IMPACT ASSESSMENT OF INVESTMENT IN RURAL ROADS

UNDER RURAL INFRASTRUCTURE DEVELOPMENT FUND OF

NABARD - A CASE STUDY OF HOSHIARPUR DISTRICT OF
PUNJAB

A THESIS
Submitted to the
FACULTY OF BUSINESS MANAGEMENT AND COMMERCE
PANJAB UNIVERSITY, CHANDIGARH
for the degree of

DOCTOR OF PHILOSOPHY
2009

RITU GUPTA

UNIVERSITY BUSINESS SCHOOL

PANJAB UNIVERSITY
CHANDIGARH
(INDIA)

A SUMMARY
The establishment and existence of a well-functioning and efficient basic
infrastructure is essential for economic development and growth. For any
economy to grow and prosper, it is necessary that the factors and agents of
growth with in the economy are facilitated by basic infrastructure like power,
roads, schools, primary health facilities, storage, market yards etc.
Infrastructure investments contribute to economic growth and improvement in
quality of life. They contribute to economic growth by reducing the cost of
production, by making possible the diversification of the economy, and by
making other factors of production more productive. The role of infrastructure
is crucial for agricultural, industrial and overall economic development. It also,
incidentally, provides basic amenities, which improve the quality of life.
Roads have generally been viewed as the most important economic
infrastructural development. Economic benefits such as increased income,
employment, productivity gain, better income distribution and opportunity for
diversification can be generated through rural roads. In rural areas it has wide
ranging impact on individuals, households and communities; both in terms of
income as well as other indicators of quality of life. Benefits of roads for poor
rural areas include: lower transportation costs of goods and passengers, lower
prices, increased returns to farmers in the final realization of farm produce,
thereby increasing their welfare; and expanded extension services. Roads bring
better access to markets, higher prices for produce, and better access to health
and educational facilities.
There are both direct as well as indirect benefits from infrastructure
development and it is important to consider the indirect benefits also, in
determining impact of infrastructure projects. Education, for example, can
affect both income and health, and that in turn affects quality of life. There are
also strong social benefits from infrastructure development that need to be
taken into account. Indicators of access to health and education services have
an undoubtedly positive impact on household welfare. Social benefits such as
time savings, school enrolment levels, skill development, improved information

and gender impacts are less visible, but in the longer term may be as or more
effective in poverty reduction because they lead to sustained improvements in
quality of life. Roads are must in moving agricultural surpluses from the farm
to local or regional markets.
Present chapter deals with the summary of the research conducted, major
findings and limitations of the study and suggestions for future research.
6.1

SUMMARY
In this section the scope and objectives of the study have been stated. This
has been followed by listing of all the hypotheses. Then the research
methodology has been discussed in brief, followed by the findings of the
study.

6.1.1 SCOPE OF THE STUDY

The scope of the present study has been kept limited to Punjab in general,
and district Hoshiarpur in particular. The scope of the present study has
been kept limited, because rural roads have wide socio-economic
ramifications and the analysis of these ramifications require in-depth study.
Hoshiarpur district happens to be one of the under-developed districts of
State of Punjab. This is because of rough terrain and other related reasons.
The rural roads occupy special importance for under-developed areas like
Hoshiarpur. Rural roads are expected to play more important role in underdeveloped areas as compared to developed areas. Therefore, it was felt
appropriate to keep the scope of the study limited to one of the underdeveloped districts of Punjab namely district Hoshiarpur.
The study examines the impact of following ten rural roads constructed in a
period of ten years, from 1995 to 2005, in Hoshiarpur district, under RIDF
of NABARD:
1.

Dasuya - Hajipur Road

2.

Dasuya - Miani Road

3.

Mahilpur - Phagwara Road

4.

Garhshankar Santokhpur Road

5.

Hariana Dholbaha - Bruhi Jhir di Khuhi Road

6.

Bullowal Bhogpur Road

7.

