Nhdp get the fact - itp India - Highways

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Research StudyGathering experts to improve transportation in India

INDIA TRANSPORT PORTALMarch 2016

National Highways Development Project:

Get The Fact

National Highways Development Project: Get The Fact2



Table of contents:I. Overview of NHDP- What is NHDP?- NHDP in figures

II. NHAI data

III. Analysis of the 2015 situation- Average construction speed so far- Average construction speed and the total length to build by state- Status of contract by state- Construction completed by June 2015 for each state- Construction completed each year for different contractor

IV. NHDP challenges- What lessons can we draw from this study?- Government difficulties- An improving trend- EPC focus- Conclusion




Methodology & liability

DATA USED:To draw up this document, India Transport Portal and Abhishek Srivastava used publicly and freely available data (mainly from the NHAI website).

LIABILITY: Neither India Transport Portal nor Abhishek Srivastava should be held responsible for any methodological bias, omission or calculation errors. The only goal of this document is to create an easy to understand road construction infogra-phics.

LAST UPDATE:The last update was done on June 2015.




I. Overview of NHDP

- What is NHDP?

In order to give boost to the economic deve-lopment of the country, the Government has embarked upon a massive National Highways Development Project (NHDP) in the country.

The National Highways Development Project is a project to upgrade, rehabilitate and widen major highways in India to a higher standard.

The NHDP is the largest highway project ever undertaken in the country. The NHDP is being implemented by National Highways Authority of India (NHAI) under the Ministry of Road, Transport and Highways.

- NHDP in figures:

49,260 Kms of roads and highways work and construction in order to boost economic deve-lopment of the country.

USD 71 Billion have been awarded to this project. It has 7 Phases and is led by the NHAI.




II. NHAI DataAccording to NHAI, National Highways Development Project is being implemented in all phases except phase VI at present. The present phases would improve more than 49,260 km of arterial routes of NH Network to international standards. The project-wise details NHDP all Phases as below.

Source: NHAI




III. Analysis of 2015 situation

- Average construction speed so far:

Which state is the most efficient?This map shows what is really completed in June 2015 for each state in relation with total length to build.Rajasthan seems to be the most efficient state if we look at the average of construction speed just in front of Uttar Pradesh.




- Average construction speed and the total length to build by state

The following graph shows more precisely the average construction speed and the total length to build per region.

WB: West BengalArunachal PradeshAP: Andhra PradeshUT: UttarakhandJH: JharkhandHP: Himachal PradeshGO: GoaKL: Kerala

RJ : RajasthanUP : Uttar PradeshBH : BiharTN : Tamil NaduGJ : GujaratMH: MaharashtraOR: OdishaHR: Haryana




- Status of contract by state:

This map gives us a clearer view of progress of road construction. Contract by states are divided into three categories: completed, letter of award and under implementation.

States like Rajasthan or Uttar Pradesh have a lot of contract under implementation (more than 50 per cent) while Maharashtra construction are more advanced (almost a quarter is completed).




- Construction completed by June 2015 for each state

This graph shows what is really completed in June 2015 for each state in relation with total length to build.In most cases, less than fifty per cent of roads are completed.




- Construction completed each year for different contractor:

This graph shows the evolution of completed construction for different contractors.Looking specifically at contractors, the gap between completed roads and total length to build is large.




What lessons can we draw from this study?

The pace of construction plummeted from just above 5 km per day in 2012 to 2.5 km/day in 2014.

The pace is marginally up to 3.27 km/day in the first 6 months of 2015, but far below the 10 years average of 5 km/day, let alone government stated goal of 20 km/day.

Abhishek Srivastava analysis shows that highway construction pace is up to 10 km/day. The claim may be technically correct, but the catch is that most of that number is 2-laning. It seems that 4/6 laning work on national highways is done by NHAI, the rest of it is 2-laning.

IV. NHDP challenges

Headline numbers on 4/6 laning of national highways (in km):

What are the Government difficulties?

A lot of contracts had to be cancelled before they could be re-bid. This takes time, as the process often has to go through litigation.

A few contracts have been cancelled in last 12 months.

Land acquisition had to catch-up with contract award and progress has been made on this front.




An improving trend:

New life had to be breathed back into contract award process and there is progress on this as well. Government is giving out a lot more work on EPC basis, and private sector is feeling more confident about bidding on Build Operate Transfer (BOT) projects as well. Acceleration in contract award should translate into faster construction pace down the line.

EPC focus:

Under Engineering Procurement and Construction model (EPC), the government funds the entire project and the contractor will accept the risk and responsibility for both the design and the construction of the work. Of course, NHAI still acquires the land for the project.

Conclusion:

So in all, there is certainly progress, and signs are pointing towards further acceleration as time goes on. Furthermore, we cannot get carried away and start believing government numbers blindly. If the government can increase the 4/6-laning pace to 5km per day by the end of this year, that would be progress. That’s the average pace for last 12 years or so. Does India’s current institutional mechanism sup-port a pace of more than 10 km per day? If we get there by the end of next year, it will be a great accomplishment.




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This study shows that improvement of vehicle’s fuel economy needs to take into account tyres and rolling resistance.Rolling resistance affects fuel consumption in the same way as natural phenomena like wind, slope and vehicle inertia, which must be overcome in order to move.

According to David Shaw (Chief Executive at Tire Industry Research): “A motorist can expect to get a maximum fuel-economy benefit of around 7% when replacing four bad tyres with four good ones”.

The International Energy Agency has recommended that legislation to set a maximum rolling resistance of tyres is a good step towards reducing fuel consumption in a country. Transport sector is one of the prime contributors to air pollution in cities.

In India, the vehicle population is growing at rate of over 5% yearly.Reducing rolling resistance reduces costs and helps preserve the envron-ment. This relates both tyre manufacturers and national authorities, as Randy Clark (Vice-President, Norms & Regulations, Michelin Group) said: “One advantage for rolling resistance thresholds is that consumers need not be educated and success does not depend on consumer beha-vior.”In order to remain globally relevant India would need to implement its own fuel efficiency requirements and bring tyre manufacturing standards in line with global competitors.

The Bureau of Indian Standards is in discussion to create a maximum cap on tyre rolling resistance for India, starting with passenger car tyres but nothing certain for Truck Tyres.

Automotive

Nhdp get the fact - itp India - Highways