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National Transport Development y Committee (Rakesh Mohan Panel) Report
Mar 04, 2014

A high-powered committee on transport development, headed by former Reserve Bank of India (RBI) deputy governor Rakesh Mohan, has suggested a unified ministry of transport with roads, railways and ports as its departments. It has also recommended raising the road cess on petrol to Rs 4 a litre from the existing cess of Rs 2 a litre.

The committee was constituted in 2010 and comprised representatives from government ministries involved in transportation and the private sector.

According to the committee, investment in the transport sector has to grow from Rs. 2.2 lakh crore in 2011-12 to around Rs. 14 lakh crore by the 15th Plan (2027-2032), with the bulk of it going to railways. The committee said that in order to arrest the significant erosion in Railways in its share of traffic, there is a need for shift in emphasis toward greater investment in Railways.

On railways, the report said investment has to rise from 0.4 per cent of the gross domestic product (GDP) in the 11th Plan period (2007-08 to 2012-13) to almost 1.1 per cent of the GDP in the 15th Plan.

On taxes, the panel said that single-window clearance for all taxes and charges at state border will bring down transaction cost. While investment in roads, ports, and airports have shown an increase since the 1990s, it has been stagnant at around 0.4 per cent of the GDP in the case of Railways.

On airports, the panel suggested the Directorate General of Civil Aviation (DGCA) should be replaced with Civil Aviation Authority. It also recommended that DGCA should be relieved from investigation into accidents, which should be handled by an autonomous Accident Investigation and Safety Board.

On ports, the committee said there is a need to have four-to-six mega ports with two-to-three in each coast and a new regulatory authority for the port sector. The Committee also suggested setting up of three new institutes for transport research and statistics and a common National Safety Board for road, railways and water/marine.


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