Begowal Miani Road

8.

Dasuya - Miani Road to village Kokhar link Road

9.

Dasuya to Thakkar crossing link Road, near village Saggal Panwan

10.

Sallowal to Ladhpur Road

6.1.2 OBJECTIVES OF THE STUDY

The study aimed at assessing the economic and social impact of investment
in rural roads, constructed under RIDF in Hoshiarpur district of Punjab.
This broad objective was sub-divided into the following:

To evaluate the economic impact of investment in rural roads in terms of

change in income, borrowings, physical capital of households, agriculture
related factors, business related factors, distance to various places,
transportation time and cost and number of monthly visits to various
places, in the project area.

To evaluate the social impact of investment in rural roads on the quality of

rural life in terms of improved accessibility and quality of various facilities
viz. transport and health care facilities, educational and financial
institutions and other public utilities, increase in employment opportunities,
stability of income, reduction in travel time and cost and increased mobility
in the project area.

To study whether demographic variables i.e. sex, education and occupation,

influence the perception of respondents about selected 15 variables,
regarding socio-economic impact of road construction; in terms of
improved access to various facilities, reduced travel time, increased job
opportunities and improved income status.

6.1.3 HYPOTHESES OF THE STUDY

In accordance with the objectives of the study following hypotheses were
formulated:

H1 : There is no significant improvement in financial status, in terms of

income and borrowings of the respondents in the project area due to
investment in rural roads.

H2 : There is no significant increase in physical capital of the households

in the project area due to investment in rural roads.

H3 : There is no significant change in agriculture related indicators in the

project area due to investment in rural roads.

H4 : There is no significant change in business related indicators in the

project area due to investment in rural roads.

H5 : There is no significant decrease in distance to various places in the

project area due to investment in rural roads.

H6 : There is no significant change in transportation time and cost in the

project area due to investment in rural roads.

H7 : There is no significant increase in number of monthly visits to

various places in the project area due to investment in rural roads.

H8 : The mean perception of respondents about the social impacts of rural

roads does not exceed 3.0, the neutral value on a five-point Likert scale.

H9 : Demographic variables i.e. gender, education and occupation, do not

significantly influence the perception of respondents regarding the effect of
rural roads on selected 15 variables, related to socio-economic impact of
road construction.

6.1.4 RESEARCH METHODOLOGY

This section deals with a brief explanation of research methodology used in
the present study.

6.1.4.1 SAMPLE DESIGN

Multi-stage sampling has been done for the purpose of collection of data.
Firstly, for all of 10 road projects completed in Hoshiarpur district in a
period of 1995-2005, 5 villages for each road have been selected using
systematic sampling, i.e. villages have been chosen at a regular distance
along the road length. Then for evaluating the response of beneficiaries, a
sample of 10 respondents from each village was taken, using Judgment
sampling. Efforts have been made to collect data from different categories
of users, like farmers, traders, small/village transporters and other general
users of the road from different age groups, income level and educational
level. A cross-section of users of rural-roads, from the zone of influence of
these road projects of the district Hoshiarpur, has been selected for this
purpose.
Total number of road projects

10

Number of villages surveyed for each road project

05

Number of respondents for each village

10

Total sample size = Total number of road projects * Number of villages

surveyed for each road project * Number of respondents for each
village=10 * 5 * 10= 500
A survey has been conducted to collect data from a sample of total 500
beneficiaries of the project area.
6.1.4.2 SOURCES OF DATA
In order to know the true socio-economic impact of investment in rural
roads under RIDF of NABARD, both primary and secondary data have
been used. Primary data has been collected through survey in the project
area and by conducting direct interviews of the beneficiaries in the project
area, with the help of pre-designed questionnaire. Originally questionnaire
was prepared in English language and then for the convenience of
respondents, the questionnaire was translated in Punjabi language. The
village level information has been generated through group discussions

