Is there a need for a roads and highways regulator?

Recent media reports suggest that India’s Ministry of Road Transport and Highways (MORTH) is once again considering establishing an independent roads and highways regulator. The Planning Commission’s working group report on the central roads sector for the twelfth five-year plan (2012-2017) first highlighted the need for such a regulatory authority. The proposed functions of the regulator were to include: (a) tariff determination; (b) regulation of service quality; (c) monitoring compliance with concession agreements and assessment of concessionaire claims; and (d) collection and dissemination of sector information.

This article outlines the current institutional framework of the sector, which is already battling regulatory overlaps, the proposed role of the regulator and what this might mean for the highways sector on the whole.

Responsibility shared

The government of India (GOI) is responsible for the development and maintenance of national highways, and various state governments are responsible for state highways, major district roads and village roads. The GOI can delegate its functions in relation to development or operation of specific national highways to state governments, subject to certain restrictions.

Trilegal is a full-service law firm with offices in Delhi, Mumbai, Bangalore and Hyderabad. Shruti Sahu is a counsel at Trilegal and Pia Singh is a senior associate at the firm.