Building Safe Highways, The Ministry of Road Transport & Highways Under Nitin Gadkari
The year 2016 has been a significant one for the Ministry of Road Transport and Highways, when road safety emerged as the central theme of almost its entire range of activities. While the Ministry pushed ahead to expand the National Highways network in the country, it was not enough to just build highways! It was equally important to ensure that the highways were safe for the commuters. As a signatory to Brasilia Declaration, India is committed to reducing the number of road accidents and fatalities by 50 % by 2020. Although efforts in this direction had started earlier, the year 2016 saw the Ministry taking major steps towards fulfilling this commitment. These steps include overhauling the institutional and statutory framework, employing engineering solutions to build safer roads, laying down standards for safer vehicles, building an environment for better enforcement of traffic regulations and improving emergency care. The major steps taken by the Ministry towards ensuring safety on roads are as follows: · A National Road Safety Policy had been approved earlier, outlining various policy measures like promoting awareness, establishing road safety information data base, encouraging safer road infrastructure, enforcement of safety laws etc. The Ministry has evolved a multi-pronged strategy to tackle the problem based on the 4 E’s viz Education, Engineering (both of roads and vehicles) Enforcement and Emergency Care. A National Road Safety Council had also been constituted as the apex body to take policy decisions in the matter of road safety. · Motor Vehicle (Amendment) Bill 2016 – The Ministry constituted a Group of Ministers from across states to deliberate upon and propose strategies for reducing road fatalities and to suggest actionable measures for implementation. On the basis of recommendations of the GoM , MoRTH introduced the Motor Vehicle (Amendment) Bill 2016 in Parliament (Lok Sabha) on 9th August, 2016. The Bill addresses road safety issues by providing for stiffer penalties, permitting electronic enforcement, improving fitness certification and licensing regime, statutory provisions for protection of good Samaritans and recognition of IT enabled enforcement systems. The Bill also paves way for reforms in public transport which in turn will help in improving road safety. The Bill contains provisions for treatment of accident victims during golden hour which will help in saving precious lives. The Bill has been referred to the Department- related Parliamentary Standing Committee on Transport, Tourism and Culture for examination and report. · Top priority has been accorded to correction of black spots on National Highways and adopting regulatory measures for improving automobile safety. Ministry has requested the States to send proposals for correction of black spots and 10% of the Central Road Fund (CRF) have been permitted to be used for undertaking road safety measures.Road safety has been made an integral part of road designing, safety audits are being taken up for selected stretches of National Highways. As Short-term measures rumble strips, reflective stickers at junctions, fixing signboard/ cautionary board, providing signage and speed restrictions are being used. As long-term measuresconstruction of vehicular under-pass, By-pass, flyover and 4-laning are being taken up. * An amount of Rs.1100 crore has been made available for the road safety purposes during the years 2015-16 and 2016-17. Of this, Rs.600 crores were earmarked for the years 2016-17. This amount is to be spent on rectification of black spots, installation of crash barriers in hilly areas, carrying out road safety audits and other road safety works included in Annual plan 2016-17. The power of technical sanction for rectification of black spots has been delegated to Regional officers, MoRTH. Proposals amounting to Rs 12 crore have been sanctioned and proposals amounting to Rs 124 crore are under sanction. Stretches have been identified for installation of crash barriers and proposals and estimates have been invited. Regarding other works of road safety, proposals of about Rs 39 crore have been finalized and are under sanction while other proposals are in different stages of investigations/preparation. · The Ministry has stressed upon States / UTs to set up State Road Safety Councils, formulate an action plan for improving road safety, implement it in a concerted manner, fix a definite, time bound target for fatality reduction and identify and allocate adequate manpower, financial and other resources for implementing the strategy to achieve the targets set. The status of implementation by the states is as follows: 22 States have notified a road safety policy. The states of Assam, Chhattisgarh, Delhi, Jammu and Kashmir, Meghalaya, Nagaland, Rajasthan and Tripura are in the process of notifying. State Road Safety Council (SRSC) has been constituted in all States and meetings are also being held by these councils. 