Why in the News?

The Union Budget 2024-25 announced a plan for the Union Government to develop a transit-oriented development (TOD) strategy for 14 major cities with populations exceeding 3 million, focusing on implementation and financial strategies.

What is Transit-Oriented Development?

Transit-Oriented Development (TOD) integrates land use and transport planning to create sustainable urban growth centers. It aims to develop communities that are walkable, livable, and well-connected to mass transit systems.

• Focus Areas: TOD promotes high-density, mixed land use around transit stations (like metro or BRTS stations) within a 500-800 meter walking distance, encouraging pedestrian and bicycle-friendly environments.

Components of TOD

• Influence Zone: Areas around transit stations should feature compact, mixed-use developments to meet residents' needs and increase public transport ridership.
• Mandatory and Inclusive Housing: Housing in these zones must cater to various economic groups, ensuring inclusivity.
• Multimodal Integration: High-quality transport systems that prioritize pedestrians, bicycles, and feeder services enhance connectivity.
• Vibrant Public Spaces: Areas should include public amenities like parks, playgrounds, and spaces for street vendors to foster community engagement.

Significance of TOD

• Agglomeration Effects: Higher densities and job concentrations boost city competitiveness, potentially increasing economic productivity by 5-10%.
• Livable Cities: TOD creates vibrant communities with quality public spaces and shorter commutes, contributing to overall urban livability.
• Efficient Public Transportation: By clustering jobs and services near transit stations, TOD encourages public transport use and reduces reliance on private vehicles.
• Improved Financing: Increased real estate values near transit can finance further transit improvements and affordable housing, as seen in Hong Kong.
• Climate-Friendly Development: TOD reduces energy consumption and carbon footprints while enhancing public transport options.
• Support for Local Economies: Transit hubs can facilitate local health, education, shopping, and recreational facilities.
• Access to Green Spaces: Ensures citizens have access to open areas while maximizing transit facility usage.

Government Initiatives for TOD

• National TOD Policy: Aims to shift cities from private vehicle dependency to public transport-oriented development, promoting accessibility and green mobility.
• Metro Rail Policy 2017: Focuses on enhancing last-mile connectivity through non-motorized transport infrastructure.
• Smart Cities Mission: Integrates TOD as a key feature, promoting public transport and connectivity.
• Urban Infrastructure Development Fund (UIDF): Supports urban infrastructure development, including TOD in Tier 2 and Tier 3 cities.
• Pradhan Mantri Awas Yojana: Aims to provide affordable housing for urban growth.
• Local Initiatives: Various states, including Delhi and Madhya Pradesh, are developing their own TOD policies.

Challenges with TOD

• Social Exclusion: TOD can lead to rising property prices and gentrification, displacing existing residents.
• Lack of Coordination: Insufficient regional cooperation and siloed city planning can hinder effective implementation.
• Policy Gaps: There may be inadequate regulations to create densities that match public transit accessibility.
• Administrative Constraints: Poor urban design and inconsistencies in planning can impede development.
• Financial Constraints: Failure to capitalize on rising property values and innovative financing mechanisms can limit funding.

Way Forward: World Bank’s 3 Value (3V) Framework

The World Bank suggests a framework to guide TOD planning by assessing the following values:

• Node Value: Importance of a transit station based on passenger traffic, connections, and centrality in the network.
• Place Value: Quality of the area around the station, including land use diversity, availability of essential services, and walkability.
• Market Potential Value: Unrealized market value of station areas, influenced by land demand and supply factors.

This comprehensive approach to TOD aims to enhance urban livability, promote sustainable transportation, and foster inclusive economic growth in major Indian cities.

Overview

• Establishment: The NPPA was established in 1997 as an independent regulatory authority.
• Purpose: Its primary role is to fix and revise the prices of controlled bulk drugs and formulations, ensuring that essential medicines are accessible and affordable for the public.
• Legal Framework: It operates under the Drugs (Prices Control) Order (DPCO), 1995.

Recent Developments

• The Union Minister of State for Chemicals & Fertilizers recently informed the Rajya Sabha that several pharmaceutical companies received notices for overcharging essential drugs. As a result, the government has recovered a penalty of ₹73 crore for violations of the DPCO, 2013.

