Bharatmala Pariyojana: What is Logistic Performance Index? (Important) (Download PDF)

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Bharatmala is a new umbrella program for the highways sector focusing on optimizing efficiency of road traffic movement across the country by bridging critical infrastructure gaps.

Image of Bharatmala Pariyojana

Image of Bharatmala Pariyojana

Image of Bharatmala Pariyojana

  • Bharatmala Pariyojana aims to will provide NH linkage to 550 districts becoming a major driver for economic growth in the country.

  • Highways works worth Rs. 8 lakh crore will begin before the end of 2018 under the Bharatmala Pariyojana.

Need for Bharatmala Pariyojana- Corridor Approach Vs. Package-Based Approach

  • With National Highways Development Program (NHDP) reaching a certain level of maturity it is now important to re-define road development and have a macro approach for planning expansion of the national highways network.

  • New scheme should be more focused and provide priority access to by bridging critical infrastructure gaps.

  • Bharatmala focuses on optimizing the efficiency of the movement of goods and people across the country by envisaging corridor approach in place of the existing package-based approach, which has resulted in skewed development.

  • For example in areas of high traffic, even upto 30, 000 Passenger Carrying Units (PCUs), there are NH stretches of single and even intermediate lane which need urgent “development”

    Aim and Advantages of the Program

  • Program designed to bridge the gaps in the existing highways infrastructure to make movement more efficient.

  • Focuses on connectivity of backward and tribal areas, areas of economic activity, places of religious and tourist interest, border areas, coastal areas, and trade routes with neighboring countries.

  • Provides 50 national corridors as opposed to 6 and aims to carry 70 to 80 percent freight against the 40 percent at present.

  • Will connect 550 Districts against only around 300 districts having NH linkages.

  • Will increase the Logistic Performance Index (LPI) from current 3.42 and 35th rank in the world.

  • Generate direct and indirect employment in the construction activity, development of highways amenities and enhanced economic activity.

Image of Road Runner

Image of Road Runner

Image of Road Runner

Facts and Numbers on Bharatmala Pariyojana

  • A total of around 24, 800 kms are being considered in Phase I of Bharatmala.

  • Bharatmala Pariyojana phase –I also includes 10, 000 kms of balance road works under NHDP

  • Phase-1 would coat Rs. 5, 35, 000 crore over five years period of i. e. 2017 - 18 to 2021 - 22.

Bharatmala: Improved Efficiency of the National Corridor

  • Decongesting its choke points through lane expansion

  • Construction of ring roads, bypasses, elevated corridors and logistics parks at identified points.

  • 5, 000 km of the National Corridor to be taken up in Phase-I of Bharatmala at an estimated cost of Rs. 100, 000 crore.

Bharatmala: Focus on Economic Corridors

  • Of 26, 200 km of economic corridors with heavy freight traffic, 9, 000 kms will be taken up for development in Phase-I at an estimated cost of Rs. 1, 20, 000 crore.

  • Ensure seamless and speedy travel and uniformity in standards by addressing the infrastructure asymmetry that exists at many places.

  • Roads connecting more than 2 corridors are classified as inter-corridors routes, while others connecting to 1 or 2 corridors are feeder corridors.

Bharatmala: Focus on Border and Port Corridors

  • Envisages building 3300 kms of Border Roads of strategic importance along international boundaries and 2000 km of international connectivity roads to promote trade with Nepal, Bhutan, Bangladesh, and Myanmar.

  • Around 2000 km will be taken up under Phase-I at an estimated cost of Rs. 25, 000 crore.

  • 2, 100 km of coastal roads and 2000 km of port connectivity roads of which 2, 000 kms will be taken up under Phase-I at an estimated cost of Rs. 20, 000 crore.

Bharatmala: Focus on Border and Port Corridors

1, 900 km has been identified as green-field expressways of which around 800 kms will be taken up under Phase-I at an estimated cost of Rs. 40, 000 crore.

Bharatmala: How Were Target Project Chosen?

  • Project stretches under components of Bharatmala was done based on: D

  • Detailed O-D (Origin-Destination) study

  • Freight flow projections

  • Verification of the identified infrastructure gaps through geo mapping using data from Bhaskaracharya Institute for Space Applications and Geo-Informatics (BISAG) as well as from other sources.

This O-D study has also taken into account integration of economic corridors with the ongoing projects under NHDP and infrastructure asymmetry in major corridors.

Unique Approach of Grand Challenge and Empowered Committee

  • The scheme provides a unique delegation in appraisal approval of individual project stretches through empowered Project Appraisal &Technical Scrutiny Committee

  • Grand challenge encourages State Governments to participate in the development process through competitive proposals

Project Appraisal &Technical Scrutiny Committee

  • Projects implemented under Bharatmala will be technically, financially, and economically appraised by an empowered Project Appraisal &Technical Scrutiny Committee setup by NHAI and MoRTH.

  • Committee would comprise of experts from NITI Aayog

  • Dedicated unit would place recommendations on appraisal of projects to NHAI Board or MoRTH

Other Programs of MoRTH

  • Special Accelerated Road Development Program for North-Eastern Region (SARDP-NE) for development of roads in the North East Left Wing Extremism (LWE) Affected Area projects.

  • The program of upgrading single-lane National Highways to at least two-lane with paved shoulders through Externally Aided Projects (EAPs) is also being carried out.

  • Comprehensive bridge program for building bridges is called “Setu Bharatam” where 1, 500 bridges and 208 Railway over Bridges (ROB) and Railway under Bridges (RUBs) are being taken up.

  • A special package for Jammu & Kashmir and NH (O) is also in progress.

What is Logistics Performance Index?

Logistics Performance Index (LPI) reported by World Bank in every two years is a benchmarking tool for helping countries identify challenges and opportunities on trade logistics. It is the weighted average of the country scores on six key dimensions:

  • Efficiency of the clearance process (i. e. , speed, simplicity, and predictability of formalities) by border control agencies, including customs

  • Quality of trade and transport related infrastructure (e. g. , ports, railroads, roads, information technology)

  • Ease of arranging competitively priced shipments

  • Competence and quality of logistics services (e. g. , transport operators, customs brokers)

  • Ability to track and trace consignments

  • Timeliness of shipments in reaching destination within the scheduled or expected delivery time

Image of Logistics Performance Index

Image of Logistics Performance Index

Image of Logistics Performance Index

In the 2016 Logistics Performance Index:

  • Top position is held by Germany

  • India holds 35th position, a significant improvement of 19 from 2014

  • Civil war-inflicted Syria holds the last position

Funding for Road Schemes

Ongoing schemes like NH (O), SARDP-NE, EAP, LWE and Bharatmala have overall outlay of Rs. 6, 92, 324 crore over a period of 5 years. Gross Budgetary Support for the Bharatmala program and existing schemes from 2017 - 18 to 2021—22:

  • Rs. 2, 37, 024 crore from Central Road Fund (CRF)

  • Rs 59, 973 crore as Budgetary support

  • Rs. 34, 000 crore from expected monetization through Toll-Operate-Transfer (ToT) route

  • Rs. 46, 048 crore collected as Toll-Permanent Bridge Fee Fund (PBFF) by NHAI.

- Published/Last Modified on: December 5, 2017

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