforts will need to be made to achieve a break-through in research and development in respect or utilisation of alternative sources of energy in the transport sector.

Integrated Planning within the Transport Sector

17.17 While planning for the future, balanced attention would be given to various, and sometimes competing, segments of transport ^like freight and passenger traffic, industrial and agricultural needs, rural and urban requirements etc. Special emphasis will need to be given to provision of transport facilities at reasonable cost to remote and isolated areas like the North Eastern Region and Andaman and Nicobar Islands, etc.

17.18 In a situation of scarce resources, while the needs of freight traffic will have higher priority, the minimum requirements of passenger traffic will also be catered to for avoiding serious inconvenience to the travelling public. Within the passenger sector, needs of rural, inter-urban and intra-urban passengers will be kept in view.

Transport and Environment

17.19 Unless adequate care is taken, transport, like many other forms of activity in an industrial society, can be a major pollutant of the environment. The problem is particularly acute in cities where vehicles generate noise and fumes, and heavy lorries using roads in residential areas make the effect even more pronounced. Suitable regulatory measures to control noise and fumes by transport vehicles would be taken.

Pricing Policy

17.20 The need to run public sector transport organisations like railways, road transport corporations, airlines etc. on a remunerative basis has assumed even greater importance due to the extremely difficult resource availability position in this Plan period. Elimination of losses being incurred by most ot these organisations is necessary not only because they should contribute to national resources rather than be a drain on them, but also because organisations which run at loss tend to lose in morale which affects their productivity and thus set up a vicious circle of further losses. Keeping these considerations in view and the recommendations made in this respect by two recent Committees, viz., National Transport Policy Committee, May 1980, (NTPC), and Rail Tariff Enquiry Committee, April 1980 (RTEC), transport undertakings should be required to cover their short-run operating costs and also yield a reasonable rate of return on the capital. Apart from limited cross subsidization which a transport organization may undertake for its own commercial or operational reasons, subsidies will, as a rule, be avoided. If, however, there are exceptional socio-economic considerations for a subsidy, it would, as far as possible, be provided direct to the users and not through the transport organisation. Efforts would thus be made to keep the commercial and non-commercial segments of transport undertakings separate not only to avoid their running at a loss but also in order to facilitate accountability for the proper and remunerative functioning of the commercial segments.

17.21 While tariffs of transport organisations would be suitably enhanced, wherever necessary, care will be taken that these increases are not made to cover avoidable fall in productivity, particularly in sectors where the organisation has a monopolistic or semi-monopolistic position.

Improvement in Productivity

17.22 Greater productivity in transport undertaking like railways, ports, state road transport corporations, airlines etc. would be ensured through various measures like satisfactory maintenance of existing assets, better and modernised management, greater discipline, better law and order conditions, rrtore satisfactory power supply to the transport sector, etc. Norms of efficiency indices, based on past performance and scope for further improvement, would be laid down and their achievement effectively monitored.

Backward and Isolated Areas

17.23 It would be necessary to pay special attention to backward areas through a proper network of transport linkages, mainly through the construction of rural roads under the Minimum Needs Prpgram-me. It will also be necessary to provide special" transport facilities at reasonable rates to isolated areas like North East, Andaman and Nicobar Islands, Jammu and Kashmir and also to hilly areas in general. In this context, a number of projects in the railways, as well as in the roads and bridges sectors, have been approved and in respect of air services a third level air service for the North Eastern Region would be introduced.

Urban Transport

17.24 The problems relating to urban transport have tended to become more and more complex due to massive increase in needs on the one hand and the shortage of resources on the other. Due to the growth in population and migration from rural to urban and metropolitan areas for job opportunities, the pressure of population on urban areas and metropolitan cities and consequently the pressure on metropolitan transport, has been extremely heavy. The experience o'f the West in providing rapid suburban transport systems at heavy cost, has not been entirely successful as it has tended to encourage the development of a suburbia consisting of dogmitory type of satellite towns with ever increasing growth of traffic in commuters, travelling in vast numbers in peak periods from the suburbs to the Central Business District and back. Efforts, therefore, would be made to pursue the question of the development of counter magnets, beyond the commutable distance, in the shape of self-contained residence-cum-work places through suitable incentives* Urban transport policy would also keep these objectives in view and avohd schemes which would encourage the further growth of existing, or development of new, dormitory type of satellite towns. Subject to this, urban transport facilities will be augmented to the maximum feasible. Pricing policy for urban transport would ensure that urban transport is not an undue strain on resources. In this context, the recommendations of the Rail Tariff Enquiry Committee that the railway fare structure for suburban services should be suitably revised in order to keep the suburban services either self-sustaining or at least part of a self-sustaining passenger segment of the Indian Railways, would be considered. In any case, there should be no occasion for continuous budgetary support for recurring expenditure on suburban rail services. Similarly, in case of city bus services, the fare structure would be rationalized so as to fully cover at least their operating costs.

Pipeline Transportation

17.25 In view of its low recurring cost, including low energy consumption, pipeline transportation tends to be more economic than other modes in case of certain commodities and in those segments where long-term heavy density corridors of traffic are anticipated. Movement of petroleum products by pipeline is already fairly well established but would need to be enlarged. Pipeline has also been laid for movement of iron ore in slurry lorm from Kudremukh to Man-galore. A significant and extremely useful development in pipeline transportation could be the movement of coal in slurry form from pitheads to thermal power houses whose requirements are heavy and of a long-term nature and where coal is, in any case, required in pulverised form. The possibility of movement of coal slurry through pipeline has assumed greater importance recently in view of the growing role of coal as a source of energy as well as the increased value and importance of the lower level of transit losses involved in pipeline transportation. There are, however, a number of parameters which have to be examined before assessing the techno-economic feasibility of pipeline transportation of coal slurry in a particular segment. Arrangements will be made in this Plan to have an in-depth techno-economic feasibility study of pipeline transporation of coal in slurry form, to enable further steps being taken.

* Please also see Chapter on Urban Development, Hoasingand Water Supply.

International Traffic ond Export Promotion

17.26 One of the most remarkable changes in international transporation technology in the last two decades has been the spectacular growth of conta-inerisation. This has been due to many compelling reasons like savings due to quicker turn round of ships at ports, economy in handling costs, facilitation of inter-modal transport, reduction in damage and pilferage, etc. It has therefore become imperative for India to develop container handling facilities in a big way in the absence of which it would become almost impossible for us to get our due share in international trade. The full benefits of containeri-sation are achieved only when complete door to door operations from origin to destination are arranged. While this may be difficult to realise in the near future in India, it is proposed to proceed in respect of containerisation in three stages as under:

  1. Movement of containers to and from Indian ports where containers would be retained and cargo stuffed and destuffed. This would be purely port-oriented arrangement.
  2. Movement of containers to and from Inland Container Depots (ICDs.). This would involve coordinated transport and procedural arrangements.
  3. Introduction of door to door containers from origin to destination.

17.27 The main objectives of the Sixth Five Year Plan in respect of container traffic would be (a) to enable the four main ports, viz., Bombay, Cochin, Madras, Haldia to handle gearless ships, (b) to develop facilities for handling cellular ships at Madras and at the proposed Nhava Sheva port, (c) to encourage inter-modal transport of containers by barge, rail and road in Calcutta/Haldia complexes and (d) to set up three Inland Container Depots at Delhi, Ahmedabad and Bangalore on a priority basis.