Importance of the Pharmaceutical Sector in India

• Market Size: According to the Economic Survey 2023-24, India’s pharmaceutical industry is valued at approximately $50 billion and is projected to grow to $130 billion by 2030.
• Global Role: India is a significant player in the global pharmaceutical market, supplying over 50% of Africa’s generic needs, 40% of the US's generic demand, and 25% of the UK’s medicine requirements.

Regulatory Framework

• Nodal Ministry: The Department of Pharmaceuticals (DoP) under the Ministry of Chemicals and Fertilizers oversees the NPPA.
• Enforcement Authorities: The NPPA collaborates with the FDA/Drugs Controller at the state level and Drugs Inspectors at the district level to enforce drug pricing regulations.

Functions of the National Pharmaceutical Pricing Authority (NPPA)

The NPPA plays a vital role in regulating pharmaceutical pricing in India. Its key functions include:

• Implementation of DPCO: Enforcing the Drugs Price Control Order (DPCO) 1995/2013 to ensure compliance among pharmaceutical companies.
• Price Fixation: Establishing ceiling prices and non-ceiling prices for medicines in the controlled category to ensure affordability.
• Research and Studies: Undertaking and sponsoring studies related to drug pricing to inform policy decisions.
• Monitoring Drug Availability: Keeping track of the availability of essential drugs, identifying shortages, and implementing remedial actions.
• Data Collection: Gathering and maintaining comprehensive data on drug production, exports, imports, market share, and profitability of companies for both bulk drugs and formulations.
• Legal Oversight: Handling legal matters arising from NPPA's decisions and actions.
• Policy Advisory: Advising and assisting the Central Government in revising and updating drug policies to reflect market conditions.
• Monitoring Non-Scheduled Drugs: While manufacturers of non-scheduled drugs do not require price approval from NPPA, the authority still monitors their prices and can take corrective measures when necessary.

Challenges Faced by NPPA

• Lack of Price Standardization: There is a significant disparity between the prices of branded and unbranded drugs, indicating a lack of standardization in pricing practices across the market.
• Evasion of Penalties: Many pharmaceutical companies often evade penalties for DPCO violations through legal challenges or other tactics, undermining NPPA’s enforcement efforts. Despite numerous notices issued annually, compliance remains a significant challenge.

Conclusion

The NPPA’s functions are crucial for maintaining the affordability and availability of essential medicines in India. However, it faces ongoing challenges, particularly regarding price standardization and enforcement of penalties, which need to be addressed to enhance its effectiveness in regulating the pharmaceutical sector

The International Labour Organization (ILO) has published the Global Employment Trends for Youth 2024 report, marking its 20th anniversary. The report highlights significant achievements, ongoing challenges, and future outlooks for youth employment globally.

Key Highlights

• Post-COVID Recovery:
• The global youth unemployment rate stands at 13% in 2023, the lowest in 15 years.
• Approximately 64.9 million young individuals are unemployed, the lowest figure since 2000.
• NEET Status:
• 20.4% of youth were classified as Not in Employment, Education, or Training (NEET) in 2023, indicating significant labor market exclusion.
• Two-thirds of NEET youth are women.
• Global Challenges:
• Inequalities of Opportunity: In high-income countries, 4 in 5 young adult workers hold regular paid jobs, compared to just 1 in 5 in low-income countries.
• Regional Disparities: While Africa is projected to see a growth in its youth labor force by 2050, other regions may face contractions. In the Arab states and North Africa, 1 in 3 youth are unemployed.
• Youth Well-being: Many young people experience stress related to job loss, economic instability, and a lack of social mobility across generations.
• Educational Mismatch: In developing economies, 2 in 3 young adult workers have qualifications that do not align well with their job roles.

Recommendations from the Report

• Enhance Education and Training: Improve the transition from school to work and address skill mismatches to better prepare youth for the labor market.
• Targeted Labor Market Policies: Implement policies specifically designed to support disadvantaged youth, ensuring they have access to employment opportunities.
• Promote Entrepreneurship: Encourage self-employment and entrepreneurial initiatives among young people to foster job creation.
• Gender-Responsive Policies: Focus on job creation through macroeconomic and sectoral policies that take gender considerations into account.
• Youth Inclusion in Policy Making: Involve young people in the development of policies affecting their lives and enhance collaboration between public and private sectors to create more opportunities.

Conclusion

The GET for Youth 2024 report sheds light on both progress and persistent challenges in youth employment globally. By addressing these issues through targeted recommendations, stakeholders can work towards more inclusive and equitable labor markets for young people.

