Report of the Specialised Working Group on Benefit Cost Analysis of Transport Projects

Abstract

The report presents a comprehensive framework for the benefit-cost analysis (BCA) of transport projects in India, established by a specialized Planning Commission working group in 1980. It outlines methodologies for evaluating economic benefits, including shadow pricing, cost estimation, and traffic projections, supported by case studies of railways, ports, highways, airports, ships, and aircraft acquisitions. The report emphasizes standardization of appraisal methods, refinement of current methodologies, and systematic data collection to enhance accuracy. Findings demonstrate that strategic investments in transport infrastructure—including highway four-laning, airport expansion, and fleet acquisitions—can yield significant direct and indirect economic benefits, improve safety, and facilitate national development goals.