241 infra projects report cost overrun of Rs 1.5 lakh cr
As many as 241 infrastructure projects including those delayed due to land acquisition, forest clearances and other reasons, have led to cost overrun of Rs 1.55 lakh crore, as per official data. The Statistics Ministry monitored 1,076 infrastructure projects, each worth Rs 150 crore or more across sectors such as power, railways and roads in March, 2016. It said 6 projects were ahead of schedule, 258 were on schedule, 343 got delayed, 241 reported cost overrun, and 83 projects reported both time and cost overrun with respect to their original project implementation schedules. “Total original cost of implementation of the 1,076 projects was Rs 12,38,517.07 crore and their anticipated completion cost is likely to be Rs 13,93,627.86 crore, which reflects overall cost overruns of Rs 1,55,110.79 crore (12.52% of original cost),” according to the project monitoring report for March. As per the report, the expenditure incurred on these projects till March 2016 is Rs 5,75,677.42 crore which is 41.31 per cent of the anticipated cost of the projects. However, it stated that the number of delayed projects decreases to 304 if delay is calculated on the basis of latest schedule of completion. As many as 36 such projects have been sanctioned without original commissioning date and for 433 projects neither the year of commissioning nor the tentative gestation period has been reported. Out of 343 delayed projects, 65 projects have overall delay in the range of 1 to 12 months, 62 projects have delay in the range of 13 to 24 months, 146 projects have delay in the range of 25 to 60 months and 70 projects have delay of 61 months and above. During the month, 343 projects are delayed with respect to their original schedules, and 57 projects have reported additional delays vis-à-vis their date of completion reported in the previous month. Of these 57 projects, 14 are mega projects costing Rs 1,000 crore and above. However, the report stated that in comparison to April 2015, number of projects reporting cost overruns has gone down from 30.47 per cent to 22.40 per cent, whereas projects reporting time overruns have decreased from 42.61 per cent to 31.88 per cent. In April 2015, out of 758 projects on the monitor of the Statistics Ministry, 231 projects had reported cost overruns and 323 projects reported time overruns. Speedy implementation of projects assumes significance in view of governments push to move towards high growth trajectory of over 8 per cent and touch double digit mark in few years. The reasons for time overruns as reported by various project implementing agencies include delays in land acquisition, forest clearance and supply of equipment. Anthony Barr Jersey
Rs 2000 cr French loan for Puducherry infra development: CM
Puducherry, Chief Minister V Narayanasamy said a French financial institution would extend assistance of more than Rs 2,000 crore for developing infrastructure in the Union Territory. “France and India have very good relations in several sectors and the French government has helped our country on several counts. The relations between France and Puducherry are also very vivid and robust,” he said. The Chief Minister was addressing French nationals and officials of French government at a reception held at the French Consulate here on the occasion of the celebration of the 227th French National Festival. He said the Agence Francaise Developpement, a public financial institution in France implementing programmes for sustainable development, would provide more than Rs 2,000 crore to Puducherry for infrastructure development. This amount would be available to the central government from AFD as a long-term loan and the Centre would in turn allocate it to Puducherry as grant, he said. Stating that Puducherry government was “reworking” on the Smart City project by integrating Puducherry and Oulgaret municipalities, he said during his recent visit here, French Ambassador to India Alexandre Ziegler had expressed interest in encouraging the beach restoration scheme of Puducherry. He said that while Lt Governor Kiran Bedi was keen on achieving the goal of “prosperous Puducherry”, his ministry wanted to achieve development and both “are thus having common objective of an ideally developed and prosperous Puducherry”. The tiny Union Territory needed the help and support of the Centre, he said adding his government “is maintaining good relations with the Centre”. Earlier, Consul General of France Philippe Janvier Kamiyama said France was already supporting the efforts of India to guarantee energy availability and its supply by developing renewable energy sources, particularly solar energy as part of ambitious international Solar Aliance that will benefit at least 100 countries. He also said France had offered to become a key partner in the development of smart cities programme, which he described as an “inspiring” project of Prime Minister Narendra Modi. He also appreciated the thriving business of French companies in Tamil Nadu and particularly in Chennai and its suburbs. Marcus Foligno Womens Jersey
NHAI may award 97 projects worth Rs 1 lakh-cr this fiscal