with the villagers. Primary data has also been collected by visiting the
office of NABARD and conducting personal interviews of various officials
involved in the implementation of the project.
Secondary data has been collected from annual reports and other published
and unpublished reports of NABARD, publications of Government of India
and RBI. It has also been supplemented by already published works,
articles in newspapers, journals etc.
6.1.4.3 PILOT SURVEY
The main objective of the study was to capture the socio-economic impact
of investment in rural roads in Hoshiarpur district of Punjab. Therefore, the
qualitative stage preceded the survey to identify the dimensions to be
included in the questionnaire. The present study made an attempt to
determine socio-economic impact in terms of indicators and variables
relevant in relation to the study undertaken. A pilot survey of 50
respondents, on Dasuya - Hajipur Road was conducted. The responses were
carefully reviewed and subsequent changes were made in the questionnaire.
6.1.4.4 SCALE RELIABILITY
The reliability of the scale was tested for questionnaire used in the present
study with the help of Cronbachs coefficient alpha. The value of
Cronbachs coefficient alpha was 0.711(as shown in the box below), which
is greater than 0.6 and falls between permissible limit of 0.6 to1. As the
result was acceptable, it was decided to use the same scale in the final study
questionnaire.

Reliabi lity Statisti cs

Cronbach's
Alpha
.711

N of Items
46

6.1.4.5 ANALYSIS OF DATA

To evaluate the impact of roads, this study used before and after method,
which is a very powerful method of detecting change. This, of course,
assumed that changes in other parameters remain the same, during the
study period in the project area. The data collected from primary and
secondary sources have been edited, classified and tabulated to make it fit
for further analysis. The data so tabulated have been analyzed using
appropriate statistical tools like: Percentage analysis, Arithmetic Mean,
Standard Deviation (S.D.), Paired t-test for testing the significance of
difference between means, one sample t-test and Chi-square.
Paired t-test for testing the significance of difference between means has
been employed because of its suitability and applicability in assessing
impact by comparing responses from beneficiaries before and after the
construction of roads.
Five-point Likert Scale has been used to highlight the perception of
respondents regarding improvement in quality of life, in terms of 8
indicators and a total of 41 variables covered under those eight variables. In
the present study, ranks assigned to the responses for the calculation of
Likert scale were as follows:
Response

Rank

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

After calculating the mean value for Likert scale; S.D. has been calculated,
to determine, the degree of variation in the responses of respondents.
One sample t-test has also been employed in the present study, to test
whether mean perception of respondents about the benefits of rural roads

exceeds 3.0, the neutral value on a five-point Likert scale (i.e. one tailed ttest) i.e. to test the discriminating ability of the statement.
In the present study Chi-square has been applied in testing the significance
of the independence hypothesis. By independence hypothesis it is meant
that one variable is not affected by or related to another variable and hence
two variables are independent i.e. the perception of respondents regarding
the effect of rural roads on improvement in quality of life is independent of
their demographic variables.
Percentage analysis and Bar charts have also been used at appropriate
places to explain the data.
Analysis of data for the present study has been done by using computer
software Microsoft Excel and Statistical Package for Social Sciences
(SPSS).
6.1.4.6 MAJOR FINDINGS OF THE STUDY
It is clear from the analysis of data in the present study that investment in
rural roads influenced economic status of the people in the project area,
through impact on a number of variables that interact with each other and
ultimately lead to improved economic status and change in pattern of living
in the road influenced area. It is revealed that investment in rural roads
leads to significant improvement in financial status and physical capital of
the households, significant change in agriculture and business related
indicators, significant reduction in distance to various places, transportation
time and cost and significant increase in number of monthly visits to
various places.
It has been observed that there is significant improvement in income of the
respondents in the project area, due to investment in rural roads for all the
ten road projects covered under study and there is also significant increase
in borrowings of the respondents in the project area due to investment in
rural roads for all road projects except two, i.e. Bullowal Bhogpur Road
and Dasuya Miani Road to village Kokhar link Road.

