Model Answer

Introduction

India’s maritime sector plays a crucial role in its economy, with over 95% of trade by volume and 65% by value depending on sea transport. Recent reforms in India’s port sector have boosted its global recognition and operational efficiency. The World Bank’s 2023 Logistics Performance Index (LPI) report highlights India’s impressive progress, with the country moving from 44th to 22nd in the “International Shipments” category since 2014.

Key Reforms in India’s Port Sector

1. Sagarmala Initiative (2015)

• The Sagarmala Initiative was launched to harness India’s extensive coastline and waterways for port-led industrialization.
• Focus Areas:
  • Enhancing port infrastructure and logistics efficiency.
  • Promoting coastal and inland shipping.
  • Optimizing cargo-handling capacity and reducing logistics costs.
• Impact: Sagarmala is transforming ports into hubs of industrial and economic growth, making India more competitive globally.

2. Port Modernization and Expansion

• Substantial investments have been made to modernize and expand existing ports and develop new ones.
• Upgraded Facilities:
  • Ports have been equipped with deeper drafts and better cargo-handling capabilities.
  • For example, the capacity at 12 major Indian ports has grown from 871 million metric tonnes (MMT) in 2015 to 1,617 MMT in 2023.
• These improvements allow ports to handle larger vessels and a wider range of cargo types, contributing to better trade facilitation.

3. Private Sector Participation

• The government has promoted Public-Private Partnerships (PPPs) to enhance efficiency and innovation in port operations.
• Benefits: This has attracted significant investments, improving port infrastructure and management.

4. Liner Shipping Reforms (2016)

• The Liner Shipping Reforms aim to make Indian ports more competitive.
• Achievements:
  • Lower shipping costs.
  • Enhanced turnaround times, with India’s average turnaround time (TRT) of 0.9 days, among the best globally.

5. Green Port Guidelines

• The Harit Sagar Green Port guidelines promote sustainable practices in ports, focusing on environmentally safe operations, which helps in reducing the ecological footprint.

Legislative Changes Supporting Port Reforms

1. Major Port Authorities Act, 2021

• This act grants greater autonomy to major ports, empowering them to operate more efficiently and independently.

2. Marine Aids to Navigation Act, 2021

• Ensures better safety and efficiency in vessel traffic management, aligning with global standards.

3. Indian Vessels Act, 2021

• Standardizes regulations for inland waterways across the country, improving uniformity and operational efficiency.

4. Ease of Doing Business

• The National Logistics Portal (Marine) provides a single-window digital platform for various stakeholders, streamlining the processes involved in cargo services, regulatory compliance, and financial services.
• The Sagar Setu app further enhances the ease of goods movement in ports.

5. Foreign Direct Investment (FDI)

• The government allows 100% FDI in port projects under the automatic route, along with a 10-year tax holiday for port developers, which promotes private investment in port infrastructure.

Future Directions

1. Integrated Connectivity

• There is a need to strengthen the integration of ports with railways, roadways, and inland waterways for seamless cargo movement between ports and hinterlands.

2. Digital Transformation

• Adopting advanced technologies like blockchain, Internet of Things (IoT), and artificial intelligence will streamline port operations, including cargo tracking and documentation processes.

3. Investment Promotion

• The government plans to attract more investments through PPP models and investor-friendly policies.

4. Regional Connectivity

• Promoting transshipment and coastal shipping will enhance India’s regional trade, especially in the Indian Ocean.

5. Safety and Security

• Ensuring strict safety measures and compliance with international standards is essential to prevent accidents and environmental hazards at ports.

Model Answer

Roads and Highways Sector: Driving Physical Infrastructure Growth in India

India’s roads and highways sector, with a vast network of approximately 63.72 lakh km (second largest globally), plays a critical role in infrastructure growth by contributing over 3.6% to GDP. Roads support over 85% of passenger traffic and 65% of freight transport, making them a fundamental part of India’s logistics and connectivity. The following factors explain how the sector is anticipated to drive infrastructure growth:

1. Supporting the Logistics Sector
   Roads and highways enhance logistics efficiency by reducing transportation costs and improving cargo handling. This improves supply chain management, lowering turn-around times for goods transport and bolstering the overall logistics sector (source: provided content).
2. Integration with Other Transport Modes
   Road infrastructure serves as a feeder system for other transportation modes (e.g., railways, airports, and seaports), enabling a seamless multi-modal logistics network and facilitating trade across the country .
3. Promoting Urban Development
   New urban centers and satellite towns emerge around road networks, facilitating easy access for the workforce and fostering economic activity in once-remote areas .
4. Addressing Development Deficits and Regional Integration
   Road development in under-served regions allows access to essential services such as healthcare, education, and internet connectivity, further integrating isolated areas. For instance, projects like the Zojila Tunnel on the Srinagar-Leh road open up new economic opportunities in challenging terrains .