The Green National Highway Corridors Project (GNHCP) is a significant initiative by the Union Government of India in collaboration with the World Bank. This project aims to promote sustainable highway construction while enhancing connectivity across several states.

Key Details

• Project Length: The GNHCP encompasses a total length of 781 km, covering the states of Himachal Pradesh, Rajasthan, Uttar Pradesh, and Andhra Pradesh.
• Funding: The project is supported by a loan of $500 million from the World Bank, contributing to a total project cost of approximately $1,288.24 million (around Rs. 7,662 crore).
• Completion Timeline: The final package of the GNHCP is scheduled for completion by May 2026.

Objectives and Features

The GNHCP aims to establish safe and environmentally friendly highway construction methods, focusing on climate resilience and the adoption of green technologies. Key aspects include:

• Conservation of Natural Resources: Utilization of sustainable materials such as cement-treated sub-bases and reclaimed asphalt pavement.
• Use of Local Materials: Incorporation of local and marginal materials, including lime, fly ash, and waste plastic, to minimize environmental impact.
• Bio-engineering Measures: Innovative techniques for slope protection, including:
• Coco fiber or jute erosion control blankets.
• Shrub and grass plantations.
• Shotcrete crib walls with vegetation.
• Additional Eco-friendly Methods:
• Bamboo plantations.
• Hedge brush layers.
• Interlink chain mesh with grass strips.
• Geocells combined with hydroseeding.

Benefits

• Environmental Impact:
• The project is expected to significantly reduce carbon emissions and ensure conservation of natural resources throughout its lifecycle (construction and operation).
• Enhanced Connectivity:
• By providing smooth and all-weather roads, the GNHCP will enhance connectivity in nearby areas, facilitating socio-economic development.
• Improved road infrastructure is anticipated to boost trade and connectivity within the region, fostering economic growth.

Road Infrastructure in India

India boasts the second-largest road network in the world, with a total length of 6.4 million km. This network comprises national and state highways, as well as urban and rural roads, playing a crucial role in the country's transportation system.

Importance of the Road Network

• Goods Transportation: Roads account for 64.5% of goods transported in India.
• Passenger Traffic: Approximately 90% of passenger traffic relies on roadways.
• National Highways: Although national highways constitute only 2% of the total road network, they carry over 40% of total traffic.

Highway Construction Growth

• The highway construction sector has witnessed a 17% CAGR from FY16 to FY21.
• In FY21 alone, India constructed 13,298 km of highways, demonstrating resilience despite the pandemic.

Government Initiatives for Road Infrastructure

• National Infrastructure Pipeline:
• An ambitious Rs. 111 lakh crore allocation for FY 2019-25, with the roads sector expected to account for 18% of this capital expenditure.
• Public-Private Partnerships (PPP):
• India has a robust framework for PPPs in the highway sector. The Asian Development Bank ranked India first in PPP operational maturity and recognized it as a developed market for PPPs.
• Almost 40% (824) of the 1,824 PPP projects awarded until December 2019 were in the roads sector.
• Bharatmala Pariyojana:
• Aims to build 66,100 km of economic corridors, border roads, coastal roads, and expressways, significantly enhancing the highway network.
• Market Growth:
• The roads and highways market is projected to grow at a CAGR of 36.16% from 2016 to 2025.
• Hybrid Annuity Model (HAM):
• The government has rolled out over 60 projects worth over $10 billion using HAM, effectively balancing risks between public and private partners and boosting PPP activity.
• Digital Transformation:
• The National Highways Authority of India (NHAI) has adopted a fully digital approach, implementing cloud-based and AI-powered platforms for project management. This transformation allows for efficient workflow management, documentation, and project execution.
• 2021-22 Budget Allocation:
• The budget recognized the critical need for investment in road transport, with an outlay of ₹1,18,101 crore for the road transport and highways sector.