24 states have submitted Draft Action Plans for reducing accidents and fatalities based on the six pillars of road safety recommended by the United Nations. All states except Bihar, Punjab and Mizoram have designated lead agencies for dealing with road safety issues. 11 States have created Dedicated Road Safety Funds.The states of Andhra Pradesh, Arunachal Pradesh, Assam, Delhi, Goa, Haryana, J&K, Jharkhand, Karnataka, Meghalaya, Mizoram, Odisha, Punjab, Sikkim, Tamil Nadu, Telagana, Tripura, Uttrakhand and West Bengal are in process of establishment of Road Safety Fund by making available a portion of the fines collected from traffic offences Most states have started Road Safety Audits of all roads as per the guidelines of Ministry. Traffic calming measures are also being adopted. Most of the States have identified black spots. Rectification of Black Spots is in progress in the states. The Ministry has also written to the States to send proposals for correction of black spots. Most states have formulated the protocol and calendar for identification and rectification of Black Spots or have adopted the guidelines issued by the Road Safety Engineering Cell of the Ministry. The progress would be monitored by the Ministry on regular basis. Most of the states have issued necessary directions to the concerned agencies to undertake construction of road beyond Rs.10 crores only after Design Audit is completed and its recommendations implemented. Most States have started suspending Driving Licence
PM Modi lays foundation for Rs 12,000-crore Char Dham highway project
Prime Minister Narendra Modi on Tuesday laid the foundation stone for Char Dham highway project in Uttarakhand, dedicating it to the victims of the 2013 flash floods in the state. Addressing a rally here after laying the foundation, Modi said the Rs 12,000-crore project will not just ease travel to the four pilgrimage sites of Gangotri, Yamunotri, Kedarnath and Badrinath, but will also give a big boost to the state’s economy. “This Char Dham project is a tribute to those who lost their lives during the Uttarakhand flash floods,” he said. Over 5,000 people, including pilgrims, were killed in the flash floods that hit the Kedarnath Valley in June 2013. “Earlier, pilgrims had to worry about getting stranded due to landslides and they would be anxious about the uncertainties. But, with this project, all the uncertainties will be gone and the pilgrims’ mind will be free from all worries,” he said. “This project will provide livelihood to the people, boost tourism and thus jack up the economy of the state,” said Modi of the project, which entails creation of over 900 km of roads. He also said that of the Rs 12,000 crore, around Rs 3,000-crore project has already been sanctioned and tenders awarded. The project involves building tunnels, viaducts, bridges and bypasses in the entire state, along with way-side amenities that will include helipad for emergency evacuation and parking facilities, among others. Jarran Reed Womens Jersey
MMRDA initiated Rs 80,000 crore worth projects in 2016
With a view to decongest the megapolis, the Mumbai Metropolitan Region Development Authority (MMRDA) undertook around Rs 80,000 crore worth projects including 124 km metro corridor and 22 km MTHL in 2016. The Authority launched five metro projects including 18.5km Dahisar-W to D N Nagar Metro-2A corridor, 23.5 km D N Nagar to BKC to Mankhurd Metro-2B corridor, 33.5-km Colaba-Bandra-SEEPZ Metro-3 corridor, 32-km Wadala-Ghatkopar-Mulund-Thane-Kasarvadavli Metro-4 corridor and 16.5-km Andheri (East) to Dahisar (East) Metro-7 corridor with a total cost of Rs 61,289 crore. While three metros including Dahisar-W to DN Nagar, Colaba-Bandra-SEEPZ corridor and Andheri (East) to Dahisar (East)corridor – have been taken up for implementation this, the Authority has undertaken two new Metro corridors – 23.5-km DN Nagar to BKC to Mankhurd Metro-2B corridor and the 32-km Wadala-Ghatkopar-Mulund-Thane-Kasarvadavli Metro-4 corridor – and will be taken up for implementation in the next year. The five corridors will dot areas right from Dahisar to Bandra (West) to BKC to Mankhurd and Thane connecting eastern and western areas such as Andheri (East and West), Ghatkopar, Mulund including Wadala. “These five corridors will be used by more than five million (50 lakh) commuters from the 114 stations that will be constructed on this 124-km Metro network. The network will be inter-connected with each other as also provide interchanges at Mono corridor and suburban rail system,” MMRDA Metropolitan Commissioner UPS Madan said in a statement. He further said the reduction in congestion will reduce the number of accidents significantly; vehicular traffic on roads will be reduced by 35-40 per cent, travel time will be reduced by 30-50 minutes, on an average depending on route and there will be notable reduction in noise and air pollution. MMRDA has also taken up projects like the Mumbai Trans Harbour Link project worth Rs 17,843 crore, two flyovers at Kalanagar worth Rs 227 crore and an elevated road from Kurla to Vakola Junction of Rs 155.70 crore. “The 6-lane and 22-km long crucial MTHL project will establish connectivity between south Mumbai and main land and will help develop main land and parts of Raigad District,” Additional Metropolitan Commissioner Sanjay Khandare said. Doug Flutie Jersey
