Question Description
Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer?.

Solutions for Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.

Here you can find the meaning of Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Highways are a critically important infrastructure for an emerging nation. And the design of appropriate contracts is the critical instrument for meeting the challenge of highways. What are these challenges? To put it in one sentence, the objective or the challenge is to maximise the difference between: The additional welfare that our citizens get from having more and better roads and, The present value of the cost of building those roads.The broad principles above translate into these following general rules. We have to have a cut-off rule to decide which project is worthwhile and which are not. Between two identical roads if one can be done at lower cost, we should choose the one with the lower cost, subject to that being viable in the sense of (1), above. All costs do not take the form of brick and mortar. A build-up of fiscal deficit is also a form of cost. This may be difficult to reduce to the equivalent of brick and mortar cost but must not be omitted for that reason.Some of the problems can be overcome if projects are awarded on the basis of a transparent and hands-off auction system. The heart of an efficient, cost effective and transparent system of PPP partnership whereby the government gives out the task of developing new highways to the private sector is the system of auction. Auction work best when the product is being sold lock, stock and barrel to a bidder. Hence, system such as BOT (toll) and annuitized BOT (toll) are better suited to being given out through competitive auction than the BOT (annuity). In the case of BOT (toll) and annuitized BOT the developer basically gets to own the road for the next 20 years. Hence, this comes close to a lock, stock and barrel sale.Which of the following is suggested by the passage to overcome some of the problems associated with highway projects?a)Development of highways by existing Government Department like CPWD, PWD, State Road Construction Department etc.b)Development of highways by P.S.U’s / government undertaking of reckoning who have sufficient experience in the sector to handle such projects.c)Awarding of contracts to private sector companies having technical experience and wherewithal in terms of heavy investment required to be made.d)Award of contracts on auction system based on public-private-partnership (PPP) model.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.