Key Factors Causing Delays in Road Infrastructure Projects

Despite these advantages, delays affect 407 of 717 projects in this sector (source: Ministry of Statistics and Programme Implementation). The primary causes of delay include:

1. Financial and Land Acquisition Issues
   Insufficient project feasibility studies, underestimation of costs, and the complex, lengthy land acquisition process hinder timely project initiation.
2. Planning and Procurement Challenges
   Delays in site handover, project approvals, contract awards, and machinery procurement further disrupt schedules .
3. Execution and Decision-Making Bottlenecks
   Slow decision-making, weak inter-departmental collaboration, and poor contracting practices lead to project slowdowns .
4. Inadequate Project Monitoring
   Ineffective project monitoring, inadequate delay penalties, and insufficient technical staff exacerbate delays.

India’s roads and highways sector is poised for growth, yet overcoming these challenges is vital for realizing timely project completion and sustaining infrastructure development.

Model Answer

Gaps in Ensuring a Safe and Secure Railway Network in India

India’s railway network has seen efforts to improve safety and security, such as the establishment of the Rashtriya Rail Sanraksha Kosh and track modernisation. However, significant gaps remain in creating a fully safe and secure railway network.

1. Lack of Coordination

One of the major issues is the lack of coordination between the Railway Board and Zonal Railways, which has led to a shortage of resources. For instance, over 3.30 lakh wagons were operated without the necessary approvals after repairs, jeopardizing rail safety Backlogs and Delays The Indian railway system also faces considerable backlogs. Reports suggest that about 1.5 lakh railway bridges need urgent attention. Additionally, the replacement and renewal of outdated assets, which are vital for safe operations, are significantly delayed .

3. Rial Constraints

Due to heavy reliance on government budgetary allocations and a high operating ratio (107% in 2021-22), the railways face financial constraints. These limitations hinder investments in modernisation and safety infrastructure .

4. Inadety Systems

The lack of modern safety systems like fire detection systems and poor maintenance of tracks, particularly in regions with extreme weather, increases the vulnerability of the railway network. This compromises passenger and operational safety .

Internal Security

5. **Increase in Crrise in criminal activities, such as stone pelting and robberies, also poses a security threat. Over 1,500 incidents of stone pelting were reported in 2022, and robberies have also increased, further endangering passengers .

6. Human Errors

Human ern one of the leading causes of railway accidents, including mechanical faults, poor track maintenance, and even infrastructure failures .

Measures Needed

To address these gapsch as the modernisation of infrastructure, better internal resource mobilisation, increased R&D, and the creation of a Rail Safety Authority are crucial. Additionally, setting up State-Level Security Committees and enhancing employee training on safety can help mitigate human errors .

The implementation of these measures will be key tg a secure and efficient railway network in India, with a focus on reducing accidents and fatalities.

Model Answer

India’s agricultural sector faces significant barriers in adopting integrated cold chain infrastructure (CCI), which is essential for improving food security, reducing wastage, and enhancing export potential. Despite the advantages of CCI, such as promoting food safety, boosting farmer incomes, and improving food availability, less than 10% of agricultural produce passes through a cold chain system. Below are the key challenges:

1. Investment Barriers

The cold chain infrastructure requires substantial capital investment, but the long payback periods and the risk of technology obsolescence deter investors. Cold chain facilities require large upfront costs, which result in low returns on investment, making it a less attractive option for capital deployment.

2. Lack of Awareness

Many stakeholders, especially farmers and small businesses, perceive CCI as a luxury rather than a necessity. There is insufficient awareness about the importance of cold chain systems for maintaining the quality and safety of perishable goods, leading to underutilization of cold storage and transportation facilities.

3. High Operating Costs

Operating an integrated cold chain is expensive due to high fuel costs, which constitute around 45% of the operating expenses for cold storage in India. The rising fuel prices further increase the financial burden on operators, reducing profitability and limiting the expansion of cold chain infrastructure.

4. Inadequate Technological Integration

Many cold chain facilities still rely on manual processes for temperature monitoring and inventory management. The lack of technology integration leads to inefficiencies, data inaccuracies, and delayed decision-making, resulting in increased spoilage and losses of perishable goods.

5. Disproportionate Funding and Inefficient Infrastructure

Government subsidies have disproportionately favored cold storage, while critical components such as refrigerated transport, pack houses, and pre-cooling units receive minimal support. Additionally, infrastructure issues like inconsistent power supply, poor transportation networks, and lack of last-mile connectivity contribute to inefficiencies and operational challenges.

6. Geographical Accessibility

Cold chain infrastructure is concentrated in urban areas, leading to uneven access for rural farmers. This creates logistical challenges, low utilization rates of facilities, and increased costs for farmers, making the adoption of CCI less attractive.

Conclusion

India’s cold chain infrastructure needs a holistic approach, integrating technology, funding, and better access to rural areas. Addressing these challenges will reduce post-harvest losses (estimated at ₹92,561 crore annually) and unlock the full potential of the sector. Strategies like farmer education and innovative business models, such as “pay-as-you-store,” can facilitate greater adoption of CCI.