Abertis buys two Macquarie toll road assets for Rs1,000 crore
Spanish infrastructure firm Abertis Infraestructuras SA has agreed to buy two operational toll road assets in south India from Macquarie Group Ltd for about Rs1,000 crore, said two people familiar with the development. Abertis has signed a share purchase agreement to buy the two build, operate and transfer (BOT) toll roads, the Farukhnagar-Jadcherla highway in Andhra Pradesh and the Trichy Tollways project in Tamil Nadu, the two said on condition of anonymity as the talks are private. Abertis’s bid beat an offer ranging between Rs700 crore and Rs800 crore for the two assets made by Tata Realty and Infrastructure Ltd (TRIL), one of the two people cited above said. Mint first reported in June that Macquarie will sell its stakes in the two operational toll roads as it tries to deliver returns to its investors. For Abertis, which is in the business of constructing, operating and maintaining toll-based highways, the deal in India would throw open a high-growth infrastructure market. The government had targeted awarding 25,000km of road projects in the current fiscal year, accelerating the construction of roads in an attempt to improve connectivity. An Abertis spokesperson declined to comment, citing confidentiality agreements. Macquarie also declined to comment. TRIL did not respond to a query emailed on Thursday. Selling operational road assets allows debt-ridden developers to reduce debt, private equity investors to offer returns to their investors, and long-term investors—such as pension funds—to buy revenue-yielding assets. “We see the current environment as highly conducive for consolidation in the BOT space. With interest rates coming down and traffic growth picking up, we expect a surge in demand from developers/investors looking to acquire operational BOT projects with healthy financials,” PhillipCapital analyst Vibhor Singhal wrote in a 7 December report. In 2009, Macquarie started its first infrastructure fund in India along with the State Bank of India, called the Macquarie-SBI Infrastructure Fund (MSIF). The fund, which planned to raise $3 billion, aimed at investing in infrastructure projects. SBI and Macquarie also jointly operate a domestic investment entity, SBI-Macquarie Infrastructure Trust (SMIT). Britton Colquitt Jersey
Infra Ministries to gauge value of big projects in FY18
Planning to cash in on smart city bonanza by buying a property near a new metro line or highspeed rail corridor? It won’t come cheap now. Starting next fiscal, the government will tap into the premium that public investments generate for private landowners. The government looks set to initiate value capture financing (VCF) for all infrastructure projects in 2017-18. According to sources, the policy will be formally launched by Prime Minister Narendra Modi in February next year. The public financing tool, which is popular the world over, is based on the logic that the government makes large investments in public infrastructure, leading to rapid economic development in those areas, including higher land prices. A value capture financing tool would mean tapping into this increment through additional taxes and then using finances to fund future infrastructure projects in the same area. The move will require all infrastructure ministries to first identify the area of influence, which would not only include the actual project area, but also where the project would have an impact. Then the ministry would make a value impact assessment and understand how much financial value the project would generate over the next decade or two. These studies would be a part of the detailed project report (DPR). The infrastructure ministry would then need to identify a VCF tool and then initiate consultations with the state government. An MoU would be signed between the Centre and the state government and urban local body (if present). The MoU would include the ratio in which funds collected from application of VCF tool would be shared. The funds collected would be put aside in an escrow account. Sebastian Janikowski Womens Jersey
Road projects may lose pace
