MS 94 IGNOU MBA Solved Assignment - How important is technology to: • Economic development • Progress of society • Improvement in the quality of life?

1.      How important is technology to:

·         Economic development

·         Progress of society

·         Improvement in the quality of life?

Illustrate giving relevant examples.

 Ans :

Technological innovation and Information Communication Technologies (ICTs) represent a way for developing world nations to foster economic development, improve levels of education and training as well as address gender issues within society.

Entrepreneurship is crucial for economic development around the world.

In countries such as Nigeria, Egypt and Indonesia, micro-entrepreneurs generate 38% of the gross domestic product. Analysis from the World Bank in 2011 indicates that small businesses create a disproportionate share of new jobs. They generate new ideas, new business models, and new ways of selling goods and services.

Wireless technology and ICT infrastructure development is also vital for entrepreneurship and small business development.

In many emerging nations, it is a major challenge to gain access to capital and market information. Developing nations specifically do not have functioning infrastructure or much in the way of financial resources.

In sub-Saharan Africa for example, approximately 29% of roads are paved, barely a quarter of the population has access to electricity, and there are fewer than three landlines available per 100 people.

In Indonesia, 75% of the country has household incomes below $2.50 per day. The combination of poor infrastructure and poverty makes it difficult for entrepreneurs to access financial resources and information.

Below is an example of how a basic form of technology – such as a simple mobile phone – has been proved to assist people communicate with one another, access market information, sell products across geographic areas, reach new consumers, enter mobile payment systems, reduce fraud and crime and empower women and the disadvantaged.

The Self-Employed Women’s Association (Sewa) in India includes 1.1-million workers who pool their resources to improve their bargaining power. The organisation sends agricultural workers daily SMSs on commodity prices so farmers can determine the best places to sell their products. Those participating say they have been able to market fruits and vegetables over wider areas and thereby earn higher incomes.

The Ethiopia Commodity Exchange Program (ECEP) has helped entrepreneurs expand their markets. Before 2008, 95% of farmers sold their products in local markets and were not able to access other areas. Transaction costs were high and they had problems getting fair prices due to the lack of market competition. With the advent of the ECEP, agricultural producers gained access to external buyers and were able to negotiate better prices. This boosted their incomes and improved the quality of food products.

The India-based Hand in Hand Partnership (HIHP) enables women to use mobile devices to launch businesses in the technology area. It provides mentorship, training, credit, and technical support.

In Kenya, the Farmers Helpful Network (FHN) gives agricultural producers access to the latest research through their mobile phones. Farmers can ask questions of experts concerning crop rotation, artificial insemination, and crop insurance. This helps them improve their agricultural production and marketing, and increase their overall income.

Access to mobile technology is particularly important for females because there are 300-million fewer women globally than men who own mobile devices. Overall, there is a 21% gender gap in owning a phone worldwide, but this number rises to 23% in Africa, 24% in the Middle East, and 37% in Asia.

Wireless communications also plays an important role in education and training.

In Indonesia, the Global Ready eTraining Center program has trained over 1000 students in technology services. Those enrolled get vouchers for a three-month program. More than 95% of the individuals enrolled completed the class, and 75% said the course increased their income as a result of the skills acquired in the program.

A survey undertaken by the United Nations Development Programme (UNDP) found that 55% of women around the world earned additional income due to owning a mobile phone and 41% increased their income and professional opportunities.

Mobile payment systems represent a way to reduce the cost of financial transactions and thereby help entrepreneurs. If people can transfer funds quickly and efficiently, it becomes easier for small and medium-sized businesses to sell their products. This improves the efficiency of the marketplace and removes barriers to growth.

Reducing “friction” is very important in African, Asian, and Latin American financial markets because barriers to financial transactions remain quite high. Only 30% of those who live in developing African nations have bank accounts.

In short, mobile technology offers extensive help on various forms of social and economic development.

Wireless communications broaden access to information, improve capital access, overcome geographic limitations, and expand market access.

With mobile phones and tablets proliferating at a significant rate, these communications tools enable women, the disadvantaged, and other individuals to access a broader range of investors, suppliers, and customers. Combined with social media platforms, people can extend their reach through mobile devices and pool resources in meaningful ways.

Progress of society

Technology runs in the veins of society. It is the fuel that drives our lives. It is an integral part of daily life. It has definitely benefited society. It has brought luxury in the life of every common man. Automation brought about by technology has saved human effort and time to a large extent. It has brought distant places closer and simplified information access. It has made the world a smaller place to live in. Let us look at some of the important areas, where technology has brought a positive change.