A significant increase in household assets and number of vehicles owned

by the households in the project area, due to investment in rural roads, has
been observed for all the ten road projects studied; However, significant
increase in buildings owned by the households in the project area, due to
investment in rural roads, is found for all road projects except just one road
i.e. Dasuya Hajipur road. It has been also observed that there is a
significant increase in live stock owned by the households in the project
area, due to investment in rural roads, for all the road projects except just
two, i.e. Mahilpur - Phagwara Road and Bullowal Bhogpur Road.
There has been a significant increase in average number of tractors and
pump-set oil engines owned, use of hired labour, fertilizers and pesticides
in agriculture in the project area, due to investment in rural roads, for all
the ten road projects; Whereas significant change in average landholding
and use of HYVS in agriculture in the project area, due to investment in
rural roads has been observed, for nine projects; and a significant change in
use of family labour in agriculture in the project area, due to investment in
rural roads has been observed in case of seven road projects, out of total
ten road projects covered under study.
It has been noted that there is significant change in average business
premises owned in the project area due to investment in rural roads for all
road projects except just one road i.e. Mahilpur-Phagwara road; where as
significant change in average stock-in-trade in the project area due to
investment in rural roads is observed for all road projects, except just two
roads, i.e. Mahilpur-Phagwara road and Sallowal to Ladhpur road.
It has been observed that there is significant decrease in distance to grain
market and veterinary hospital in the project area due to investment in rural
roads for six road projects viz. Mahilpur-Phagwara road, Garhshankar
Santokhpur road, Hariana Dholbaha -Bruhi Jhir di Khuhi road, Dasuya
Miani road to village Kokhar link road, Dasuya to Thakkar crossing link
road, near village Saggal Panwan and Sallowal to Ladhpur road; whereas
significant decrease in distance to health centers in the project area due to

investment in rural roads has been observed for seven projects i.e.
Mahilpur-Phagwara road, Garhshankar Santokhpur road, Hariana
Dholbaha -Bruhi Jhir di Khuhi road, Begowal Miani road, Dasuya
Miani road to village Kokhar link road, Dasuya to Thakkar crossing link
road, near village Saggal Panwan and Sallowal to Ladhpur road.
There has been a significant reduction in average transportation time in the
project area due to investment in rural roads, for all road projects covered
under study, except just one road, i.e. Hariana Dholbaha -Bruhi Jhir di
Khuhi road. It has also been observed that there is significant increase in
average monthly fuel expenses in the project area due to investment in rural
roads, for all the road projects and also significant change in average
maintenance charges per vehicle (monthly) in the project area due to
investment in rural roads is for all the road projects except just one road
project, i.e. Dasuya Hajipur road.
A significant increase in number of monthly visits to market in the project
area due to investment in rural roads has been observed for eight road
projects viz. Dasuya - Hajipur road, Dasuya - Miani road, Garhshankar
Santokhpur road, Hariana Dholbaha - Bruhi Jhir di Khuhi road, Bullowal
Bhogpur road, Begowal Miani road, Dasuya Miani road to village
Kokhar link road and Dasuya to Thakkar crossing link road, near village
Saggal Panwan; whereas significant increase in number of monthly visits to
relatives in the project area due to investment in rural roads has been
observed for all road projects covered under study.
Hence we can say that all weather connectivity contributed towards
significant reduction in cost of transportation of goods and the development
of economic activities by enhancing mobility and thus provided more
opportunity for growth within the rural economy. The benefits from the
road improvement identified by local respondents from the villages studied
included: year-round access, elimination of health hazards from dusty
roads, improved mobility (e.g. children were able to go to school in the
rainy season), and an increase in household purchases of motorbikes.

