SECTOR ASSESSMENT (SUMMARY): CHHATTISGARH ROAD SECTOR. 1. Sector Performance, Problems, and Opportunities
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1 Chhattisgarh State Road Sector Project (RRP IND 44427) Sector Road Map SECTOR ASSESSMENT (SUMMARY): CHHATTISGARH ROAD SECTOR 1. Sector Performance, Problems, and Opportunities 1. The state of Chhattisgarh was formed on 1 November The Chhattisgarh region was carved out of Madhya Pradesh to form the new state. Chhattisgarh state has a total area of 135,194 square kilometers (km 2 ) and a population of 21 million as of It has 27 districts. Chhattisgarh is surrounded by six states: Andhra Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa, and Uttar Pradesh. Because of its location, traffic from these surrounding states passes through its state road and rail network. Railways in the state have limited coverage, comprising a total length of about 1,187 km, and serve mainly the needs of interstate traffic. Civil aviation, ports, and inland waterways have a very limited role in the state s transport services. As a result, roads are the predominant mode of transport services in the state. 2. Chhattisgarh is rich in natural resources and is a major producer of coal, iron ore, and other minerals. This has contributed to the high economic growth of the state. Chhattisgarh is a major producer of cement and steel and is a power surplus state. It also has a large agricultural base and ranks third in rice production in the country. 3. The total road network of the state was 74,434 km as of The road network managed by Chhattisgarh Public Works Department (CGPWD) is presented in Table 1. The rest of the road network is managed by village panchayats (local self-administration at the village level in India), communities, urban local bodies, and the Forest Department. Chhattisgarh Rural Road Development Authority developed 16,838 km of rural roads until 2010 under the central government funded PMGSY. 2 Road density in Chhattisgarh is well below the national average, at 55.1 km per 100 km 2 against the Indian average of 125 km per 100 km 2. This is partly because of the large forest cover (44%). Table 1: Details of Road Network under Chhattisgarh Public Works Department No. Class of Road Length (km) 1 National highways 2,226 2 State highways 5,240 3 Major district roads 10,539 4 Other district roads and rural roads 13,798 Total Length 31,803 km = kilometer. Source: Chhattisgarh Public Works Department 4. All national highways, 85% of state highways and the major district roads, and 46% of other district roads have sealed (i.e., bitumen or concrete) surfaces. Overall, 34% of the roads managed by CGPWD remain unsealed. Only a small percentage of the national highways have four-lane carriageways, increasing to 20% under capacity augmentation works in progress. Of the remaining national highway sections, about two-thirds have two-lane carriageways and the rest have single-lane carriageways. In terms of road width, 30% of the state highways have two lanes and the remaining 70% have single- or intermediate-lane carriageways. 3 Most of the major and other district roads in the state are single lanes. The majority of the state road network needs 1 Government of India, Ministry of Home Affairs, Office of Registrar General & Census Commissioner Census of India New Delhi. 2 Pradhan Mantri Gram Sadak Yojana, a rural road development program funded by the Government of India through the Ministry of Rural Development. The Asian Development Bank (ADB) is also providing funding support for this program. 3 Intermediate lane roads have a width of meters (m), which is narrower than two-lane roads (7.0 m).