17.28 In order to promote the export of cargo by air, integrated air cargo complexes will be developed at a number of international as well as domestic airports. Strengthening of runways at certain airports like Varanasi and Kanpur to enable landing of bigger aircrafts in the interest of despatch of export cargo by air, will be completed during the Sixth Plan period.

Transport Coordination

17.29 For a country of the size of India, with varying regional and geographical characteristics, it is essential to compile data on traffic flows together with costs and to subject them to adequate analysis on a continuous basis for effective coordination and investment programming, as well as pricing, taxation and regulatory measures. The need for ettec-tive coordination in respect of these aspects being entrusted to a suitable agency like a National Transport Commission at the Centre, as recommended in the Report of the National Transport Policy Committee would be examined. With the growth in the dimensions of the energy problem, coupled with the transport sector being one of the heaviest consumers or' energy, the need for maximum coordination and inter-modal integration, both at the investment planning as well as operational levels, will be given attention.

Major Policy Objectives

17.30 The requirements and the need for action in the transport sector are varied and cover a large number of segments. Keeping in view what has been stated above, the important policy objectives in the Sixth Plan period would be:

  1. To remove the transport bottlenecks which have acted as serious constraints in the movement of industrial and agricultural goods and in the promotion of international trade;
  2. To create adequate additional capacity in the transport sector to meet the requirements of anticipated traffic;
  3. To conserve energy, particularly diesel, to the maximum extent possible;
  4. To evolve a high degree of coordination within the transport sector and with user organisations, to make optimum use ot available capacity;
  5. To give priority to the completion of ongoing works:
  6. To maximize the utilisation of existing 'assets through higher productivity;
  7. To evolve a rational pricing structure in the public sector transport undertakings so as to ensure their running on profitable basis and contributing adequately to the national resources; and
  8. To give special attention to the transport needs of remote and isolated areas, such as the North Eastern Region.



17.31 A statement showing the growth of freight traffic on Indian Railways in the shape of originating tonnage and tonne kilometres and also the position in respect of the utilization index, that is, net tonne kilometres per wagon day, during the last 15 years, i.e. from 1965-66 (last year of the Third Five Year Plan) is given in the Table below:

Table 17.1 Growth of Freight Traffic on Indian Railways 1965-66 to 1979-80

Year Originating tonnage (million) Average lead (Kms) Net tonne Kilometres (billion) NTKMS Per wagon day (BG) NTKMS Per wagon day (MG)
(1) (2) (3) (4) (5) (6)
1965-66 . 203.0 576 116.9 940 510
1966-67 . 201.6 578 116.6 899 485
1967-68 . 196.6 605 118.9 985 474
1968-69 . 204.0 613 125.1 905 503
1969-70 . 207.9 617 128.2 916 522
1970-7] . 196.5 6t8 127.4 933 524
1971-72 . 197.8 674 133.3 935 540
1972-73 . 201.3 678 136.5 953 552
1973-74 . 184.9 662 122.4 837 482
1974-75 . 196.7 683 134.3 907 528
1975-76 . 223.3 664 148.2 982 545
1976-77 . 239.1 656 156.8 1019 570
1977-78 . 237.3 686 162.7 1045 570
1978-79 . 223.4 693 154.8 976 543
1979-80 . 217.7 710 154.5 972 534

17.32 It will be observed from the above that the handling of traffic by the Railways in terms of tonne kilometres has shown a considerable increase over the years going up from about 116.9 billion net tonne kilometres in 1965-66 to 162.7 billion net tonne kilometres in 1977-78. There was however, a sharp decline in 1978-79 to 154.8 billion net tonne kilometres; in 1979-80 traffic remained at about the same level as in the previous year. In the case of the utilization index, that is, net tonne kilometres per wagon day, there is an improvement in some years and set-back in others. The performance in 1977-78 was the best when the utilization index touched a figure of 1045 net tonne kilometres per wagon day on the broad gauge and 570 on the metre gauge. Unfortunately, however, this was followed by substantial drop in 1978-79 and 1979-80. 17.33. A statement showing the growth of passenger traffic on the Indian Railways in terms of originating traffic and in terms of passenger kilometres is given in Table 17.2.

Table 17.2 Growth of Passenger Traffic on Indian Railway I965-66—1979-80

Year Originating (Million) Passengers Passsnger Kilometres (Billion)
Suburban Non- Suburban Total Suburban Non-Suburban Total
W (2) (3) (4) (5) (6) (7)
1965-66 1025 1059 2084 17.2 79.1 96.3
1968-69 1084 1129 2213 19.5 87.4 106.9
1973-74 1437 1217 2654 28.1 107.6 135.6
1974-75 1373 1056 2439 27.2 99.1 126.3
1975-76 1639 1306 2945 32.9 115.9 148.8
1976-77 1802 1498 3300 37.1 126.7 163.8
1977-78 1928 1575 3503 39.4 137.3 176.7
1978-79 2113 1606 3719 43.4 149.5 192.9
1979-80 (prov.) 1911 1599 3509 38.7 162.3 201.0

It will be observed that there has been a substantial increase in the growth of passenger traffic during the last five years.

17.34 The National Transport Policy Committee (May 1980) has gone into the question of the level of output of the railways in relation to the physical inputs provided to them. The Committee has stated as follows:*

"The rail system has recorded a sustained growth in creation of transport capacity since 1950-51. With growth of traffic, the assets created have been intensively utilised. ":

The Committee has also provided indices of growth of traffic and inputs which are reproduced below:

*The Report of the National Transport Polity Committee, May 1980, Para;9-3

Table 17.3 Indices of Growth of Traffic and Inputs

Year Net tonne Kms. Wagon capacity Non suburban passenger Kms. Passenger coaches Route Kms. Running track Kms. Tractive effort*
(1) (2) (3) (4) (5) (6) (7) (8)
1950-51 . 100 100 100 100 100 100 100
1955-56 . 135 118 91 122 103 103 U7
1960-61 199 152 110 154 105 107 144
1965-66 . 265 206 132 174 109 115 175
1970-71 . 289 226 169 191 112 121 179
1971-72 . 302 226 159 188 112 123 180
1972-73 . 309 229 178 195 112 124 180
1973-74 . 277 235 179 199 112 125 181
1974-75 . 304 246 165 200 112 125 180
1975-76 . 336 249 193 201 112 125 191
1976-77 . 355 256 211 200 113 126 193
1977-78 . 369 259 229 203 113 126 199

•Motive power available

Strategy for Sixth Plan

17.35 There will have to be a major effort in the Railways to increase the out-put from the existing assets and improve substantially the utilisation indices which have shown a steep decline in 1978-79 and 1979-80 as compared to the past performance and trends, particularly as compared to the very good results achieved in 1976-77 and 1977-78. Against the current 1979-80 level of 972 net tonne kilometre's (NTKM) per wagon day on the BG and 534 on the MG, efforts will be made by the Railways to achieve a minimum of 1045 on the BG and 570 on the MG (which were the best ever achieved by them in the past) and to aim at a higher target of 1125 on the BG and 580 on ths MG. The factors which have affected the productivity of the Railways and the utilisation of assets have been varied and while some of these are internal to the Railways, others are related to the external environment. A massive effort will be required to deal with both these aspects and particular attention would be paid to technical and managerial modernisation, better industrial relations, improvement in law and order, better power supply, greater efficiency in the handling of wagons by user organisations, etc.