Automation of Processes in the Industry and the Household: Technology has automated many of the critical processes in the industry as well as the household. Imagine the amount of labor that must have been involved in industrial processes when the concept of automation did not exist. Electronic gadgets have entered homes of the common man to rescue him from the boredom of daily chores. Imagine the amount of time people must be spending doing household chores during the time there were no machines and household appliances. It's better not imagined. Today's is the age of robotics. Machines can learn, adopt new things and perform tasks with near-human efficiency.
Changed Modes of Transport: The automobile industry and technology are interwoven. Time has witnessed this industry evolve from mechanical scooters to automated aircraft. Animals were the only modes of transport in the olden days. Technology was the driving force behind the creation and design of the modern-day automobiles. Bicycles evolved into scooters and sports bikes. The idea of having four-wheeled modes of transport gave rise to the creation of cars. Modes of air and water transport came up, thanks to technology.
Reduced Risk to Human Life: Machines have automated many crucial industrial processes. Machines are now taking up mundane jobs that were once done by human workers. Technology has evolved to an extent where machines can perform tasks that are not feasible for man, either because they are risky or life-threatening or because they are beyond human capacity. The use of advanced technologies like robotics and artificial intelligence has proven to be helpful in life-risking endeavors like mining and space exploration.
Data Management and Information Retrieval: Computer technology, needless to say, has changed the face of the world. Computers can store, organize and manage huge amounts of data. They can process large amounts of information. Computers have given rise to the software industry, one of the most progressive industries of the world. The Internet that seeded from computer networking concepts is the most effective communication platform and the largest information base existing today.
Impact on the Entertainment and Advertising Industries: The Internet has brought a positive change to the entertainment and advertising industries. Over the Internet, advertisements can reach the masses within seconds. Internet advertisements have changed equations of the advertising industry. Branding on the Internet is much more effective that other forms of product promotion. The entertainment media has progressed because of advancements in technology. Movies, songs, games are a few clicks away. People have begun using the Internet to watch and download movies, listen to music, play games and entertain themselves. Thanks to handy, mobile and user-friendly devices, all this has become really easy.
Onset of the Digital Age: There's hardly anything analog now, we live in a digital world, a digital age. Talk pixels and bytes. The digitization of information has made it possible for us to store it in a compact form. Ever wondered how gigabytes of data can be stored on a small chip? Digitization it is! Also, digitization enriches the quality of data storage. Digital voice and digital images are of a higher quality. Digital cameras and digital TVs provide users with an enriched picture quality, thus bettering user experience with technology.
Communication Redefined: Cellular communication has revolutionized the communication industry. The conventional telephone, also a piece of technology, was one of the earliest technological developments in communication. Mobile phones have broadened the horizons of communication by enabling convenient long-distance calling and mobile use. Letters have taken a backseat and emails and cell phone messages have become the easiest means to connect. Owing to developments in technology, communication is wireless. Social networking is another defining factor here. It has given an all new dimension to communication, entertainment and recreation.
Satellite Technology: Satellite communication is an important facet of technology. Satellite TV and satellite radio have eased the broadcasting of events across the globe. How else do you think could matches and concerts be broadcasted live? Not just TV and radio, even communication to ships and airplanes wouldn't have been possible if not for satellite communication. Even your hand-held devices wouldn't be of use, if not for radio communication.
These were still a few fields influenced by technology. It is almost impossible to enlist all the positive effects of technology on society. The fast-advancing technology on the whole, has given impetus to developments in various fields and improved the quality of human life. There's less risk, less effort, less mess. There's more leisure, more ease and more speed - all because of that ten-letter word - not a word, a
“Even as the aging of the baby-boomer generation presents a new era of challenges related to public health needs and health-care system pressures, greater availability and adoption of ASTs holds great potential to help address these challenges,” says the report.
“Even as the aging of the baby-boomer generation presents a new era of challenges related to public health needs and health-care system pressures, greater availability and adoption of ASTs holds great potential to help address these challenges,” says the report.
In particular, the report emphasizes the importance of integrating ASTs and Health Information Technology (HIT) as a way to enhance the quality of clinical care and decision making.