Through improvement in all these variables, there has been improvement in

economic status of respondents in the study area.
Infrastructure, such as roads have indirect impacts on rural quality of life
by allowing people greater access to social services such as health clinics
or schools. Similarly, if infrastructure investments allow children better
access to schooling, improve their attendance or allow them to study more,
this may lead to indirect, long-run benefits in terms of higher productivity
or income.
In the present study an attempt has been made to assess the social benefits
arising from the construction of rural roads in the study area. For this
purpose, perception of respondents about impact of road construction on
eight indicators and a total of 41 variables, covered under those eight
indicators, has been observed to assess the social impact of selected road
projects. Likert scale has been used to rank the perception of respondents.
Mean value for Likert scale for different variables has been calculated and
then S.D. has been calculated to determine the degree of variation in
response of the respondents. One sample t- test has also been applied to test
whether mean perception of respondents about the benefits of rural roads
exceeds 3.0, (i.e. one tailed t-test) the neutral value on a five-point Likert
scale i.e. to test the discriminating ability of the statement.
From the analysis of data it was clear that most of the respondents agree to
the fact that there is improved access to transport facility, educational
institutions, medical facility, marketing facilities, communication facilities,
R & D, credit facilities, financial institutions and banks, all weather roads;
improved quality of health and education services in terms of, qualification
of staff, availability of supplies and reduced absenteeism of staff; improved
income status, increase in stability of income of farmers, increase in net
farm-gate price, increase in non- farm activities/services, more diversified
income structure, improved access to job opportunity and increase in
seasonal job opportunities in farther rural areas or cities; reduced travel
time to work, school/colleges, hospital and grain market; decrease in fuel

and maintenance cost, cost of transporting products to market; increase in

land value, increase in area under cultivation, increased use of agriculture
inputs, increase production of cash crops and extended market for sale of
production and consumer goods; improved and easy to maintain social
network of contacts and increased personal mobility; increased traffic,
increased accidents, increased pollution and noise, increased deforestation
and soil-erosion and increased migration, reduction in agricultural input
prices, after road construction in their areas and there has been a very low
degree of variation in the responses by different respondents.
It was also clear from the results of the present study that most of
respondents disagree with the fact of improved access to power supply,
reduction in commodity prices, increased visit of extension agents and
increased political participation, in terms of number of political events and
number of visits by Govt. officials, which showed that respondents do not
agree that there is increase in monthly occurrence of social and political
activities after the construction of roads in their areas.
In the present study the significance of impact of demographic variables
(i.e. gender, education, occupation) on the perception of respondents about
effect of rural roads on selected 15 variables has also been assessed by
using Chi-Square (2) and the related hypotheses have been tested.
Results of Chi-square (20.05) analysis revealed that respondents classified
on the basis of gender, significantly differ in their perception, about the
effect of rural roads on improved access to transport facilities after
construction of respective roads, for just one road project, i.e. Dasuya Miani Road to village Kokhar link Road, out of total ten road projects
covered in the study. Results of Chi-square (20.05) also brought out the fact
that respondents classified on the basis of education, do not significantly
differ in their perception about the effect of rural roads on improved access
to transport facilities, after construction of respective roads, for all road
projects; whereas respondents classified on the basis of occupation
significantly differ in their perception about the effect of rural roads on

