Tax India Indian Law Consumer Rights MRTP

The MRTP Act, 1969 Post independence, many new and big firms have entered the Indian market. They had little competition and they were trying to monopolize the market. The Government of India understood the intentions of such firms. In order to safeguard the rights of consumers, Government of India passed the MRTP bill. The bill was passed and the Monopolies and Restrictive Trade Practices Act, 1969, came into existence. Through this law, the MRTP commission has the power to stop all businesses that create barrier for the scope of competition in Indian economy. The MRTP Act, 1969, aims at preventing economic power concentration in order to avoid damage. The act also provides for probation of monopolistic, unfair and restrictive trade practices. The law controls the monopolies and protects consumer interest. Monopolistic Trade Practice Such practice indicates misuse of one's power to abuse the market in terms of production and sales of goods and services. Firms involved in monopolistic trade practice tries to eliminate competition from the market. Then they take advantage of their monopoly and charge unreasonably high prices. They also deteriorate the product quality, limit technical development, prevent competition and adopt unfair trade practices. Unfair Trade Practice The following may result in an unfair trade practice: False representation and misleading advertisement of goods and services. Falsely representing second-hand goods as new. Misleading representation regarding usefulness, need, quality, standard, style etc of goods and services. False claims or representation regarding price of goods and services. Giving false facts regarding sponsorship, affiliation etc. of goods and services. Giving false guarantee or warranty on goods and services without adequate tests.

Restrictive Trade Practice The traders, in order to maximize their profits and to gain power in the market, often indulge in activities that tend to block the flow of capital into production. Such traders also bring in conditions of delivery to affect the flow of supplies leading to unjustified costs. About the MRTP Act, 1969 The MRTP Act extends to the whole of India except the state of Jammu and Kashmir. This law was enacted: To ensure that the operation of the economic system does not result in the concentration of economic power in hands of few, To provide for the control of monopolies, and To prohibit monopolistic and restrictive trade practices.

Unless the Central Government otherwise directs, this act shall not apply to:

1. Any undertaking owned or controlled by the Government Company, 2. Any undertaking owned or controlled by the Government, 3. Any undertaking owned or controlled by a corporation (not being a company) established by or under any Central, Provincial or State Act, 4. Any trade union or other association of workmen or employees formed for their own reasonable protection as such workmen or employees, 5. Any undertaking engaged in an industry, the management of which has been taken over by any person or body of persons under powers by the Central Government, 6. Any undertaking owned by a co-operative society formed and registered under any Central, Provincial or state Act, 7. Any financial institution. MRTP Commission and Filing of Complaint For the purpose of this Act, the Central Government has established a commission to be known as the Monopolies and Restrictive Trade Practices Commission. This commission shall consist of a Chairman and minimum 2 and maximum 8 other members, all to be appointed by the Central Government. Every member shall hold the office for a period specified by the Central Government. This period shall not exceed 5 years. However, the member will be eligible for re-appointment. In case of any unfair trade practice, monopolistic trade practice and/or restrictive trade practice, a complaint can be filed against such practices to the MRTP commission. The procedure for filing a complaint is as follows: Complaint is filed either by the individual consumer or through a registered consumer organization. The Director General of the MRTP commission would carry on the investigation for finding facts of the case. If the prima facie case is not made, the complaint is dismissed. If the compliant is true, an order is passed to its effect. The commission restricts and restrains the concerned party from carrying on such practices by granting temporary injunction. Then the final order is passed. The complainant may be compensated for his loss.

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A brief outline of the MRTP Act - Part II

Posted 15 October 2002 - 9:30am by businessgyan

Editiorial Team

Monopolistic Trade Practice (MTP).

The MRTP Act defines a MTP to be a trade practice, which has or is likely to have the effect of either;

a) maintaining the prices of goods or charges for the services at an unreasonable level by limiting, reducing or otherwise controlling the production, supply or distribution of goods of any description or the supply of services or in any other manner;

b)

unreasonably preventing or lessening competition in the production, supply or

distribution of any goods or in the supply of any services;

c) limiting technical development or capital investment to the common detriment or allowing the quality of any goods produced, supplied or distributed, or any services rendered in India to deteriorate;

d) increasing unreasonably

(i) the cost of production of any good; or

(ii) charges for the provision, or maintenance, of any services; or

e) increasing unreasonably -

(iii) the prices at which goods are, or may be, sold or resold, or for the charges at which the services are, or may be provided; or

(iv) the profits which are, or may be, derived by the production, supply or distribution of any goods (including the sale or purchase) or by the provision of any services.

f)

preventing or lessening competition in the production, supply or distribution of any

goods or in the provision or maintenance of any services by the adoption of unfair methods or deceptive practices.

Once a trade practice falls under any one of the above categories, it would be presumed that the same is a MTP and is prejudicial to public interest, unless such trade practice has been expressly authorized by law or the Central Government permits the carrying on of such practice.

The MRTP commission has the power to inquire into the trade practice and if concludes that the trade practice is actually a MTP and is operating or is likely to operate against public interest, the Central Government has the power to require the person indulging in the trade practice to remedy the trade practice either completely or to the extent required by the Central Government. As a result, the Central Government could:

a) Prohibit the continuation of the MTP completely; or

b) Regulate the manner of production, storage, supply, distribution, or control of any goods or services by an undertaking and fixing the terms of their sale (including prices) or supply; or

c)

Prohibit any act or practice or commercial policy which prevents or

could reduce the competition in the production, storage, supply or distribution of any goods or services; or

d) Fix the standards for the usage or production of the goods;

e) Declare as unlawful the execution or implementation of any specified agreement;

f) Require either or all of the parties to any specified agreement to terminate the agreement either in whole or in part, within a time frame as stipulated by the Central Government; or

g) Regulate the making or manner of utilization of profits as derived from the production, storage, supply, distribution or control of any goods or services; or

h) Regulate the quality standards to be maintained for any goods or services.

II.

Resale Price:

The MRTP Act also provides for measures controlling/prohibiting the resale price for the sale or supply of goods in certain circumstances. It is to be noted that the resale price

maintenance is not applicable to supply of services. Under the Act, there is also no prohibition on the assigning of a maximum price at which goods may be sold.

Assigning of Minimum Price

Any clause or term or condition in a contract for the sale of goods by a person to a wholesaler or retailer or agreement between a person and wholesaler or retailer or relating to the sale of goods would be void if it either assigns or provides for the assignment of a minimum price to be charged upon the resale of goods in India.

A supplier of goods who either directly or through any person or association of persons acting on his behalf is prohibited from either requiring its dealers or otherwise publishing in respect of any goods, a price which as stated or calculated could be understood to be a minimum price to be charged upon resale of the goods in India.

