The Union Finance Minister P Chidambaram had promised to set up an independent regulator for the road sector, seen as a reform for the sector. But the Planning Commission has raised objections to the proposal of the independent regulator for the roads sector. Chidambaram promised the proposal of the regulator when he toured the world to attract investment.
The Planning Commission had backed setting up a roads regulator in its 12th Plan document that was approved only a few months back, but now feels that it would not serve any purpose. No country in the world has a regulator…In case of roads, everything is decided in the contract itself, and be it the toll rates, other tariff. So, what do we need a regulator for, a senior official of Planning Commission said.
For the Planning Commission, Prime minister is the de facto head, but it is run by a deputy chairman, currently Montek Singh Ahluwalia. The Commission has made its reservations known to the Highway Ministry that had in March this year proposed that the road regulator would deal with issues including tariff setting, toll policy and modifications, compliance of service levels (for commuters), address public concerns.
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