17.36 The demand on rail transport, keeping in view the anticipated growth in various commodity sectors, is estimated at about 309 million tonnes of originating traffic in 1984-85 @. Taking the average lead of different commodities in 1984-85 as assessed in the Report of the Working Group on Railways for the Sixth Plan, 1980-85, and applying it to the commodity-wise break-up of 309 million tonnes of overall demand, the weighted average of the lead comes to about 710 kms. The total freight transport effort required by railways in 1984-85 will, therefore, by about 220 billion tonne kms.

17.37 The growth in passenger traffic has been very heavy as mentioned in para 17.33 above and generally higher than anticipated during the Plans. In the Sixth Plan, however, it will be necessary, in the context of scarce resources, to give considerable priority to freight traffic.

17.38 As mentioned above in the Transport and Energy Section (para 17.10) from the long term point of view and taking into account the emerging energy situation, it would be desirable for the Railways to develop capacity to clear almost all types of freight traffic except short distance piecemeal traffic which can be met by road transport, subject of course, to exceptions to this being made in case of certain commodities due to their nature and requirement of handling. It would, however, take some time to develop capacity on the Railways to move all the desired categories of traffic. It may, therefore, be necessary for the Railways to leave, in the interim period, not only piecemeal short distance traffic but piecemeal medium distance traffic also to road transport and concentrate on the other categories.

@Commodity-wise break-up given in Chapter 3, Table 3.26.

17.39 During the Sixth Plan period, keeping in view the extremely difficult position in regard to energy, a high degree of inter-modal coordination, particularly between rail and road, would be required in order to ensure that the available railway wagons are utilised preferentially for long distance traffic. This would involve not only considerable coordination between various Ministries and user organisations but also the effective functioning of commodity dumps for coal, steel, fertilizers, etc., as well as creation of adequate terminal facilities by Railways and the user organisations.

17.40 'The Railways have gradually grown into a massive and complex organisation. It has, therefore, become necessary to use all the established modern techniques or management particularly a greater degree of computerisation of freight controlling which is the most important segment of Railways' activities. Vigorous efforts in this direction would be made during this Plan period.

17.41 The pricing of rail services would be rationalised with a view to generating maximum resources and avoiding subsidies. In this context the recommendations of the National Transport Policy Com-mi^ee and the Rail Tariff Enquiry Committee will be kept in view. Special attention would need to be paid to the introduction of a proper level of fares in the passenger segment, particularly in the suburban sectors, so that the passenger operations on the Railways, including suburban services, remain a self-sustaining segment, even though there may be a degree of cross-subsidisation within that segment, as recommended by the Rail Tariff Enquiry Committee"'. An increase in passenger tariff on the railways is desirable not only from the point of view of increasing the revenue but also as an instrument of demand management, keeping in view the scarce resources. In this context, the passenger fares on the railways for short distances wolrid generally be such as to discourage short distance movement by rail, except in dense corridors where high capacity movement may be required.

Outlays and Programmes

17.42 A provision has been made for an outlay of Rs. 5100 crores in the 1980—85 Plan for the Railways. The Plan head-wise break-up of the outlay is as follows:—

Table 17.4 Plan headwise Outlay in the Five Year Plan 1980—85 (Railways)
(Rs. in crores)

1 Rolling Stock ...... 2100
2 Workshops and Sheds ..... 280
3 Machinery and Plant . . . . . 230
4 Track Renewals ..... 500
5 Bridge Works ...... 90
6 Traffic Facilities ...... 480
7 SigrnllingA Telecommunications . 90
8 Electrification ...... 450
9 Other Electrical Works ..... 20
10 New Lines ...... 380
11 Staff Welfare ...... 30
12 Staff Quarters ...... 60
13 Users' Amenities ..... 25
14 Other Specified Works 20
15 Inventories ..... 40
Sub-Total (1 to 15) 4795
16 Investment in Road Services 50
17 Metropolitan Transport Projects . 255
Sub-Total (16 and 17) ... 305
GRAND TOTAL .... 5100

17.43 Some of the important features of the programme are indicated below:

(1) It is proposed to acquire about 1,00,000 wagons (in terms of 4 wheelers), 5680 coaches, 390 EMUs and 780 diesel/electric locomotives during the Plan period. (The question of procurement of additional Rolling Stock would, if necessary, be considered later in periodical reviews taking into account trends in traffic generation and other relevant factors.)

(2) It is planned to undertake about 14,000 kms. of track renewals.

(3) A new wheel and axle plant is being set up near Bangalore to increase availability of wheels and axles. A workshop modernization programme is proposed to be undertaken to improve the maintenance facilities on the Railways.

(4) Under the electrification programme, it is proposed to energise about 2800 kms during this Plan period apart from executing i pre-energisation works in respect of some of the sections to be completed in the Seventh Plan period.


17.44 Despite the energy crisis and the difficult position in regard to the cost and availability of die^el, the role of road transport in moving certain types of commodities, including some export oriented goods, and its role in carrying the distributionnl traffic for reaching the interior of the country, are some of its functions which are irreplaceable by any other mode of transport like railways, inland water transport, etc. There is also a need for developing additional capacity on the road system for meeting the needs in the short term, till Railways can develop capacity to clear all the types and levels of traffic desirable from the energy point of view (Ref. para 17.38). This capacity on the road system would be dovetailed into the road transport system's own long term requirements.


17.45 The quantum of traffic on the road system, both for passenger and freight has shown a steady upward trend, as may be observed from the following figures:

Table 17.5 Traffic Carried by Road

Passenger (Billion PKM'S)

Freight (Billion TKM'S)

1950-51 23 5.5
1960-61 57 35.0
1970-71 169 66.0
1973-74 208 67.0
1977-78 250 77.0
1978-79 270 81.0

Note : The share of total traffic is given in para 17.2.

The brunt of the increased traffic is borne by the national highways which constitute the main trunk routes of the road system in the country. While the total length of the system in the country increased from 7,26,727 kms. to 16,04,110 kms, during the period 1961 to 1979, the increase in the length of national highways was not significant. In 1961, the length of national highways was 23,798 kms. About 5,540 kms. of new national highways were added durin" the period upto 1979. The total surfaced road length in the country increased from 2,62,700 kms. to 6,23,402 kms. during 'the same period. The length of the national highways now stands at about 9,340 kms. which works out to approximately 5 per cent of the entire surfaced road length but is estimated to carry about 25 to 30 per cent of the total road transportation load. This highlights the priority necessary for the development of national highways.

