Contractors named in road scam pocketed Rs4,259 crore in 3 years
While Mumbaiites are complaining about the bad quality of roads, it has now emerged that a majority of the road repairs and reconstruction contracts — Rs4,259 crore out of Rs4,600 crore —were awarded to six contractors by the civic body in the past three years. The same contractors are now being probed by the police in the road scam for building sub-standard roads in the city. Experts have been pointing out how the poor quality of construction is a major reason why city roads develop potholes during the monsoon. This also throws light on the nexus between contractors, the civic administration and politicians. According to data accessed by the Hindustan Times, the six contractors named in the Brihanmumbai Municipal Corporation’s (BMC) report into the alleged irregularities in the construction of roads bagged a majority of road contracts between November 2012 and May 2015. With less than a month’s rainfall, more than 700 potholes have been found on the city’s roads. Some of these roads are even in the defect liability period (DLP) or the guarantee period provided by contractors — five years for asphalt roads and 15 years for cement concrete roads. In the past three years, almost all road contracts, except two or three, went to the same set of contractors. While some contracts of Rs50-100 crore were given to one contractor, projects costing more than Rs100 crore were given to joint ventures formed by these contractors. For instance, in January, a contract worth Rs387 crore for constructing cement concrete roads in the western suburbs was awarded to a joint venture of J Kumar Infraprojects and KR Construction. Likewise, another contract worth Rs248 crore for laying asphalt cover and improvement of roads in the island city was given to joint venture of Relcon Infraprojects and RK Madhani in February, 2014. The police have registered a first information report (FIR) against six contractors — KR Construction, J Kumar Infraprojects, RPS Infraprojects, RK Madhani, Mahavir Infraprojects and Relcon Infraprojects — in connection with the road repair scam under Indian Penal Code sections 120 (A) (Criminal conspiracy), 197 (producing false documents) and 420 (cheating). The BMC has initiated a process of blacklisting these contractors. A senior official from the civic body, who did not wish to be named said, “These contractors had a free run these past three years to bid and win tenders. In many cases, it was our officials who helped contractors through the bidding process. Even elected representatives in the civic body helped them.” Civic chief Ajoy Mehta has also come down heavily on civic officials after the road scam was revealed, for helping the contractors to get tenders and allowing substandard repair work. In his ‘action to be taken’ report, Mehta stated, “This large irregularity could not have taken place without the active and passive involvement of senior officials and officials at all ranks.” Significantly, the same set of contractors have undertaken other work of more than Rs1,500 crore in the city in various departments. Citizen groups have demanded a probe into all the contracts and want the civic body to adopt tough measures to ensure quality road construction. Shyama Kulkarni, a citizen activist from H west ward, said, “It is shocking that the same set of contractors have got all the major road works in the past few years. Why? They are responsible for carrying out shoddy road work, making it difficult for us during the monsoon. It is clear that the civic officials and contractors are working in connivance, or else it would have been impossible for the contractors to bag almost every contract.” Brett Favre Jersey
NHAI to lay out revival plan for troubled highway projs next wk
The government is set to address 19 languishing highway projects and CNBC-TV18 reports forward movement is likely within a week. The National Highways Authority of India (NHAI) has formulated a revival scheme for three national highway projects, sources say. The proposal will be taken up at NHAI’s next meet on July 15 and two projects; the Chhapra-Hajipur expressway being developed by Madhucon Projects and Panvel-Indapur highway being developed by Supreme Infrastructure are likely to be taken up first. NHAI has formulated this revival scheme in consultation with a consortium led by State Bank of India Mack Hollins Womens Jersey
L&T in talks with Canadian pension fund to sell road projects