Components of the Bharatmala Project

• Phase I: A target to construct 24,800 km of fresh roads and subsume 10,000 km from the National Highways Development Project by 2022, with a total cost of ₹5.35 lakh crore.
• Economic Corridors: Construction of 9,000 km of economic corridors to boost trade and connectivity.
• Feeder Routes/Inter Corridors: Development of 6,000 km to connect primary highways with rural areas.
• National Corridor Efficiency Improvement: Construction of 5,000 km of roads to enhance connectivity on national corridors.
• Border Road and International Connectivity: Development of 2,000 km of roads in border regions to improve access to remote areas.
• Port Connectivity and Coastal Roads: Construction of 2,000 km of roads to enhance connectivity to ports and coastal areas.
• Green Field Expressways: Emphasis on developing expressways to improve traffic management and freight movement.
• Balance NHDP Works: The final component includes the construction and maintenance of 10,000 km of new roads under the National Highways Development Project (NHDP).

National Highways in India

Definition and Importance:

• National Highways are major roads constructed and maintained by the Central Government of India.
• They are essential for inter-state transport, facilitating the movement of goods and defense personnel, especially in strategic areas.
• National Highways connect state capitals, major cities, important ports, and railway junctions, playing a crucial role in the nation’s transport infrastructure.

Current Status:

• As of April 2019, India has approximately 142,126 km (88,313 miles) of National Highways.
• Despite constituting only 2% of the total road length in India, National Highways carry about 40% of the total road traffic, highlighting their significance in the transportation network.

Key Projects

• Golden Quadrilateral:
• This ambitious project involves the construction of a 5,846 km long 4/6 lane high-density traffic corridor.
• It connects India’s four major metropolitan cities: Delhi, Mumbai, Chennai, and Kolkata.
• The Golden Quadrilateral significantly reduces travel time and costs, enhancing connectivity between these megacities.
• North-South and East-West Corridors:
• North-South Corridor: Aims to connect Srinagar in Jammu and Kashmir to Kanyakumari in Tamil Nadu, spanning 4,076 km. It includes a spur connecting Kochi to Salem.
• East-West Corridor: Plans to connect Silchar in Assam to the port town of Porbandar in Gujarat, covering 3,640 km.

Important National Highways in India

• NH-1: Delhi-Amritsar
• Connects the capital city to the holy city of Amritsar in Punjab.
• NH-2: Delhi-Kolkata
• A crucial route facilitating transportation between the capital and the eastern metropolis of Kolkata.
• NH-3: Agra-Mumbai
• Connects Agra, famous for the Taj Mahal, to the financial capital, Mumbai.
• NH-4: Chennai-Thane
• Links Chennai in the south to Thane near Mumbai, supporting trade and passenger movement.
• NH-5: Chennai-Cuttack
• Connects Chennai to Cuttack, facilitating movement along the eastern coast.
• NH-6: Surat-Kolkata
• A significant route that connects the industrial city of Surat in Gujarat to Kolkata.
• NH-7: Varanasi-Kanyakumari
• The longest national highway in India, stretching from Varanasi in Uttar Pradesh to Kanyakumari in Tamil Nadu.
• NH-8: Delhi-Mumbai
• A major north-south route that connects the capital with the financial capital of India, Mumbai.
• NH-9: Pune-Machilipatnam
• Connects Pune in Maharashtra to the port city of Machilipatnam in Andhra Pradesh.
• NH-15: Samakhali (Kutch)-Pathankot
• Runs from Kutch in Gujarat to Pathankot in Punjab, enhancing connectivity in the northwestern region.

State Highways

• Maintenance: Constructed and maintained by state governments (Public Works Departments).
• Purpose: Connect state capitals with district headquarters and other significant towns.
• Connection: Linked to National Highways.
• Length: Constitute about 4% of the total road length in India.

District Roads

• Maintenance: Managed by Zila Parishad (district councils).
• Purpose: Serve as the connecting link between district headquarters and other important nodes within the district.
• Length: Account for approximately 14% of the total road length in the country.

Rural Roads

• Purpose: Crucial for providing connectivity in rural areas.
• Length: About 80% of the total road length in India is categorized as rural roads.
• Variation: Density varies regionally based on terrain and population distribution.

Other Roads

• Border Roads: Constructed by the Border Road Organisation (BRO) to enhance economic development and defense preparedness in strategically important areas, particularly along the northern and northeastern borders.
• Established: May 1960.
• Notable Projects: Roads connecting Chandigarh to Manali and Leh, often at high altitudes (average 4,270 meters).
• Services: Also handles snow clearance in high-altitude regions.
• International Highways: Aimed at promoting harmonious relationships with neighboring countries by facilitating effective cross-border connectivity.