Such a prohibition is also applicable to patented articles, which would include articles made by a patented process and articles made under a trade mark. However, this provision would not affect the term or conditions of a license granted by owner or licensor of any patent or trademark or for any assignment of the same, so far as it regulates the price at which the article may be sold by the licensee or assignee.

Other Measures

A supplier is not entitled to withhold the supply of any goods from any wholesaler or retailer who is seeking to obtain them for resale in India on the ground that such wholesaler or retailer has sold or is likely to sell the goods in India at a price which is

below the resale price of the goods obtained from such supplier, or the wholesaler or retailer has supplied or is likely to supply such goods, either directly or indirectly, to a third party who has sold or is likely to sell the goods in India at a price which is below the resale price of the goods obtained from such supplier.

However, the supplier could withhold supplies of the goods to any wholesaler or retailer or to cause or require other supplier to also withhold supplies, if he has reasonable cause to believe that the wholesaler or the retailer, has been or is reselling any goods of the same or a similar description whether obtained from that supplier or not, other than in genuine seasonal or clearance sale which is not for the purpose of making a profit on the resale of the goods, but for the purpose of attracting to his concern (where the goods are being sold), customers who would be likely to purchase other goods or for the purpose of advertising his business.

Upon any person making an application to the MRTP Commission, the MRTP Commission can exempt goods of any class from the applicable prohibition or regulation for resale prices if the Commission is satisfied that the prohibition or regulation of such resale price would result in the detriment to the consumers by either:

a) a reduction in the quality of the goods; or

b) a increase in the price of the goods; or

c) a reduction or cessation of the necessary after sale service of the goods

(The article was written by Ekta Bahl, a leading legal practitioner based out of Bangalore. Feedback can be mailed to mrtpc@businessgyan.com) Issue BG19 Oct02
Land & Building Department of Govt. of Delhi is responsible for large-scale acquisition of land for Planned Development of Delhi and placing it at the disposal of DDA for development and disposal. It has 4 main branches viz Land Acquisition Branch, Alternative Plot branch, E.P. Cell and Housing Loan branch.

I Functions of Land Acquisition Branch

This branch processes the proposal for acquisition of land received from DDA as well as other Departments of Govt. of Delhi. It also processes the applications for de-notification of land. (A) Procedure for Acquisition of Land under the provision of Land Acquisition Act 1984 On receipt of the proposal for acquisition of land from the DDA or any other Govt. department, the same is forwarded to the concerned Land Acquisition Collector for furnishing the draft notification under the provisions of the Land Acquisition Act 1894 after conducting the joint survey of the land proposed to be acquired. The ADM/LAC concerned furnishes the requisite draft notification under section 4 & 6 of the L.A. Act, 1894 either under the normal clause or by invoking urgency clause depending upon the proposal received from the requisitioning department. The draft notification so received from the ADM/LAC concerned are scrutinized by the Revenue officials of this department. If any discrepancies are found in the draft notification, the same is conveyed to the ADM/LAC concerned for rectification. The rectified draft notification is put up to Honble L.G. for approval as per categories below. i. ii. iii. Notification U/s 4 is an intention of the Government to acquire the land, issued after obtaining approval of L.G. Objection U/s 5-A is to be filed by the landowners, whose land is notified U/s 4 of the L.A. Act, within 30 days of publication of the notification, with LAC concerned. On receipt of the report on 5-A objections from the LAC concerned, the report is considered by the Appropriate Government i.e. LG and thereafter, declaration U/s 6 is issued either for the whose land notified u/s 4 or less on the basis of the consideration of the report of the LAC. The declaration u/s 6 has to be issued within one year from issuance of section 4 notification, failing which notification issued u/s 4 will lapse. LAC concerned has to announce the Award u/s 11 of the L.A. Act within two years of declaration U/s 6. After announcing the Award, possession of the land is taken/handed over as per provision of section 16 of the L.A. Act. (B) Steps involved in acquisition of land invoking urgency clause i. In case the land is urgently required, then urgency clause is invoked. Approval of the Competent Authority i.e. LG is obtained for issuance of notification U/s 4

iv.

read with 17(4), 6 & 17(1) dispensing with filing of the objections by the land owners U/s 5-A before the LAC. After obtaining approval of L.G, notification U/s 4 read with 17(4) is issued. Section 17(4) dispenses with objections U/s 5-A.) Declaration U/s 6 & 17 (i) can be issued after publication of notification U/s 4, within one year of such notification (U/s 17(i) possession of land can be taken before announcement of Award. It is mandatory for the requisitioning department to deposit 80% estimated compensation amount, the demand for which is raised by concerned LAC, with L&B Department before issuance of declaration U/s 6 & 17(i), as LAC has to offer 80% estimated compensation amount, to the land owners at the time of taking over the possession). ADM/LAC concerned will take possession of land notified U/s 6 & 17(i) giving 15 days notice U/s 9(i) to the interested persons, after offering 80% of the compensation amount. Further LAC concerned will have to announce the Award within 2 years from date of issuance of declaration U/s 6 & 17(i).

ii.

iii. iv.

II POLICY GUIDELINES AND PROCEDURE FOR DENOTIFICATION OF LAND ACQUIRED UNDER LAND ACQUISITION ACT
(A) LEGAL PROVISIONS: Section 48 (i) of the LA Act 1894 provides that except in case provided for U/s 36(i), the Govt. shall be at liberty to withdraw from the acquisition of any land of which possession has not been taken. Thus, the power to withdraw any land from acquisition has been created under the statute, which provides that the land can be de-notified if the possession of which has not been taken over by the government. However, this power has to be exercised in judicious manner and on the basis of guidelines framed by the Govt. the details of which in brief are as under: (B) Guidelines and procedure for de-notification A Committee called as Denotification Committee consisting of the following members shall examine all denotification proposals and submit its recommendations to the Lt. Governor as to whether such proposal may be accepted or rejected. 1 2 3 4 Secretary (Land) Secretary to Lt. Governor Commissioner (Land Acquisition) DDA Dy. Commissioner (Concerned) Chairman Member Member Member

The recommendations of the Committee shall not be binding on the Lt. Governor who may take a decision on each recommendation, at his discretion. On approval of the Lt. Governor of any proposal, a notification under Section 48 91) of the Land Acquisition Act shall be issued in respect of the land in question. (C) COMMON CONDITIONS FOR CONSIDERING DENOTIFICATION

