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    The document discusses various topics related to highway engineering including highway drainage, hill roads, roadside development, and road administration and finance. It focuses on financing methods for road projects including taxation sources in India, administration of national and state highways, public-private partnership models, and road safety audits. The document provides details on financing through the central road fund, state road funds, tolls, loans, and taxes as well as the roles of various government agencies in administering roads in India.

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    The document discusses various topics related to highway engineering including highway drainage, hill roads, roadside development, and road administration and finance. It focuses on financing methods for road projects including taxation sources in India, administration of national and state highways, public-private partnership models, and road safety audits. The document provides details on financing through the central road fund, state road funds, tolls, loans, and taxes as well as the roles of various government agencies in administering roads in India.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    82 views39 pages

    Road Administration and Finance

    Uploaded by

    Abhishek
    The document discusses various topics related to highway engineering including highway drainage, hill roads, roadside development, and road administration and finance. It focuses on financing methods for road projects including taxation sources in India, administration of national and state highways, public-private partnership models, and road safety audits. The document provides details on financing through the central road fund, state road funds, tolls, loans, and taxes as well as the roles of various government agencies in administering roads in India.

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    of 39

    HIGHWAY ENGINEERING

    MODULE-IV
    1 HIGHWAY DRAINAGE.
    2 HILL ROAD
    3 ROADSIDE DEVELOPMENT.
    4 ROAD ADMINISTRATION AND
    FINANCE

    Prof. Ujjval J. Solanki


    DEPARTMENT OF CIVIL ENGINEERING,
    DARSHAN INSTITUTE OF ENGINEERING AND TECHNOLOGY-RAJKOT.
    ROAD ADMINISTRATION AND FINANCE

     SCOPE OF STUDY
     Financing of road projects
     Highway finance
     Highway financing and taxation in India
     Administration of roads.
     Administration of National Highway
     Administration of state highway.
     PPP models
     Understanding PPP
     PPPModels
     Why PPP
     Road safety audits. (RSA)
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ROAD ADMINISTRATION AND FINANCE

     GTU questions
     Explain methods of highway financing (June 2011)
     Explain PPP models ( Dec-2010) June 2011)

     Likely to ask in DEC-2012


     @ Road safety audit

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    FINANCING OF ROAD PROJECTS

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    FINANCING OF ROAD PROJECTS

     Highway finance

     Highway financing and taxation.

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway finance

     Basic Principle :
    Funds spent on highways are recovered
    from the road user. (direct or indirect)
     Two methods of highway financing
     A) Pay – as –you-go method. ( Toll)
     B) Credit financing method. (Borrowed
    money)
     Beneficiaries of highway improvements.
     A) Motor vehicle users.
     B) Owners of adjacent property.
     C) General public
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway finance

     Sources of revenue:
     Toll tax
     Taxes on fuels and lubricants
     Taxes on new vehicles and spares.
     Vehicle registration.
     Special tax on commercial vehicle.
     Property tax

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     Construction of roads in India Financed by


     Central Government.

     State Government

     Local bodies* ( *Corporation, Municipalities, District panchayat)

     Taxes levies grouped under


     State Government

     Central Government

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     Taxes levies grouped under

    Central Government State Government


    Import duty on vehicle and spares Sales tax on vehicles, spares, tyres
    Import duty on petroleum products Sales tax on petroleum products
    Excise duty on vehicle and spares Vehicle registration fees, road tax
    Toll at selected location Permits for goods vehicle
    License fees
    Toll by state Govt.

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     Various sources of funds in India


     (1) Central Road Fund (CRF)
     (2) General budget in Central and State Govt.
     (3) State Road fund.
     (4) Tolls
     (5) World bank loan.
     (6) Local bodies sources for urban roads.
     (7) Special funds like market committee fund

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     Various sources of funds in India


    ( 1) Central Road Fund (CRF)
     Since 1929 , recommended by Jaykar committee

    CRF ( Total annual revenue-100%)


    CRF ( Allocation) CRF ( Ordinary)
    (80 % allocated to State Govt ( Balance 20% reserved by
    on the basis of petrol Central Government
    consumption
     Use of CRF ( Ordinary and Allocation) -> Road research,
    Traffic studies, Training, Bridge scheme, Purchase of
    machinary, Const. of byepass
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway financing and taxation in
    India
     (2) General budget in Central and State Govt.
     (3) State Road fund.
     (4) Tolls
     Advantage of toll road:
     Well maintained road.
     Good riding quality.
     Good way side facility.
     Traffic restraint measure.
     Disadvantage of toll road:
    Toll tax
    Delay
    Period for toll collection ?
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway financing and taxation in
    India

    (5) World bank loan.


    International finance institution World bank, ADB

    Loan available option


    (i) Soft terms ( little or no interest- long
    term-50 year-Case study: MH, Bihar,
    Orissa )
    (ii) Stiff terms ( 7 % interest)

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     (6) Local bodies sources for urban roads.


     JnNURAM – For Urban Road (Fund 50 % central
    Govt, 30 % state , 20 % RMC)

     (7) Special funds like market committee fund

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


     ADMINISTRATION OF ROADS

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    ADMINISTRATION OF ROADS

    Development of Road transport


    Prime need: Efficient road administration.
    Road administration agencies in India
    1) Ministry of Road Transport and Highways(GOI)
    Responsibility of MORTH
    Planning, Development, and maintenance of NH.
    Standard specification
    Administration of CRF
    Financial support to State.
    Road research
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ADMINISTRATION OF ROADS

    Road administration agencies in India


    2) Ministry of Rural Road development (GOI) NRRDA
    Development of Rural road.
    Mega project in execution PMGSY.
    3) State Government road development departments
    PWD, State highway project, R & B. District R. & B.

