Hyderabad: L&T, Telangana stare at fresh tussle over execution of metro rail project
Engineering giant Larsen and Toubro and the Telangana government could be headed for another faceoff over execution of the Rs 16,375-crore metro rail project in Hyderabad. L&T Metro Rail, which has suffered time and cost overruns, both before and after the formation of Telangana, has a July 2017 deadline for completing the 72-km metro rail project which will crisscross Hyderabad in three corridors. Top officials in the Telangana government and L&T executives confirmed that the infrastructure firm has sent a fresh request to the state government seeking extension of construction deadline by at least 18 months and compensation for various impediments. The project, for which a concession agreement was signed in July 2012, has seen a cost overrun of Rs 3,000 crore, taking the projected cost to nearly Rs 20,000 crore. L&T has reportedly raised these concerns with the state government in the past. Confirming submission of a fresh request to the Telangana government on measures to make the project financially viable, L&T Metro Rail’s chief executive officer VB Gadgil told ET “the government is currently looking into our request and the discussions are going on”. A spokesperson for L&T said delays in finalisation of alignment issues and providing continuous right of way in prime areas, coupled with many other reasons beyond the control of major stakeholders have forced the company to seek more time. However, a senior Telangana official, who did not want to be named, said, “The state government has given the right of way for most portions of the metro rail project except a stretch of 4-km in the old city and hence L&T’s request for compensating for time and cost overruns was rejected. We have asked them to expedite the works and complete the project on schedule.” Another bureaucrat said the state government is against accepting L&T’s request for compensation as it could potentially culminate in complications on penalties, which in turn could lead to modifications to viability gap funding, among other problems. A person close to the development said an independent engineering agency has now been asked to examine the technical and commercial factors and advise both parties on the way forward. “Approaching the independent engineer on any dispute between the partners is just a step before moving towards a prolonged arbitration process,” he said. Claiming that the Telangana government did not refuse L&T’s request, a spokesperson for the state government said, “It (Telangana government) has asked the independent engineer, Louis Berger, to review the request and give them the detailed report.” L&T, which is building the public-private-partnership project with viability gap funding from the central government, was asked by Telangana’s first chief minister, K Chandrasekhar Rao, in 2014 to stall work at certain key locations and consider changing alignments. L&T Metro Rail, which in September 2014 had threatened to pull out of the project expressing concerns over the project’s financial viability, was recently asked to resume work at the locations without any change in alignment. David Mayo Authentic Jersey
Rehab plan for Mumbai’s Girgaum in place for Metro-III
Another hurdle on the Metro-III corridor is expected to be resolved as its consultants have worked out in situ rehabilitation plan for the project-affected persons (PAPs) of Girgaum and Kalbadevi llocalities. The report, which was submitted by the consultants to the Mumbai Metro Rail Corporation (MMRC), has been forwarded to the state government to seek concessions under the cluster redevelopment policy. A senior official said, “We want the project to be developed under the cluster policy to make a rehabilitation plan for these tenants viable.” Currently, projects on plots measuring 4,000 square metres and above are eligible for approval under the cluster policy. In case of Metro-III, though, consultants have asked the government to relax the guidelines as the affected area would measure 2,000 sq m. The official said, “We have requested the state government to consider our proposal under the cluster policy as a special case.” The MMRC has also reduced the area of the stations by 20-25m to ensure that the least number of structures get affected in these two areas. A total of 26 buildingsin all, 737 familiesin the Kalbadevi and Girgaum areas would be affected by Metro-III. Chief minister Devendra Fadnavis had promised in situ rehabilitation for the PAPs and provision for larger homes. All the PAPs will get a minimum of 405 sq ft homes. Currently, those who have 100 or 150 sq ft tenements will get 405 sq ft. But if someone has a 250 sq ft tenement, then the person would get a 500 sq ft one, and for 300 sq ft, a 600 sq ft one. The usual rules of rehabilitation will apply to those who have tenements measuring over 300 sq ft where the occupant will get up to 700 sq ft free and for more, he or she will have to pay the construction cost. The first-ever underground Metro in the city will cover Colaba-Bandra-Seepz. Work is expected to begin this month. The government has decided to allot 30 hectares inside Aarey Colony for construction of a depot, for which a final sanction is likely to come soon. The MMRC has claimed that environmentalists should not have a problem as the number of trees to be hacked in Aarey have also been reduced and changing the location will mean an increase in project cost. The MMRC had set a deadline to appoint a civil works contractor in October 2015 but escalation in cost has delayed awarding of the contract. Bruce Matthews Jersey
