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Union Minister of Surface Transport and Highways Kamal Nath announced on Friday that he plans to build 20km per day, a steep increase over the last government. A commitment to the cause is completely welcome but more needs to be done – including efforts at the state level.

The road network in the country is divided into –

* National Highways (NH): The length of all the NHs is about 70,000km. A report by the MORTH, states that they cover just 2% of the road network in the country but carry over 40% of its traffic.
* State Highways (SH) and Major District Roads (MDR): These lie under the purview of State Governments (Public Works Department). These are meant to connect district headquarters to the major cities or the nearest National Highway. The combined road length is over 140,000 kms.
* Rural Roads: The remaining all weather roads connecting to small villages and hamlets are classified as the Rural Roads.

Successive government spending on infrastructure has kept the spotlight on the National Highway Development Project (NHDP). The work on Golden Quadrilateral and the two corridors is nearing completion, albeit behind schedules. Currently the government has chalked out plans for four-laning of many National Highways.

Similarly, the Pradhan Mantri Gram Sadak Yojana (PMGSY) caters to the other end of the spectrum. It promises to link all settlements with population in excess of 500 by all-weather roads.

This creates a void in the development of State Highways. Many state–highways are old. Leaving a National Highway to drive on a State Highway creates a very noticeable drop in speed. This is hurdle for movement of people across the state. However, most states have no clear plans to overhaul the State Highways and the MDRs. Most of these roads are still motor-able. That they are not yet convenient to routine road travel is hampering growth in nearby district places. The government should not only aim at metros servicing the markets at these towns but also encourage the ability of local industries to serve the metros. This can happen when moving from the National Highways to the inner roads is a seamless experience – when the roads are of comparable quality.

The reasons for paying due attentions are:

* Growth potential in smaller towns: An Ernst and Young report, aptly titled ‘The Dhoni Effect: Rise of Small Town India’, points to the increasing demand in smaller towns across the country. In the report, they classify the urban market into 6 Major Cities, 22 Key Urban Towns and Rest of Urban India. An illustration in the report points to the fact that while the mobile subscribers grew at an admirable CAGR of 58% in the 6 metros, they grew at 93% in the rest of urban markets. While telecommunication and retail sectors have quickly spread to these parts, other sectors will be slower on the move. However, no one denies that sooner or later, the consumption juggernaut will be fueled by the smaller towns. The ability to facilitate easy movement will determine the speed at which the hinterland market will boom. As an example, the town of Aurangabad lies about 200 Kms from Pune. However, it typically takes 6 hrs to cover the distance by road. Mumbai-Pune which is roughly the same distance takes about 3 hours by the Expressway. Businesses find it viable to service Pune from Mumbai office. This leads to aggregate increase in activity.

* There is an urgent need to increase the relative viability of the small towns in comparison with the Metros. This need stems from the fact that almost 33% of the population resides in the top 8 cities of the country and the numbers are still rising. With the decline in the rural economy, mass migration to the cities has created severe constraints on the infrastructure of the cities. The ability to share economic benefits with the district places and other small towns will buffer the urbanization blows on the metros, while creating positive spillover effects over a much wider geography. This can happen if towns within 300 km of a metro [or other Key Urban Town] can experience similar business prospects and outreach to the same markets.

* The rail network in the country is widespread. Whenever rail is convenient, freight is transported over railways. However, problems persist when it comes to encouraging people to get business across cities without having to shift base. Traveling by rail is perceived to be cumbersome and isn’t a favored choice. As of today, road infrastructure doesn’t allow a person to travel 200 km from a metro, transact business and return within a day. Railways aren’t preferred. Improvement of the road infrastructure will enable this and the associated gains.

While the critical need for excellent road conditions on secondary roads may be felt only a few years’ later, the state governments should actively take up the preliminary steps towards the goal. With the Ministry of Road Transport and Highways and Ministry of Rural Development (both at National level) covering an end of the spectrum, it is important that the state governments step up to successfully plug the intermediate needs. Since land acquisition will always remain a thorn in the side, it is wise to plan well in advance to connect the smaller towns and district places to the metros. With Build-Operate-Transfer being the order of the day, financing the projects through private sector shouldn’t be an issue.

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