While the National Highways Authority of India (NHAI) will soon start disbursing funds locked up in arbitration to builders, it could take a couple of quarters before bidding for road projects picks up pace. Of the R2,500 crore worth of claims put in by developers, the first tranche of R1,800 crore is expected to be paid out to a clutch of concessionaires by NHAI shortly. Manish Sharma, partner (infrastructure), PwC India, told FE the step is a sentiment booster and will improve the cash flows of builders.“However, for this to translate into fresh bidding activity would take a good 6-8 months,” Sharma said. Indeed a potential R26,000 crore could be back with builders in the next few months if things go their way but much of this money could be used to pare debt. For the moment, developers are going slow on new projects — that’s clear from the many hybrid annuity projects which are yet to see financial closure. The government had been hoping to award 25,000 km of roads in FY17 and construct 15,000 km. Till end-October, NHAI and MoRTH had between them awarded 4,443 km and constructed 3,591 km.However, companies say the release of money stuck in arbitration cases will enable them to improve their leveraging and eventually bid for more projects. Praveen Sood, CFO, HCC, a big beneficiary of the move says the firm’s leverage will come down from 2.5 times to 1.2 times. “We will be more profitable and with a leaner balance sheet should be able to raise fresh money and bid for more roads,” Sood said. Mukund Sapre, managing director, IL&FS Engineering and Construction, said the money would bring in much-needed liquidity for the company. “Being an EPC player, our working capital requirements are high and the payments will ease cash flows,” Sapre said. Apart from HCC, several other concessionaires stand to gain. The arbitration tribunal is yet to decide on the cases of Gammon India, Gammon Infrastructure, IVRCL and Ramky Infrastructure. According to Bloomberg, the combined total debt of these five players stood at about Rs 35,400 crore at the end of March 31, 2016. Other companies who have filed claims include IL&FS Engineering and Construction for over Rs 150 crore and AFCONS for Rs 140 crore. In August, the Cabinet approved releasing of 75% of the amounts locked up in litigation against margin-free guarantee for cases where awards have been given but have been contested. It was also decided that all arbitration cases will be resolved within a year. The government’s hybrid annuity scheme, however, has not got off to a great start. Alok Deora, analyst, IIFL Wealth, observes that since the model is a new one and builders are financially stressed, it has been a challenge to achieve financial closure. “With just 2,300-odd km awarded so far achieving the target in just three months looks difficult because acquiring 90% of the land before the project is handed over is not easy. Also companies who do receive their claims will first fix their balance sheets,” Deora said. Greg Mancz Authentic Jersey
PM Modi kicks off Rs 1.06-lakh crore worth infrastructure projects for Mumbai
Prime Minister Narendra Modi today laid foundation stones of many key infrastructure projects, including the country’s longest sea bridge and two metro lines in the city, entailing investment of over Rs 1.06 lakh crore. “Developmental works of over Rs 1.06 trillion are getting started in a single city at a single event. This will be a big milestone in the city’s history,” Modi said at a public rally at the MMRDA grounds in suburban Bandra-Kurla Complex. He kick-started progress on the much-delayed and ambitious projects, months ahead of local elections to the nation’s richest civic body. Projects include 22.5-km Mumbai Trans Harbour Link that will connect the city’s eastern suburbs with the mainland across the harbour, via a 16.5 km sea bridge and a viaduct. The Rs 17,843-crore project, for which multiple consortia have shown interest, will connect Sewri in central-east Mumbai with Nhava Sheva across the harbour which is close to the nation’s largest container port JNPT. To be completed by 2019, MTHL will also help increase connectivity to the proposed Navi Mumbai international airport. Modi also laid the foundation stones of two new metro projects — the 23.5-km DN Nagar-Bandra-Mankhurd Metro-2B corridor and the 32-km Wadala-Ghatkopar-Thane-Kasarvadavli Metro-4 corridor– through a remote control at the event. The two metro lines, part of a plan to have a 200-km metro network across the Mumbai metropolitan area cutting through densely populated suburbs serving as feeders for the island city, will be built at an investment of Rs 10,986 crore and Rs 14,549 crore, respectively. Both the metros will run 6-coach trains and is expected to carry 1,800 commuters per trip each. The Mumbai Metropolitan Region Development Authority is aiming to reduce the overcrowding in suburban local trains run through these metro projects and also reducing the vehicular traffic woes. The Prime Minister also laid the foundation stone for multiple works to be carried out as part of the third phase of the Mumbai Urban Transport Project with an investment of Rs 52,000 crore across the megapolis. Major among these are suburban networks including two more lines between Virar-Dahanu Road, Panvel-Karjat double line suburban corridor and trespass control at 22 locations. Modi also laid the foundation stone for flyovers to ease traffic congestion at critical spots which include two flyovers at Bandra’s Kalanagar Junction. He also laid the foundation for a Rs 3,600-crore grand memorial for Shivaji Maharaj, the 17th century warrior king, off the city coast. Authentic Jersey