Proposal to ensure air ticket for Rs 2,500 for 1-hour journeys: Government
There is a proposal to ensure that only Rs 2,500 is charged per ticket for one-hour flights, government told the Lok Sabha today amid concerns expressed by members over exorbitant airfares. The government also said it will hold consultations with the airlines to explore the possibility of curbing the menace of charging exorbitant airfares during emergency situations. “The Ministry will commence the process of consultations with stakeholders, including airlines, to explore possibilities … of containing fares,” Civil Aviation Minister Ashok Gajapathi Raju said while replying to a debate on Demand for Grants for the Ministries of Civil Aviation and Tourism which was approved by the House later. During the debate, members voiced concern over exorbitant airfares during emergency situations like unprecedented floods in Chennai and Srinagar and the recent Jat agitation. Raju said that during the Chennai floods, the airlines did help the government to evacuate stranded people by operating flights from Arakonam air base to Bengaluru and Hyderabad. He said airlines also came forward to operate additional flights during floods in Srinagar, earthquake in Nepal and the Jat agitation in Haryana. When a member from Kerala complained of exorbitant fares on the Gulf route, the Minister remarked, “we can control only things in India”. Minister of State for Civil Aviation Mahesh Sharma said the government is working on strengthening regional air connectivity and in this regard, there is a proposal to ensure that only Rs 2,500 per ticket is charged for one-hour flights. Raju said a comparative study undertaken by the Ministry for January-March 2013 and the same period during 2016 showed a reduction of 18.10 per cent in airfares. This shows that the airlines are passing the benefits from lower ATF (Aviation Turbine Fuel) costs to the passengers, he added. In recent times, concerns have been expressed in various quarters about rising airfares despite fall in fuel prices, which account for over 40 per cent of a carrier’s total operating costs. Raju denied knowledge of any proposal from Kerala government for starting an airline by the state government. “There has not been even an application…Imaginary questions are being asked,” the Civil Aviation Minister said, adding “We have not denied any airline that has applied… Four airlines have got permission (in the last two years)… No such Kerala airline has applied.” During the debate, Congress member KC Venugopal had said the Kerala government had proposed to launch an airlines Air Kerala that would mainly cater to people from the state living in Gulf countries. He asked the Centre to expedite the proposal. On the purchase of 68 aircraft by Air India during the UPA regime, Raju said the matter is before the Public Accounts Committee (PAC) which has taken oral evidence and the matter is going to come up before the panel this month. The Minister said that Air India has reported operating profit of Rs 8 crore in the last financial year (2015-16) as against the loss of Rs 2,686 crore in 2014-15. Raju said there has been robust growth in the civil aviation sector which has grown by 21 per cent and at present, India is ninth in the world in terms of passenger traffic. The aim is to become the third largest civil aviation economy by 2022, he added. The last two years have witnessed substantial growth in the civil aviation sector where the seats in flights have grown from 66,758 to 74,499 on daily basis, which is a 12 per cent rise, he said. The Minister said civil aviation regulator DGCA will soon provide as many as 166 services online and the first set in this regard will be launched this month. According to Raju, all airlines are strictly adhering to the route dispersal guidelines and performace of all of them was in “excess of target”. The national civil aviation policy is being formulated in consultation with all stakeholders. With regard to problems faced by Air India in its Boeing 787 fleet, Raju said some bottlenecks have been sorted out as spares were available. He also said the Ministry is working on setting up no-frills airports. Sharma said despite the country’s huge potential, it is getting only around 0.68 per cent of the world’s overall tourist arrivals. India received about Rs 1.35 lakh crore from foreing tourist arrivals last year, the Tourism Minister said, while noting that the sector provides about 12 per cent of the employment in the country. To promote medical tourism, Sharma said the government is looking to provide electronic visa (e-visa) for medical purposes. “This is our effort,” he noted. According to him, e-visa is being extended to people from 150 countries and the facility has helped in increasing the number of tourist arrivals. He also said that e-visa systems need reforms such as extending the validity and providing multiple entries. “India is a safe country. India is not an unsafe country,” Sharma said even as observed that safety is a matter of concern for everyone and a single incident can have multiple effects. “Safety, security and hospitality are the pillars of tourism… We have tried to address all of them,” the Tourism Minister noted. On the Tourism Ministry not able to spend its budgetary allocation in the last fiscal, Sharma said that was due to introduction of new schemes for which there was delay from state governments in giving their detailed project reports. As a result, the funds could not be fully utilised, he added. Rashod Hill Authentic Jersey
GMR reluctant to share info with AAI on DIAL accounts?