    ROAD AUTHORITY
    IRC
    CRRI
    NHAI
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ADMINISTRATION OF ROADS

    NHAI ( Act of parliament 1988, work-Feb-1995


    Work for NHDP phases
    NHDP Phase -I
    Approved by CCEA in DEC-2000, Rs 30000 Cr.
    Project Golden quadrilateral 5846 Km

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    NHDP
    Phase I

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    NHDP
    Phase II
    Rs 34339 cr.

    N-S
    E-W
    7300 Km

    Complition
    DEC-2007
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    NHDP
    Phase I,II
    & III

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    ADMINISTRATION OF ROADS

    Summary CCEA
    NHDP phase, approved by
    Phase Project Road length Cost Rs in Start Year and End
    Cr. year
    I Golden quadrilateral 5846 30000 2000 to 2007
    II N-S , E-W 7300 34339 2003 to 2007
    III and Up gradation and 4035+ 21207 + 2005
    IV Four lanning 8074 54339

    V Six lane 6500 2006


    VI Expressway 1000 16680 2006
    VII Ring road by pass, fly 700 16680 2007
    over
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ROAD ADMINISTRATION AND FINANCE

     SCOPE OF STUDY
     Financing of road projects
     Highway finance
     Highway financing and taxation in India
     Administration of roads.
     Administration of National Highway
     Administration of state highway.
     PPP models
     Understanding PPP
     PPPModels
     Why PPP ?
     Road safety audits. (RSA)
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    PPP models
    Understanding PPP
    PPP Models
    Why PPP ?

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    PPP models

    Understanding PPP

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India

     Understanding PPP (Public private partnership)


     GOI Definition: Project based on contract agreement between
    Government and private sector company* for delivering
    infrastructure services on payment of user charges. (PSP-
    Private sector partnership)
    ( * 51% or more subscribed equity owned by private entity)
    PPP
    Long term , contractual partnership.
    Financing, Designing, Implementing and operating infrastructure facilities.
    Collaborative ventures built around expertise and capacity of project partner as per
    contractual agreement.
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway financing and taxation in
    India…

     Fundamental qualities of a PPP project.


     High priority Govt. planned project
     Genuine Risk allocation .
     Mutually viable

     Salient features of a PPP.


     PPP forms and formats

     SPV ( Special purpose vehicle)


    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway financing and taxation in
    India…

     PPP Models.
     Ownership of capital assets.

     Responsibility for investment.

     Assumption of risks.

     Duration of contract

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    Highway financing and taxation in
    India…

     Private company participation categorization.


     Supply and management contracts.
     Supply or service contract (oursourcing)
     Maintenance management.
     Operational management.
     Turnkey projects ( design and build)
     Affermage (sharing of revenue) and Lease.

     Concessions.(i) Franchise (ii) BOT

     Private ownership of assets


    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Highway financing and taxation in
    India…

     PPP Strengths and effectiveness


     Robust and dynamic structure.
     Govt. ownership is high.
     Commercial interest protected.
     Transparent.
     Sustainable financing and institutional mechanism with
    potential of bridging the infrastructure gap.
     Improved delivery of public services.
     Ability to access capital funding from private sector ( Flow-of-service payments)
     Full scale risk appraisal.
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    PPP Project

    Government should not do in PPP projects.


    Offer project without DPR
    Change goalpost after award of contract.
    Each project as business
    Government should do in PPP projects.
    Support the officers.
    Align economic interest.
    Transparent bidding process.
    No manipulation
    Detailed policy.
    Full support by government.
    Clear policy.
    Defined source of revenue.
    Proper allocation of risk.
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ROAD ADMINISTRATION AND FINANCE

     SCOPE OF STUDY
     Financing of road projects
     Highway finance
     Highway financing and taxation in India
     Administration of roads.
     Administration of National Highway
     Administration of state highway.
     PPP models
     Understanding PPP
     PPPModels
     Why PPP
     Road safety audits. (RSA)
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    Road safety audits. (RSA)

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    ROAD SAFETY AUDIT (RSA)

     Formal procedure for assessing accident


    potential of a specific road.
     Objective: Identify the aspect that increase
    safety and to suggest amendment in the
    design to enhance safety.
     Stage for RSA
     Feasibility stage
     Preliminary design stage.

     Detail design stage.

     Pre-opening stage
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    ROAD SAFETY AUDITOR RECOMMENDATION

     Improvement in
     Road sign
     Road marking
     Road lighting
     Intersection design
     Geometric design.
     Drainage.
     Embankment.
     Arboriculture.
     Median openings
     Road side facilities.
    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT
    BENEFITS OF ROAD SAFETY AUDIT

     Reduction in accidents
     Savings in time and cost.

     Improve safety.

     Main focused on accident prevention and


    accident reduction.

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    CONDUCTING ROAD SAFETY AUDIT

    Four main aspects


    (i) Institutional frame work for RSA.

    (ii) Parties involved.


    (i) Project designer
    (ii) Client
    (iii) Auditor.

    (iii) Stages of audit.

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


    DIFFERENCE BETWEEN
    ROAD SAFETY REVIEW AND ROAD SAFETY AUDIT

    ROAD SAFETY REVIEW ROAD SAFETY AUDIT


    Team members are Team members are not
    involved in road design involved in road design
    Small team (1-2 member) Large team (3-5 member)
    Comparison with standards Field review and design
    features
    Human factors are not Human factors are
    considered considered

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT


     Later..

    Prof. Ujjval J solanki, Darshan Institute of Engg. and Technology-RAJKOT

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