Outlays and Programmes

17.46 Keeping in view the deficiencies existing on national highways, as on 1-4-1980, some of the important targets proposed during the Sixth Plan period are indicated below:

(1) Missing Links (Kms) 196
(2) Missing Major Bridges (Nos.) . 9
(3) Double Laning including strengthening (kms.)
(4) Double laning without strengthening (kms.) 4224
(5) Widening to 4 lanes (km.) 130
(6) Construction of Bye-passes (Nos.) 52

Though the national highways constitute the most important programme under the central sector road plan, the following programmes also contribute to the overall development of road network in the country for which suitable outlays have been provided:

  1. Strategic roads;
  2. Centrally aided State roads of inter-State or economic importance; and
  3. Road communications in the sensitive border areas, etc.

17.47 In State sector of the road plan, the most important programme is for construction of the rural roads under the Minimum Needs Programme (MNP) which envisage provision of all-weather link roads for all villages with a population of 1500 and above and for 50 per cent of the villages with a population of 1000—1500 within a time-frame of 10 years. In the case of hill, tribal, desert and coastal areas, where population is sparse, cluster of villages approach will be followed. It is expected to provide link roads to a total of about 20,000 villages in the country under this programme during the Sixth Plan period.

17.48 The removal of deficiencies in the national highway system and upgrading some selected stretches of roads taking into account the projected traffic growth, would be one of the major policy thrusts during the Plan period 1980-85. Addition to the national highway system would be made on a selective basis and the needs of the North Eastern Region would receive a high priority in this regard. Similarly, in the State sector, the major thrusts would be the removal of the existing deficiencies in. the State highways and implementation or the rural roads under norms of the Minimum Needs Programme.

17.49 The following table indicates the scheme-wise break-up of the outlay of Rs. 830 crores provided under the Central Sector for Roads:

Table 17.6   Plan outlay for Roads Central Sector
(Rs. crores)

S. No. Scheme Outlays
(1) (2) (3)
I. National Highways (N.H.)
(a) Spill-over works : 1
(i) works continuing torn the 4th | and 5th Plans 250.00
(.it) works sanctioned during 1978-79 ami 1979-80
(b) New works 300

(c) Strengthening the weak major arterial routes for pavement strengthening and reconstruction of weak culverts and bridges . 60

(d) New addition to the N.H. System 50.00
Total . 660.00
II. Machinery
(a) spill-over 3.00
(b) New requirements 15.00
Total . 18.00
HI. SSiategic Roads
(a) Spill-over 23.00
(b) New requirements 15.00
Total 3?.00
IV. Roads of Ecor^mic and fitter State Importune
(a) Spill-over 25.50
(b) New works 15.00
Total 40.50
V. Road Communication in the Sensitive Border Areas
(a) Spill-over works 35.00
(b) New Works 15.00
Total ....... 50.00
VI. Highway Research Development and Planning Studies 4.00
VII. Special provision for OverfUnder-Bridges across Railway Crossings 9.00
VIII. Special provision for the Development of Roads in Tribal Areas 6.50
IX. Provision for setting up of Highway Training Institute . 1.00
X. Central Road Research Institute 3.00

17.50 In the State sector an outlay of Rs. 2608.96 crores has been provided with the following break-up:

Table 17.7 Plan Outlay for Roade—State Sector
(Rs. crores)

(i) Rural Roads under MNP . 1164.90
(ii) Other Roads . 1444.06
Total for State Sector . ~WWT96


17.51 Road transport has been playing an important role in the economy of the country. Over the years, there has been increase in the share of road transport in the total traffic, both for passengers and goods movements. The share of mechanized road transport in passenger traffic increased from 26 per cent in 1950-51 to 59 per cent in 1977-78. In freight traffic too, the share of road transport increased albeit slowly from 11 per cent in 1950-51 to 32 percent in 1965-66, 34 per cent in 1970-71 and 32 per cent in 1977-78:

17.52 Non-mechanised road transport in India and particularly important as it caters to the requirements of rural areas of the country. Greater attention, therefore, needs to be paid to improvements in this segment of transport, specially the development of draught animal power which is, and would remain, an important source of energy in rural transport. The animal driven cart, particularly the bullock cart, has assumed added significance in view of the energy situation. There is, thus, an urgent need for modernising this area of transport, including the allied sector of the bullock cart industry. Special attention would be paid to intensification of research and dev-elopent for improving the design of the animal carts like improvement in the design of the yoke, use of rubber and pneumatic tyres, etc. The feasibility of setting up an apex body to identify and lay down policies in respect of animal systems as a whole, including various aspects pertaining to agriculture, rural transport, etc. would also be examined.

17.53 At present, 55.5 per cent of mechanized passenger road transport vehicles are in the public sector. The following table gives the development of road transport services in terms of number of State Road Transport Corporations/Undertakings (SRTCs), their fleet strength and traffic handled by them:

Table 17.8   Growth in Passenger Transport in Public Sector

Item 1960-61 1970-71 1978-79
(1) (2) (3) (4)
1 No.of SRTCs 28 32 48
2 Bus fleet
(i) No. of buses owned 17,962 37,073 61,661
(ii) Percentage of total buses in the country 31.6 39.5 55.5
3 Passenger traffic handled (billion PKM) 26.2 80.7 182.8

17.54 Unfortunately, most of the State Road Transport Corporations/Undertakings (SRTCs) are at present showing net losses. In 1979-80, out of 48 SRTCs only two made net profit and the rest showed net losses. The main factor responsible for this has been the rising cost of operations on account of increasing prices of inputs used in the road transport industry, without matching increase in fares. It is significant that, in most cases, an increase of fares by only I paise per kilometre, would have wiped off the losses. The total losses of all the SRTCs* in 1980—85 were estimated at about Rs. 1433 crores at 1979-80 fares but are expected to come down substantially as result of the revised fares already introduced in 1980-81 or proposed to be introduced in subsequent years. It will also be necessary to bring down the cost of operation significantly through appropriate administrative measures and improvement in utilisation indices with better workshop facilities, timely replacement of over-aged vehicles, route rationalisation and improved scheduling etc.

17.55 The performance of SRTCs in terms of efficiency and cost of operations shows considerable variation. Comparative study of utilisation indices and efficiency indicators like fleet utilisation, load factor, fuel consumption, show that there is considerable scope for improvement in many of the organisations in respect of these indices. Arrangements for exchange of data and experience in this regard will be strengthened.

17.56 Where the losses being incurred by the SRTCs are the result of present uneconomic fares, fare revisions will be considered. Serious efforts will be made during this Plan period to run the SRTCs on a profitable basis both by improving utilisation indicators and through suitable pricing policy.

17.57 The road freight traffic is predominatly in the private sector. The national permit scheme for public carriers under the 20-Point Programme which was introduced in 1975 to remove the constraints on the free flow of inter-State goods traffic, is being further enlarged and recently, the Government have increased the number of national permits from 8,300 to 16,600.

17.58 The major effort in the Plan period with respect to road transport would be on replacement of overaged vehicles and development of workshop facilities to improve fleet utilisation and fuel efficiency. Augmentation of services subject to availability of funds would also be catered to.

17.59 In the Central Sector for Road Transport, an outlay of Rs. 70 crores has 'been provided bulk of which, viz. Rs. 68 crores being for Delhi Transport Corporation (DTC). This will cover the purchase of buses, construction of depots, provision of workshop facilities and bus terminals, feasibility studies regard^ ing the introduction of electric trolley buses in Delhi etc.

