Page 1 of 13

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 170

Trends towards Privatization of Haryana Roadways

Anuj Kumar

Research Scholar

Department of Public Administration

M. D. University, Rohtak (Haryana)

Abstract: Good quality infrastructure with adequate transport services is the crucial prerequisite

for sustainable development. The benefits of the sound transport services could be reflected in a

way of poverty alleviation, improvement in the quality of life through better opportunities,

facilitating better capacity of work, removal of isolation, linkage of economic activities, health

and educational institutions and so on which further facilitates industrializations and

urbanization. The requirements of huge investment and technological up gradation compelled the

government towards privatization of transport services. Efficient and sound public service

delivery from transport services comprehend the matter of concerned to attract people’s

participation in administrative system to realize inclusive development with sustained high

growth rate. Time and again, government of Haryana is trying to privatize Haryana Roadways to

enhance the service viability of road transport services but because of protest commenced by

Haryana Road Transport Employee’s Union, government pulled their leg back. Quality service

provided by road transport has been the matter of concern because almost each and every citizen

is directly or indirectly associated with it. Government is facing a dilemma whether to go

towards privatization or stay back and try to strengthen the existing services of transport

department of the state. Researcher analyzed primarily about the privatization process of the

Haryana Roadways with prime information collected by the state transport department,

Government of Haryana.

Keywords: Quality, Infrastructure, Facility, Privatization, Inclusive, Development

Introduction: On July 23, 1991, India launched historic reforms in response to a first Gulf War

(1991), Fiscal Deficit and Balance of Payment crisis, which changed the very face and the nature

Page 2 of 13

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 171

of economy in coming years. The process of reforms in India is completed by Liberalization,

Privatization and Globalization (LPG). Liberalization shows the direction of reform,

privatization shows the path of reform and globalization shows the ultimate goal of the reforms.

Liberalizations refers to the process of decreasing traits of a state economy and increasing traits

of a market economy while privatization at that time was used as a process under which the state

assets were transferred to the private sector. The globalization reflects increase in economic

integration among nations or abridging the national boundaries, though having political and

cultural dimensions, it is always used in economic terms.

The move towards privatization of public enterprises was initiated by the United Kingdom in the

early 1980s. Local government formally encouraged and implemented the concept of

privatization strategy in the bus service industry since the evolution of the concept of New Public

Management (NPM). It is for up scaling the growth & development. Hereby in transport sector

primarily two types of theory evolved i.e. the Public Interest Theory and the Contract Theory. In

the case of bus service, the important goal is to supply the basic transport services for all the

people including poor and marginalized one. So it is necessary to create a regulatory agency

which required balancing the public and private interests.

The recent economic downturn reinforced the need for enhancing infrastructure investment for

greater productivity and growth. Public Private Partnership having the advantages of leveraging

public capital to attract private capital and undertake a large numbers of infrastructure projects,

introducing private sector expertise and cost-reducing technologies as well as bringing in

efficiencies in operation and maintenance. Yet, attracting private capital through public private

partnership mode is neither easy nor automatic; it requires suitable policy, legal and regulatory

framework that ensures a fair return for investors, protects the interests of users and ensures

quality supply at reasonable cost. With the view to supporting Urban Local Bodies (ULBs) in the

development of public private partnership Projects, Urban Transport Toolkit was started in

January 2010. The toolkits act as a ready reference guide to all urban local bodies in the country.

Slowly and gradually privatization enters into all walks of administration. The field of

Page 3 of 13

European Journal of Business &

Social Sciences

Available at https://ejbss.org/

ISSN: 2235-767X

Volume 07 Issue 01

January 2019

Available online: https://ejbss.org/ P a g e | 172

transportation is no exception. Construction of road on public private partnership (PPP) model

started.

Harvard scholar of road privatization, Jose’ Go’mez-Iba`n~ez notes, privatization has often been

repackaged under different names. He explains- “Government have experimented with many

variants of privatization, often coining special terms – such a “peoplisation” (Sri Lanka),

“CapitaliZation” (Bolivia), or “equitization” (Vietnem), - to distinguish them from the standard

fare. And many consultants now prefer to use the term “public-private-partnership” to emphasise

that a wide variety of forms of public-private collaboration is possible. Such changes in

terminology may be useful, but they do not eliminate the basic problem of persuading the public

that the terms of the partnership are fair”.

In the face of escalating costs, declining productivity, and constraints on funding for public

transit, many governments have turned to transit privatization in an effort to improve cost

efficiency. Privatization of bus services occurs in a range of forms and regulatory environments.

Privatization proponents argue that publicly owned and subsidized transit operations are

inefficient due to higher labour costs, restrictive work rules and large bureaucracies.

Public transport is a merit good which refers the guarantee of basic service to deprived customer

on subsidized rate, though it is economically irrational. Public Vs Private transport debate refers

to optimal level of subsidy. Private transport could be more likely to be profit oriented. The

researcher across the country need to analyze the aspect of citizen’s satisfaction from transport

services on the basis of price, service quality, service enrichment and viability, resource

allocation as well as issues of safety. Though resource constraints could be traced the main

reason for encouraging private participation in the development of transport sector. Improving

the efficiency of transport operations was also equally one of the important factors behind

privatization. Core benefits from privatization of transport services have been analyzed such that

it leads to expansion of transport infrastructure and up gradation of technology which in turn

enhanced the quality of infrastructure and lower the cost and price.