“Recent initiatives and policies encouraging the adoption of HIT, coupled with a growing awareness of the importance of both HIT and ASTs, suggest that the next few years may bring new opportunities to leverage these resources for the collective benefit of all stakeholders,” predicts the report. 
In particular, the report emphasizes the importance of integrating ASTs and Health Information Technology (HIT) as a way to enhance the quality of clinical care and decision making. 
“Recent initiatives and policies encouraging the adoption of HIT, coupled with a growing awareness of the importance of both HIT and ASTs, suggest that the next few years may bring new opportunities to leverage these resources for the collective benefit of all stakeholders,” predicts the report. 
“Recent initiatives and policies encouraging the adoption of HIT, coupled with a growing awareness of the importance of both HIT and ASTs, suggest that the next few years may bring new opportunities to leverage these resources for the collective benefit of all stakeholders,” predicts the report. 

• Falls: Some fall detection devices are more effective and reliable than others; they generate alarms that can spur interventions, including preventive ones, by providers and caregivers.

• Chronic Disease Management: Evidence supporting the efficacy of these technologies is generally good but varies by device, health condition and operational model.

• Medication Management: Electronic prescribing, computerized physician order entry and other ASTs have been shown to reduce costly medication errors. 

• Cognitive Impairments: ASTs that detect cognitive impairments are effective in most cases. Those focusing on cognition-related intervention vary in effectiveness. 

• Sensory Impairments: These ASTs benefit people with acquired hearing and vision impairments as well as those with developmental disabilities. 

• Depression: These ASTs address the challenges associated with diagnosis, lack of access to mental-health professionals, perceived stigma, loss of motivation and social isolation. 

• Mobility Impairments: Wheeled mobility equipment and devices that improve balance and walking are well-recognized as safe and effective. Other technologies are emerging. 

• Functional Decline: Passive monitoring ASTs like sensor-based home monitoring have the most robust testing and support in the literature. Evidence is more limited and mixed for other devices that monitor functional decline. 

The report suggests potential strategies to overcome these barriers, including:
The report suggests potential strategies to overcome these barriers, including:

• Disseminating evidence that supports AST adoption.

• Increasing education of providers and consumers.

• Using privacy and security measures more effectively.

• Testing and developing technology to maximize usability.

• Addressing interoperability issue

• Fostering partnerships among technology companies, aging services providers and researchers. 

Identifying and promoting business models that support the design and evaluation of these technologies.

Improvement in the quality of life?

Aging services technologies (AST) can help older adults and people with disabilities achieve and maintain maximum physical function, live as independently as possible and participate in and contribute to society. That’s the conclusion of a new study jointly authored by CAST andNORC, a research organization at the University of Chicago.

The Aging Services Technology Study was mandated by the American Recovery and Reinvestment Act (ARRA) of 2009 and its findings are included in a special Report to Congress. That report provides a detailed discussion of ASTs related to 8 care issues facing older people and people with disabilities.

                                                                

It also identifies barriers to the development and adoption of ASTs and recommends strategies to address those barriers. 

How ASTs Impact 8 Care Issues

The study assessed ASTs in 8 care categories:

Barriers to Aging Services Technology Adoption, Use and Development

Lack of awareness among consumers and providers represents an important barrier to the development and adoption of ASTs, according to the CAST-NORC report. In addition, use of ASTs may be limited by concerns about their effectiveness and usability as well as interoperability issues and impact on workflow.

MS 94 IGNOU MBA Solved Assignment - Explain different types of technology transfer and discuss how the impact of such transfers is assessed. Support your answer with relevant examples.

Explain different types of technology transfer and discuss how the impact of such transfers is assessed. Support your answer with relevant examples.

Ans What is Technology Transfer ?• Technology Transfer is the process by which technology is disseminated.• It involves communication of relevant knowledge by the Transferor to the Recipient.• It is in the form of technology transfer transaction which way or may not be a legally binding contract

Types of Technology Transfer•

Scientific Knowledge Transfer,

Direct Technology Transfer,

Spin-off Technology Transfer•

 Informal Technology Transfer & Formal Technology Transfer

Internal Technology Transfer & External Technology Transfer

Internal Technology TransferInternal Technology Transfer refer to such technology transfers / investments where control on the ownership & usage of technology resides with the transferor.It is a complex process involving following decisions:• Timing : When to introduce new technology / products in the market?• Location : Where to transfer new technology / products?• Multi-functional teams --Which staff members should be involved in transfer process ?• Communication methods & procedures – What type of Communication methods & procedures be adopted to facilitate transfer ?

Barriers to Internal Technology Transfer• R & D goals are not known to Production Department.• Difficulties in stopping current production to test new products / processes• R&D Department does not understand needs & capability of Production Department.• In general, Production Department is resistant to innovation and is bound by routine.• Non-linkage of new technologies to marketing / customer needs.

