Create pipelines, logistics hubs: Rakesh Mohan panel

Written by ENS Economic Bureau | Updated: Mar 2 2014, 06:33am hrs
Rakesh Mohan panelThe National Transport Development Policy Committee led by former deputy governor. Express
The National Transport Development Policy Committee led by former deputy governor of the Reserve Bank of India, Rakesh Mohan, has recommended creation of a national pipeline grid on the lines of national electricity grid.

In its report, which was released by Prime Minister Manmohan Singh on Saturday, the committee has recommended creation of a new body to promote the logistics industry in the country and establishment of a new logistics hub.

A national pipeline grid could be established along the lines of National Electricity grid. Disparate pipeline networks could be integrated to allow for efficient flow of products across long distances. Fiscal and tax incentives in pipeline could be introduced, the report said.

It has also said that around 15 to 25 logistics parks should be established and should be located at major transportation hubs, including at the origin and destinations points of dedicated freight corridor.

A new central body, the central logistics development council consisting of industry members, ministry representatives and financial and academic institutions should be set up with the mandate of promoting the logistics industry, the committee report said.

The committee also want creation of an expert authority to regulate and monitor public-private partnership projects.

In the aviation sector, the committee wants the both airports regulator and safety regulator to be amalgamated into the proposed civil aviation authority (CAA).

For civil aviation, a central regulator agency called CAA should be created to replace the existing Directorate General of Civil Aviation and Airports Economic Regulatory Authority, the recommendation said.

This is a change of stance from the current plan, which is to replace only the DGCA by CAA and AERA continues to operate as a separate regulator. The CAA Bill, which was not cleared by the Lok Sabha, does not talks about any airport economic regulation powers to the CAA.

The committee has placed greater emphasis on importance of human resources development in the transport sector. It has suggested the government ways like scholarships in the transport sector, opening up of new institutes to ensure that making a career in the transport sector should look attractive.

Among other recommendations, the committee suggest a unified ministry of transport with roads, railways and ports as its departments and raising the road cess on petrol to Rs 4 a litre from the existing Rs 2 a litre.