ASSOCHAM estimates losses of Rs 30,000 crore per year due to bad roads

NEW DELHI: Industrial body ASSOCHAM has estimated economic losses to the tune of Rs 30,000 crore per year due to bad condition of roads.

“The country’s losses due to inefficiencies in logistics infrastructure could mount to Rs 7 lakh crore per year by 2020 compared to over Rs 2 lakh crore at present,” a statement issued by the body said.

A potential annual saving of Rs 800 crore can be made by merely shifting the movement of goods through multi-axle and trailer trucks, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Over half of the motorised traffic is carried by 2-axle trucks that constitute 30 per cent of vehicles on the highways. Truckers ignore the real negative economics of overloaded vehicles in search of short-term gains, and add to inefficient fuel and road usage all along.

“The government should set up a time-frame for all drivers of commercial vehicles to be trained on modern equipment. Well-equipped driver training schools could be set up in all states as part of the National Skill Development Programme,” said D.S Rawat, Secretary General.

With low rates, long delivery times, high competition and poor operator margins, the road transport industry finds high level of investments in equipment utilisation and trained personnel unaffordable. “Thus the industry hides a huge level of inefficiency, including fuel use inefficiency, which weighs it down and costs the nation more in terms of higher fuel needs.”

While the Railways carry 30 to 32 per cent of total goods traffic, road surface transport carries nearly 65 per cent. Even if all highways in the country adopt concrete pavement, fuel savings per kilometre work out to Rs 6.7 lakh per km.