The National Highways Authority of India (NHAI) may award 97 projects covering 6,631 km and worth Rs one lakh crore during the current financial year, its chairman Raghav Chandra said today. Addressing the National Conference on Highways Construction Technology organised here by the Confederation of Indian Industry (CII), Chandra said NHAI is keen to have private players to patrol the national highways and help in traffic management and maintaining road discipline. “NHAI has around 250 projects across the country and has completed around 400 projects in the past. It is expected to spend USD 15-16 billion (around one lakh crore) in 2016-17. The sale of construction equipment has grown drastically. There are 97 projects covering 6,631 km and worth Rs one lakh crore being awarded in 2016-17”, he said. The National Highways Management has moved from construction-based achievement approach to service-based achievement approach that would enhance competitiveness and user satisfaction, he said. The NHAI chairman also talked about the importance of use of products which are recycled and reused out of waste materials. “NHAI has initiated detailed studies about the feasibility of using waste materials in laying roads and to encourage the private sector to explore these options in infrastructure development,” he said. N V Shetty, Conference chairman and Chief Operating Officer of GMR Highways Ltd, said the Highways sector contributes about 5-6 per cent to the country’s GDP growth. Eddie Jackson Womens Jersey
BHEL commissions 250 MW power plant in Gujarat
State-run BHEL has commissioned another 250 MW unit based on eco-friendly Circulating Fluidized Bed Combustion (CFBC) technology, using low quality coal (lignite) as the primary fuel. The unit has been commissioned at Bhavnagar Energy Company (BECL) 2×250 MW thermal power project, located at Padva village in Bhavnagar district, Gujarat, the company said in a statement. The project is equipped with CFBC technology that enables use of low quality lignite as fuel. The second unit of this project is also at an advanced stage of completion. This is the third 250 MW unit based on CFBC technology, commissioned by BHEL, with two others commissioned earlier in Tamil Nadu. CFBC boilers are highly fuel flexible and can burn a wide variety of fuels, including lignite, efficiently. These boilers are also highly environment friendly with very low pollutant emissions. Lignite reserves in the country have been estimated at around 40.9 billion tonnes. Presently, only a small percentage of the total reserves of lignite have been exploited. CFBC boilers provide an excellent opportunity for gainfully using these huge lignite reserves. BHEL’s scope of work in the contract envisaged design, engineering, manufacture, supply, erection and commissioning of boilers, steam turbines and generators along with associated auxiliaries and electricals, and state-of-the-art Controls & Instrumentation (C&I), among others. Seth Jones Authentic Jersey
Leaving on a private jet plane
It’s the ultimate symbol of a successful life — travelling in your own private jet. Besides the flexibility it offers with regards to time, travelling in a business jet also comes with the luxury of flying to destinations otherwise unconnected by regular airlines. So it’s not surprising that everyone is keen to use them — top executives, film stars, sportspersons, celebrities. In India, the list is growing. Bhupesh Joshi, Director and Chief Executive Officer of Club One Air, says his company has signed up first generation entrepreneurs, new IT czars, real-estate tycoons and jewellery houses as clients for his business jets. And Club One Air is just one of the many business jet operators in the country. Estimates suggest that there are over 100 business jets and 150 helicopters operating in India. Jayant Nadkarni, President, Business Aircraft Operators Association (BAOA), best explains the difference between flying in regular airline and in a business jet: “Say that if an airline has an Airbus 320 or Boeing 737 aircraft, which is (akin) to a bus, imagine that business aviation is a taxi or a car (where) you hire the entire aircraft or you to fly in it on your own. A bus has select times but a taxi gives you complete flexibility.” BAOA was formed in March 2011 and it now has 81 members. Joshi of Club One Air says business jets offer the best choice of destinations. His company operates to almost 100 airports, while scheduled airlines link only 47 airports. “Earlier this segment was catering to luxury or personal requirements. But that is not the case any longer. Now we are flying to remote areas as there is no connectivity,” says Joshi. He points out that new industrial townships coming up in Gujarat, Madhya Pradesh and Jharkhand see executives using business jets. “This is purely because there is no connectivity. This growth is actually now supporting the need of the industry.” Deshazor Everett Authentic Jersey
GoAir’s fleet expansion to meet rising competition, say aviation experts
GoAir’s order for additional 72 Airbus A320neo planes signifies the airline’s confidence in India’s aviation growth and its intent to remain relevant in the crowded domestic skies, say sector experts. On Tuesday, GoAir signed up for 72 A320neo, doubling its order to 144 planes. All the planes will be delivered between 2016 and 2025. Over the last ten years, GoAir has followed a cautious approach of not chasing market share through rapid expansion or acquisition. In the last ten years, it grew its fleet size to 20 aircraft, inducting on an average two aircraft a year. Its small size also ensured that it did not burn cash the way some of its peers did and allowed it to remain profitable. Tuesday’s order announcement demonstrates its long-term commitment for growth. “Effectively, GoAir has a fleet strategy for the next ten years. It signifies management confidence in India’s aviation growth. In the face of existing and new competition, GoAir has to scale up and the order reflects the airline’s growth intent,” said Devesh Agarwal, editor of aviation blog Bangalore Aviation. Daniel Sorensen Jersey
Is There Any Point In Trying To Revive Air India Prior To Sell-Off?