17.60 In the Stale Sector, a provision of Rs. 1125.55 crores has been made for Road Transport during the Sixth Plan. The SRTCs. are expected to generate Rs. 825 crores from their internal resoures for financing their programmes taking Into account the estimated yield of Rs. 1379 crores from fare revision.


17.61 Inland Water Transport (I.W.T.) is recognised as the cheapest mode of transport for certain kinds of commodities provided the points of origin and destination are both located on the water front, no transhipment is involved and the total route length is not inordinately higher than by other modes of transport. It is one of the most energy efficient modes of transport and has considerable potential in limited areas which have a net-work of waterways. In the North-Eastern Region where other transport infrastructure is severely lacking and more expensive to provide, inland water transport has additional importance as an instrument of development.

17.62 There is considerable paucity of data in respect of traffic carried by water transport. The available data shows that the cargo carried by mechanised vessels in some important waterways in 1975 was about 16 milion tonnes (including 12 million tonnes of ore movement by barges in Goa). In terms of tonne kms., this amounted to 0.8 billion tonne kms. which was only 0.4 per cent of the total freight surface traffic in the country.

17.63 In the Central Sector, the major schemes executed during the last two decades have been cons-truc'ion of inland ports at Pandu and Jogigopa in Assam, development of Rajabagan Dockyard and Kulpi Workshops, construction of mooring buoys etc.

17.64 The National Transport Policy Committee have recently identified the problems of this mode of transport Slow movement, limited spatial accessibility (since navigable waters are confined to specific regions), and the non-availability of adequate water throughout the year in many are.as due to needs of irrigation, are some of the inherent difficulties of water transport in the country. However, the Committee have concluded that "1WT continues to be functionally important in regions in which it enjoys natural advantages, as on the Br.ahmaputra and the Ganga in eastern and north eastern regions of India, Kerala, Goa and in the deltas of Krishna and Godavari".

*This pertains to 25 State Road Transport) Corporations/Undertakings and excludes those under the local bodies and Delhi Transport Corporation.

17.65 Considering the recommendations of the Committee and the fact that IWT is important for the development of the North Eastern Region, efforts will be made to give a fresh impetus to this mode during the Sixth Plan. The broad strategy will be to move in this area selectively taking up specific schemes of inter-State and national importance for development under the Central Sector. Other schemes mostly of intra-State nature, will be included in the Plans ot the State Governments.

17.66 Jn the Central Sector, an outlay of Rs. 45 crores has been made for IWT. The most important programme relates to the investment proposal of Central Inland Water Transport Corporation (C1WTC). The programme with a Plan outlay of Rs. 30 crores includes capital repairs to vessels, acquisition of additional vessels, development of Rajabagan Dockyard, creation of infrastructure facilities tor the smooth flow of vessels etc. An amount of Rs. 27 crores has been provided for the State Sector programme.


17.67 Keeping in view the vast coastline of the country as its predominent gateway to the world, and the rapid growth of international shipping, the major ports in India are an important segment of the country's transport scene.

17.68 The traffic at major ports which was 19.2 million tonnes at the beginning of the First Plan increased to 78.57 million tonnes. in 1979-80. The traffic would have been even more but for a variety of reasons, mainly the short-fall in the anticipated export of iron ore due to a recession in the world steel industry. The traffic at the major ports in 1984-85 on account of export and import ot major commodities is likely to be about 130 million tonnes. A major part of the expected increase in traffic will be on account of bulk commodities like crude oil, petroleum products, iron ore, coal, fertiliser and fertiliser raw materials. Substantial increase in traffic is also expected in general cargo particularly in the containerised traffic.

17.69 Substantial investments made on the development of major ports in the Fourth and Fifth Plans have added considerably to their capacity for handling bulk cargo including iron ore and P.O.L. However, shortages of capacity have been experienced lor handling fertiliser and general cargo from time to time at most of the major ports except at Calcutta and Cochin. At some of the ports there have been severe congestions and long detentions to ships bringing essential commodities including fertilisers, sugar, steel, edible oils, cement etc., substantial imports of which became necessary in recent years to meet the requirements. There is hardly any room in the existing port capacity to accommodate sudden demands of imports or exports necessitated by changing conditions.

17.70 in making provisions for major ports in ths Sixth Plan, account has been taken of the unutilised capacity available at different poris for some specific commodities like iron ore and P.O.L. and shortage of Capacity for certain other commodities including lerti-lisers and general cargo. Priority has been given to completion of on-going schemes. A provision of Rs. 355 crores has been made for major ports in the Sixth Plan (inclusive of Rs. 531 crores tor major ports, Rs. 20 crores for the Dredging Corporation of india, Rs. 1 crore for Central Dredging Organisation and Rs. 3 crores for training, research and development). Of the total provision of Rs. 555 crores, an outlay of Rs. 184.62 crores is for on-going schemes and the balance of Rs. 370.38 crores is for new schemes. This provision includes about Rs. 200 crores to be contributed by the Port Trusts from their own resources.

17.71 Since the ports have adequate capacity for handling projected traffic in iron ore. no new facilities are proposed in the Sixth Plan except for some marginal investments for optimising the existing facilities. As regards POL, the port capacities will be augmented by constructing new berths at Vishakhapamam, Cochin and Butcher Island (Bombay). At Haldia, a new oil jetty will be constructed in replacement of the existing oil jetty which has been damaged, resulting in its capacity being down-rated.

17.72 At present, fertilizer is handled by conventional methods at most of the ports except Kandia which has high speed mechanised handling faculties and Madras where medium speed arrangements have been made. At Haldia, the high speed handling facilities are likely to become operative in 1981. During the Sixth Plan period, high speed mechanised handling facilities will be provided by the user Ministries/agencies at Madras and Vishakhapatnam. At Cochin, a separate berth for handling fertiliser will be constructed under the integrated scheme for haudiin/g POL and fertilisers. The medium speed handling facilities provided at Bombay will also be brought into operation. All these measures are expected to create substantial port capacities to caier to the requirements of fertiliser traffic at different ports.

17.73 Substantial increases in port capacities will .also .be made for general cargo on completion of ongoing schemes and a number of new schemes included in the Sixth Plan. Provision has been made for new additional general cargo benhs at a number of ports including Kandia, Mormugao, Vishakhapatnam, Paradip, Maingalore, Tuticorin and Cochin. Provision has also been made for the acquisition of new cargo handling equipment, floating craft and for the replacement or old equipment/floating craft. The warehousing and transit shed facilities will be augmented at different ports.

17.74 Priority will be given to the development of container handling facilities at different ports to meet the growing needs of container traffic. At Haldia, a lull Hedged container berth has already been provided. A new container berth is proposed to be constructed at Vishakhapatnam Port. Provision has been made for acquisition of container handling equipment for Bombay, Madras, Cochin, Vishakhapatnam, Kandia, Paradip, Mangalore and Tuticorin. Ship to shore gantries will be provided at Bombay and Cochin on me west coast and Haldia and Madras on the east coast. At the other ports a limited number of containers will be handled by the shore cranes/forklifts and chassis.