1. Possession of the land should not have been taken. 2. The persons interested in the land should not have received any part of the compensation towards acquisition of land. 3. Where the requisitioning department itself request for de-notification of a land, it may be recommended for de-notification. As per the decision of the Standing Committee in the meeting dated 3.6.93, land 50 meters from village abadi is not acquired. However, in case any such land has been notified for acquisition, it may be recommended for denotification provided its absence will not materially affect the public purpose for which it is being acquired. (D) PROPERTIES BUILT-UP PRIOR TO ISSUE OF NOTIFICATION U/S 4 OF THE LAND ACQUISITION ACT, 1894 1. Built-up properties existing at the time of notification U/s 4 of the Land Acquisition Act, 1894 may be recommended for denotification provided: a. the absence of the land on which the built-up portion exists will not materially affect the public purpose. b. the property was built-up after requisite approvals of the Competent authority. c. When the public purpose can be satisfied by another viable land, which would cause less financial burden to the Government. (E) PROPERTIES BUILT-UP AFTER THE ISSUE OF NOTIFICATION U/S 4 OF THE LAND ACQUISITON ACT, 1894. 1. Land on which built-up structures have come up after issue of notification under section 4 of the Land Acquisition Act, shall normally not be considered for denotification. However, if cluster of largely residential structures has come upon a long period of time and demolition of the structures shall cause immense hardship to a large number of inhabitants, the following procedures may be adopted a. Where there is a recommendation from the technical department/ committee of the Government that the land is inappropriate/unsuitable. b. Where the feasibility studies, if any, conducted show that the land is not suitable for the public purpose for which it is being acquired. c. Where the Colony including the area in question has itself been regularized and services handed over to MCD, the land may be recommended for denotification. 2. In all cases, a sub-committee comprising the Land Acquisition Collector, a representative of Land & Building department (not below the rank of a Dy. Secretary) and a Representative of DDA (not below the rank of a Dy. Secretary), shall inspect the land and submit a detailed report outlining the number and nature of structures, the feasibility of taking over the land after demolition of the structures, and the specific recommendation on denotification of the land. The Denotification Committee shall consider the report of the Sub-committee, the comments of the requisitioning department with specific reference to its need for land, and then make a recommendation

to the Lt. Governor for considering or rejecting the proposal. RELIGIOUS STRUCTURES Any religious structure existing on the land at the time of issue of notification under section 4 of the Land Acquisition Act, 1894 may be considered for denotification. However, the area, which may be recommended for denotification, may include any appurtenant area up to 500 sq.m. If there is any structure like Hospital, School, Charitable Dispensary existing before issuing the notification U/s 4 of Land acquisition Act, then the case may be considered for denotification.

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Buildoperatetransfer (BOT) or buildownoperatetransfer (BOOT) is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project. Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment. Examples of countries using BOT are Thailand, Turkey, Taiwan, Saudi Arabia,[1] Israel, India, Iran, Croatia, Japan, China, Vietnam, Malaysia, Philippines, Egypt, and a few US states (California, Florida, Indiana, Texas, and Virginia). However, in some countries, such as Canada, Australia and New Zealand, the term used is buildownoperatetransfer (BOOT). Traditionally, such projects provide for the infrastructure to be transferred to the government at the end of the concession period. In Australia, primarily for reasons related to the borrowing powers of states, the transfer obligation may be omitted. For the Alice Springs Darwin section of the Adelaide Darwin railway the lease period is 50 years, see AustralAsia Rail Corporation. Forms of project finance are:

Contents
[hide]

1 BOT (buildoperatetransfer) 2 BOOT (buildownoperatetransfer) 3 BOO (buildownoperate) 4 BLT (buildleasetransfer) 5 DBFO (designbuildfinanceoperate) 6 DCMF (designconstructmanagefinance) 7 References 8 See also

[edit] BOT (buildoperatetransfer)

BOT finds extensive application in the infrastructure projects and in publicprivate partnership. In the BOT framework a third party, for example the public administration, delegates to a private sector entity to design and build infrastructure and to operate and maintain these facilities for a certain period. During this period the private party has the responsibly to raise the finance for the project and is entitled to retain all revenues generated by the project and is the owner of the regarded facility. The facility will be then transferred to the public administration at the end of

the concession agreement,[2] without any remuneration of the private entity involved. Some or even all of the following different parties could be involved in any BOT project:

The host government: Normally, the government is the initiator of the infrastructure project and decides if the BOT model is appropriate to meet its needs. In addition, the political and economic circumstances are main factors for this decision. The government provides normally support for the project in some form. (provision of the land/ changed laws) The concessionaire: The project sponsors who act as concessionaire create a special purpose entity which is capitalised through their financial contributions. Lending banks: Most BOT project are funded to a big extent by commercial debt. The bank will be expected to finance the project on non-recourse basis meaning that it has recourse to the special purpose entity and all its assets for the repayment of the debt. Other lenders: The special purpose entity might have other lenders such as national or regional development banks Parties to the project contracts: Because the special purpose entity has only limited workforce, it will subcontract a third party to perform its obligations under the concession agreement. Additionally, it has to assure that it has adequate supply contracts in place for the supply of raw materials and other resources necessary for the project

BOT model

In general, a project is financially viable for the private entity if the revenues generated by the project cover its cost and provide sufficient return on investment. On the other hand, the viability of the project for the host government depends on its efficiency in comparison with the economics of financing the project with public funds. Even if the host government could borrow money on better conditions compared to that of the public sector, other factors could offset this particular advantage. For example, the expertise and efficiency that the private entity is expected to bring as well as the risk transfer. Therefore the private entity bears a substantial part of the risk. These are some types of the most common risks involved:

Political risk: especially in the developing countries because of the possibility of dramatic overnight political change. Technical risk: construction difficulties, for example unforeseen soil conditions, breakdown of equipment Financing risk: foreign exchange rate risk and interest rate fluctuation, market risk (change in the price of raw materials), income risk (over-optimistic cash-flow forecasts), cost overrun risk
[3][4][5]

[edit] BOOT (buildownoperatetransfer)

A BOOT structure differs from BOT in that the private entity owns the works. During the concession period the private company owns and operates the facility with the prime goal to recover the costs of investment and maintenance while trying to achieve higher margin on project. The specific characteristics of BOOT make it suitable for infrastructure projects like highways, roads mass transit, railway transport and power generation and as such they have political importance for the social welfare but are not attractive for other types of private investments. BOOT & BOT are methods which find very extensive application in countries which desire ownership transfer and operations including. Some advantages of BOOT projects are:

Encourage private investment Inject new foreign capital to the country Transfer of technology and know-how Completing project within time frame and planned budget Providing additional financial source for other priority projects Releasing the burden on public budget for infrastructure development[6]

[edit] BOO (buildownoperate)

In a BOO project ownership of the project remains usually with the project company for example a mobile phone network. Therefore the private company gets the benefits of any residual value of the project. This framework is used when the physical life of the project coincides with the concession period. A BOO scheme involves large amounts of finance and long payback period. Some examples of BOO projects come from the water treatment plants. This facilities run by private companies process raw water, provided by the public sector entity, into filtered water, which is after returned to the public sector utility to deliver to the customers.[7]

[edit] BLT (buildleasetransfer)

Under BLT a private entity builds a complete project and leases it to the government. On this way the control over the project is transferred from the project owner to a lessee. In other words the ownership remains by the shareholders but operation purposes are leased. After the expiry of the leasing the ownership of the asset and the operational responsibility are transferred to the government at a previously agreed price. For foreign investors taking into account the country risk BLT provides good conditions because the project company maintains the property rights while avoiding operational risk.

