Telangana gets Rs 8,000 crore highway projects ‘gift’
Union transport minister Nitin Gadkari on Saturday announced Rs 8,000 crore worth projects for development of national highways in Telangana. The road projects, extending to 460 km include development of the Jagityal-Karimnagar, Suryapet-Khammam, Sangareddy-Nanded, Mancherial -Chandrapur and Kodad-Khammam national highways. Speaking at the 77th annual session of Indian Roads Congress (IRC), the Union minister asked state governments to utilize services of engineering and polytechnic students in creation of road infrastructure in their respective states. He said that road projects should be designed to be accidents-free and people should also be encouraged to use alternative fuels such as bio-diesel and methanol. Gadkari said the Centre in creased the length of national highways from 96,000 km to 2 lakh km as national highways play a key role in economic development. He advised the states to make use of waste material such as plastic and mining waste in road construction and asked to take the help of IITs in the waste usage technology. The minister said the Centre would bear the cost of bridges if they were constructed linking check-dams, which would be helpful for conservation of water. He announced that the government would soon invite Telangana chief minister K Chandrasekhar Rao for inauguration of a bridge across Godavari river at Sironcha in Maharashtra. Telangana roads and buildings (R&B) department minister Tummala Nageshwara Rao, IRC chairman SS Porwal and secretary general SS Nahar, R&B department principal secretary Sunil Sharma, engineers-in-chief of R&B dept, Bikshapathiwere present at the event. Adrian Clayborn Jersey
Cashless is the buzzword as NHAI gears up to make toll levy digital
If the National Highways Authority of India (NHAI) has its way, the toll plazas on our highways will soon be the gateway to a ‘less-cash, more-digital’ future, as visioned by the Centre. Various measures such as installation of point-of-sales (PoS) machines at the toll plazas, and popularising Electronic Toll Collection (ETC) systems are being introduced to support the NHAI mission of minimising cash use. To arrive there, however, will take more time as NHAI officials say an almost negligible number of vehicle users subscribe to the ETC systems that have been rolled out across India from April 2016. ETC system, also called as FASTag, deducts toll payments directly from the prepaid account of a vehicle user as it passes through a toll plaza. According to the Ministry of Road Transport and Highways, around 1.08 lakh such tags had been issued, that collect a mere 0.29% of the total toll collection till September. The figure is more glaring if the data for Tamil Nadu are considered. The NHAI officials say less than 2% of the entire traffic on the Chennai-Bengaluru highway, where the facility is now in use, use FASTag. Despite the less-than-heartening situation, the NHAI is pressing ahead with its plans. While ETC has already been installed at five toll plazas on the Chennai-Bengaluru highway, officials say they will focus on the Chennai- Madurai stretch soon. “There are eight toll plazas on that highway. Although ETC machines have been installed, they are yet to be synchronised. The process, which was to get over by this month end, has been delayed till March next year,” an official told Express. Talks are going on with regular road users, viz. the large transport providers, including bus and truck services, to use the facility. “The state transport corporation is excited as we have offered an incentive of 10% cashback. Another feature about ETC is that the tags, which are fixed to the vehicle, can monitor its movement,” the official added. Details such as when the vehicle crossed a toll plaza, its speed can be obtained through online tracking. Another important step taken is the provision of PoS machines at all toll plazas in the State. The State now has a network of more than 5,000 km of National Highways with a total of 42 toll plazas. Each plaza has been allotted 10 PoS machines for card payments. Cody Hodgson Authentic Jersey
Centre plans dedicated fund for infra finance
The country’s infrastructure sector, requiring investments of more than $1.5 trillion in the coming ten years, is set to get a boost with a dedicated fund of Rs.10,000 crore to provide credit enhancement for commercially viable projects. The fund — through ‘unconditional and irrevocable partial credit guarantee’ — will help enhance the credit rating of bonds issued by infrastructure firms so that they, in turn, can attract long-term investments especially from global insurance, pension and sovereign wealth funds. Prior to the setting up of the dedicated fund, the Reserve Bank of India is expected to bring out a comprehensive regulatory framework for credit enhancement to infrastructure projects and Non-Banking Finance Companies (NBFC) keen on the business. The central bank’s norms for credit enhancement products will include capital requirement and bad loans or asset classification. SPV route The dedicated fund will be in the form of a Special Purpose Vehicle (SPV) and will be categorised an NBFC-Infrastructure Finance Company. Its promoters are likely to include Life Insurance Corporation of India (LIC), General Insurance Corporation of India, State Bank of India, Bank of Baroda, Power Finance Corporation, Indian Renewable Energy Development Agency and India Infrastructure Finance Company Ltd (IIFCL). The government is keen on roping in international financial institutions such as Asian Development Bank, Asian Infrastructure Investment Bank, New