Showing posts with label toll roads. Show all posts
Showing posts with label toll roads. Show all posts

Wednesday, March 30, 2016

Why can’t we be more efficient?

I did a trip by car recently from Bangalore to Neyveli and Thanjavur and came back via Tiruchirappalli. In one place, Bangalore, I paid the toll electronically. Everywhere else the car had to stop and the toll had to be paid manually. I paid a total of Rs 619 at 11 places. The whole trip was about 1100 km long. This made me read up on reports of such inefficient practices elsewhere in India. This country prides itself on its software export earnings, but its own domestic economy is often a decade or more behind adopting simple technology to save its people time and money. It is a bit like the case of workers in the construction industry, who build huge multi-story apartment complexes for others. But they and their children usually live in the buildings under construction, often without drinking water, lighting and access to toilets. Sometimes their toddlers wander around such buildings, fall down and die.  

The Centre for Internet & Society has done us a service by republishing in its February 2016 Newsletter an insightful article by Shyam Ponappa in the Business Standard of Feb 3, 2016 http://www.business-standard.com/article/opinion/shyam-ponappa-bottled-up-national-assets-116020301314_1.html
Ponappa points out that the Indian Highways Management Company was tasked in 2012 to implement Electronic Toll Collection (ETC). He also reports that a study by IIM-C and Transport Corporation of India in 2012 reported an annual loss of Rs 87,000 Crores due to delays of the Delhi-Mumbai truck traffic. The study is reported to have indicated that the average speed of the Delhi-Mumbai truck traffic to be 21 kmph! It would be worth reading up the basis for these loss calculations; they seem to be of the order of 2% of India’s GNP in 2012!

ETC is reported to have been introduced in 2014, but the goal of having it implemented all over India remains a dream as of now. The transportation sector contributes over 5% of the GNP and the road sector handles over 60% of the freight movement (these numbers are based on relatively old information – visit http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/EXTSARREGTOPTRANSPORT/0,,contentMDK:20703625~menuPK:868822~pagePK:34004173~piPK:34003707~theSitePK:579598,00.html )

While doing research for writing this article I came across this website of ICICI Bank
It says that an electronic tag can be bought for use on the Bangalore-Chennai route at Hosur, but the publicity for this has been very poor. I have travelled on this route several times but have never seen a sign advertising this tag. I am a Bangalore customer of the ICICI bank but I have never received an email about this.

There are many other examples in the Indian economy, as readers can guess, of poor management causing huge losses. Major reforms pose their own problems, but a concerted effort to identify easily addressable problems could speed up the growth rate of the GNP by one or two percent. There was a time when productivity was given national attention, but now we hear little about productivity in general. The Niti Aayog seems to be concerned with agricultural productivity, but we do not hear about attempts to improve productivity in other sectors of the economy.