Larsen and Toubro Ltd (L&T), the country’s largest engineering and construction firm, plans to monetize its operational road projects, held by subsidiary L&T Infrastructure Development Projects Ltd (L&T IDPL), in a deal with Canada Pension Plan Investment Board (CPPIB), according to three people with direct knowledge of the discussions between the two companies. A deal will be struck within six months, the three added, asking not to be identified. L&T is discussing with CPPIB the possibility of creating two road companies, one to develop new roads and the other to operate all the existing roads assets, group executive chairman A.M. Naik said in an interview on Friday. He did not disclose further details. A deal hasn’t been struck, said a senior L&T executive. “Nothing has been concluded (with CPPIB). Monetization of assets is a part of the plan, but in what form, we have not decided. Monetization will help IDPL focus on its next projects, which will require recycling of capital. So you can’t have capital stuck in commissioned projects,” said R. Shankar Raman, chief financial officer of L&T and non-executive chairman of L&T IDPL. A CPPIB spokesman declined comment for the story. As of 31 March, CPPIB had C$278.9 billion (around Rs.14.3 trillion today) in funds under management. The deal, when it happens, will be one of the biggest in the roads sector and give CPPIB a significant presence in India’s roads sector. It will also help L&T return to bidding for BOT (build, operate and transfer) road projects. CPPIB, the largest pension fund in Canada, has already invested Rs.2,000 crore in L&T IDPL in two tranches. The first tranche was invested in December 2014, marking the entry of CPPIB into India’s infrastructure sector. L&T got the second tranche of Rs.1,000 crore a year later. L&T and CPPIB are discussing different options—whether the pension fund will buy the entire portfolio of operational assets or a few individual assets—and working on a structure to carve out the road assets from L&T IDPL, which also houses the Hyderabad Metro project, the three people said. L&T IDPL owns and operates roads, bridges, the Hyderabad Metro project and the Kudgi Power Transmission Line. Out of its 17 road projects, 13-14 are operational. The firm has been vocal about its plans to eventually monetize its operational road assets to free up capital by way of a sale or an infrastructure investment trust (InvIT). In recent years, L&T has been hit by stalled industrial projects and a downtrend in the investment cycle. The company has only been bidding for road projects under the government- funded EPC model (engineering, procurement and construction) and kept away from bidding for BOT projects, under which a developer builds the project with its own money and earns annuity over the period of concession. Once it is able to monetize assets, L&T plans to start bidding for projects under BOT and the new hybrid annuity model to benefit from the government’s emphasis on roads, said one of the three people cited above. “L&T is working on a structure to transfer the operational road projects to the pension fund, while it will continue to hold a minority stake in the carved out portfolio. L&T cannot put more capital in the roads sector unless it monetizes existing projects,” this person said. L&T’s roads business has an estimated loss of Rs.600 crore. The firm has built around 7,800km of roads at a total project cost of around Rs.18,000 crore of which Rs.12,000 crore is debt. The L&T group, with its 82 business units, runs under a complex structure and is trying to simplify itself by divesting or monetizing non-core assets. L&T is trying to simplify its business structure and right-size capital allocation by sticking to core businesses, said Axis Capital in a report on 7 July. “The company will exit all non-core businesses (insurance, Kattupalli port, Rajpura power plant) over 1-2 years,” the report said. L&T, which builds and operates roads, ports and other infrastructure projects, has also evaluated listing some of its operational road assets through InvIT, a new structure cleared by capital market regulator Securities and Exchange Board of India (Sebi) to ease access to funds for infrastructure developers. But the company is more inclined towards an outright sale, the second of the three people cited above said. Sebi is yet to remove “some of the constraints” in InvITs, Raman said. “There is acknowledgement of the constraints, but a formal withdrawal of restrictions has not yet happened.” CPPIB has invested more than $2 billion (around Rs.13,400 crore today) in India and that is likely to go up, the fund’s top management said during a visit to India in October. In India, CPPIB also has a strategic alliance with Shapoorji Pallonji Group, called SPREP Pte Ltd, and a real estate investment platform alliance with Piramal Enterprises Ltd, where both partners have committed $250 million each. Other large Canadian pension funds Caisse de dépôt et placement du Québec and the Public Sector Pension Investment Board are also looking to invest in the Indian infrastructure sector. Landon Collins Jersey
Air India adds 7 more sectors under ‘Spot Fares’ scheme