[edit] DBFO (designbuildfinanceoperate)

Designbuildfinanceoperate is a project delivery method very similar to BOOT except that there is no actual ownership transfer. Moreover, the contractor assumes the risk of financing till the end of the contract period. The owner then assumes the responsibility for maintenance and operation. Some disadvantages of DCMF are the difficulty with long term relationships and the

threat of possible future political changes which may not agree with prior commitments.This model is extensively used in specific infrastructure projects such as toll roads. The construction company build a private entity which is in charge to design and construct an infrastructure for the government which is the true owner. Moreover the private entity has the responsibility to raise finance during the construction and the exploitation period. The cash flows serve to repay the investment and reward its shareholders. They end up in form of periodical payment to the government for the use of the infrastructure. The government has the advantage that it remains the owner of the facility and at the same time avoids direct payment from the users. Additionally, the government succeeds to avoid getting into debt and to spread out the cost for the road over the years of exploitation.[8]

[edit] DCMF (designconstructmanagefinance)

Some examples for the DCMF model are the prisons or the public hospitals. A private entity is built to design, construct, manage, and finance a facility, based on the specifications of the government. Project cash flows result from the governments payment for the rent of the facility. In the case of the hospitals, the government has the ownership over the facility and has the price and quality control. The same financial model could be applied on other projects such as prisons. Therefore this model could be interpreted as a mean to avoid new indebtedness of public finance.

[edit] References
1. ^ P.K. Abdul Ghafour. "North-South Railway to be ready for freight movement by 2010". Year 6 April 2009. arabnews.com. http://archive.arabnews.com/?page=1&section=0&article=121242&d=6&m=4&y=2009. Retrieved 7 June 2011. 2. ^ "Concessions, Build-Operate-Transfer (BOT) and Design-Build-Operate (DBO) Projects". March 13, 2012. http://ppp.worldbank.org/public-private-partnership/agreements/concessions-botsdbos. 3. ^ Walker,Smith, Adrian Charles (1995). Privatized infrastructure: the build operate transfer approach. Thomas Telford. pp. 258. ISBN 9780727720535. 4. ^ Wilde Sapte LLP, Denton (2006). Public Private Partnerships: Bot Techniques and Project Finance. London: Euromoney Books. pp. 224. ISBN 1843742756, 9781843742753. 5. ^ Mishra, R.C. (2006). Modern Project Management. New Age International. pp. 234. ISBN 8122416160, 9788122416169. 6. ^ Gatti, Stafano (2007). Project Finance in theory and practice. Academic Press. pp. 414. ISBN 0123736994, 9780123736994. 7. ^ Lewis/ Grimsey, Mervyn/Darrin. Public Private Partnerships: the worldwide revolution in infrastructure provision and project finance. Edward Elgar Publishing. pp. 268. ISBN 1847202268, 9781847202260. 8. ^ Pekka, Pakkala (2002). Innovative Project Delivery Methods for Infrastructure. Finnish Road Enterprise. pp. 120. ISBN 952-5408-05-.

[edit] See also

AdelaideDarwin railway

Central Texas Turnpike System Pay on production Public-private partnership Privatization Project finance Private Finance Initiative Shadow toll

No. P-12025/8/2001-RC (Pt) Government of India Ministry of Rural Development 02 November, 2004 PMGSY SCHEME AND GUIDELINES

Part I - Programme Objectives and Guiding Principles 1. 2. 3.

Introduction Programme Objectives Guiding Principles of PMGSY and Definitions (Amendments upto 31/03/2011)

Part II Planning, Funding, Construction and Maintenance of Rural Roads 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Planning for Rural Roads Funding and Allocation Proposals State Level Agencies Preparation of Project Proposals and their Clearance Scrutiny of Project Proposals Empowered Committee Tendering of Works Programme Implementation Units Execution of Works

14. 15. 16. 17.

National Rural Roads Development Agency Quality Control and Supervision of Works Monitoring Maintenance of Rural Roads

Part III - Flow of funds, procedure for release and Audit 18. 19. 20. 21. 22.

Flow of Funds Procedure for Release Of Funds to the State Level Agency Audit Miscellaneous Convergence

1. Introduction

1.1 Rural Road Connectivity is not only a key component of Rural Development by promoting access to economic and social services and thereby generating increased agricultural incomes and productive employment opportunities in India, it is also as a result, a key ingredient in ensuring sustainable poverty reduction. Notwithstanding the efforts made, over the years, at the State and Central levels, through different Programmes, about 40% of the Habitations in the country are still not connected by All-weather roads. It is well known that even where connectivity has been provided, the roads constructed are of such quality (due to poor construction or maintenance) that they cannot always be categorised as All-weather roads. 1.2 With a view to redressing the situation, Government have launched the Pradhan Mantri Gram Sadak Yojana on 25th December, 2000 to provide all-weather access to unconnected habitations. The Pradhan Mantri Gram Sadak Yojana (PMGSY) is a 100% Centrally Sponsored Scheme. 50% of the Cess on High Speed Diesel (HSD) is earmarked for this Programme.