Development Bank (formerly BRICS Development Bank), International Finance Corporation (World Bank Group), and talks are on in this regard, sources close to the development said. Also, other Indian public sector insurance companies, large state-owned banks and the National Investment & Infrastructure Fund (NIIF) are expected to contribute to the fund that will have an authorised capital of Rs.10,000 crore. The initial minimum paid-up capital will be Rs.500 crore, which will be quickly scaled up with regular capital infusion to Rs.10,000 crore. The SPV will issue an array of credit enhancement products that will initially cover post-Commercial Operations Date (COD) projects (where construction is over and commercial operations have begun, with the project generating cash flows), and subsequently even the pre-COD projects (where the construction process is on). Bond market The development follows the announcement in the Budget 2016-17 on the proposed measures to deepen the corporate bond market. It had been proposed in the FY17 Budget that the LIC would establish a dedicated fund to provide credit enhancement to infrastructure projects. However, the LIC was not keen as it did not have the needed expertise in credit enhancement. The government then asked the state-owned IIFCL, which already has a credit enhancement scheme and is in the infrastructure finance business, to work on the fund and provide inputs to the RBI for firming up a regulatory framework after studying the prevailing credit enhancement facilities in countries such as the U.S., Canada and even Indonesia. Vinayak Chatterjee, Chairman, Feedback Infra, said: “Globally, most infrastructure projects have used a variety of credit enhancement products. “Credit enhancement measures can help reduce interest rate costs by almost two per cent, which is very significant.” State-owned insurers The public sector insurers, leading state-owned banks and multilateral lending agencies are being made part of the large fund as it needs deep-pocketed promoters with an understanding of the risks involved in investing in the infrastructure sector — where projects have huge capital needs, but with long-gestation periods and returns coming in slowly. A majority of the around 1,500 infrastructure projects in the country in various stages of development are rated at BBB-level, and the dedicated fund can help enhance this rating and help them raise more funds, especially from overseas investors who invest only in higher-rated (AA) projects. The fund/SPV will charge a small fee, and the fee structure will depend on the difference in interest rates between the rates offered by banks and that in the bond market (with a lower interest rate than the bank rates). Tomas Plekanec Womens Jersey
No Toll Takes A Toll On Concessionaires
It’s been just over 10 days since concessionaires have resumed collecting toll on national highways. The government had waived all toll payments after it announced the demonetisation decision. And though they are back in business, the operators are now in a fix as the government is yet to clarify on the compensation formula for the shortfall in collection, either in terms of cash reimbursement or an extension in the toll collection period. Concessionaires, who had been asked not to collect toll, would be reimbursed up to 75 percent of the total loss in collection due to demonetisation, Raghav Chandra, the chairman of National Highways Authority of India said on November 15. Chandra’s term as head of the highway authority ended on November 23. “We will compensate the concessionaires by making interim payments to them, up to 75 percent so as to ease their cash flows,” Chandra had said. But, now the government may just choose to extend the tenure of collection, instead of making an upfront payment, and the companies are not too happy about it. We don’t know whether there will be an actual reimbursement or whether there will be an extension of the concession period. One has to wait and watch, but we are not going to accept this because basically we are fighting for complete revenue loss reimbursement. Honestly, cash in hand is better than an extension.” Isaac George, Director and CFO, GVK Power and Infrastructure Ltd. Similarly, MEP Infrastructure Developers Ltd., which operates 25 toll plazas across seven states, including all five entry points into Mumbai, has also approached the authorities – NHAI and Maharashtra State Road Development Corporation – to be compensated for the loss incurred. “We have already approached the authorities for around Rs 100-120 crore loss that we have incurred on toll plazas across Mumbai and various national highways,” said Jayant Mhaiskar, vice chairman and managing director, of the company on an analyst conference call. Demonetisation led to a loss of Rs 70-80 crore across various national highways, and Rs 35-40 crore from the five entry points into Mumbai and the Bandra-Worli Sea Link, which the company operates, Mhaiskar added. The toll concessionaires fear that if the authorities decide to extend the toll period instead of paying them, the losses will leave a big dent in their third quarter earnings. “Demonetisation would have an impact on revenue in Q3 due to the pause in toll collections across the plazas,” Mhaiskar said. GVK’s Isaac shared the concern. Certainly. It would have an impact (on Q3 numbers). See, if they are not going to reimburse me the loss of revenue in totality, then there will be an impact on my profitability and revenue.” Isaac George, Director and CFO, GVK Power and Infrastructure GVK, which operates the Jaipur-Kishangarh expressway and Deoli-Kota expressway