Due to popular response and with an aim to enhance growth, Air India has decided to add seven more sectors under its ‘Spot Fares’ scheme. Sectors equivalent to Rajdhani AC II have been added are: Delhi-Ranchi-Delhi, Delhi-Ahmedabad-Delhi, Delhi-Hyderabad-Delhi, Delhi-Bhubaneshwar-Delhi, Delhi-Goa-Delhi, Delhi-Patna –Delhi, Delhi-Raipur-Delhi. The ticket fares on these routes shall be as follows: Delhi-Ranchi Rs. 2,770, Delhi-Ahmedabad Rs. 2,270, Delhi-Hyderabad Rs. 3,275, Delhi-Bhubaneshwar Rs. 3,475, Delhi-Goa Rs. 3,665, Delhi-Patna Rs. 2,315 and Delhi-Raipur Rs. 2,240 respectively. The Spot Fares scheme was launched on select domestic sectors with effect from (wef) June 27 to September 30 (equivalent to Rajdhani Express AC I fares). Delhi-Jammu-Delhi, Delhi-Mumbai-Delhi, Delhi-Kolkata-Delhi, Delhi-Bangaluru-Delhi, Delhi-Chennai-Delhi, Delhi-Ranchi-Delhi, Delhi-Ahmedabad-Delhi, Delhi-Hyderabad-Delhi, Delhi-Bhubaneshwar-Delhi, Delhi-Goa-Delhi, Delhi-Patna –Delhi, Delhi-Raipur-Delhi, Delhi-Thiruvanthapuram-Delhi, Delhi-Guwahati-Delhi. The fares have been further reduced wef July 10 in Rajdhani Express AC II : – Delhi-Mumbai-Delhi, Delhi-Kolkata-Delhi, Delhi-Bangaluru-Delhi, Delhi-Chennai-Delhi. These fares would be available for sale within four hours of the scheduled departure of the flights. These fares are available for sale through City & Airport Booking Offices, Call Centre and Air India Website (www.airindia.in). The above scheme is available more than 100 flights across the country. By introducing these fares we are not only able to generate additional revenue but also able to fill each and every seat till last minute. Lance Alworth Authentic Jersey
We are excited about India, says AirAsia chief Tony Fernandes
AirAsia is excited about India and is looking to accelerate there even though it is a tough market, the budget airline’s chief Tony Fernandes said today. The Malaysian no-frills carrier along with Tatas own the Indian joint venture AirAsia India, which started operations in 2014. Speaking to reporters at the international airshow here, Fernandes said AirAsia is excited about the Indian market. “We are excited about India. It is a tough market… We are looking to accelerate (in India),” the AirAsia Group Chief Executive Officer said. AirAsia holds 49 per cent stake in budget airline AirAsia India, which currently has a fleet of six aircraft. About the Indian government’s decision to do away with the 5/20 international flying norm for local carrier, Fernandes said, “With the change in rule, now we don’t have to wait for five years and 20 aircraft fleet (to fly overseas)”. Last month, the government scrapped the controversial 5/20 norm and now any domestic airline can fly overseas provided they deploy 20 planes or 20 per cent of their total capacity for domestic operations. Referring to the government doing away with the 5/20 norm, Fernandes had said it was almost an end to vested interests. “Almost an end to vested interests. Power to the people. Well done @narendramodi . You kept your word,” Fernandes, who has been vocal against the 5/20 rule, had said in June. Zach Randolph Jersey
Jayant Sinha seeks setting up platform to resolve complaints of air passengers
In a move to empower air passengers Minister of State for Civil Aviation, Jayant Sinha, has sought to set up a ‘warroom’ kind of model that focuses on resolution of passengers’ complaints as and when it reaches them through various modes, including Twitter. The idea was mooted by the minister in the introductory meeting of various departments held on Friday. “The ministry has started working on the idea. The model here cannot be the same as railways since there are private airlines involved,” said a senior aviation ministry official, who did not want to be identified. Sinha, who spent a day with a series of meetings with all departments under the aviation ministry, last week, suggested this during the presentations on the recently-cleared aviation policy and passenger centric initiatives. The minister suggested that the model could replicate the railways model — railways have used Twitter to resolve passenger complaints and improve services. The idea of providing a platform for resolution of complaints was also supported by aviation secretary RN Choubey, who was present in the meeting. Ministry officials, however, feel that the plan is easier said than done. “For railways, it is easier to resolve complaints since it is one entity. In our case, there are private airlines. These private airlines have their presence on social media, where they respond and resolve complaints. These will have to be worked out,” said the official quoted above. The Directorate General of Civil Aviation (DGCA) is likely to be the authority that will be asked to manage the complaints and suggestion since they have the technical wherewithal to resolve such issues. Analysts, however, were less enthused and said the government should rather work on ensuring that the passenger friendly initiatives announced by the government are implemented first. “Who will the government talk to or address its problems, if I have a complaint against a private airline? I do not think that a railway model can ever be implemented in aviation. The government should rather look at providing more teeth to the regulator (DGCA) and to passenger bodies like us,” said D Sudhakara Reddy, president of Air Passengers Association of India. Reddy added that the airlines have moved court opposing the government’s plan to penalise airlines in cases of denied boarding, delays and reduced excess baggage fee. “The government should focus on ensuring that these initiatives already announced is implemented,” he further said. Brad Richardson Authentic Jersey
Boeing, Airbus duel for $12 billion order from revived SpiceJet