improved access to transport facilities, after construction of respective

roads, for just two road projects i.e. Mahilpur - Phagwara Road and Dasuya
to Thakkar crossing link Road, near village Saggal Panwan, out of total ten
road projects covered in the study.
It has observed from the results of Chi-square (20.05) analysis that
respondents classified on the basis of gender as well as education; do not
significantly differ in their perception, about the effect of rural roads on
improved access to educational institutions, after construction of respective
roads, for all road projects covered in the study; Whereas respondents
classified on the basis of occupation, significantly differ in their perception,
about the effect of rural roads on improved access to educational
institutions, after construction of respective roads, for three road projects
i.e. Garhshankar - Santokhpur Road, Bullowal Bhogpur Road and Dasuya
to Thakkar crossing link Road, near village Saggal Panwan; out of total ten
road projects covered in the study.
From the results of Chi-square (20.05) analysis, it has been clear that
respondents classified on the basis of gender, do not significantly differ in
their perception, about the effect of rural roads on improved access to
medical facilities, after construction of respective roads, for all road
projects covered in the study, except two, i.e. Garhshankar Santokhpur
Road and Dasuya - Miani Road to village Kokhar link Road; Whereas
respondents classified on the basis of education as well as occupation, do
not significantly differ in their perception, about the effect of rural roads on
improved access to medical facilities, after construction of respective roads,
for all road projects covered in the study.
Results of Chi-square (20.05) analysis disclosed that respondents classified
on the basis of gender, significantly differ in their perception about the
effect of rural roads on improved access to marketing facilities, after
construction of respective roads, for just two rod projects, i.e. Garhshankar
- Santokhpur Road and Dasuya - Miani Road to village Kokhar link Road.;
Whereas respondents classified on the basis of education and occupation,

significantly differ in their perception, about the effect of rural roads on

improved access to marketing facilities, after construction of respective
roads, for just one road project each, i.e. Dasuya - Hajipur Road and
Sallowal to Ladhpur Road respectively, out of total ten road projects
covered in the study.
It has been brought out from the results of Chi-square (20.05) analysis that
respondents classified on the basis of gender, significantly differ in their
perception about the effect of rural roads on improved access to
communication facilities, after construction of respective roads, for just one
road project, i.e. Garhshankar Santokhpur Road. It was also clear from
the results of Chi-square (20.05) analysis that respondents classified on the
basis of education, do not significantly differ, in their perception about the
effect of rural roads on improved access to communication facilities, after
construction of respective roads, for all road projects; whereas respondents
classified on the basis of occupation, significantly differ in their perception
about the effect of rural roads on improved access to communication
facilities, after construction of respective roads, for two road projects i.e.
Mahilpur - Phagwara Road and Dasuya - Miani Road to village Kokhar
link Road, out of total ten road projects covered in the study.
Results of Chi-square (20.05) analysis revealed that respondents classified
on the basis of gender, significantly differ in their perception about the
effect of rural roads on improved access to power supply, after construction
of respective roads, for just two road projects covered in the study, i.e.
Garhshankar Santokhpur Road and Begowal Miani Road. It was also
disclosed from the results of Chi-square (20.05) analysis that respondents
classified on the basis of education as well as occupation, do not
significantly differ, in their perception about the effect of rural roads on
improved access to power supply, after construction of respective roads, for
all road projects covered in the study.

From the results of Chi-square (20.05) analysis, it was observed that

respondents classified on the basis of gender as well as occupation, do not
significantly differ in their perception, about the effect of rural roads on
improved access to R & D facilities, after construction of respective roads,
for all road projects covered in the study; Whereas respondents classified
on the basis of education, significantly differ, in their perception about the
effect of rural roads on improved access to R & D facilities, after
construction of respective roads, for just one road project, i.e. Garhshankar
Santokhpur Road.
It has been observed from the results of Chi-square (20.05) analysis that
respondents classified on the basis of gender, significantly differ in their
perception about the effect of rural roads on improved access to credit
facilities, after construction of respective roads, for just one road project
covered in the study, i.e. Bullowal Bhogpur Road. Results of Chi-square
(20.05) analysis also revealed that respondents classified on the basis of
education, do not significantly differ in their perception, about the effect of
rural roads on improved access to credit facilities, after construction of
respective roads, for all road projects; whereas respondents classified on
the basis of occupation, significantly differ in their perception, about the
effect of rural roads on improved access to credit facilities, after
construction of respective roads, for just two road projects i.e. Dasuya Miani Road and Dasuya - Miani Road to village Kokhar link Road, out of
total ten road projects covered in the study.
The results of Chi-square (20.05) analysis brought out that respondents
classified on the basis of gender, significantly differ in their perception
about the effect of rural roads on improved access to financial institutions
and banks, after construction of respective roads, for just one road project
covered in the study, i.e. Dasuya - Miani Road; Whereas respondents
classified on the basis of education as well as occupation, do not
significantly differ in their perception, about the effect of rural roads on