2 2 widening and strengthening to cater to the increasing traffic demand. Chhattisgarh lacks an adequate road network to support the required mobility between areas with natural resources, industrial centers, and economic development zones; and to provide better access to social amenities for its population. 5. The number of motorized vehicles registered in the state increased from 0.8 million in 2001 to 2.2 million in 2010, representing an average annual increase of 12.0%. Of the 2.2 million registered motor vehicles on the road in 2010, 80.5% were two-wheelers, 4.8% were cars and jeeps, 4.9% were commercial trucks, 1.7% were buses and minibuses, and 7.2% were tractors and trailers. The average annual vehicle growth observed during was 11.7% for two-wheelers, 14.4% for cars, 13.1% for buses, and 13.5% for trucks. These growth rates are much higher than those observed nationally, especially in the case of cars, buses, and trucks owing to the higher growth of the industrial sector at 13.2% per annum during the period. 6. The Ministry of Road Transport and Highways (MORTH) is responsible for all the national highways. MORTH has delegated the development and management of the major national highway sections to the National Highway Authority of India (NHAI) and the rest of the national highways in Chhattisgarh to CGPWD. CGPWD also develops and manages all state highways and district roads, in addition to the national highway sections delegated by MORTH. District and local administrations manage rural and village roads. Chhattisgarh Rural Road Development Authority is responsible for developing rural and village roads, funded through special schemes initiated by the central government, and hands them over to district and local bodies after the development and maintenance period of 3 5 years. 7. The engineer-in-chief of CGPWD, who reports to the CGPWD principal secretary, is the technical head of department and advisor to the state government on policy and implementation related to public works. CGPWD is organized into six zones headed by chief engineers, under which 12 civil and two electrical and mechanical circle offices are headed by superintendent engineers. Superintendent engineers are responsible for 3 4 works divisions, which are the basic operating units headed by executive engineers. The 27 districts have 51 divisions. 8. Budgetary allocation and expenditure for state roads during is in Table 2. The overall budget utilization has been about 92% with a plan budget utilization of 91% and non-plan budget utilization of 95%. While the average budget allocation in these 4 years was Rs13,700 million, the budget allocation for FY rose to Rs17,316 million (a 26.6% increase over the average) and the FY allocation increased to Rs23,912 million (74.5% increase). In addition to the roadworks undertaken by CGPWD, the PMGSY scheme upgraded rural roads with total lengths of 7,714 km by 2007 and 16,838 km by The allocation for road maintenance was on average around Rs2,800 million until FY , and has been increased to Rs3,040 million in FY and Rs5,675 million in FY The budget allocation for road maintenance in FY was assessed to fully meet the maintenance needs for the state highway network and the Government of Chhattisgarh is committed to maintain a similar level of budget for road maintenance works. 9. Revenues relating to road use including registration fees and vehicle, passenger, and goods taxes were Rs5,089 million in FY in Chhattisgarh, which increased from Rs1,249 million in FY The average annual increase was 15.1%, in line with the growth in vehicle registration in the state. Chhattisgarh Transport Department has introduced online payments, making payments easier as well as increasing the efficiency of collection.
3 Table 2: Chhattisgarh Public Works Department Budget Allocation and Expenditure for Roadworks (Rs million) Item FY FY FY FY Total for 4 years A. Budget Allocation Plan Budget 10, , , , ,480.6 Non-plan Renewal and maintenance 3, , , , ,180.5 Non-plan Wages and salaries , , ,135.8 Total 14, , , , ,796.9 B. Expenditure Plan Budget 10, , , , ,921.5 Non-plan Renewal and maintenance 3, , , , ,608.8 Non-plan Wages and salaries , ,999.6 Total 14, , , , ,529.9 Note: The wages and salaries component is estimated proportionately to the budget allocation for roadworks. Source: Chhattisgarh Public Works Department. 2. Government s Sector Strategy 10. Chhattisgarh s road network is in need of capacity augmentation and upgrading as demand for road transport is increasing. The government of Chhattisgarh (GOC) formulated a road policy in 2002 for road sector development and a Master Plan for Road Sector Development for The master plan was updated in 2006 for implementation during under technical assistance provided by the Asian Development Bank (ADB). 4 Although the allocation for road maintenance was increased to Rs3,040 million in FY and Rs5,675 million in FY , maintenance is undertaken as identified at each divisional level and systematic maintenance planning is yet to be established. 11. In addition to the road upgrading by CGPWD, the state government is upgrading 1,000 km of national highway sections and 560 km of state highways with private sector participation either as Build-Operate-Transfer (BOT) project or annuity-based projects. However, a large part of the state highways as well as district roads remain in need of upgrading. The state faces capacity constraints in project implementation and delays in project preparation, and the approval process has caused the allocated budget not to be fully utilized in the past. a. Sector Institution Framework 12. The GOC has undertaken a major initiative to modernize the functioning of CGPWD, with computerization of operations, by developing an integrated organization-wide management information system with an accounts management system, works management system, establishment management system, and contractor management system. The accounts management system has been fully developed and is operational. The online payment system is expected to be operational in E-tendering for procurement of contracts has also been successfully implemented across all departments and agencies of the GOC. Implementation of other system modules such as project management, works and stores management, planning and maintenance management will enable further modernization of CGPWD operations. b. Private Sector Participation 13. The road policy adopted by the GOC in 2002 has encouraged private sector participation in road development. The state has initiated the Chhattisgarh Accelerated Road Development Program on a public private partnership basis, with an objective of developing about 1,500 km. 3 4 ADB Technical Assistance to India for the Chhattisgarh State Roads Development. Manila (TA 3995-IND).