in Rajasthan, has asked the NHAI to reimburse the operations and maintenance expenses and interest rate loss, incurred over the 25 days when they had been barred from collecting toll. Hindustan Construction Company Ltd. which has recently started collecting toll on the Farakka-Raiganj highway in West Bengal, however, seems to have some clarity. “We have received a circular where they (NHAI) have agreed that whatever time period is lost because of not tolling would be compensated by giving an additional time post completion of concession period,” said Praveen Sood, Group CFO of HCC in an interview to BloombergQuint. The Pain Continues Vehicular traffic is yet to pick up said MEP Infrastructure’s Mhaiskar, with at least 12 percent fewer commercial vehicles crossing toll plazas in December, thus denting daily collections. Passenger vehicles traffic has not fallen as much, Mhaiskar added Wait And Watch MSRDC accepted that the companies have approached the authority for loss of revenue. The claims, however, are yet to be submitted officially to the respective offices, said Kiran Kurundkar, the joint managing director of MSRDC. The claims from Mep Infra have not yet been submitted. I still have to see such claims. But the company has informed us that they have suffered losses because of demonetisation. Kiran Kurundkar, Joint Managing Director, MSRDC Once the claims are submitted, MSRDC will do its own background check wherein the historic traffic data will be analysed and an average collection per day will be calculated. Based on the assessment, MSRDC will figure out the loss incurred by the company on a daily basis and forward it to the state government for approval. See there is a process. I can’t just process the claims that the company sends me. I have to also get it approved from the state government as they have worked with the central government in tandem to stop toll collection post demonetisation Kiran Kurundkar, Joint Managing Director, MSRDC Highway operators are resigned to waiting for the central and state governments to get their act together. “We will have to wait patiently and see what NHAI does. We can’t be pushing them. Even if we do, nothing will happen. They will take their own time deciding when to start reimbursements” Isaac said. Yangervis Solarte Womens Jersey
India to build 69 bridges in Myanmar as part of intnl highway
Eyeing development of the north east, India has undertaken a number of infrastructure projects with Myanmar, including construction of 69 bridges in the neighbouring country as part of a trilateral highway. Replying to a question in the Rajya Sabha, Minister of State for External Affairs V K Singh said the bridges and road projects under the India-Myanmar-Thailand highway will benefit both Myanmar and the north eastern states. He said India is also implementing the Kaladan Multi Modal Transit Transport Project (KMTTP) with an aim to improve connectivity between Indian ports on the eastern seaboard and Sittwe port in Myanmar. To a separate question, he said awarding of work for construction of road between Paletwa and Zorinpui under the KMTTP in Myanmar got rescheduled due to delay in undertaking pre-bid site inspection. He, however, said there was no cost overrun due to delay. Paul Richardson Authentic Jersey
Delhi’s Eastern, Western Peripheral Expressways likely by August 2017: Gadkari
The Eastern and Western Peripheral Expressways, being constructed at a cost of Rs 15,000 crores, are expected to be thrown open by August 2017. The two roads will reduce Delhi’s congestion by 50%, besides cutting its pollution, union transport minister Nitin Gadkari, announced on December 15, 2016. He assured that the centre was working seriously, to decongest the national capital and improve its air quality. “We are building the easterly and westerly bypass with a cost of Rs 15,000 crores. It was to be completed in two-and-a-half years. However, following the prime minister’s directive, we will complete the project in 400 days. I am happy to announce that we will be inaugurating it in August, 2017. Construction of this single road will cut down air pollution and congestion in Delhi by 50%,” he said. The eastern and western expressways were planned in 2006, following a Supreme Court order to construct a ring road, to allow non-Delhi bound vehicles to bypass the capital while moving between neighbouring states. See also: NCR’s Eastern Peripheral Expressway to be completed in 400 days Addressing the 3rd India Health and Wellness Summit, Gadkari also said that solid waste from Ghazipur sanitary landfill site in east Delhi, will be used in road construction. “The Central Road Research Organisation, after six months of research, found that solid waste, segregated into plastic, metal and glass, could be used for road construction. The whole garbage at Ghazipur will now be used up for road construction,” he said. Linking health with problems of air pollution, fossil fuels, solid and liquid waste, the minister said diversification of agriculture for harnessing power and energy was needed, to meet the challenges faced by cities. He said that his ministry was working with other ministries, to make Euro VI emission norms mandatory, before April 1, 2020. He cited that 70 projects have been envisaged, to recycle sewage and industrial effluents, as part of efforts to rid the Ganga river of pollution. Jason Spriggs Authentic Jersey
Paytm partners with NHAI for digital payments at toll plazas