Andaman and Lakshadweep Harbour Works

17.75 The programme for Central Sector also includes Andaman and Lakshadweep Harbour WorKs (ALHW) for which a provision of Rs. 20 crores has been made in the Sixth Plan. This includes Rs. 11.72 crores for Andaman Harbour Works, Rs. 3.29 crores for Lakshadweep Harbour Works, Rs 2.99 crores for the Minor Ports Survey Organisation and Rs. 2.00 crores for establishment and contingencies. Of the total provision of Rs. 20 crores, an outlay of Rs. 7.51 crores is for the on-going schemes and Rs. 12.49 crores for new schemes The major on-going schemes includes dry dock at Port Blair, new jetties at different •locations and dredging at Chetlat and Kavaratti. The more important new schemes are: breakwater at Cam-pbell Bay, deep water wharf at Port Blair, breakwater and warf at Mus in Car Nicobar, procurement of dredger and hopper barges for Lakshadweep Islands and survey launches for the Minor Ports Survey Organisation.


17.76 The function of minor ports is mainly to serve tlie needs of coastal shipping for their limited hinterland. In coastal areas where rail and convenient road facilities are lacking, the minor ports also cater to the requirements of passenger traffic. Some of the minor ports have, however, handled imported foodgrains and fertilizers to relieve pressure on the major ports. Development of minor ports is essential to cater to anticipated increase in coastal traffic, for promotion of deep water fishing and to provide supplementary capacity in the port sector for use in the event of congestion at major ports caused by bunching of ships, fluc:uations ;n traffic and other factors. The traffic handled by minor ports which was 3.8 million tonnes in 1951-52 increased to 8.2 million tonnes in 1965-66. Since then it has fluctuated between 5-8 million tonnes from year to year.

17.77 The responsibility for development of minor ports essentially vests with the State Governments although technical assistance wherever necessary is rendered by the Centre. An outlay of Rs. 72.18 crores has been provided for minor ports in the State Sector.


17.78 For lighthouses and lightships, a provision ot Rs. 12 crores has been made in the Central Sector which includes Rs. 9 crores for completion of various on-going schemes and Rs. 3 crores for new works. The more important on-going schemes, are: addi-noual navigational aids at Salaya, Car Nicobar and East Island Radio Beacon, lighthouses at Porbunder, Kasargad, Kalingapatnam, Armagaon, Machhili-patnam and Ramayapatnam. The major usw schemes include modernisation of existing Decca Chains, new Decca Chains for Bombay, Goa, Lakshadweep, Vishakhapatnam and Cochin, replacement of MV Sagardweep and a number of new lighthouses at different locations.


17.79 Overseas shipping has an extremely important role to play in India's international trade. The overseas shipping tonnage of the country has grown substantially during the planning era. As on 1-4-1980, the overseas tonnage consisted of 319 ships aggregating 5.3 million Gross Registered Tonnage (GRT). The progress of overseas tonnage is indicated in the following tables:—

Table 17.9 Growth of Indian Overseas Shipping Tonnage

As on 1st April Number of Ships Total GRT in million!
1956 36 0.24
1961 75 0.55
1966 122 1.22
1974 214 2.83
1980 319 5.29

17.80 The share of Indian shipping in the transportation of India's overseas trade has been increasing over the years. At the end 'of 1978-79, the share of Indian bottoms in the total overseas trade of the country was 30.5 per cent. Indian bottoms carried 22.3 per cent in bulk cargo, 39.8 per cent in general cargo and 64.7 per cent in POL and edible oils.

17.81 Coastal shipping has a vast potential in India with its long coastline of more than 5,000 tans. However, for various reasons, coastal shipping in India has not had a significant or steady growth. In fact, there has been a sharp decline in the size of its operations. The figures are given below:—

Table 17.10 Coastal Shipping Tonnage

As on 1st April

Number of Ships

Total CRT (in millions)

1956 90 0.24
1961 97 0.31
1966 99 0.32
1974 60 0.26
1983 56 0.25

17.82 The main factors affecting the growth of coastal shipping in India have been high transportation costs especially for movements other than those between a pair of water front locations, port delays, poor turnround time of coastal ships on account of overaged vessels, lack of mechanical handling facilities etc. Considering the importance of this mode of transport in supplementing the internal transport system, and its low energy consumption per unit of transport, it is essential to strengthen the coastal shipping sector for such movements for which it is economically viable.

17.83 The shipping industry faced a world-wide recession during the late seventies. The freight market was severely depressed affecting adversely the earning capacity and liquidity of the shipping companies. The recession in shipping industry is now showing signs of decline.

17.84 The Sixth Plan envisages the augmentation of shipping tonnage for meeting increasing requirements of India's foreign trade and also to replace the overaged tonnage especially the coastal vessels. It is proposed to acquire additional tonnage of 2 million GRT during the Sixth Plan period. Part of this vvill be from indigenous sources and the rest would be acquired from abroad. Provision has been made to acquire small tankers to meet the essential lighterage and coastal movement requirement of the refineries.

17.85 A provision of Rs. 720 crores has been made in the Central Sector for shipping. This includes Rs. 705 crores for loans to Shipping Development Fund Committee (SDFC) an'd subsidy to SDFC which would cover the acquisition of tonnage from Indian shipyards and also meet the commitment arising out of deferred credits to be utilised from abroad. Adequate provision has been made for expansion of training facilities and for carrying out the programme for the welfare of seamen. Funds have also been allocated fo- giving loans to sailing vessels industry for mechanisation and .modernisation of


17.86 Civil Aviation is the fastest means of transport and on long hauls offers a substantial saving in transit time. Consequently, air transport handles considerable traffic on long dis'.ance routes. It also has a crucial role to play on routes which involve difficult terrain.

17.87 Air transport in India has experienced very rapid rate of growth during the last two decades. The traffic on Indian Airlines which was 614 million Revenue Passenger kms. in 1960-61 increased to 4,229 million RP kms. in 1979-80. The passenger and -freight traffic on Air India went up from 76 million Revenue Tonne Kilometers in 1960-61 to 816 million RT kms. in 1979-80. To meet the growing traffic in passenger and cargo, the capacity of Indian Airlines was increased from 864 million Available Seat Kms (ASKms) in 1960-61 to 5,771 million ASKms in 1979-80. The capacity on Air India increased from 161 million Available Tonne Kms (ATKms) to 1372 million ATKms during the same period.

17.88 Earlier, the fleet of Indian Airlines consisted of various types of aircraft. Emphasis was, therefore, placed on modernisation and standardisation of fleet mix; Low capacity turbo-prop akcrafts have been substantially augmented/replaced by higher capacity, more productive and economic jet aircraft. These steps have resulted in considerable savings in consumption of fuel and also significantly reduced the maintenance cost burden. However, the infrastructure facilities have not kept pace with increased operations. Considerable emphasis was laid in tile Fifth Plan on the provision of safety-oriented and reliable communication, navigation and landing aid equipment. Efforts were also made to relieve congestion at the international airports. The construction of new international terminal complex (Phase I) at Bombay was a major step in this d^ection.

17.89 In the 1980—85 Plan, the major objective!, would be (a) to provide additional capacity at the international airports to relieve the heavy congestion at peak hours, (b) to provide additional workshop and maintenance facilities in order to achieve self reliance and thereby improve the utilisation of existing resources, (c) to provide additional safety-oriented equipment at airports.