 Overcoming Barriers to Internal Technology Transfer• Top management support and participation in the transfer process• Providing supportive organizational culture• Use of multi-functional teams in the transfer process• Ensuring effective communication in the organization• Bringing R&D closer to production.• Rotation of few person between R&D and production• Linking & participation of marketing elements in the transfer process.

 Steps in Internal Technology Acquisition by a firm1. Planning new products / services / processes to be offered – planning must incorporate voice of the customer & user needs2. Screening new products, processes or services – only viable / feasible items be offered as only one out of 4/5 becomes a commercial success.3. Initiating development process – must be properly designed and carried out so that it facilitates success. Enterprises shoulda. Consist of temporary system capable of adapting to dymanics of changeb. Organize the systems around problem solving

 Steps in Internal Technology Acquisition by a firmc. Have flexible management system & replace rigid management systemd. Use multi-functional teams.e. Proper integration between R&D, Production & Marketing sub-systemsf. Ensure effective communication4. Carrying out trial production on small scale and test marketing5. Improving design & production processes based on experiences / feedback6. Commercialization i.e. mass production & sales

 External Technology Transfer• In these transfers, control on the ownership & usage of technology usually does not remain with transferor and it passes on to the recipient, like joint venture with local control, licensing agreement etc.

 External Technology TransferSuccessful external technology transfer depends upon following factors:• Type of the technology being transferred• Complexity of the technology being transferred• Transfer mechanism selected• Relationships between the parties – building of mutual trust• Core competencies of the parties & compatibilty thereof• Organizational culture of the parties & mutual understanding thereof

. Methods of External Technology Transfer• Co-operative & collaborative ventures / strategic alliances• Licensing agreements• Contracting agreements• Enterprise acquisition.

 Why External Technology Transfer• Technology already developed saves time & efforts• Sometimes Growth objectives or competitive goals cannot be reached through internal development• Lack of risk taking ability for innovations• Lack of internal resources (physical & human) for innovation• Firm does not have core competencies to deal with complex technological developments.• Need to keep up with competitors• Need to cope up with acceleration of technological change• As a part of firm’ strategy --- let other firms take big risks & it will purchase technology developed by them.

 Barriers to External Technology Transfer• Associated costs – usually high prices are required to be paid in the form of royalities, technical & knowhow fees etc over medium to long term period• Appropriatesness of technology i.e. its suitability to core competencies and market needs is always a point of discussion and investigation• Heavy reliances on foreign technology- may make transferee / recipient technologically dependent on external technology providers / transferors even for small issues• Lack of mutual trust between two parties may hinder full & timely transfer

 Barriers to External Technology Transfer• There is risk of loss of control over technology and the transferee / recipient may use technology in an arbitrary manner• Transfer may render existing technology & its related products / services / processes obsolete• Transferee may turn a potential competitor in future.• Mismatch in core competencies of the transferor & transferee may create difficulties in transfer• Different organisation cultures may create difficulties in transfer• Lack of effective communication between the parties may also create difficulties in transfer

 Overcoming Barriers to External Technology Transfer• Proper & well defined technology transfer agreement should be signed• Proper assessment / evaluation of appropriateness of technology• Proper assessment / evaluation of compatability of core competencies of the parties• Building pre-agreement relationships so as to develop mutual trust and so as to understand culture of opposite parties• Seeking cross cultural training• Ensuring effective communication• Anticipating problems and adopting measures for facilitating transfer

 Steps in External Technology Acquisition by a firm –1. Identification of Need2. Developing list of suitable technology providers3. Short listing / selecting suitable technology providers on the basis …. Cultural compatibility, compatibility of core competences, appropriateness of technology, technical feasibility etc4. Negotiation5. Agreement6. Payments as per agreement7. Transfer of specifications, blueprints, designs, documents, CDs to purchaser8. Training of technical personnel of purchaser

 Modes of Payment for Technology Transfer• Lumpsum payment or periodical instalments• Royalities as a %age of sales over next few years• Cross-licensing agreements• Contracted supply of output• Issue of equity shares in lieu of technology transferred

. Acquisition of Technology By Nation• What factors influence acquisition decision?• What are national strategies for technology acquisition?• Methods of technology acquisition by a nation