Two years ago, SpiceJetBSE -1.59 % Ltd. was fighting for survival as creditors retreated and oil companies refused to refuel its airliners.Today , the world’s biggest planemakers are wooing the recovering Indian budget carrier for a potential blockbuster order worth about $12 billion. Boeing Co. and Airbus Group SE are locked in a battle to supply SpiceJet with as many as 100 planes, and both are offering aggressive discounts in negotiations that have intensified in the past few months, according to people with direct knowledge of the talks, who asked not to be identified as the discussions are private. A win would be key for Boeing, with the U.S. manufacturer lagging behind its Euro pean rival in India’s burgeoning budgetairline market, one of the key sources of industry growth globally . Segment leader IndiGo and the local units of Singapore Airlines Ltd. and AirAsia Bhd., which fly only Airbus jets, have squeezed Boeing’s prospects in a market where air travel is growing at a pace faster than in China or the U.S. “Losing SpiceJet would be a big blow to Boeing,” said Amber Dubey, a New Delhibased consultant heading aerospace at KPMG. SpiceJet Chairman Ajay Singh “knows this and hence is perhaps having interesting conversations with both.” RAMPING UP The Indian discount airline needs to ramp up its 43-plane fleet quickly to pose a meaningful threat to IndiGo, which controls 38.5 percent of the market and flies 108 aircraft. IndiGo’s owner, InterGlobe Aviation Ltd.,has placed orders for 430 Airbus A320neo planes, with a target to build a 1,000-jet fleet eventually. A SpiceJet spokesman confirmed that Singh is attending this week’s Farnborough Air Show in the U.K., but declined to say whether an order announcement is imminent. SMALLER PLANES “We will continue to work with them on the fleet needs and look forward to delivering their first 737Max,” Dinesh Keskar, Boeing’s senior vice president for sales, said in an e-mail. ” Airbus enjoys 70 percent market share in India and most Indian carriers are growing their business with us,” said Airbus spokesman Justin Dubon. “We’d be delighted to help SpiceJet too.” Bombardier Inc., which is enjoying a revival with its C Series narrow-body jet starting service and winning a benchmark deal with Delta Air Lines Inc., is in a separate race for more than 50 smaller planes that SpiceJet is buy ing. The Canadian aircraft producer will be competing against Brazil’s Embraer SA and the Avions de Transport Regional, or ATR, joint venture of Airbus and Italy’s Leonardo-Finmeccanica SpA. At least eight budget carriers dot Indian skies, where air travel grew more than 20 percent last year,according to the International Air Transport Association. GoAir Inks $7.7-b Deal with Airbus GoAir, fifth-biggest carrier by passengers travelled in the country, announced on Tuesday a preliminary agreement with European planemaker Airbus to buy 72 A320neos in a deal worth about $7.7 billion at current list prices. The deal will help continue GoAir’s growth, the airline said in a statement, and built on its existing order for 72 of the same aircraft which it made in 2011. “The new aircraft will help us in unlocking new domestic routes while providing a springboard for continued international network expansion in the years to come,” Go Air CEO Wolfgang Prock-Schauer said in the statement. Bobby Ryan Womens Jersey
India’s first quarter oil demand grows at fastest pace in a decade
India’s oil demand in the three months of the financial year that began April 1 grew at the fastest pace for any first quarter period in the past 10 years. The country consumed 48.5 million tons of oil products in the quarter, an increase of 7.8 percent from the same period a year ago, according to the oil ministry’s Petroleum Planning and Analysis Cell. That’s the fastest since the first quarter of the year ended March 2007, when growth was 8.4 percent. Diesel consumption expanded 4.7 percent to 20.1 million tons and gasoline use increased 10 percent to 5.9 million tons. The International Energy Agency expects India to lead the world in oil demand and surpass Japan as the world’s third-largest oil user this year. It will be the fastest-growing crude consumer in the world through 2040, Paris-based IEA estimates, adding 6 million barrels a day of demand, compared with 4.8 million for China. “We have seen acceleration in India’s oil demand as income levels improve and with infrastructure building picking up pace,” said Richard Mallinson, a geopolitical analyst at Energy Aspects. India’s oil demand may grow by 400,000 barrels a day in 2016 and 2017 “faster than any other country,” he said. The growth in consumption has a cyclical element to it with the first quarter being slower than the other three in a year. In the previous three quarters demand climbed at least 11 percent. “Normally, demand is low in the first quarter and picks up post monsoons,” said P. Balasubramanian, director-finance at the country’s second-largest fuel retailer Bharat Petroleum Corp. The four-month rainy season began in June. The country consumed 15.6 million tons of oil products in June, an increase of 6.2 percent from the same month a year earlier. Diesel consumption rose 1.5 percent to 6.4 million tons and gasoline sales climbed 4.4 percent to 1.8 million tons. The monthly growth in diesel sales was the slowest since July 2015 and that in gasoline since November 2014. Dell Curry Authentic Jersey