improved access to financial institutions and banks, after construction of

respective roads, for all road projects covered in the study.
Results of Chi-square (20.05) analysis disclosed that respondents classified
on the basis of gender as well as occupation, do not significantly differ in
their perception, about the effect of rural roads on reduced travel time to
work, after construction of respective roads, for all road projects covered in
the study; Whereas respondents classified on the basis of education,
significantly differ in their perception, about the effect of rural roads on
reduced travel time to work, after construction of respective roads, for four
road projects, out of total ten road projects covered in the study viz. Dasuya
- Hajipur Road, Dasuya - Miani Road, Hariana Dholbaha Bruhi Jhir di
Khuhi Road and Sallowal to Ladhpur Road.
It has been brought out from the results of Chi-square (20.05) analysis that
respondents classified on the basis of gender, do not significantly differ in
their perception, about the effect of rural roads on reduced travel time to
school/college, after construction of respective roads, for all road projects
covered in the study; Whereas respondents classified on the basis of
education as well as occupation, significantly differ in their perception,
about the effect of rural roads on reduced travel time to school/college,
after construction of respective roads, for one road project each i.e.
Sallowal to Ladhpur Road and Dasuya - Miani Road respectively, out of
total ten road projects covered in the study.
From the results of Chi-square (20.05) analysis, it has been observed that
respondents classified on the basis of gender, education as well as
occupation, do not significantly differ in their perception, about the effect
of rural roads on reduced travel time to hospital, after construction of
respective roads, for all road projects covered in the study.
Results of Chi-square (20.05) analysis revealed the face that respondents
classified on the basis of gender, education as well as occupation, do not
significantly differ in their perception, about the effect of rural roads on

reduced travel time to grain market, after construction of respective roads,

for all road projects covered in the study. It was also clear from the results
of Chi-square (20.05) analysis that respondents classified on the basis of
gender as well as education, do not significantly differ in their perception,
about the effect of rural roads on improved access to job opportunities,
after construction of respective roads, for all road projects covered in the
study; Whereas respondents classified on the basis of occupation,
significantly differ in their perception, about the effect of rural roads on
improved access to job opportunities, after construction of respective roads,
for just one road project, i.e. Sallowal to Ladhpur Road, out of total ten
road projects covered in the study.
It has been disclosed from the results of Chi-square (20.05) analysis that
respondents classified on the basis of gender, significantly differ in their
perception, about the effect of rural roads on improved income status, after
construction of respective roads, for just one road project covered in the
study, i.e. Bullowal Bhogpur Road. It was also clear from the results of
Chi-square (20.05) analysis that respondents classified on the basis of
education, do not significantly differ in their perception, about the effect of
rural roads on improved income status, after construction of respective
roads, for all road projects; whereas respondents classified on the basis of
occupation, significantly differ in their perception, about the effect of rural
roads on improved income status, after construction of respective roads, for
just two road projects i.e. Mahilpur - Phagwara Road and Dasuya - Miani
Road to village Kokhar link Road, out of total ten road projects covered in
the study.
Finally, we can say that availability of good all-weather connecting roads
for every village is a pre-requisite for improving the quality of life and
economic conditions in rural areas; and development of rural roads leads to
interaction with the outside world and movement of people which results in
the gradual removal of many superstitions and taboos. This, in turn, tends
to weaken many of the attitudinal barriers to growth and modernity; and

better physical access to basic services leads to improved quality of life of

the poor.
6.2

ISSUES FOR POLICY IMPLICATIONS

On the basis of major findings of the present study, some issues for policy
implications are listed below:

Road construction is a costly investment. Hence there should be sufficient

allocation of finds towards maintenance and upgradation of roads within a
reasonable time frame. The maintenance funds given by the state
Government for the annual maintenance of all type of projects are much
less than the actual requirement. Therefore, the maintenance of these
projects is not up to the mark. The State Governments also hesitate in
fixing a charge/fees on the users of such infrastructural projects.