Methods of Technology Acquisition By Nation• Attracting TNCs / MNCs – Through direct measures viz. making a positive list of industries open to FDI – Through indirect measures - viz by offering incentives & subsidies• Attracting TNCs / MNCs into natural resource processing & inducing greater value additions• Using TNCs / MNCs to attract / encourage their overseas suppliers to invest into country• Improving skills & training of local technologists by involving TNCs / MNCs

Methods of Technology Acquisition By Nation • Developing industrial parks / technology parks to attract high technology investors • Offering incentives to existing investors to move to more complex technologies and to increase or upgrade technological R& D base • Changing competitive environment and existing incentive structure to encourage world class technology & management • Improving technological access for local firms for outsourcing / technology transfer • Collecting, organising & disseminating information about technology development

MS 94 IGNOU MBA Solved Assignment -Discuss giving examples, the importance of generation, up gradation or improvement of technology.

Discuss giving examples, the importance of generation, up gradation or improvement of technology.

Ans :

Despite impressive expansion over the years, the entire Indian transport network is characterised by many deficiencies and a major exercise in expansion of capacity and modernisation is necessary. This will have to be accompanied by technological upgradation in many critical areas. The need for new technology acquires immediate relevance since the transport sector has been suffering from a technological freeze for a long time. The magnitude of the tasks of capacity augmentation and replacement of overaged assets offer an opportunity for technological upgradation in each of the transport sub-sectors.

Railways

4.2 Although some attempts were made at technological upgradation in the past, a renewed concerted effort is needed in order to ensure that the Indian Railways catapult itself to a high growth trajectory over the next decade.

4.3 Despite accelerated track renewal programmes taken up during Seventh and Eighth Five Year Plans, about 11,000 kms. of track length was overdue for renewal at the start of the Ninth Plan. The total requirement of railway track renewal during the Ninth Five Year Plan is estimated at 24000 kms. The increased frequency of engine failures, hot mix detachments, rail fractures and other track failures and the tardy working of signalling and telecommunication equipment put a question mark on the reliability of rail assets. While on the one hand, the poor reliability of assets affects adversely the productivity of Indian Railways, on the other it threatens to jeopardize the safety of rail operations. The incidence of asset failure has to be controlled by providing technology back up to the human element in the area of train operations in order to enhance safety.

4.4 Our transport network is characterised by a system of high density corridors (HDC) linking major urban areas. Within the high density corridors system, the corridors linking up the four major metropolitan cities (Golden Quadrilateral and its diagonals) carry a very heavy volume of traffic as compared to the existing capacity. The augmentation of capacity of HDC system should receive high priority. In the case of railways, strengthening of Golden Quadrilateral would involve doubling/ tripling/ quadrupling in different sectors according to operational needs and upgradation to higher axle loads. Construction of bypasses for major cities and upgradation of passenger and freight terminals is also needed to augment capacity on the busy sections of Indian Railways.

4.5 The railways must focus on reducing the speed differentials between freight and passenger services by raising speeds of freight cars to 100 km/hr. This will help improve traffic throughput in the system. It is also necessary to improve freight car designs to secure higher pay load to tare ratios for freight and to improve speeds. Locomotive technology is being improved through adoption of latest-state-of-the art locos as well as upgradation of existing fleet through retrofitment. This process must be accelerated. Mechanisation of track maintenance is another area which should receive higher priority.

4.6 In order to promote intermodalism for safe, efficient, customer friendly and faster movement of goods, there is need to increase Inland Container Depots (ICDs). The Railways have to increasingly focus on creation of rail hubs with sufficient warehousing facilities and accelerate the programme of containerisation not only to promote intermodal transport but also for increasing its market share and catering to high value traffic. Indian Railways have also initiated facilities like Roll on – Roll off on the Konkan Railway. This arrangement enables loading of a truck directly on a flat thereby avoiding movement of longhaul traffic in hilly and difficult terrain through road transport. Such facilities need to be replicated.

Roads

4.7 The augmentation of capacity of the existing High Density Corridors should receive high priority. A massive programme of upgradation of HDCs in the highways involving about 12,000 kms. has already been announced. Within this, the development of the four major corridors of the Golden Quadrilateral linking Delhi, Mumbai, Chennai and Calcutta must be given highest priority. Development of North-South and East-West corridors should be incorporated in the existing alignment of Golden Quadrangle by the addition of spurs and spines which would expand the alignment from North-South and East-West extremities. The spine and grid system also needs to serve a number of important ports and industrial centres through suitable spur connections. With such an approach it would be possible to optimise the utilisation of resources and at the same time ensure improved accessibility and mobility. The upgradation of HDC system in roads must be integrated with parallel efforts in railways so that each mode can perform the job for which it is best suited on the basis of its comparative advantage and also provide competition when appropriate.