2. Programme Objectives

2.1 The primary objective of the PMGSY is to provide Connectivity, by way of an All-weather Road (with necessary culverts and cross-drainage structures, which is operable throughout the year), to the eligible unconnected Habitations in the rural areas, in such a way that all Unconnected Habitations with a population of 1000 persons and above are covered in three years (2000-2003) and all Unconnected Habitations with a population of 500 persons and above by the end of the Tenth Plan Period (2007). In respect of the Hill States (North-East, Sikkim, Himachal Pradesh, Jammu & Kashmir, Uttaranchal) and the Desert Areas (as identified in the Desert Development Programme) as well as the Tribal (Schedule V) areas, the objective would be to connect Habitations with a population of 250 persons and above. 2.2 The PMGSY will permit the Upgradation (to prescribed standards) of the existing roads in those Districts where all the eligible Habitations of the designated population size (refer Para 2.1 above) have been provided all-weather road connectivity. However, it must be noted that Upgradation is not central to the Programme and cannot exceed 20% of the States allocation as long as eligible Unconnected Habitations in the State still exist. In Upgradation works, priority should be given to Through Routes of the Rural Core Network, which carry more traffic (see Para 3.7 below)

3. Guiding Principles of PMGSY and Definitions

3.1 The spirit and the objective of the Pradhan Mantri Gram Sadak Yojana (PMGSY) is to provide good all-weather road connectivity to unconnected Habitations. A habitation which was earlier provided allweather connectivity would not be eligible even if the present condition of the road is bad. 3.2 The unit for this Programme is a Habitation and not a Revenue village or a Panchayat. A Habitation is a cluster of population, living in an area, the location of which does not change over time. Desam, Dhanis, Tolas, Majras, Hamlets etc. are commonly used terminology to describe the Habitations. 3.3 An Unconnected Habitation is one with a population of designated size (refer to Para 2.1 above) located at a distance of at least 500 metres or more (1.5 km of path distance in case of Hills) from an Allweather road or a connected Habitation. 3.4 Para 2.1 above refers to Population size of Habitations. The population, as recorded in the Census 2001, shall be the basis for determining the population size of the Habitation. The population of all Habitations within a radius of 500 metres (1.5 km. of path distance in case of Hills) may be clubbed together for the purpose of determining the population size. This cluster approach would enable provision of connectivity to a larger number of Habitations, particularly in the Hill / mountainous areas. 3.5 The eligible Unconnected Habitations are to be connected to nearby Habitations already connected by an All-weather road or to another existing All-weather road so that services (educational, health, marketing facilities etc.), which are not available in the unconnected Habitation, become available to the residents. 3.6 A Core Network is that minimal Network of roads (routes)that is essential to provide Basic access to essential social and economic services to all eligible habitations in the selected areas through at least a single all-weather road connectivity. 3.7 A Core Network comprises of Through Routes and Link Routes. Through routes are the ones which collect traffic from several link roads or a long chain of Habitations and lead it to Marketing centres either directly or through the higher category roads i.e., the District Roads or the State or National Highway. Link Routes are the roads connecting a single Habitation or a group of Habitations to Through Routes or

District Roads leading to Market Centres. Link routes generally have dead ends terminating on a Habitation, while Through Routes arise from the confluence of two or more Link Routes and emerge on to a major Road or to a Market Centre. 3.8 It should be ensured that each road work that is taken up under the PMGSY is part of the Core Network. While keeping the objective of Connectivity in view, preference should be given to those roads which also incidentally serve other Habitations. In other words, without compromising the basic objective (covering 1000+ Habitations first and 500+ Habitations next and 250+ Habitations where eligible, last), preference should be given to those roads which serve a larger population. For this purpose, while Habitations within a distance of 500 metres from the road is considered as connected in case of plain areas, this distance should be 1.5 km (of path length) in respect of Hills. 3.9 The PMGSY shall cover only the rural areas. Urban roads are excluded from the purview of this Programme. Even in the rural areas, PMGSY covers only the Rural Roads i.e., Roads that were formerly classified as Other District Roads (ODR) and Village Roads (VR). Other District Roads (ODR) are roads serving rural areas of production and providing them with outlet to market centres, taluka (tehsil) headquarters, Block headquarters or other main roads. Village Roads (VR) are roads connecting villages / Habitation or groups of Habitation with each other and to the nearest road of a higher category. Major District Roads, State Highways and National Highways cannot be covered under the PMGSY, even if they happen to be in rural areas. This applies to New Connectivity roads as well as Upgradation works. 3.10 The PMGSY envisages only single road Connectivity to be provided. If a Habitation is already connected by way of an All-weather road, then no new work can be taken up under the PMGSY for that habitation. 3.11 Provision of connectivity to unconnected Habitations would be termed as New Connectivity. Since the purpose of PMGSY inter alia is to provide farm to market access, new connectivity may involve new construction where the link to the habitation is missing and additionally, if required, upgradation where an intermediate link in its present condition cannot function as an all-weather road (see Para 3.12 below) 3.12 Upgradation, when permitted (refer Para 2.2 and 3.11 above) would typically involve building the base and surface courses of an existing road to desired technical specifications and / or improving the geometrics of the road, as required in accordance with traffic condition. (see also Para 3.14 below) 3.13 The primary focus of the PMGSY is to provide All-weather road connectivity to the eligible unconnected Habitations. An All-weather road is one which is negotiable in all seasons of the year. This implies that the road-bed is drained effectively (by adequate cross-drainage structures such as culverts, minor bridges and causeways), but this does not necessarily imply that it should be paved or surfaced or black-topped. Interruptions to traffic as per permitted frequency and duration may be allowed. 3.14 There may be roads which are Fair-weather roads. In other words, they are fordable only during the dry season, because of lack of Cross Drainage (CD) works. Conversion of such roads to All-weather roads through provision of CD works would be treated as upgradation. It must be noted that on all the road works of the PMGSY, provision of necessary CD works is considered an essential element 3.15 PMGSY does not permit repairs to Black-topped or Cement Roads, even if the surface condition is bad. 3.16 The Rural Roads constructed under the Pradhan Mantri Gram Sadak Yojana will be in accordance with the provision of the Indian Roads Congress (IRC) as given in the Rural Roads Manual (IRC:SP20:2002). In case of Hill Roads, for matters not covered by the Rural Roads Manual, provisions of Hills Roads Manual (IRC:SP:48) may apply. Part II Planning, Funding, Construction and Maintenance of Rural Roads