Digital payments platform Paytm has announced partnership with major NHAI toll concessionaries like Reliance Infra, Sadhbav, IRB, MEP, L&T and GMR to enable cashless payments at all state, national and city toll plazas. With the partnership, commuters across the country can now pay their toll charges instantly with Paytm by scanning the QR code placed at toll payment counters, using Paytm app. Through this initiative, the company is aiming to cover over five lakh vehicles per day by end of the financial year, it said in a statement here. “Now users can pay toll tax with Paytm using code—based cashless payments across 6000+ lanes across the country, enabling the transportation sector transition to a digital economy,” Paytm’s Senior Vice President Kiran Vasireddy said. Currently, over a million offline merchants across India now accept Paytm as their preferred payment mode, Paytm claims. Jonathan Schoop Authentic Jersey
Akhilesh Yadav writes to PM to expedite road projects in UP
Uttar Pradesh Chief Minister Akhilesh Yadav today shot off a letter to Prime Minister Narendra Modi requesting him to direct officials concerned to speed up certain road projects in Lucknow and Varanasi. The Chief Minister requested the Prime Minister to direct officials to give working permission for a proposed bridge, a flyover and broadening of a road in Lucknow, according to an official release. Akhilesh also requested for release of Rs 396.54 crores for four laning of Shivpur-Lahartara road in Varanasi at the earliest, it said. The CM stated that the proposed Pipraghat bridge on Gomti has been stopped because of the objections raised by Army for which letters have been sent to the defence minister in the past. Draymond Green Womens Jersey
Land acquisition hurdle for proposed state highway
The opening of the proposed Thuravoor-Pamba state highway which will connect NH47 with Sabarimala will be delayed further as authorities failed to begin land acquisition for Makkekadavu bridge. To open this much-awaited highway, the construction of the 800-metre bridge connecting Alappuzha and Kottayam districts should be completed. “The total length of the bridge is 800 metre, and 720 metre of this bridge will be constructed across the Vembanad lake. The remaining 80 metre of the bridge can be constructed only after acquiring private land from Kottayam and Alappuzha districts. We need land of only 25 families for constructing the bridge. However, four families were not ready to accept the land value we offered to them. We have offered Rs 5.17 lakh per cent to them. We have approached the district-level purchase committee led by district collector to convene a meeting of the families to settle the issue,” said PWD executive engineer Deepthi Bhanu. “The total cost for the construction of Makkekadavu bridge is Rs 100 crore. The construction work of the bridge has been entrusted with Cherian Varkey Construction Company. They have agreed to construct the bridge for Rs 78 crore. The state government has allotted Rs 4.3 crore for acquisition of the private land for the project. We have started piling works of the bridge at the lake portion. However, the construction of the bridge can be completed only after getting the private land,” said officials of PWD (bridge). It was on February 2, 2013, the construction work of Thuravoor-Pamba state highway was inaugurated by the then chief minister Oommen Chandy. The construction of Thykkattuserry bridge was first started under this project. Once the Thuravoor-Pamba state highway is opened, the transportation facilities, especially cargo movement between coastal areas of Alappuzha and high range areas will be improved. People living in high range areas will also get an easy access to Kochi via Alappuzha once this state highway is opened for traffic. The road will also become the main entrance to Kochi from Kottayam, Idukki and Pathanamthitta districts. It was on May 27, 2015, the then chief minister Oommen Chandy had opened the first bridge, Thykkattuserry, of this state highway. Then he announced that the second bridge – Makkekadavu -would be opened in 2017. However, the land acquisition for the second bridge has not been started so far owing to strong opposition from landowners. Frank Clark Jersey
84 infra projects report cost overrun of Rs. 1.14 lakh crore
As many as 84 infrastructure projects with a cost of Rs. 150 crore or above each, including those delayed due to issues like fund constraints, have reported a cost overrun of Rs. 1.14 lakh crore, Parliament was informed on Wednesday. “There are 84 projects showing cost overruns accompanied with delays with respect to their original schedules. The original cost of the 84 projects was Rs. 1,12,623.98 crore and the anticipated cost is Rs. 2,27,149.87 crore, implying a cost overrun of Rs. 1,14,525.89 crore,” Statistics Minister D.V. Sadananda Gowda said in a written reply to the Lok Sabha. The Ministry of Statistics and Programme Implementation monitors ongoing central infrastructure projects costing Rs. 150 crore and above on time and cost overruns through its online computerisation monitoring system (OCMS) on the basis of information provided by project implementation agencies. According to the statement, as on September 30, 2016, 1,174 projects costing Rs. 150 crore and above were on the watch of this Ministry. Of these 1,174 projects, 333 were delayed with respect to their original schedules. The reasons for delay are project-specific. However, it said the major reported reasons for delay in timely completion of the projects are law and order problems, delay in land acquisition, environment and forest clearances, fund constraints, rehabilitation and resettlement issues, local body and municipal permission, utility shifting, contractual issues and the like. Jussi Jokinen Womens Jersey