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Feb 6, 2007

Corruption * India - Building roads not enough

New Delhi,India -The Business Standard -Feb 06, 2007: -- Much has been made of India’s Golden Quadrilateral project. Among its key claims are that truck speeds have increased more than 40 per cent as a result of better-quality roads. While improved road quality has certainly generated a virtuous circle of greater productivity and enhanced supply chain efficiencies by unlocking working capital for user industries, it would be wrong to conclude that all’s well with India’s road transport business. In fact, the key findings of a recent report by Marketing & Development Research Associates (MDRA), done for Transparency International India (TII), present a sobering counterpoint to the belief that the transport sector is being reformed... To be sure, the broad focus of the study is hardly new—chronic corruption in the trucking business. Most Indians are so inured to the sight of truckers paying bribes at nakas or octroi points all over India that it no longer attracts comment. However, by quantifying the impact of corruption, the study underlines the point that there is an urgent need to address the issue. On aggregate, the study has found that the trucking industry pays more than Rs 22,200 crore a year in bribes. In fact, the study says the amount involved in bribes is almost equal to what is formally paid to truck drivers as remuneration...

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