As DIAL completes ten years of operating the international airport here, majority stakeholder GMR remains reluctant to share certain financial information about the joint venture sought by the Airports Authority of India for audit purpose. Diversified GMR group holds 64 per cent stake in Delhi International Airport Ltd (DIAL) while Mini-ratna Public Sector Undertaking AAI has 26 per cent ownership and the rest is with Germany’s airport operator Fraport. Sources in the know said GMR has been showing reluctance to share certain documents related to the accounts of DIAL with AAI even after a year of the government informing GMR of a CAG audit of the AAI revenue of DIAL. According to them, AAI has sought various documents, including those pertaining to DIAL’s internal audit, for a proposed (Comptroller and Auditor General) audit of the former’s accounts. As part of the JV agreement, the government-run airport operator is entitled to a 46 per cent share in the revenue of DIAL. A set of detailed queries sent to GMR spokesperson, Sidharath Kapur President and CFO-Airports at GMR Group and DIAL Chief Executive Officer Prabhakara Rao on April 27, on whether it has refused to share the internal audit report of DIAL remained unanswered. The query on whether GMR has refused to share with AAI documents related to the joint venture’s various subsidiaries also did not elicit any response. On April 20, a DIAL spokesperson had responded to queries related to possible audit of DIAL accounts by CAG. On whether GMR has provided all the documents as requested for the CAG audit, the spokesperson said AAI has not asked for any documents from DIAL for the audit. “However, it has sought certain documents and details from DIAL under the provisions of OMDA (Operations, Management and Development Agreement), which have already been provided to AAI within the given time,” he noted. Interestingly, on February 25, the government informed the Lok Sabha that AAI has sought documents from its joint venture partners — GMR and GVK — for a CAG audit of the books of accounts of the Delhi and Mumbai airports. “AAI has appointed CAG as its representative to scrutinise the books of accounts of Delhi International Airport (DIAL) and Mumbai International Airport Limited (MIAL) to ensure that due government share is accruing to AAI,” Minister of State for Civil Aviation Mahesh Sharma had said in a written reply. When asked whether GMR is opposing a CAG audit, a DIAL spokesperson, on April 20, had said, “DIAL, in principle, is not against any audit by AAI as per the provisions of the OMDA”. “In terms of the provisions of article 149 of the constitution of India section 15-20 of the CAG Act, 1971 as well as the CAG guidelines on PPP, there does not exist authority in favour of CAG to conduct the audit of PPP projects,” the DIAL spokesperson said in an e-mailed response. However, he declined to provide clarity on whether GMR is opposed to CAG audit. The spokesperson said that the Kelkar committee on PPP projects had also categorically stated that such projects are not subjected to CAG audit. “In case of DIAL, there exist checks and balances through proper audit mechanism, such as, internal audit, statutory audit by one of the international reputed big firms, revenue audit by auditors appointed by AAI and regulatory checks and certification by Independent Economic Regulatory Authority (AERA). “Further, DIAL board and audit committee comprising AAI nominee and independent director(s) also audit books and accounts of DIAL,” he said. Brett Favre Jersey
Government bats for Air India, says ‘zero accident’ due to maintenance
Coming to the defence of the beleagured Air India, government today rejected the perception about the state carrier being the “leader in emergency landings” and asserted that there has been “zero accident” due to poor maintenance. Civil Aviation Minister Ashok Gajpathi Raju told the Rajya Sabha that every safety proceedure is followed in the Air India as “no deficiency” would be allowed in flying Indian aircrafts. He said the performance of Air India has improved and it is making profit for the first time in 10 years. “It is unfair to say that Air India is the leader in emergency landings… I do not go into Air India bashing at all. It is unfair to say this,” Raju said while replying to questions in which opposition members voiced concern over emergency landings by the planes of the state carrier. “During the last two years and the current year, a total of 120 incidents of emergency landing due to medical emergency and technical reasons have been