Air India

17.90 A provision of Rs. of Rs. 277 crores has been made in the Plan for Air India. The outlay includes the loan repayment of aircraft already acquired by Air India. As on 31-3-1980, the fleet of Air India consisted of 9 Boeing 707 and 9 Boeing 747 aircraft including 2 B-747 acquired in 1979-80. In April 1980, Air India acquired another B-747 aircraft. In addition, the capacity equivalent to 5 B-707 aircrafts would be acquired, which will enable Air India to replace its 5 old B-707 aircrafts in the interest of fuel economy. The capacity of Air India at the end of the Plan is expected to go up to about 1900 million ATKms as compared to 1372 million ATKms at the end of 1979-80.

Indian Airlines

17.91 An outlay of Rs. 272 crores has been provided for the Indian Airlines in the Sixth Plan. As on 31-3-1980, Indian Airlines had a fleet of 6 Air Bus, 13 Boeing 737 and 23 Turbo Prop. In the 1980-85 Plan period, Indian Airlines expect to acquire capacity equivalent of 9 Boe:ng 737 aircraft and 3 Air Bus aircraft including 8 B-737 and 2 Air Bus for which orders have already been placed. With this addition, the carrying capacity in terms of Available Seat Kilometres is expected to increase from 5771 million ASKms at the end of 1979-80 to about 8750 million ASKms at the end of 1984-85.

17.92 Under the supporting facilities, the major programme proposed to be taken up by Indian Airlines relates to the construction of a Jet Engine Overhaul facility. With the commissioning of this, the support facilities are likely to improve considerably leading to better utilisation of the fleet. It is also proposed to instal a Real-Time Computer Reservation System.

International Airports Authority of India

17.93 Constituted in 1972, the International Airports Authority of India (IAAI) is responsible for management and development of four International Airports namely Bombay, Calcutta, Delhi and Madras which handle 40 per cent of the domestic flights and most of the International air services. IAAI development programmes include construction and improvement of runways, taxi. tracks and aprons and supply of electrical and other equipment.

17.94 An outlay of Rs. 141 crores has been provided in the Sixth Plan for the programme of IAAI. This includes provision for completing Bombay Terminal Complex Phase I, Bombay Terminal Complex Phase II, Delhi Terminal Complex Phase I and Madras Domestic Terminal Complex. The new International Terminal Complex in Bombay Airport (Phase I) was completed in December 1980 and it will be fully operative on installation of aero-bridges in February 1981. Provision has also been made for modification of existing terminal buildings so as to meet the growing requirement of space for handling increasing traffic. In addition, outlay has also been provided for operational works and electrical equipment for improving the lighting of runways.

Civil Aviation Department

17.95 A provision of Rs. 143 crores has been made for the projects of Civil Aviation Department. In the programme of Civil Aviation Department, emphasis has been placed on the provision of safety-oriented equipment so as to make air operation more safe and reliable. It is proposed to augment calibration facilities so as to improve the quality and reliability of the equipment installed at various airports. Under the programme of civil works at aerodromes, the policy of generally developing the existing airports rather than construction of new ones will be continued. The main programme under this head would be upgrading of the existing airports so as to facilitate the safer operation of jet aircraft.

Third-level Air Services

17.96 An outlay of Rs. 17 crores has been given for the operation of Third Level Air Services to provide better communication in the difficult and isolated areas of the North Eastern Region. Out of this Rs. 10.5 crores have been provided for infrastructure facilities at airports and Rs. 6.5 crores for purchase of aircraft.

Outlays for Civil Aviation Sector

17.97 The table below gives the broad break-up of outlay for the 1980—85 Plan for the Civil Aviation Sector:—

Table 17.11 Plan Outlay in Civil Aviation

Sub-Sector Outlay (Rs. crores)
Air India 277
Indian Airlines 272
IntsKHtionil Airports Authority of India 141
Civil Aviation Department 143
Third Level Air Sarvic-ss 17
Total 850

NOTE : This provision is in the Central Sector and is exclusive of Rs. 9.10 crores provided in the State Sector iminly for improvement of airstrips and hslipads and for flying clubs, training facilities etc.


17.98 Meteorological services are provided by India Meteorological Department (IMD) for use in Aviation, Shipping and Agriculture sectors. The Department has the responsibility for operating a timely warning system for cyclones, heavy rains and snow and' dust storms as also for detecting and locating earthquakes. The Monex 79 Experiment conducted has been concluded. Some of the observational activities are being continued during the current Plan. The raw data is being analysed and disseminated to World Data Centre at Washington DC and Moscow. Major ^ains expected from this experiment are in respect of (a) understanding of Monsoon rain fluctuations, date of onset of monsoon etc., (b) improvement in weather prediction capability and (c) availability of oceanographic data operationally useful to the Indian Navy. In addition to India Meterolo-gical Department, the three autono'nous Institutes namely the Indian Institute of Astrophysics, Indian Institute of Geomagnetism and the Indian Institute of Tropical Meteorology carry out basic scientific research in their respective fields.

17.99 In the Plan 1980—85, it is proposed to operate INSAT which is a multipurpose satellite programme fitted with a very high resolution infra-red radio-meter and other equipment which will facilitate continuous monitoring of clouds and wind conditions thereby improving the ability to predict weather changes especially the monsoons and give advance and precise warning of cyclone and severe storms.

17.100 Another major programme under Meteorology relates tb the proposed relacemiJt of cyclone warning, storm detecting and wind finding radars which have become obsolete and out-dated. In addition, meteorologfcal services to assist fanners fishermen, aviation etc. will be improved. The Indian Institute of Astrophysics would complete fabrication of its 2.36 M telescope besides following a programme of effective research on spiral structure of Galaxy and high resolution astronomy. The Indian Institute of Geomagnetism plan to work on a comprehensive equatorial electro-jet while the Indian Institute of Tropical Meteorology would primarily engage itself in the continuation of Monex studies.

17.101 For the Sixth Plan, a provision of Rs. 94.64 crores has been made for Meteorplogy Sector which includes a sum of Rs. 43 crores for the IMD and the Institutes in the budget of the Ministry of Tourism and Civil Aviation and Rs. 51.64 crores for the meteorology portion of the Space Segment of INSATI-I which is provided in the budgef of the Department of Space. The break-up of Plan outlay is as follows:

Table 17.12 Plan Outlay for Meteorology
(Rs. crores)

1. India Miiwrofogieal Deptt.
INSAT-I Ground Segment ... 11.70
MONEX ...... 2.50
Others ....... 21.80
Total ...... 36.00
2 Institutes
Indian Institute of Astrophysics 4.00
Indian Institute of Geomagnetism 1.50
Indian Institute of Tropical Meteorology 1.50
Total 7.00
3 Space Segment of INSAT-I 51.64


17.102 Tourism, both domestic and international, has rapidly won considerable recognition as an activity genera ling a mimbefof social and economic benefits like promotion of national integration and international understanding, creation of employment opportunities, removal of regional imbalances, opening up of new growth centres in the interior of the country, augmentation of foreign exchange earnings, thus redressing the balance of payments situation, etc. It is significant that many of these beneficial aspects of domestic and international tourism have special relevance to the socio-economic scene in India as emerging in the Sixth Plan period. Tourism also tends to give support to local handicrafts and cultural activites, both in urban and rural areas. Expenditure by tourists has a multiplier effect and also generates considerable tax revenue for Government, both in the Central and State sectors. It is also relevant that the various multi-faceted sodo-economic benefits of tourism are achieved with a relatively low level of investment.

