The Hindu Business Line : `Higher outlay for NHDP welcome'

Mr Vineet Agarwal, Executive Director of Transport Corporation of India: "The announcement of the increased outlay for the National Highway Development Programme is welcome but the thrust should be on the development of access-controlled expressways as these will have a multiplier effect on the economy. Apart from savings on time, the expressways facilitate usage of multi axle vehicles, which not only cut down on diesel consumption but also environment-friendly. Link roads with expressways also need to be developed to ensure minimisation of choke points.

These initiatives are imperative, more so when 65 per cent of the freight is transported by road. Corridors with high density of traffic should be upgraded to six or eight lanes.

"There is also need for demarcation of areas for warehouses/logistics parks on the lines of SEZs. There should also be incentives for building modern vertical warehouses to achieve better utilisation of land.

"The Government should expedite the shift to national level goods and services tax as this would result in efficient movement and distribution of goods across the country, help set up large regional warehouses and ensure better control on pricing. The service tax on rent on the immovable properties may have an indirect impact on the logistics costs."