reported to the Directorate General of Civil Aviation (DGCA). Out of the 120 incidents, 102 were due to medical emergency and 18 due to technical reasons,” the minister said. Of the 120 incidents of emergency landing, 23 are attributed to Air India and the rest to other airlines, he said. “We follow every safety procedure for all airlines including Air India. We can’t risk people’s life. No deficiency will be allowed to in flying Indian aircrafts in the sky,” he said. Replying to a question by Congress leader Ambika Soni, the Civil Aviation Minister said all incidents due to technical reasons investigated by DGCA and Aircraft Accident Investigation Bureau (AAIB) and safety recommendations emanating from the investigation reports are followed up for implementation with the concerned agencies so as to prevent recurrence of similar incidents in future. He also asserted that Air India is making profit “for the first time in last 10 years” even as he stated that the aviation safety rating of India was downgraded during the UPA regime, a remark which drew sharp reaction from Congress members. “Air India’s all-time performance has increased. This year it is making profit, which is the first time in last ten years. It is making an operative profit. Air India is doing good work,” Raju asserted. Kenny Stills Jersey
Investment in Oil/Petrochemical Sector
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha that during his visit to Iran on 9th April, 2016, It was conveyed to the Iranian side that the Indian Companies could invest up to $ 20 billion and were interested in setting up petrochemical and fertilizers plants, including in the Chahabar SEZ, either to joint venture between Indian and Iranian public sector companies or with private sector partners. In this regard, he requested Iran to allocate appropriate and adequate land in SEZ. No MoU was signed in this regard. During his visit to Iran on 9th April, 2016, Shri, Pradhan, expressed India’s interest in importing LPG from Iran and said that companies from both sides could discuss on setting up an extraction plant in Chahabar, if required. Both sides agreed to continue examining various means of evacuation of gas such as LNG, including through the proposed Iran-India-Pakistan Pipeline. He also expressed India’s interest in setting up an LNG plant and gas cracker in Chahabar port. He also requested Iranian side for favourable treatment in the pricing of gas for India and also supply of rich gas at competitive price and on long term basis for the life of the joint venture projects that Indian companies are interested in setting up. He said that competitive gas pricing was crucial in making the projects attractive for the prospective investors. Also during his visit to Iran Sh. Pradhan, conveyed that India was committed towards making payments as and when banking channels, acceptable to both sides, were available. Matters relating to oil and gas are discussed at various levels including Joint Working Group, Joint Commission as well as at the level of Ministers. There are regular exchange of delegations to pursue matters of mutual interest. Taylor Lewan Authentic Jersey
NHAI takes steps to remove Hurdles for Faster Execution of Projects
In order to ensure faster execution of projects, National Highways Authority of India has delegated powers to its Regional Officers for hiring of equipment and laborers up to Rs.10 lacs per project, to demolish structures that fall within the right-of-way of the project. As some of the contracts had no provision for demolition of such structures, there would often be protracted correspondence between the contractors, Project Directors and NHAI headquarters before these could be removed, often leading to delay in execution of projects. With this delegation of power to ROs NHAI will be able to make encumbrance free land available more speedily to the concessionaire/contractors as laid down under the concession agreement or contract. The Regional Officers have also been instructed to ensure measurement of such structures along with videography for record purpose. NHAI is keen to remove all hurdles for speedy execution of highway projects. This is just one step in a series of delegation of powers at regional level. NHAI has recently delegated powers for construction of foot over bridges under Change of Scope upto Rs. 80 lakh and for 4 and 6 laning projects upto Rs. 1 crore respectively. Similarly, Regional Officers have been delegated the power for maintenance of highways requiring urgent repair works up to Rs. 1 crore. CGM (T) jointly with Regional Officers have also been delegated power for shifting of transmission line/electric line and water pipelines/ other utilities upto Rs 10 crores and Rs 5 crores respectively. All these steps are expected to cut down delays in completion of projects. Arian Foster Womens Jersey