India to hold two roadshows in Houston to promote bidding
India will promote bidding of 67 discovered small oil fields in two international roadshows here which will be attended by Minister of State for Petroleum and Natural Gas Dharmendra Pradhan. Pradhan will pay an official visit to Houston, known for its oil and gas industries, and Washington between July 13 and 18, during which he will launch the international road show for the 67 DSF in Houston. “The two-day road show in Houston from July 14 will be held to promote the 67 Discovered Small Fields (DSF) Bid Round 2016,” a Petroleum Ministry source here told PTI. Pradhan will also hold meetings with various think-tanks working in hydrocarbon sector both, in Houston and Washington. He will also visit technology centres working in oil and gas spheres, petroleum ministry said in a statement. Pradhan will be accompanied by K D Tripathi, Secretary, Minister of Petroleum and Natural Gas, Senior officers and Chairman and Managing Directors of leading Oil companies ONGC, IOCL, GAIL, HPCL and MD BPRL. During the Interactive meet scheduled to take place on July 14 and 15, the delegation of senior government officials and leaders of Indian oilBSE 0.47 % & gas companies, led by Pradhan will interact with CEO’s of US-based E&P companies, group of Indian scientists from the field of Hydrocarbon research, members of US India Business Council (USIBC) and group of investors. Pradhan will also inaugurate the ‘Data Centre’ in Houston on July 13 which can be accessed by all interested investors to view the technical data related to the small fields being offered under the upcoming bid round. These DSF of the Oil and Natural GasBSE 3.01 % Commission and Oil IndiaBSE 1.67 % could not be monetised during the previous years and are being offered for international bidding now. Bidding will open between July 15 and October 31. The offered fields hold 625 million barrels of oil and gas reserves. Of the 46 small fields, 26 are on land, 18 offshore in shallow water and two in deep water. While 28 discoveries are in the Mumbai offshore, 14 others are in the east coast’s Krishna-Godavari basin. Eventual operators will be issued a single licence for exploration of conventional and non-conventional hydrocarbons and will have the freedom to sell oil and gas at “arms length” market prices. The auction will be under the new Hydrocarbon Exploration and Licensing Policy (HELP) approved in March, based on a revenue-sharing model as opposed to cost-and- output-based norms earlier. Pradhan is also likely to visit Washington on July 18 where he may meet US Secretary of Energy Ernest Jeffrey Moniz to review issues of bilateral hydrocarbon cooperation. Udonis Haslem Womens Jersey
Bangladesh and India sign agreement for joint coal fired power plant
Bangladesh and India today signed a landmark deal for the construction of a 1,320 megawatt coal fired power plant, the biggest project under bilateral cooperation that would mark the transition from electricity export to generation level. Bangladesh-India Friendship Power Company (Pvt) Limited (BIFPCL), the joint venture enterprise inked the deal with Bharat Heavy Electricals Limited (BHEL), which was selected under an open international tender for constructing the super thermal plant at Bangladesh’s southwestern Rampal near the Sundarbans. India’s Exim Bank will provide $1.49 billion for the project, scheduled to start generating power in 2019. “This ceremony marks the beginning of the biggest project under Bangladesh-India cooperation,” state minister for energy and power Nasrul Hamid said. The deal came amid concerns by environmental groups that the the plant could affect the delicate ecosystem of the world’s largest mangrove forest, spreading over both Bangladesh and India. Speakers, including Prime Minister Sheikh Hasina’s energy affairs adviser Toufiq-e-Elahi Chowdhury and her principal secretary Abul Kalam Azad negated the environmentalists concerns saying the world’s most efficient and environment- friendly technology was being used to set up the plant. “We have a coal-powered plant at (northwestern) Barapukuria in a crowded location which is not affecting the environment while the technology being used for the Rampal plant is far more modern and most environment friendly (than that of Barapukuria),” Azad said. BIFPCL managing director Ujjwal Kanti Bhattacharya said, “We respect the concern of the people of Bangladesh, we are set to maintain the maximum environmental standards for the plant”. Indian High Commissioner Harsh Vardhan Shringla, Bangladesh’s power secretary Monowar Islam and his Indian counterpart Pradeep Kumar Pujari, Bangladesh Power Development Board (BPDB) chairman M Shamsul Hasan Miah and BHEL’s general manager Prem Pal Yadav also addressed the ceremony. Bangladesh earlier earmarked Maitree Super Thermal Power Project as one of its fast-track projects, which was started under a bilateral agreement signed during Prime Minister Hasina’s India visit in 2010. Willie Roaf Womens Jersey