1. 1 1 NHDP Benefits & Economic Stimulus

2. 2 2 NHDP Benefits Major economic & social benefits Vehicle operating cost saving Travel time saving Fuel saving Benefits to trade especially movement of perishable goods Saving in maintenance costs Reduced accidents Area development As per World Bank Estimated benefits Rs.8,000 crs /annum on GQ only

3. 3 3 NHDP – Economic Stimulus Cement & Steel and Equipment Equipment Tippers : 5100 (All domestic) Tractors:1020 (All domestic) Excavators:170 (All domestic) Graders:140 (50 % Domestic) Rollers:280 (50 % Domestic) Small Batching Plants:35 (All domestic) Tractors:1020 (All domestic) Transit Mixers :100 (All domestic) Annual Average Requirement: 2001 –2004 - Cement :30 - 40 Lakh Metric Tonne - Steel :3.0 Lakh Metric Tonne Assumptions for cement and steel consumption per km are:

4. 4 4 NHDP – Economic Stimulus Employment Generation Workers (Skilled & Unskilled) 2,50,000 Persons per day 40 persons per Km. per day Supervisors 10,000 staff per day 2 Supervisors per day By December 2003 18 crore mandays (completion of NHDP Phase I)

5. 5 5 Impact already being felt (As per figures of press note from press information bureau, Government of India) Category Growth Cement 8.1% Steel6.8% Commercial Vehicle (mainly goods carriers) 53% NHDP – Economic Stimulus – contd..

6. 6 6 MAJOR GOVERNMENT INITIATIVE FOR HIGHWAY DEVELOPMENT  Incentives   Income-Tax exemption for 10 years from NHDP earnings has been given.   Total Custom Duty Exemption on Road Building Equipment, for NHDP   In BOT Schemes, Grant upto 40% can be given.   The NHAI Bond exempted from Capital Bonds.   Model Concession Agreement(s) for projects less than and above 100 crores (available at http://www.nhai.org).  Bonus of 1% upto 6 months for early completion.   Faster decision making, operational issues and award of contracts delegated to NHAI.   Prompt payment within 15 days.  Dis-incentives   Liquidated damages for delay in completion(1.5% per month, maximum upto 10%)  Monitoring  Proactive Monitoring System  Periodical reviews by Hon’ble Prime Minister  Regular reviews & site inspection by Hon’ble Minister  Field offices connected to Head Office through E-mail  Daily Progress Report sent to H.Q. from field units

7. 7 7 Value addition

8. 8 8 2-Lane dual carriageway Service Roads to cater to local traffic Grade Separators No Railway level crossing Highway Traffic Management System Highway patrolling & Ambulance Services Way side amenities Value Addition and Safety features Value addition to be a continuous process with tolls

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