Impact of the national highway development project on the Indian Transport Sector

Abstract

Abstract This paper deals with issuess the technological change resulting from the NHDP and the changes in the industry structure arising as a result of that This paper developed a model to compare the operating costs of vehicles of different sizes. Another model for the estimation of demand for heavy vehicles was also developmented. Based on these models interviews conducted with the industry people and study of similar projects in developing countries the major implications of the NHDP that came out were as follows Increase in size of trucks used for road transport Consolidation of the road transport industry Opportunity for entry of a new player in the manufacturing business. The rationale for the above was mainly in the form of Removel of infrastructure bottlenecks which largely responsible for the opweration of lower tonnage trucks Emergence of economices of scale because of early diffusion of multi axle vehicles for te larger carriers.