4.8 Some of the State Highways carry heavy traffic. HDCs on the State Highway Network should be developed in such a way that they may provide a feeder system to the rail and National Highway network. There are several deficiencies at present, in the form of missing links, weak and narrow bridges and the absence of bypasses. These should receive higher priority than the extension of the network itself. The priority for linking up villages and habitation with all weather roads is too obvious to need any emphasis. Programme for construction of rural roads under various schemes needs to be integrated and co-ordinated under one umbrella in the State sector.

4.9 India is committed to the concept of development of Asian Highway network for the economic and social growth of the region and has been taking all possible measures to develop the routes within India and establish linkages with neighbouring countries. Two priority international routes pass through India, the first commencing from Pakistan border and terminating at Bangladesh border and the second starting from Delhi, going to Nepal and finally Bangladesh. Such road transport linkages will facilitate the movement of goods and people across the BIMST-EC countries along Asian Highway routes. The major development works on other Asian Highway routes would be completed on priority. Efforts towards development of Trans Asian Railway Network are also important in this regard and need to be encouraged.

4.10 The existing road network is now showing signs of serious deterioration because of neglect of maintenance. Continuance of this is highly uneconomic. A rupee spent on maintenance saves two to three rupees in vehicle operating cost besides providing a very cost effective option to improving traffic flow. Serious attention is required to improve the situation. Maintenance operations should be given to the private contractors in order to secure the benefits of competitive price and quality.

4.11 There is an urgent need for the introduction of the new technology in the designs, engineering and construction methods as also carrying out surveys through remote sensing techniques particularly in the upgradation of the roads which are covered by the HDC. Use of machines to improve both the quality and speed of construction need to be pursued more vigorously. The possibility of creating engineering leasing companies need to be encouraged. The concept of awarding big road projects as turnkey Engineering Procurement Construction (EPC) contracts, would help reduce construction time and improve quality. The Public Works Departments of the States also need to be thoroughly modernised. These steps would help in reducing by at least 50% the abnormally high time taken for construction of roads. Several new materials of road construction are emerging such as polymer modified bitumen, geosynthetics etc. that would need to be encouraged depending upon the cost effectiveness. For rural roads, use of local material need to be maximised to economise on investments.

Road Transport

4.12 There has been substantial induction of new technology in passenger transport segment, particularly in personalised vehicles, though there is almost no progress in so far as bus transport is concerned. More importantly there has been technological stagnation in the field of road freight transport business. Low diesel prices in the past and extreme overloading made possible by lax implementation of rules and regulations which themselves are not very stringent, unhelpful, tax regime and congested roads - all militate against the introduction of new technology in the trucking industry. There is an urgent need that the country should profit from the increased use of low tare weight and heavy haul multi axle trucks which are more fuel efficient.

4.13 Multi-axle vehicles cause much less damage to roads than two axle trucks. These vehicles offer cost reduction not merely in terms of lower line-haul cost per tonne km. but in terms of increased loading/unloading efficiency and maximum interchangeability of loads between vehicles and modes. Since the benefits in terms of lower road damage do not accrue to the user, it is necessary to use differential taxation on multi-axled vehicles to encourage their use.

4.14 Octroi and sales tax barrier lead to unnecessary detention apart from causing avoidable harassment and adding to operating cost. At present 5 States and 3 UTs levy octroi. Beginning with small localities these states may also phase out levy of octroi. While sales tax barriers may be necessary to check evasion of tax revenue, it is necessary that these barriers may be only at the entry and exit points of States and not enroute. Streamlining the procedures and computerisation of sales tax posts may help in reducing detention time and also curbing malpractices.

4.15 Safety of operation is an area of concern in all modes of transport. The sheer magnitude and severity of road accidents require immediate attention. The number of fatalities on Indian roads has increased to 60,000 per annum which is completely unacceptable. India’s share in the world vehicle population is only 4.2% whereas in terms of fatality it is 9%. The severity of accidents in India is evident from the fact that 1 person gets killed out of 5 accidents whereas in other countries a fatality occurs out of 10 to 70 accidents. The total estimated loss on account of accidents in the country is estimated at Rs. 6,000 crore per year. A multi pronged attack encompassing engineering, education and enforcement of regulatory provisions is the need of the hour to tackle this problem.