The government wants to dress up the bride before giving it away in marriage. The bride in question is Air India and ‘dressing up’ refers to the revival of the ailing airline before it is reportedly put on the block for disinvestment. According to reports, one of the recommendations of the Niti Aayog—which has been tasked with drawing up a list of public sector undertakings (PSUs) for disinvestment—is to revive Air India before any disinvestment. The Aayog has included Air India in a list of 22 PSUs where revival will have to happen before any value can be realised through disinvestment. The only problem is Air India is past its sell-by date as far as revival is concerned. Don’t get taken in by the airline declaring a modest eight crore operational profit in 2015-16, even though this is the first time in a decade that the airline has used the word ‘profit’. Even assertions by the Chairman and Managing Director Ashwani Lohani of achieving an exponential increase in operational profits, to about Rs 800 crore in the current fiscal, are of no consequence. Reports suggest Lohani is eyeing the post of Chairman of the Railway Board, and lofty financial targets could well be left for his successor to achieve. Former Executive Director at the airline and the author of ‘Descent of Air India’ Jitender Bhargava says Air India was one of the first companies to be referred to the disinvestment commission in the 1980s. “30 years later, we are still talking about its revival. Isn’t past performance enough indication that revival is either difficult or not feasible at all with the current management structure and continuous political interference?” In his book, Bhargava identified three major events that led to Air India’s descent: the inability of the government to go in for disinvestment, the ill-advised aircraft acquisition programme and the merger of Indian Airlines and Air India. In the late 1990s, there was a proposal by the Tata group and Singapore Airlines to become strategic partners to provide professional management to Air India. But this fell through, allegedly because of vested interests. As for the aircraft acquisition programme, it cost an estimated Rs 40,000 crore and became the genesis of the airline’s eventual financial crisis. Air India still has about Rs 4,000 crore as annual debt repayment, largely because of this aircraft order. Now the government has promised Rs 30,000 crore equity support to Air India, of which over Rs 22,000 crore has been given till date. The airline is sticking to its turnaround plan under which this money was given. However, to understand why Air India’s revival is a mirage, one must read the fine print of its operational performance in 2015-16, when it was roundly argued that the airline has emerged from losses. First, it has only made an operational profit (that too, a mere eight crore in 2015-16), and there is no talk of net profit in the near future. Second, these figures are on the basis of unaudited results. Third, this modest operational profit came almost entirely from benign fuel prices and earnings from sale & leaseback activities. Not from a tight cost control or any marked improvement in other operational parameters. Niles Paul Womens Jersey
Aviation sector: Centre explores new model for development of airports
The government is considering a new model for development of airports wherein Airports Authority of India (AAI) retains the complete ownership of an airport but privatises most of the services, a senior civil aviation ministry official said. AAI currently owns and runs majority of the airports in the country. But the state-owned entity is a minority equity partner with private companies in Delhi and Mumbai international airports. “In our country, development of airports will be a mixture. Everything to be privatised will be a wrong thing, everything to be nationalised will also be a wrong thing. Public sector has a place, private sector has a place. Now there are other variations also which the government is thinking. Is it not possible for the Airports Authority of India to own a place and privatise services, and having a revenue share? We are working on such a model,” the official said. The National Civil Aviation Policy, 2016, unveiled last month had mentioned the possibility of the AAI giving out operations and maintenance for a cluster of existing or new airports. Out of 125 airports of AAI, about 95 are operational of which 71 have scheduled commercial operations. Delhi and Mumbai airports, which are majority owned by private companies GMR and GVK, respectively, and in which AAI is an equity partner, are currently a major source of revenues for the state-owned entity. AAI owns 26 per cent stake each in Delhi International Airport Ltd and Mumbai International Airport Ltd. The new development model being considered will ensure that the AAI remains the sole or majority owner of the airport to be modernised with most services being outsourced to private firms. The aviation ministry is planning to revive 50 non-operational airports of AAI in the next 3 years at an indicative cost of Rs 50-100 crore each. Sources said the new model may be tried at some of these 50 airports which are being revived. Chris Conley Jersey
AEAPL plans small airports,logistics centres in India