Jet fuel pricing: FIA to meet Dharmendra Pradhan against ‘opaque’ pricing
Domestic airlines body FIA is likely to meet Petroleum Minister Dharmendra Pradhan tomorrow over the alleged “opaque” pricing of jet fuel by oil marketing firms and seek government’s intervention in resolving the issue. The Federation of Indian Airlines (FIA) during the proposed meeting is also expected to raise other related issues, including oil companies alleged failure to bring down ATF prices in line with the reduction in crude prices since 2014, sources said. Any upward or downward revision in aviation turbine fuel prices directly impacts air fares as fuel costs account for over 40 per cent of an airline’s operating cost. FIA is a body of four established domestic private airlines — Jet Airways, IndiGo, SpiceJet and GoAir. “There is lack of transparency in deciding ATF prices by the oil companies. We have raised this issue with them in the past but as it remained unresolved, we want the government to look into the issue now,” a source said. Sources said to discuss the issue, FIA has sought a meeting with Pradhan, which is likely to take place tomorrow. Significantly, the jet fuel price was yesterday hiked by 1.5 per cent, which came on the back of a steep 8.7 per cent or Rs 3,371.55 per kl hike on April 1. Prior to that, rates were hiked by steep 12 per cent, or Rs 4,174.49 on March 1, which led the four major airlines to seek deferment of payment of increased amounts. “Because of lack of transparent pricing mechanism, airlines are made to pay much higher prices for jet fuel in India compared to countries like Singapore. FIA will be taking up this issue as well with the government,” the source said. Akeem Spence Jersey
Financial bids invited for proposed Navi Mumbai airport
City and Industrial Development Corporation (Cidco) has invited financial bids for the proposed Navi Mumbai airport, the financial stage before the much-delayed project is awarded, a person familiar with the matter said. “The Request for Proposals (RFPs) were sent out to the three shortlisted bidders on Friday. As of now, they have to respond by the first week of September but we may extend that by a month,” the person said, adding “in any case, we firmly hope the project will be awarded latest by end of October.” Three companies — GMR Infrastructure, Mumbai International Airport (MIAL) and Mia Infrastructure — are currently in the fray for the project. An alliance of Hiranandani Group and Zurich Airports had been among the shortlisted bidders, but was subsequently disqualified. The company, or alliance, which proposes the highest revenue share with City & Industrial Development Corporation (Cidco), the state-run nodal body for the project, will win the mandate to develop and operate it. MIAL is a subsidiary of GVK and currently runs the Mumbai International Airport, while Mia Infrastructure is a joint venture between Tata Realty & Infrastructure (TRIL) and French company Vinci Concessions. Cidco on April 11 received the approval for issuing RFPs for the project monitoring and implementation committee — an agency formed by the civil aviation ministry for faster implementation of projects — and the state government cabinet. Cidco holds 26% of the special purpose vehicle, and had commenced the first stage of the two-stage bidding process by issuing RFQ on February 5 last year. The Rs 14,573-crore project is seen as a crucial alternative to the congested airport in the city. The government had initially approved setting up the airport in 2007, but ran into several environmental and land acquisition problems. The airport will span an area of 2,867 acres with a terminal building of 5,23,000 square meters and two runways. DeAndre Washington Authentic Jersey
NHAI to raise ₹55,000 cr via bonds in FY17
To finance its various projects, National Highways Authority of India (NHAI) plans to raise ?55,000 crore through bonds this fiscal. The government has permitted borrowing of ?59,279 crore by NHAI during 2016-17. The borrowed funds would be utilised towards part financing of various projects being implemented by NHAI under the National Highways Development Project (NHDP) and other national highways projects with emphasis on the ongoing projects and the various special projects. Chase Daniel Womens Jersey