Golden Quadrilateral

Abishek Monga FF1

Table of Contents

TABLE OF CONTENTS ............................................................................................................... 2 INTRODUCTION .......................................................................................................................... 3 THE CURRENT STATUS ............................................................................................................ 4 THE POTENTIAL ......................................................................................................................... 6 THE FLAWS ................................................................................................................................ 7 BIBLIOGRAPHY .......................................................................................................................... 8

Introduction
Adequate transportation infrastructure is an essential ingredient for economic development and growth. Beyond simply facilitating cheaper and more efficient movements of goods, people, and ideas across Places, transportation infrastructure impacts the distribution of economic activity and development across regions, the extent to which agglomeration economies and efficient sorting can be realized, the levels of competition among industries and concomitant reallocation of inputs towards productive enterprises, and much more. Rapidly expanding countries like India and China often face severe constraints on their transportation infrastructure. Many business leaders, policy makers, and academics describe infrastructure as a critical hurdle for sustained growth that must be met with public funding, but to date we have a very Limited understanding of the economic impact of those projects. We study the impact of the Golden Quadrilateral (GQ) project, a large-scale highway construction and improvement project in India. The GQ project sought to improve the connection of four major cities in India: Delhi, Mumbai, Chennai, and Kolkata. The GQ system comprises 5,846 km (3,633 mi) of road connecting many of the major industrial, agricultural, and cultural centers of India. It is the fifth-longest highway in the world. The massive project began in 2001, was two-thirds complete by 2005, and mostly finished in 2007 The NS-EW highway was scheduled for a partial upgrade at the same time as the GQ network, but this upgrade was delayed. The upgrade has since been undertaken. Comparisons of non-nodal districts on GQ to non-nodal districts on NS-EW are attractive given the comparable initial condition of being located on a major transportation network. Moreover, the government intended to start upgrading the NS-EW highway network, albeit on a somewhat smaller scale, at the same time as the GQ upgrades. We do not find similar effects along the NS-EW highway system that we observe along the GQ highway system for either our entry or performance results, which is comforting for experimental design.

The Current Status

Four-laning of the Golden Quadrilateral and NS-EW Corridors (NHDP I & II) The NHDP Phase I and Phase II comprise of the Golden Quadrilateral (GQ) linking the four metropolitan cities in India i.e. Delhi-Mumbai-Chennai-Kolkata, the North-South corridor connecting Srinagar to Kanyakumari including the KochiSalem spur and the East-West Corridor connecting Silchar to Porbandar besides port connectivity and some other projects on National Highways. Four-laning of the Golden Quadrilateral is nearing completion. Four-laning of 7,166 km under NHDP-I and 2,440 km under NHDP-II has been completed upto December 2008. Four-laning of 7,166km under NHDP-I and 2,440 km under NHDP-II has been completed upto December 2008. The contracts for projects forming part of NSEW corridors are being awarded rapidly for completion by December 2009. Four-laning of 12,109 kms (NHDP-III) The Union Cabinet has approved the four-laning of 12,109 km of high density national highways, through the Build, Operation & Transfer (BOT) mode. The programme consists of stretches of National Highways carrying high volume of traffic, connecting state capitals with the NHDP Phases I and II network and providing connectivity to places of economic, commercial and tourist importance. Up to December 2008, NHAI has awarded contracts of 2,075 km. Two laning of 20,000 km (NHDP-IV) With a view to providing balanced and equitable distribution of the improved/widened highways network throughout the country, NHDP-IV envisages upgradation of 20,000 kms of such highways into two-lane highways, at an

indicative cost of Rs.27,800 crore. This will ensure that their capacity, speed and safety match minimum benchmarks for national highways. Six-laning of 6,500 kms (NHDP-V) Under NHDP-V, the Committee on Infrastructure has approved the six-laning of the four-lane highways comprising the Golden Quadrilateral and certain other high density stretches, through PPPs on BOT basis. These corridors have been four-laned under the first phase of NHDP, and the programme for their six-laning will be completed by 2012. NHAI has already awarded contracts for 1,030 km till December 2008. Development of 1000 km of expressways (NHDP-VI) With the growing importance of certain urban centres of India, particularly those located within a few hundred kilometers of each other, expressways would be both viable and beneficial. The Committee on Infrastructure has approved 1000 k.m. of expressways to be developed on a BOT basis, at an indicative cost of Rs.16,680 crore. These expressways would be constructed on new alignments. Other Highway Projects (NHDP-VII) The development of ring roads, byepasses, grade separators and service roads is considered necessary for full utilization of highway capacity as well as for enhanced safety and efficiency. For this, a programme for development of such features at an indicative cost of Rs.16,680 crore, has been approved. Accelerated Road Development Programme for the North East Region The Accelerated North-East Road Development Project has been approved, which will mainly provide connectivity to all the State capitals and district headquarters in the north-east. The proposal would include upgrading other stretches on NH and state highways considered critical for economic development of the northeast region.

The Potential
The projected economic benefits of the GQ project are Establishing faster transport networks between major cities and ports. Providing an impetus to smoother movement of products and people within India. Enabling industrial and job development in smaller towns through access to markets. Providing opportunities for farmers, through better transportation of produce from the agricultural hinterland to major cities and ports for export, through lesser wastage and spoils. Driving economic growth directly, through construction as well as through indirect demand for cement, steel and other construction materials. Giving an impetus to Truck transport throughout India. Road development is recognised as essential to sustain India's economic growth The Government is planning to increase spends on road development substantially with funding already in place based on a cess on fuel A large component of highways is to be developed through publicprivate partnerships Several high traffic stretches already awarded to private companies on a BOT basis Two successful BOT models are already in place - the annuity model and the upfront/lumpsum payment model Investment opportunities exist in a range of projects being tendered by NHAI for implementing the NHDP - contracts are for construction or BOT basis depending on the section being tendered.

The Flaws
Technical glitches and legal battles between the contractors and the National High Authority of India (NHAI) here have delayed the ambitious Golden Quadrilateral Project in abeyance. The Rs. 56,000-crore project was launched by the National Democratic Alliance Government in 2002 and was to be completed by 2006. The work assigned in packages after inviting global tenders. About Rs 1,000 crore was allocated for the 265-km stretch between Tumkur and Haveri. It was to be implemented in five packages of Tumkur-Sira, Sira-Chitradurga, Chitradurga-Chitradurga bypass, Chitradurga-Harihar and Harihar-Haveri. Of these, Tumkur-Sira road was completed in 2004, while the SiraChitradurga stretch is nearing completion. But following technical and financial differences emerging between NHAI and contractors, work on the remaining packages had been suspended. The Other flaws include Rampant Corruption at every level, right from the level of awarding a tender to the step where the tender is finally said to have been completed. Various Land acquisition problems such as acquiring land from farmers and private owners lead to the problem of getting the project delayed. Various Clauses and unexpected Regional and National Government clashes coupled with the corruption including the Satyendra Dubey Controversy had led to massive delays in the project. Golden Quadrilateral project could have been delayed further as contracts are still to be awarded for three highway stretches, even as the government had debarred 18 foreign and domestic firms from bidding for these projects.

Bibliography

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