Potholes in growth

The highway network is essential to India’s growth trajectory. Connecting supplies of raw materials to manufacturing hubs,and transporting final products to ports and railheads is only part of it; it is essential also to the creation of a true single market,where prices and wages are allowed to respond to national signals,creating truly inclusive growth and the expansion of markets. And,most importantly perhaps,good roads are crucial to keep transportation prices down and control inflation. Yet,while we are continually assured that road-building is high on the government’s priorities,facts on the ground demonstrate roads are in a state of shocking disrepair. This newspaper has reported that a large part of the reason,according to the sub-group on national highways constituted for the Twelfth Plan,is a large difference between how much money has been allocated for maintenance and repair of national highways,and what the government itself has deemed is required.

It appears that in 2011-12 alone,the roads ministry projected that Rs 2,800 crore would be needed for maintenance and repair work on highways,but has actually discovered a shortfall in funding of Rs 1,772 crore,or 63 per cent. This problem extends,too,to state highways. Indeed,cash-strapped states are trying to get the Centre to take the problem off their hands: a total of 60,000 km of state highways have been submitted to the Centre as candidates for upgrade to Central highways. This is not good news,for quality is likely to deteriorate in the medium term,according to Roads Minister C.P. Joshi: “The move has a five-year fallout as it takes time for the Centre to make surveys on the highways transferred to it by states and for work to begin. As a result,the condition of the road can worsen during the transition period.”

Why are we in this bind? The answer lies partly in the artificial distinction between funds disbursed for new roads,and those for the upkeep of already built roads. The former is classed as Plan,and the latter as non-Plan expenditure. What this means is that in times when spending is being squeezed,maintenance gets cut disproportionately,as governments — state and Union — have been foolishly incentivised to prioritise Plan spending,even when non-Plan spending is equally essential investment in India’s infrastructure. Simply put,India’s roads are absolutely essential to the battle for growth,and against inflation. Archaic bureaucratic distinctions cannot be allowed to degrade their quality for ever.