Road Density in India

• Distribution: The distribution of roads across the country is uneven.
• Variability:
• Highest density: Kerala (517.77 km per 100 sq km).
• Lowest density: Jammu and Kashmir (12.14 km per 100 sq km).
• National Average: 142.68 km per 100 sq km as of 2011.
• High Density Areas: Mostly in northern and major southern states.
• Low Density Areas: Found in the Himalayan region, northeastern states, and parts of Madhya Pradesh and Rajasthan.

Factors Influencing Roadway Density

• Terrain
• Impact: The nature of the terrain significantly affects road construction and maintenance.
• Plains vs. Hilly Areas: Building roads in flat regions is easier and more cost-effective compared to hilly or plateau areas, where challenging topography can complicate construction.
• Climate
• Road Quality: Climate conditions influence the durability and maintenance needs of roads.
• High Altitude and Rainy Regions: Roads in high-altitude areas or regions with heavy rainfall tend to deteriorate faster and require more frequent repairs than those in more stable, plain climates.
• Economic Development
• Correlation: Higher economic development usually correlates with greater road density.
• Example: States like Maharashtra exhibit higher road density due to robust economic activities compared to less developed regions like Himachal Pradesh.
• Industrial Concentration
• Influence: Areas with concentrated industrial activity tend to have more developed road networks to facilitate transportation and logistics.
• Example: Jamshedpur, an industrial hub, has a denser road network compared to Patratu, which has less industrial activity.
• Urbanization
• City vs. Rural Areas: Urban areas, including cities and towns, typically feature higher road density than rural regions.
• Infrastructure Needs: The concentration of population and economic activities in urban areas necessitates better road infrastructure for efficient mobility and connectivity.

Challenges in India's Road Infrastructure Development

• Land Acquisition Issues:
• Land acquisition costs can account for 25% to 30% of project expenses, and in some cases, may even exceed construction costs. This not only inflates overall project budgets but also causes significant delays.
• A study by NHAI on 106 projects worth over ₹1.5 billion identified land acquisition issues as a primary cause of delays in nearly 50% of the projects, with 5% delayed solely due to land acquisition challenges.
• Compliance with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 has increased the government’s burden, as it mandates compensation of four times the market value for rural land and twice for urban land.
• Project Delays:
• Over 800 road projects covering more than 27,000 km under the Ministry of Road Transport and Highways (MoRTH) are currently facing delays.
• The Bharatmala Pariyojana Phase I, essential for coastal and port connectivity, has been pushed from a target completion date of 2021-22 to 2025-26, with awards and completion significantly behind schedule.
• Funding and Revenue Issues:
• MoRTH relies heavily on budgetary support from the central government and borrowing, lacking alternative revenue sources.
• The stretched financial position of many infrastructure developers makes private participation challenging, limiting investment in new road and highway projects.
• Private Sector Participation:
• Limited private sector involvement is attributed to developers' financial constraints, a lack of suitable debt products, delays in land acquisition, and an uncertain regulatory environment.
• Logistical Challenges:
• Many projects are located in remote areas, complicating the mobilization of equipment and raw materials, which can lead to further delays.

Way Forward

• Diversification of Funding Sources:
• There is a pressing need for NHAI to diversify its funding beyond budgetary allocations and borrowings, particularly given its ₹97,000 crore debt service liability over the next three years.
• Infrastructure Investment Trust (InVIT):
• The NHAI Infrastructure Investment Trust, approved in December 2019, is expected to be launched soon. This initiative could help attract investment for road network development.
• Asset Monetization:
• NHAI plans to monetize ₹1,00,000 crore worth of operational toll roads under the Transfer of Toll (ToT) model over the next five years as part of the national asset monetization program.
• Development Finance Institution (DFI):
• The newly announced DFI is anticipated to provide viable debt for road network development, enhancing funding availability.
• Revisiting PPP Models:
• The government should revisit its PPP models, including the Hybrid Annuity Model (HAM), to make them more attractive for private sector investment.
• Expediting Land Acquisitions:
• Fast-tracking land acquisition processes and obtaining necessary clearances from the Ministry of Environment, Forest and Climate Change is crucial for the timely execution of the Bharatmala project.
• Dispute Resolution:
• Establishing a regulator to ensure timely resolution of disputes will be vital, especially given the scale and complexity of large-scale infrastructure projects to mitigate potential arbitration issues.