4. Planning for Rural Roads

4.1 Proper planning is imperative to achieve the objectives of the Programme in a systematic and cost effective manner. The Manual for the Preparation of District Rural Roads Plan and the Core Network, shall be treated as part of the Guidelines and would stand amended to the extent modified by the present Guidelines. The Manual lays down the various steps in the planning process and the role of different Agencies including the Intermediate Panchayat, the District Panchayat as well as the State Level Standing Committee. In the identification of the Core Network, the priorities of elected representatives, including MPs and MLAs, are expected to be duly taken into account and given full consideration. The Rural Roads Plan and the Core Network would constitute the basis for all planning exercises under the PMGSY. 4.2 The District Rural Roads Plan would indicate the entire existing road network system in the District and also clearly identify the proposed roads for providing connectivity to Unconnected Habitations, in an economic and efficient manner in terms of cost and utility. The Core Network will identify the roads required to assure each eligible Habitation with a Basic Access (single all-weather road connectivity) to essential social and economic services. Accordingly, the Core Network would consist of some of the existing roads as well as all the roads proposed for new construction under the PMGSY. 4.3 In proposing the new links under the District Rural Roads Plan, it would be first necessary to indicate the weightage for various services. The District Panchayat shall be the competent authority to select the set of socio-economic / infrastructure variables best suited for the District, categorise them and accord relative weightages to them. This would be communicated to all concerned before commencing the preparation of the District Rural Roads Plan. 4.4 The Plan would first be prepared at the Block level, in accordance with the directions contained in the Manual and the priorities spelt out by the District Panchayat. In short, the existing road network would be drawn up, unconnected Habitations identified and the roads required to connect these unconnected Habitations prepared. This shall constitute the Block Level Master Plan. 4.5 Once this exercise is completed, the Core Network for the Block is identified, by making best use of the existing and proposed road facilities in such a manner that all the eligible Habitations are assured of a Basic access. It must be ensured that every eligible Habitation is within 500 metres (1.5 km of Path length in the Hills) of a connected Habitation or an All-weather road (either existing or planned). In drawing up the proposed road links, the requirements of the people must be taken into account, through the socioeconomic/infrastructure values (Road Index) suitably weighted (see Para 4.3) and the alignment having the higher Road Index ought to be considered for selection. 4.6 The Block level Master Plan and the Core Network are then placed before the Intermediate Panchayat for consideration and approval of the Core Network. They are simultaneously sent, along with the list of all unconnected Habitations to the Members of Parliament and MLAs, for their comments, if any. After approval by the Intermediate Panchayat, the Plans would be placed before the District Panchayat for its approval. It will be incumbent on the District Panchayat to ensure that the suggestions given by the Members of Parliament are given full consideration within the framework of these Guidelines. Once approved by the District Panchayat, a copy of the Core Network would be sent to the State-level Agency as well as the National Rural Roads Development Agency. No road work may be proposed under the PMGSY for New Connectivity or Upgradation (where permitted) unless it forms part of the Core Network.

5. Funding and Allocation

5.1 Once the Core Network is prepared, it is possible to estimate the length of roads for New Connectivity as well as Upgradation for every District. States may, each year, distribute the States Allocation among the Districts giving 80% on the basis of road length required for providing connectivity to Unconnected Habitations and 20% on the basis of road length requiring Upgradation under the PMGSY. The Districtwise allocation of funds would also be communicated to the Ministry / NRRDA / and STA every year by the State Government. 5.2 In making the District-wise allocation, the road lengths already taken up under the PMGSY or any other Programme may be excluded (even if the road works are still under execution). The figures of new construction length will thus keep on changing every year till such time as all Unconnected Habitations (of the eligible population size) have been covered in the District. 5.3 In addition to the allocation to the States, a special allocation of upto 5% of the annual allocation from the Rural Roads share of the Diesel Cess will be made for: i. ii. iii. iv. v. Districts sharing borders with Pakistan and China (in coordination with Ministry of Home Affairs) Districts sharing borders with Myanmar, Bangladesh and Nepal (in coordination with Ministry of Home Affairs) Left Wing Extremists areas in the Districts identified by the Ministry of Home Affairs Extremely backward Districts (as identified by the Planning Commission) which can be categorised as Special Problem Areas Research & Development Projects and innovations.

6. Proposals

6.1 All Districts having eligible unconnected Habitations are to prepare Block and District level Comprehensive New-Connectivity Priority Lists (CNCPL) for those Districts, of all proposed road links under PMGSY, grouping them in the following general Order Of Priority. Priority # Population size of Habitations being connected I II III 1000+ 500 999 250 499(where eligible as per Para 2.1)

The CNCPL list will be prepared with following format:

S.No.

Name TR / Code of road LR in CN

Length

Population served

Habs to be connected

Present status (earthen track etc.)

Name & no. of TR associated

(CN Core Network / TR Through Route / LR Link Route) 6.2 In order to manage the rural road network for upgradation and maintenance planning all States will carry out, every 2 years, a Pavement Condition Survey of all Through Routes (in case Through Routes are not part of the rural roads, of the next lower category of Main Rural Links or MRL). Detailed Guidelines on the methodology and analysis will be issued by the Ministry from time to time. The Survey will yield a Pavement Condition Index (PCI) on a scale of 1 to 5. The results of the survey will be recorded in the PCI Register in the following format: District:_______________ Block:_______________ Year Amount Cod Name of of last spent on Nam e habitatio Populati Year of period Type of Leng routine Length(k AD e of no.i ns on constructi ic paveme th maintena m) T* road n Connect served on renew nt nce since CN ed al PR (PR)

Dat P e CI of PCI

* if already done (can be done separately) All upgradation and maintenance prioritisation will be done from this list. 6.3 In respect of Districts where no new connectivity is required to be done, a Comprehensive Upgradation Priority will be prepared based on the PCI (see Para 6.2 above) of the rural Through Routes of the Core Network, as follows: Priority-I will be Through Routes which are constructed as WBM roads. In such cases, upgradation will comprise of bringing the existing profile to good condition (along with improvement in geometries, necessary drainage works and road signages) and providing the appropriate crust and surface as per design requirement. Priority-II are other fair weather through routes or gravel through routes or through routes with missing links or lacking cross drainage. In such a case upgradation will consist of converting the road into an all-weather one with appropriate geometries and all necessary provisions. Priority-III will be other through routes which are at the end of their design life, whose PCI is 2 or less, i.e., are poor or very poor. In such cases, upgradation will include improvement in geometric design where necessary, with width, surfacing, etc., as per projected traffic requirements. Presently sealed-surface all-weather roads with PCI more than 2 and sealed-surface all-weather roads which are less than 10 years old (even if PCI is less than 2) will not be taken up for upgradation. Within each priority class, qualifying roads will be arranged in order of population served (directly and through population served in link routes), as a rough indication of traffic expected. However, States are advised to conduct an Average Daily Traffic (ADT) Survey at the earliest. Based on the time at which the traffic survey is carried out (such as Peak or Lean Seasons) the same is to be adjusted for seasonality in order to arrive at an Annual Average Daily Traffic (AADT) estimate, i.

ii.

iii.

iv.

v.

vi.

which is the basis for the prioritisation as well as the design. (An axle load survey may also be carried out, on selective basis, on the roads where heavy traffic is expected with wide variations in the Axle Load Spectrum. Proposals for this purpose approved by NRRDA will be eligible for reimbursement of expenses). In case in any District, the Through Roads defined in the Core Network do not belong to the Rural Roads category, the Main Rural Links (emanating from the Through Route) will be considered for upgradation on similar lines indicated above.