In the cases of roads where benefits are direct, actual beneficiaries are
identifiable and pricing is possible, a nominal user charge at least to cover
the maintenance cost of the road may be introduced. Depending upon the
level of goods transported through the road and extent of maintenance
charges, toll may be fixed and the collection and maintenance of the road
may be assigned to a suitable NGO.

Road Users Forums incorporating suitable representation from all the

benefited villages may be thought off, which will facilitate monitoring the
implementation of projects and to ensure the quality, right from the
beginning of the works. These Forums may monitor the unauthorized
cutting of the road for different purposes and also control toll collection
and maintenance of the road.

After the road project is completed, additional resource allocations for

supplementary infrastructure support such as expansion/upgradation/
setting up of primary health centers (PHCs), schools, rural drinking water
units, veterinary-care

units, agri-clinics/ agri-business centers, etc. as

"RIDF-plus" approach need to be adopted which may lead to Model

Village development among the villages in the project area.

Improved road connectivity has positively influenced the quality of life of

the villagers in the benefited area. However, complementary investments
are yet to take up in the benefited area. Concentration and convergence of
complementary activities help induce and mobilize communities to take
hold of opportunities provided by the road construction. Similarly
expansion/improvement of service sector in the benefited area is also found
far from satisfactory.
Hence the study suggests for adoption of a comprehensive approach on area
development, i.e. Streamlining mechanism for maintenance of completed
roads, imposing user charge and using the same for improving the road
condition, vigorous extension of service by the service sectors in the newly
connected areas, etc. for further enhancing the benefit of the investment in
rural road. This can easily be done through micro level planning and by
giving priority to activities considered as complementary in a given
context.

6.3

LIMITATIONS OF THE STUDY

Every research has some limitations, and it is the responsibility of the
researcher to admit these limitations. Due to the nature of the subject,
objectives and scope of the study in terms of time span and number of road
projects covered, number of criterion applied and variables examined, the
study is prostrate to certain limitations. These are:

The impacts of investment in rural roads infrastructure has been

determined without controlling the effects of other covariates that
could be increasing or decreasing the positive impacts resulting from
this investment.

As the present research is a case study of Hoshiarpur district of

Punjab, its results are not representative of a wider area and are
applicable to only Hoshiarpur district of Punjab. There are wide
variations in the socio-economic profile of the different districts of the
state and, thus, it is not possible to comment on the impact of

investment in rural roads in other districts of the State or the Country

as a whole on the basis of the present study.

The absence of reliable databases at the regional level reduces the

scope for empirical testing. The availability of public investment and
private investment data at the district level could be useful for
examining intra-district as well as inter-district growth effects.

As the sampling has been done for collecting data for the study, the
sampling errors are bound to occur.

6.3

SUGGESTIONS FOR FUTURE RESEARCH

While conducting the present study certain aspects could not be dealt with,
due to constraints of time and cost. Also, through this research work certain
findings provide inputs on the basis of which the following areas can be
identified for future research.
Research can be conducted to determine the socio-economic impact of
investments in other rural infrastructure sectors like irrigation, drinking
water, sewerage, electricity and telecommunications etc.
Research can be conducted to identify investment opportunities that
generate multiplier effects on income and employment and that enhance the
attraction of public and private investments in the rural infrastructure
sector.
Research can also be carried out to identify various methods to raise the
economic and social profitability of the executed investments, in specific
rural infrastructure sectors.

Research can be conducted specifically to address issues concerning, how to

foster institutional innovations, to enhance infrastructure investments from
public as well as private sector. Concurrently, the identification of bottlenecks
(physical or institutional) which impede the attainment of maximum potential
for investment in rural infrastructure services should also form a major part of
research agenda.