World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Reply: Transportation infrastructure is very critical for sustaining long term growth of the Indian economy.

Going forward, huge investments are required in the road sector to expand the road network through development of new roads and widening of the existing roads. Considering the size of the investment it will be a huge burden on the government's purse. Hence, active participation from the private sector is a must to drive the growth in the road sector. Robust policies setting out clear guidelines to attract greater participation from the private sector players have been put in place. Nearly 27,000 km of highways will be in the next few years, bid out under the PPP mode, mostly on international competitive bid basis.

As far as developments in rail transportation in India is concerned, track length of 18,559 km has been electrified and around 18,172 km has been doubled. Currently a large number of new line doubling, gauge conversion and electrification projects are in progress which would improve the rail network further. Developments also include induction of new and powerful locomotives, better and efficient maintenance practices for track and rolling stock, introduction of better signalling and communication systems. India is also developing the western and eastern dedicated freight corridors for fast and efficient freight movement. Studies are also being conducted for high speed rail corridors along with passenger intensive corridors. Railways have introduced diversified services so as to cater to the various segments of the society, balancing its social commitments with its commercial functions. In the period 2002-03 to 2010-11 freight traffic on Indian railways have increased with an average growth rate of 7.23% per annum. Indian Railways has been making efforts to maximise revenue through freight loading. In order to do this a number of initiatives have been taken.

Transport – Air transport

Egypt 16:

16- Page168 Paragraph 163

The Secretariat Report indicated that currently, the fees are levied at 13 major airports including Delhi. They are levied on all (international and domestic) departing flights and their rates vary from one airport to another. On what basis is the variation in the fees levied on departing flights between different airports?

Reply: The User Development Fee (UDF) charges levied at major airports have been approved by the Airports Economic Regulatory Authority of India. In other cases, Ministry of Civil Aviation has approved the charges. The UDF charges are levied to bridge the revenue gap of a particular airport hence there are different charges for airports depending upon the profitability, traffic, income and expenditure etc. The development fee (DF) was approved for bridging the resource gap in creation of capital asset, i.e. new terminal building at an airport. The rate depends upon the borrowing capacity of the airport and shortfall in project funding.

Transport – Overland transport – Road transport

Egypt 17:

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The Secretariat Report indicated that India has been making efforts to improve its infrastructure through the formulation of policies, plans, and projects. India introduced a new national permit system in 2010 to render inter-state freight traffic more efficient. Elaborate on these policies, plans, and projects targeted to improve infrastructure? How would the introduction of this system enhance efficiency of inter-state freight traffic?