The work of preparing the Comprehensive Upgradation Priority will be taken up only in those districts which are likely to complete new connectivity to eligible habitations within the next 1 year. The Comprehensive Upgradation Priority List (CUPL) list will be prepared District-wise for each Priority class (where only a homogenous portion of the road is to be taken under upgradation, only that portion needs to be mentioned, by chainage) on the following proforma:Priority class -------Road Name of Year of Block code in through construction CN route / MRL Year of last Present periodic surface renewal type Total population of PCI the Habitations AADT served by road

The CUPL will be got verified on the ground on sample basis through the STAs and the NQM system before it is processed for further approvals. The STAs will do 100% verification of the List for consistency on the basis of the PCI data given by the District and also sample ground checking. After the CNCPL / CUPL is prepared and verified, it shall be placed before the District Panchayat. The Members of Parliament / MLAs shall be given a copy of the CNCPL / CUPL and their suggestions and suggestions of lower level Panchayati Institutions shall be given the fullest consideration by the District Panchayat while according its approval. The CNCPL shall be the basis of all new connectivity proposals and the CUPL shall be the basis of all upgradation proposals in Districts where no new connectivity remains to be done. 6.4 After the CNCPL / CUPL is prepared and verified, it shall be placed before the District Panchayat. The Members of Parliament / MLAs shall be given a copy of the CNCPL / CUPL and their suggestions and suggestions of lower level Panchayati Institutions shall be given the fullest consideration by the District Panchayat while according its approval. The CNCPL shall be the basis of all new connectivity proposals and the CUPL shall be the basis of all upgradation proposals in Districts where no new connectivity remains to be done. 6.5 The list of road works to be taken up under the PMGSY will be finalised each year by the District Panchayat in accordance with the Allocation of Funds communicated to the District (see Para 5.1). The District Panchayat shall finalise the list through a consultative process involving lower level Panchayati institutions and elected representatives (see Para 6.9 below) It must be ensured that the proposed road works are part of the Core Network and that New Connectivity is given primacy. 6.6.1 In States where existing rural through routes are in reasonably good condition (i.e., PCI is generally above 3) the prioritisation of new links will be taken up for construction as per the order of the CNCPL. 6.6.2 In States where the existing rural Through Routes are in very poor condition (PCI is generally 3 or less) because of neglect of maintenance, upgradation / renewal of through routes may be taken up as an adjunct to new connectivity and the procedure will be as follows:

Step 1 Step 2

Select the New Connectivity Link as per CNCPL in order of priority Identify the rural Through Routes (called associated Through Route) from which the new link is taken off till such road reaches the nearest market centre / higher category road. Find out the Pavement Condition of the associated rural Through routes identified in Step 2 (from the PCI Register). Decide the type of intervention required based on the PCI. This implies a decision whether the roads leading to the market centre require Upgradation or Surface Renewal or Routine Maintenance. Roads having PCI 3 and below and 6 years or more old can be taken up for Upgradation / Renewal. For the roads with PCI above 3, or whose age is less than 6 years, Routine Maintenance or, if due, Renewal will be adequate, unless there are structural / geometrical / drainage deficiencies which need to be improved through Upgradation. Include all other eligible new links as per Comprehensive New Connectivity Priority List (CNCPL) coming on to the Through Routes identified in Step 3 even if such links are lower in the Order of the Priority. These eligible new links would be the subsidiary link routes. Each project will thus comprise of a sub-network of a primary new connectivity link, the associated Through Route(s) and subsidiary new connectivity links (falling on the associated Through Routes). The project proposal will include new construction for the new links and upgradation / renewal of the Through Routes based on age and PCI. Generally each such project would form a package for tendering purposes (all the packages of a particular year would form a Batch for future maintenance purposes). Make a rough estimate of the project cost based on per km construction / upgradation cost, and take up additional links from the CNCP list and repeat steps 1 to 5 till the total cost of the selected projects cover the District allocation.

Step 3

Step 4

Step 5

Step 6

Step 7

6.7 In case of Districts where no new connectivity remains, only the existing rural Through Routes may need upgradation. In such cases the Comprehensive Upgradation Priority List (CUPL) will apply and road works will be selected out of the CUPL in order of priority. 6.8 In drawing up the annual list of the road works, the District Panchayat shall ensure that the Order of Priority for New Connectivity / Upgradation is strictly followed. The only exception (in new connectivity links) from the order of priority is in respect of those routes of the Core Network that include the Village Panchayat Headquarters or Market Centres or other educational or medical essential services or those which stand notified by the State Government as places of tourist interest. In such cases, new connectivity may be taken up irrespective of the population size. 6.9 The Annual proposals will be based on the CNCPL or CUPL as the case may be, following the Order of Priority. However, it is possible that there are inadvertent errors or omissions, particularly in the associated through routes or subsidiary link routes in case of new connectivity. Accordingly it is desirable to also associate public representatives while finalising the selection of road works in the annual proposals in the Core Network. The proposals of the Members of Parliament are required to be given full consideration, and for this purpose: i. The Block or District CNCPL / CUPL should be sent to each MP with the request that their proposals on the selection of works out of the CNCPL / CUPL should be sent to the District Panchayat. It is suggested that at least 15 clear days may be given for the purpose.

ii.

iii.

In order to ensure that the prioritisation has some reference to the funding available, the size of proposals expected may also be indicated to the Members of Parliament while forwarding them the CNCP / CUPL list. District / Block-wise allocation may be indicated to enable choice with the requisite geographical spread. It is expected that such proposals of Members of Parliament which adhere to the Order of Priority would be invariably accepted subject to consideration of equitable allocation of funds. The proposals received from the Members of Parliament by the stipulated date should be given full consideration in the District Panchayat which should record the reason in each case of noninclusion, and the Members of Parliament should be informed of the inclusion / non-inclusion of their proposals along with the reasons in each case in the event of non-inclusion. It would be preferable if the communication is issued from the Nodal Department at a senior level.