17.103 International tourism in India has grown substantially during the last 15—20 years. The number of foreign tourist arrivals increased from about 17,000 in 1951 to 7,65,000 in 1979. The average stay per tourist has also registered an increase over me years. Tne rate of growth of tourist arrivals in 1979 and 1980 has no doubt been below expectations. The reasons for this have been connected to some extent with global factors like the oil crisis and recessionary trends, but, to a great extent tourist arrivals have also been afi'eci.ed adversely by the inadequacy of infrastructure like hotel accommodation, internal transport, particularly air services and comfortable surface transportation, air port facilities, etc. Despite the global factors mentioned above, international tourist traffic has increased at a high rate in many of the developing countries. It is expected that international tourism in the world will develop at much higher rates, keeping in view the growing place it is occupying in the life style of the people in many countries. The share of India in international tourism continues to be very low. It should be possible for India to get a much higher share keeping in view the inherent attractiveness of the country from the tourist point of view. Efforts will be made during this Plan period to develop adequate infra-structural facilities to cater to substantially higher levels of tourist traffic.

17.104 During the Sixth Plan, the main objectives of the investments in the Tourism Sector would be to optimise the use ot existing capacity and to increase substantially tourist accommodation in the public and the private sectors. It will be ensured that development of tourism does not adversely affect the environmental surroundings or the local culture and ethos of the tourist areas and locations. While taking up schemes for development of tourism, a selective approach wfll be followed with a view to maximizing the return oo investments. In the development of tourism, the selected travel-circuit approach would be followed and matching facilities will also be provided accordingly. Close coordination in regard to provision of facilities in the Central, State and private sectors in the same areas and locations would be maintained to obtain the optimum results from the available resources. This approach will give flexibility in offering a mixed tourism package, help to regionalise tourist traffic and promote repeat visits to increase the overall volume of the traffic.

17.105 The broad divisions of responsibility between Central and State Governments will continue to be on the basis that, by and large, the schemes intended primarily for international tourism will be in the Central Sector and those meant mainly for the promotion of domestic tourism, in the State sector. However, India Tourism Development Corporation would provide technical assistance to State Governments for promotion of tourism.

17.106 An outlay of Rs. 187.46 crores has been provided in plan 1980—85 which includes a sum of Rs. 115.46 crores under the State sector and a sum of Rs. 72 crores under the programme of the Central Sector. Of the total outlay included in the Central Sector, a sum of Rs. 30 crores is provided for Department of Tourism and Rs. 42 crores for the programmes of India Tourism Development Corporation (ITDC). In the programme of Deptt. of Tourism, the emphasis will be on the development of selected beach and mountain resorts, wild life and cultural tourism, training facilities and overseas promotion. In order to encourage private sector to build hotels, it is proposed to continue interest differential subsidy to financial institutions through Industrial Finance Corporation of India. In the programme of ITDC, with the completion of existing and proposed schemes, the total availability of tourist accommodation with the ITDC is expected to increase from 2,644 rooms at present to roughly 5,000 rooms by 1984-85. The outlay for the ITDC will also cover the equity capital to be provided lor their joint ventures abroad.

17.107 A number of infrastructural facilities not directly covered by the investments in the tourism sector are extremely important for tourism development; for example, increase in capacity at international and domestic airports to prevent congestion and long queues at peak hours and increase in the passenger carrying capacity of Indian Airlines to enable confirmed bookings for internal travel. Investments in this regard are being included in the respective sectors.


17.108 The sub-sectorwise break-up of the outlays for 1980—85 in the Transport and Tourism sector is indicated in Annexure 17-1 and the state-wise breakup in Annexure 17-11.

Annexure 17.1 Sixth Plan Outlay on Transport and Tourism

Sub-Sector Centre States including UTs Total
(1) (2) (3) (4)
Railways 5100 5100
Roads 830 2608.96 3438.96
Road Transport 70 1125.55 1195.55
InhQii Water Transport 45 26.66 71.66
Major Ports 555 555
Minor Ports 20 72.18 92.18
Lighthouses 12 0.32 12.32
Shipping 720 35.10 755.10
Sul»rTotal—Ministry of Shipping and Transport 2252
850 9.10 858.10
Meteorology (Excluding INSAT-I Space Segment) 43 43
72 115.46 187.46
Metwtology (tNSAT-I Space Segment)* 51.64 51.64
50.00 50.00
GRAND TOTAL . 8418.64 3993.33 12411.97

* Provided in. the Budget of Department of Space. 50% of total outlay of Rs. 143.29 crores shown in Transport Sector and 50% in the Communication, Information Sc. Broadcasting Sector.
** Provided in the Budget of the Department of Irrigation.

Annexure 17.2 Sixth Plan Outlay Transport and Tourism—States and Union Territories
(Rs. lakhs)

States Road and Bridges Road Transport I.W.T Civil Aviation Ports Shipping Light House! Tourism Total
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
1 AndhraPradesh 5500 17500 200 300 100 23600
2 Assam 8400 1250 550 250 10450
3 Bihar 22735 2000 50 40 150 24975
4 Gujarat 22000 9000 .. 2500 260 33760
5 Haryana 11000 5200 200 550 16950
6 Hunachal Pradssh 10000 950 10 190 700 11850
7 Jammu and Kashmir 6400 1640 2400 10440
8 Kamataka 6600 6800 51 660 410 14521
9 Kerala 6600 2000 575 825 675 10675
10 Madhya Pradesh 13000 2750 500 16250
11 Maharashtra 25000 18000 100® 30 600 330 44060
12 Manipur 3200 300 50 3550
13 Meghalaya 4000 800 200 5000
14 Nagaland 5000 550 55 5605
15 Orissa 8900 1000 @@ 600 325 10825
16 Punjab 7000 4000 70 225 11325
17 Rajastban 10000 3000 650 13650
18 Sikkim 2420 480 175 3075
19 Tamil Kadu 13900 7550 300 400 500 TOO 23450
20 Tripura 2800 370 60 3230
21 Uttar Pradesh . 31932 12000 1054 44986
22 West Bengal 13500 14000 600 100 307 28507
all states 239887 111140 2436 630 5885 500 10256 370734
1 Andaman and Nicobar
Islands 1150 200 876 2360 24 38 4648
2 Arunachal Pradesh . 5000 300 280 30 5610
3 Chandigarh 75 300 150 525
4 Dadra and Nagar Haveli 300 5 305
5 Delhi 9475 40 265 9780
6 Goa, Daman and Diu 1600 250 200 32 8 700 2790
7 Lakshadwecp 44 .. 175 650 12 881
8 Mizoram 2890 300 30 30 3250
9 Pondicheny 475 25 250 60 810
all union territories 21009 1415 230 280 1333 3010 32 1290 28599
total states/union territories 260896 112555 2666 910 7218 3510 32 11546 399333

@For Konkan Railways (Land Acquisition)
@@ Included under Ports.

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