City-based Air Excellence Aviation Private Ltd (AEAPL) which has a tie-up with the cargo aircraft division of Russia’s United Aircraft Corporation is planning to set up small airports and air logistics centres across India. The company founded by Manish Kapoor intends to set up 100 Business Development Areas (BDAs) which will have small airports, and an equal number of air logistics centres (ALC) that comprise airstrips for cargo handling, in the country. “Our idea is to expand air connectivity to tier 2 and 3 cities on a large scale. We will rope in the state governments and private players to execute the projects,” Manish Kapoor, Chairman and Managing Director, AEAPL, told The Hans India. The company will own a majority stake of 51 per cent in 10 BDAs and an equal number of ALCs, while the remaining projects will be taken up with partners who are willing to invest the entire amount. According to him, each of the BDAs and ALCs require an investment of Rs 100 crore and will be able to generate at least 400 jobs. “The land requirement for each project is anywhere between 300 to 400 acres,” Kapoor said. Colorado Avalanche Jersey
Telangana set to build power plants against Centre’s advice
Telangana, which had proposed to aggressively add power generation capacities towards self-sufficiency, has turned down the advice of Union power ministry against new capacities and is now determined to go ahead with imported coal-fired and inefficient subcritical thermal plants. The state has a capacity of 4,365 MW and has proposed to achieve 25,000 MW by the end of 2018, which includes fresh thermal power generation capacity of 4,000 MW that the Union government promised under the AP State Reorganisation Act, 2014. Besides entering into a contentious power purchase agreement (PPA) with the Chhattisgarh government to procure 1,000 MW of power for 12 years, Telangana has awarded contracts for a 1,080 MW project at Manugur in Khammam district and a 4,000 MW plant at Damaracherla in Nalgonda district. Both are coal-fired thermal power projects, each depending on imported coal for at least half of its fuel requirement. The plant at Manugur also relies on subcritical equipment of 280 MW each, which environmentalists say will add to pollution while activists say its expensive operations and maintenance costs will be a burden on the exchequer. Union power minister Piyush Goyal recently asked Telangana Chief Minister K Chandrasekhar Rao to either downsize or drop the state’s proposed power plants, given the surplus power capacities and cheaper availability in the domestic market. Goyal on Wednesday repeated his advice to the Telangana government while assuring that state-run thermal power generator NTPC was ready to set up the projects promised under the Act. Of the promised 4,000 MW, NTPC is setting up two units of 800 MW each at Ramagundam and is in talks with the Telangana government for the required land to set up the remaining capacities. But Telangana power and industries secretary Arvind Kumar said the state was neither in favour of trimming down capacities nor dropping the projects. “Keeping in view the projected increase in power consumption by the proposed industrial corridors, the proposed large lift irrigation projects and anticipated increase in agricultural consumption under these irrigation projects, the Telangana government has decided to go ahead with its power capacity additions,” he told ET. “Aimed at uninterrupted power supply for agriculture, industry and domestic consumption, Telangana wants to rely on own and cheaper power generation resources.” However, civil society groups and power consumer forums are crying foul over the alleged arbitrary decisions of the state government on selection of power generation technologies and contractors for new power plants. They have also criticised the PPAs, saying the government has signed them at high costs. They had also challenged these decisions before the state electricity regulatory commission. They point out that the government was not taking advantage of the coal mines in the state for new projects. Though the project at Manugur is a pit-head project, it is using subcritical technology and is also 50 per cent dependent on imported coal, while Damaracherla plant is far away from coal mines, they said. “Given serious rethinking going on across the globe towards adding alternative and sustainable power generation capacities and also given the availability of cheaper electricity, the Telangana government should have a fresh look at its power strategy,” said M Kodandaram, chairman of Telangana Joint Action Committee, an umbrella body of dozens of civil society groups. M Thimma Reddy, convenor of People’s Monitoring Group on Electricity Regulation, accused the Telangana government of resorting to imprudent strategies to address the power deficits. Pointing out that Telangana’s strategy on capacity additions was not matching its power consumption patterns, he said that the power consumption by the agriculture sector in the newly-formed state over the past two years crashed owing to back-to-back droughts and a steep fall in groundwater levels. “The government went ahead with awarding contracts of power plants without adopting the open competitive bidding route and entered into PPAs with various private and public entities without calling for competitive bids, thereby losing on the advantage of procuring power at low tariffs,” said Reddy. “Instead of lowering power purchases from private players when the demand fell significantly during droughts, Telangana had resorted to backing down (lowering plant load factor) at own power generation stations, thereby adversely affecting the finances of state-owned power utilities and burdening the power consumers with high-cost power.” Dino Ciccarelli Jersey