6.10 While Lok Sabha Members will be consulted in respect of their constituencies, Rajya Sabha Members will be consulted in respect of that District of the State they represent for which they have been nominated as Vice-Chairman of the District Vigilance & Monitoring Committee of the Ministry of Rural Development. 6.11 The Order Of Priority and the CNCPL / CUPL will be the twin basis for making proposals. Where roadworks of a higher order of priority still remain to be taken up, road works of a lower order of priority will not be taken up in the same District (subject to Para 6.8) except if it is not feasible to execute the road work for reasons of non-availability of land etc. While finalising the District proposal, the District Panchayat shall record and communicate the reason in each such case that a higher priority road is left out and lower priority road is proposed. 6.12 It will be the responsibility of the State Government / District Panchayat to ensure that lands are available for taking up the proposed road works. A certificate that Land is available must accompany the proposal for each road work. It must be noted that the PMGSY does not provide funds for Land Acquisition. This does not however mean that acquisition cannot be done by the State Government at its own cost. The State Government may also lay down guidelines for voluntary donation, exchange or other mechanisms to ensure availability of land. The process of making land available for the road works should sub-serve the common good and also be just and equitable. The details of land made available should be reflected in the local land records to avoid dispute. 6.13 It may be that road works are sometimes held up because at the time of preparation of DPR actual availability of land was not investigated or because local Panchayat was not taken into confidence about the proposed alignment and disputes subsequently arose. As part of the PMGSY process, all States may include a simple, non-formal transect walk to be organized by the Assistant Engineer at the time of preparation of DPRs. The Panchayat Pradhan, local patwari and the JE would participate. Forest Department officials would be included where forest land is likely to be involved. (see Para 8.4)

7.State Level Agencies

7.1 Each State Government (including UT Administrations) would identify one or two suitable Agencies (having a presence in all the Districts and with established competence in executing time-bound road construction works), to be designated as Executing Agencies. These could be the Public Works Department / Rural Engineering Service / Organisation / Rural Works Department / Zilla Parishad / Panchayati Raj Engineering Department etc. who have been in existence for a large number of years and have the necessary experience, expertise and manpower. In States where more than one Executing Agency has been identified by the State Government, the distribution of work would be done with the District as a unit. In other words, each District will be entrusted to only one Executing Agency. The

Executing Agency will have a Programme Implementation Unit (PIU) in the District, or a compact group of Districts, with an officer of the rank of at least Executive Engineer as its head. 7.2 The Administrative Department of the State Government responsible for the Executing Agency entrusted with the execution of the road works will be the Nodal Department. In the event of there being more than one Executing Agency, under different administrative departments, the State Government would nominate that department as the nodal department which is officially responsible for the management and maintenance of rural roads. 7.3 The Nodal Department will identify a State-level autonomous Agency (Society etc), to be called the State Rural Roads Development Agency (SRRDA), with a distinct legal status, under its control for receiving the funds from the Ministry of Rural Development, as indicated in Para 18 below. If there is no such State-level Agency, the Nodal Department will take steps to register an Agency under the Registration of Societies Act, (there should not be more than one Agency), so as to be able to receive the funds. The Secretary in charge of the Nodal Department or a senior officer will be the Chief Executive. All the proposals will be vetted by the Agency before they are put up to the State-level Standing Committee and are sent to the NRRDA for obtaining clearance of the Ministry of Rural Development. 7.4 To ensure streamlined functioning and adequate coordination (especially where there is more than one executing agency), officers of the PIU need to be made fully accountable to the SRRDA and be brought under its administrative control. The SRRDA would function as the dedicated agency of the state nodal department for rural roads, to ensure the integrated development of rural roads through the various schemes including PMGSY. For this purpose the SRRDA will designate a Chief Executive Officer, a Financial Controller, an Empowered Officer, an IT nodal officer and a State Quality Coordinator. These officers shall be part time or whole time depending on the volume of work in the State. 7.5 Each State Government shall set up a State-level Standing Committee (headed by the Chief Secretary or Additional Chief Secretary) including all the main stakeholders of the programme viz., Secretaries of the Departments of Rural Development, Panchayats, PWD, Forests, Finance, Revenue and Transport. The State Technical Agencies and State Informatics Officer (NIC) may also be invited to participate. The Committee shall vet the Core Network, the CNCPL and CUPL and shall clear the annual project proposals. The Committee shall also a. monitor progress and quality control b. resolve issues relating to land availability and forest / environment clearance c. oversee maintenance funding arrangements for the Core Network d. review capacity at SRRDA and PIU levels including financial management and on-line monitoring; and e. ensure convergence of development programmes including transport facilities on the constructed roads

8.Preparation of Project Proposals and their Clearance

8.1 After approval by the District Panchayat (refer Para 6.1 above), the proposals would be forwarded through the PIU to the SRRDA (refer Para 7.3 above). The PIU will at that time prepare the details of proposals forwarded by the Members of Parliament, and action taken thereon, in Proformae MP -I and

MP II and send it along with the proposals. In all cases where the proposal of an MP has not been included, cogent reasons shall be given based on the reasons given by the District Panchayat. 8.2 The SRRDA shall vet the proposals to ensure that they are in accordance with the Guidelines and shall place them before the State-level Standing Committee along with the MP-I & MP-II Statements. 8.3 The State Level Standing Committee would

MSRDC - Profile
MSRDC is a corporation established and fully owned by the Government of Maharashtra through a resolution on 9th July, 1996 and has been incorporated as a limited company under the Companies Act 1956 on 2nd August 1996. MSRDC mainly deals with the properties and assets comprising movables and immovables including land, road projects, flyover projects, toll collection rights and works under construction which vested with the State Government and were under the control of the Public Works Department. These have been subsequently transferred to MSRDC. Major functions of the Corporation are

To promote and operate - road projects To plan, investigate, design, construct and manage identified road projects and their area development To enter into a contract in respects of the works and any other matters transferred to the Corporation along with assets and liabilities To invite tenders, bids, offers and enter into contracts for the purposes of all the activities of the corporation. To promote participation of any person or body or association of individuals, whether incorporated or not, in planning, investigation, designing, construction and management of transport projects and area development. To undertake schemes or works, either jointly with other corporate bodies or institutions, or with Government or local authorities, or on agency basis in furtherance of the purposes for which the Corporation is established and all matters connected therewith. To undertake any other project and other activities entrusted by the State Government in furtherance of the objectives for which the Corporation is established.

MSRDC has been driven by a focused set of objectives as follows:

To improve and develop integrated transport infrastructure such as roads, expressways, bridges, flyovers, MRTS, ports, rail projects, airports etc. To raise resources for the identified projects.

To follow transparent and competitive bidding procedures to ensure quality works at the most economic cost. To encourage private sector participation in transport infrastructure.

MSRDC strives hard to deliver exceptional, strategic and integrated infrastructure services to the State of Maharashtra. MSRDC encourages the use of state of the art construction technology to reduce construction period. Decentralized decision-making, constructive co-ordination with the private sector, technical support from professional consultants and FIDIC system of contracts with work-specific amendments provide added advantage to MSRDCs lean organization structure. MSRDC envisions itself as the nations chosen infrastructure expert and strategic advisor on transportinfrastructure