Infra Ministries to gauge value of big projects in FY18
Planning to cash in on smart city bonanza by buying a property near a new metro line or highspeed rail corridor? It won’t come cheap now. Starting next fiscal, the government will tap into the premium that public investments generate for private landowners. The government looks set to initiate value capture financing (VCF) for all infrastructure projects in 2017-18. According to sources, the policy will be formally launched by Prime Minister Narendra Modi in February next year. The public financing tool, which is popular the world over, is based on the logic that the government makes large investments in public infrastructure, leading to rapid economic development in those areas, including higher land prices. A value capture financing tool would mean tapping into this increment through additional taxes and then using finances to fund future infrastructure projects in the same area. The move will require all infrastructure ministries to first identify the area of influence, which would not only include the actual project area, but also where the project would have an impact. Then the ministry would make a value impact assessment and understand how much financial value the project would generate over the next decade or two. These studies would be a part of the detailed project report (DPR). The infrastructure ministry would then need to identify a VCF tool and then initiate consultations with the state government. An MoU would be signed between the Centre and the state government and urban local body (if present). The MoU would include the ratio in which funds collected from application of VCF tool would be shared. The funds collected would be put aside in an escrow account. Ben Chiarot Jersey
Noida toll company put on notice over pending salaries of laid-off staff
The deputy labour commissioner (DLC) of Gautam Budh Nagar has sought a response from the company managing the DND Flyway as to why it should not be ordered to pay remaining salaries to 141 employees who were laid off by the company without any intimation on November 18. The workers were laid off after being paid the salary for 24 days, which includes full payment till November 18 and for six of the remaining 12 days of the month. But the employees had started a sit-in outside the company’s office on November 14, demanding salary for the remaining six days of November. “Since the total six-day salary of the 141 workers amounts to over Rs 50,000, an order can be issued to the company directing it to pay the entire amount under the Uttar Pradesh Industrial Peace (Timely Payment of Wages) Act, 1978. We have sought a response from the company, failing which an order to this effect would be issued,” DLC BK Roy told TOI on Wednesday. The 141 workers of DND Flyway who were laid-off by ITNL Toll Management Services Limited (ITMSL), a subsidiary of Noida Toll Bridge Company Ltd (NTBCL), on November 18 had approached the DLC against the toll company the next day, following which the DLC had issued a show-cause notice to the company on November 19 itself. The employees had hired a lawyer and complained to the DLC that the company had not taken permission from the state government before announcing the lay-off. “The firm does not come under the Factories Act but is registered under the UP Shops and Establishment Act, which does not have any provision for lay-off, meaning that the action is totally inappropriate and illegal,” the complaint said. Anwar Abbasi, a spokesperson for the company, said the lawyer of the company will clear its position in the next hearing of the DLC and any order from him would be complied with. Pharoh Cooper Jersey
NHAI garners over Rs 5,000 crore via bonds on BSE e-book platform
State-run NHAI has raised a staggering Rs 5,020 crore through the issuance of debt securities on BSE’s electronic book mechanism platform. This was the highest ever mobilisation of debt capital by a PSU through the BSE-Bond platform. The platform was launched on July 1 this year to facilitate online bidding for private placement of debt securities. Since then, 48 issuers have raised Rs 1.2 lakh crore through the exchange mechanism. National Highways Authority of India (NHAI) has successfully raised Rs 5,020 crore, by attracting an over-subscription of more than 10 times on the BSE-Bond platform on December 21, the bourse said in a statement today. The platform, which allows all categories of investors to place bids, helps bring in transparency and efficiency in price discovery for private placement of debt securities. It is optional for issues below Rs 500 crore, but the issuers will have to disclose coupon, yield, amount raised, number of investors and category of investors to the electronic book provider or the information repository for corporate debt market in the format as specified by regulator Sebi.