Page 237 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 19: Sectoral Performance II: Role of Infrastructure in Economic Development

to another in times of emergency. The railways are useful here. But more important than the Notes
railways is the road transport. Now-a-days the army has to move its troops, its tank and
armoured cars, its field guns, and so on. For the movement of these, roads are essential. The
great importance given to the construction of border roads to facilitate the movement of troops
for the protection of the northern borders against the Chinese aggression is an example of the
great importance of roads in the defence of the country.
The Seventh Plan (1985-90) brings out the importance of roads as follows : “Since the country’s economy
is still largely agrarian in character and the settlement pattern is rural-oriented, roads constitute a
critical element of the transportation infrastructure. Road construction and maintenance generate
sizeable employment opportunities, a factor that has assumed considerable importance with
demographic expansion and the growth of the labour force. Better roads also achieve fuel economy
and improve the overall productivity of the road transport sector. Road development will thus continue
to play an important role in the Seventh Plan.”
Rail-Road Co-Ordination

Railways and roads are complementary to each other much more than other modes of transport and
are mutually helpful. The road system links up the cultivators with the local market and the nearest
railway station. The Railways, on the other hand, provide the connecting links between the area of
production and the consumers at a distance and between the manufacturers in the town and the
cultivators in the village. The Railways cannot collect for transport enough produce, unless there are
good and sufficient roads. At the same time, even the best of roads cannot place the producers of
agricultural produce, iron and steel, cement, coal and other bulky commodities in touch with the
final consumers. Road and railways are thus complementary. However, they have become competitive
everywhere. In India, too, such a competition has been taking place. In the last three decades or more,
there has been an effort to eliminate competition and bring about co-ordination between the two
transport services.
The Natural Superiority of Road Transport

The bus and lorry companies can out-compete the railways in attracting passengers as well as goods
traffic. Motor transport can provide certain services which the railways can never provide—as for
instance, door-to-door collection and delivery, highly flexible time table, speedy transport, etc. These
advantages of road transport have made this form of transport very popular among the mercantile
community, “particularly for less than wagon load consignments.” According to David Hughes,
“Road delivery has in many instances halved our cost and slashed delivery time. Yet there is also
another potent advantage of road over rail delivery and that is the absence of pilferage. No loss, no
ill-will and no unduly expensive method of packing is involved.” According to Hughes, “road transport
companies are taking up as much as 80 to 90 per cent of the small parcel traffic in South India.” While
the transport of goods by rail is full of complaints such as denial of wagon facilities, long delays in
booking, the unconsciously long time taken in transportation, loss through pilferage, and so on,
transport of goods by road is speedier, suffers less from pilferage and has the advantage of direct
delivery from door to door.
Protection of Railways Against Road Competition

In the 1930s a number of committees went into question of competition between railways and road
transport. One important suggestion was that the railway should improve their services and face
road competition effectively. For instance, the Railways should run show trains, make time table
adjustments, provide cheap return tickets, season tickets, etc. In the matter of goods transport, the
Railways should introduce express goods trains, more expeditious handling of goods, simplification
of clerical formalities, door-to-door collection and delivery services, etc. Most of these suggestions
have been implemented by the Indian Railways.
The Motor Vehicles Act of 1939 made it compulsory for all motor vehicles to get licence and made
them observe specified conditions with regard to maintenance of vehicles, avoidance of over-crowding,
speed, etc. The Act of 1939 imposed restrictions on the free transport of goods. Permits were valid for

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