4 4 CGPWD is pursuing feasibility studies to develop projects to be implemented as public private partnership projects. c. Road Safety 14. The road accident rate in Chhattisgarh was 12.3 fatalities per 10,000 vehicles in 2010, decreasing from 16.9 in However, fatalities increased in absolute numbers by almost 30% from 2,258 in 2005 to 2,956 in With the improvement in roads and increase in speed, potential for traffic accidents may increase unless road safety features are incorporated in the project design with increased road safety education and enforcement. Traffic safety on the state road network needs to be monitored continuously. d. Control of Overloading 15. The legal framework is in place to control overloading of vehicles, but no inspection, surveillance, and enforcement system exists to impose it. Enforcement staff inspects only a small percentage of total truck traffic and uses the goods information to assess the loading and impose fines if overloading is identified. Chhattisgarh Transport Department is establishing integrated border checkpoints on the main entry points of the national highways, with automated weighing machines. However, control of overloading on state highways is very limited. 3. ADB Sector Experience and Assistance Program 16. ADB s first involvement in Chhattisgarh s state road sector development started with project preparatory TA in 2002 (footnote 3) and with a loan in December The project, through the sector lending modality, rehabilitated 1,249 km of state roads. The road construction works were implemented under 21 civil works contracts supervised by three consulting firms. ADB also provided technical assistance for institutional strengthening and capacity building for the state roads sector management in Chhattisgarh (footnote 3). Besides introducing and building capacity in business processes, a master plan for the state roads sector was developed, which demonstrated a rational approach to road planning and provided a scientific basis for the selection and prioritization of future investment schemes in the road transport subsector. The executing agency for the project and the technical assistance was CGPWD. The project was successfully completed in July 2011 and financially closed in April Implementation of the Chhattisgarh State Road Development Sector Project faced challenges, including (i) inadequate experience of CGPWD in planning and formulating projects of similar size and complexity; and (ii) shortage of technical staff, leading to severe capacity constraints due to lack of knowledge in applying standard business procedures, (iii) delays in project implementation, and (iv) security difficulties in certain areas of the state. CGPWD improved its capacity during project implementation, with support from supervision consultants and capacity building consultants. As a result of regular policy dialogue with ADB and the state government s commitment to enhance sustainability in road sector management, CGPWD recruited about 450 engineers after several years of embargo on new recruitment for government departments. The proposed project was prepared with the improved capacity of CGPWD, and detailed design of adequate quality was prepared with the budget from CGPWD. To continue to support road sector development in Chhattisgarh and improve the capacity of CGPWD, this proposed project was included in the India country operations business plan, ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to India for the Chhattisgarh State Roads Development Sector Project. Manila (Loan 2050-IND). 6 ADB Country Operations Business Plan: India, Manila.
5 5 PROBLEM TREE EFFECTS Limited access to economic opportunities Limited access to social services CORE PROBLEM Poor road network connectivity and road quality within Chhattisgarh CAUSES <Physical> <Non-Physical> Low quality of existing roads caused by lack of provision for proper maintenance Limited network capacity (no new investment) Limited capacity for development of projects and roads asset management Poor road safety on existing roads Interventions Financing support by proposed loan Capacity development programs supported by Technical Assistance
6 Table 2: Sector Results Framework, Chhattisgarh Transport and Communications Sector, Country Sector Outcomes Country Sector Output ADB Sector Operations Outcomes with ADB Contributions Balanced development of the road network nationwide during the 11th Five-Year Plan Improved mobility and accessibility with wider roads, better riding quality, better road safety, and world-class wayside amenities catering to the growing demand for road services Indicators with Targets and Baselines Road density in Chhattisgarh increased from 55.1 km per 100 km 2 towards the national average of 125 km per 100 km 2 The remaining 60% of one-lane state highways in Chhattisgarh are upgraded Output with ADB Contributions Building and upgrading of state highways Institutional strengthening and capacity building Indicators with Incremental Targets Chhattisgarh s state highways network of 916 km improved ADB = Asian Development Bank, km = kilometer, km 2 = square kilometer. Source: Asian Development Bank. Planned and Ongoing ADB Interventions Planned key activity areas Rural roads (50% of funds) State Roads (50% of funds) Pipeline projects with estimated amounts Chhattisgarh State Road Sector Project ($300 million) Ongoing projects with approved amounts Rural Roads Sector II Investment Program (Project 5, Chhattisgarh component: $222.2 million) Rural Connectivity Investment Program ($252 million in 5 States including about 30% of loan amount for Chhattisgarh) 6 Main Output Expected from ADB Contributions Planned key activity areas 1,335 km of rural roads constructed and improved 916 km of State Roads improved Pipeline projects 916 km of State Roads improved Ongoing projects 1,335 km of rural roads constructed and improved
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