nfra bonds Yes Bank raises Rs 2,135 cr via long-term infra bonds
Private sector lender Yes Bank today said it has raised Rs 2,135 crore by issuing long-term infrastructure bonds and will use the proceeds to finance affordable housing and infrastructure projects. This is the single largest issuance of infrastructure bonds by Yes Bank. “Yes Bank has successfully raised Rs 2,135 crore of senior long-term infrastructure bonds. The issue witnessed strong demand from leading domestic investors including several insurance companies, asset management companies, corporates, pension funds, provident funds and gratuity funds, resulting in a total subscription of Rs 2,135 crore,” it said in a release. The bond is carrying coupon rate of 8 per cent per annum with a tenor of 10 years. The issue was closed on September 30. The issue garnered Rs 2,135 crore against a base size of Rs 1,000 crore, with Rs 1,135 crore raised through green shoe option. “Yes Bank will use the proceeds to finance projects in the infrastructure sector and its recent thrust on affordable housing as a part of the overall retail strategy,” Yes Bank MD & CEO Rana Spoor said. In September, Yes Bank has raised Rs 330 crore by issuing green infrastructure bonds to Dutch Development Bank FM, which was the latter’s first investment in green infrastructure bonds in India. J’Mon Moore Womens Jersey
25 new roads to be developed under TenderSURE
The civic body will take up work on at least 25 new roads under TenderSURE in the coming months. At a review meeting held on Tuesday, Bengaluru City Development Minister K.J. George directed the Bruhat Bengaluru Mahanagara Palike (BBMP) to redesign at least 25 roads each under the TenderSURE footpath model and to white-top another 25 “at the earliest”. BBMP had proposed to take up TenderSURE works on 50 roads last year. “We will start work on half the identified roads. These will be in the Central Business District,” said Commissioner Manjunath Prasad. The proposed roads include some of the busiest stretches in the city, including M.G. Road, Brigade Road, Infantry Road, Queen’s Road, Victoria Road, Magrath Road, Indiranagar 100 Feet Road, and CMH Road. In all, work will be taken up on 36.78 km of road. “The detailed project report for 13 of these roads has already been prepared, and the State government has sanctioned funds. We will see work on these roads soon. We will also ensure trees are not cut there and the road width not compromised,” said Mayor G. Padmavathi. Meanwhile, concretisation will be taken up on Magadi Road, St. John’s Church road,and Dhanvantri Road. During the review meeting, the Minister said 65 km of storm-water drains will be completed by March, and the remaining 55 km taken up next year. The whole project will cost Rs. 800 crore. ‘The DPR for 13 of these roads has been prepared, and the State government has sanctioned funds’ Deshaun Watson Authentic Jersey
Naxal-hit areas may get 2,726 towers in the next two years
The Narendra Modi-led NDA government is expected to grant assent to a home ministry demand put out earlier this month and greenlight a telecom department rollout of another 2,726 solar-powered mobile towers in the Naxal-hit areas. The Department of Telecom (DoT) and the state-run Bharat Sanchar Nigam Limited (BSNL) are however closely working on a formal request sent by MHA for an urgent deployment of towers in left-wing extremism (LWE) hit areas in next two years, an industry person told ET. BSNL, with homegrown vendors Vihaan Networks Limited (VNL) and Himachal Futuristic Communications Limited (HFCL), has recently concluded the first phase of the world’s largest solar-powered GSM network with a total of 2,199 mobile tower sites. “We are expecting BSNL to float tender for the second phase of the LWE network project rollout within the next six to eight months time,” VNL chairman Rajiv Mehrotra told ET. Gurgaon-based VNL is a principal partner which has installed 1,315 sites, while HFCL deployed 521 solar-powered mobile towers in the Naxal-hit states that include Bihar, Chhattisgarh, Odisha, Telangana, West Bengal and Madhya Pradesh. The capital expenditure of each site is estimated to be Rs 70 lakh and is equipped with disaster management system, Mehrotra said. Out of the total telecom tower base, 1,315 would be maintained by VNL and 521 by HFCL for a five-year term which could be extended after a review, while the pre-existing 363 towers were kept out from the ambit of two companies. The entire initiative is fully-Indian and localized in sync with government’s vision of ‘Make in India’ and renewable energy focus, and despite harsh conditions and continuous threat to our staff, we were finally able to deploy the required cell sites in Naxalite areas, Mehrotra said. A top VNL executive said the initiative has generated as many as 6,000 tribal jobs including 200 at senior levels. Conceived by the MHA to combat insurgency in the left-wing extremism affected areas, DoT’s Universal Service Obligation (USO) Fund is bearing the Rs 3,567.58 crore project cost. The project was initially approved by the Cabinet in June 2013. Dmitry Kulikov Womens Jersey
INDO-CHINA AND INDO-NEPAL BORDER ROAD STATUS REVIEWED
To review the progress of ongoing projects located in the vicinity of Indo-Nepal and Indo-China borders, secretary Border Management and Home Sushil Kumar convened a review meeting on Saturday where the chief secretary was present. Secretary Home has instructed to BRO, ITBP and CPWD officials to expedite the execution of the ongoing projects in coordination with the district administrations. Chief secretary asked the DMs to ensure that the works are completed at the earliest. The meeting threw the fact to the fore that the construction of 12 kilometer stretch between Kakrali gate and Thuligaad is facing technical snags. The officials concerned were asked to correct things soon. It was stated during the meeting that the forest clearance would be given for Tanakpur-Jolgivi road by October 10. It was decided at the meeting that 12 kilometer stretch out of the 135 kilometer road will be widened by December this year. Besides, 43 kilometer road between Tanakpur and Rupaligaad has been approved and construction of the remaining 75 kilometer road is being delayed due to proposed Pancheshwar dam. Things would be completed by 2018. Ghatiabagad-Lipulekh road would be constructed by March 2017. For the construction of New Sobla-Sela-Tedhang road on Indo- Nepal border, 10.269 hectare land falling in 10 villages at Dharchula of Pithoragarh district is yet to be acquired. CS asked the DM concerned to complete the acquisition in the next 10 days. It has been told that construction of Niti-Gailung, Sonam-PDA, PDA-Sumla and PDA-Maindy roads in the vicinity of the Indo-China border is running fast and things would be completed by October 2017. Besides, BRO’s Naga-Jadang, Chhastoli-Chatra, Sumna-Timkhim and Munsyari-Badiyaar bagad road are under construction. The BRO secretary was asked to convene regular monitoring and fix monthly targets. The meeting was attended among others by joint secretary Union Government Pradeep Gupt, DGP MA Ganapathy, principal secretary Home Umakant Panwar, secretary home Vinod Sharma, secretary BADP R Meenakshi Sundaram, secretaries PWD DS Garbyal and Arvind Singh Hyanki, IG SSB Shyam Singh, IG ITBP HA Goria and ADGP Intelligence Ashok Kumar. Fozzy Whittaker Authentic Jersey
Decks cleared for Rs 800-cr pilot Metrino project: Gadkari
The ambitious pod taxi project is all set to move into the fast lane, with the government deciding to execute it under NHAI and four global firms qualifying in initial bids. The project — also known as Personal Rapid Transit (PRT) or Metrino — is one of its kind globally. “We are going to implement the Rs. 800-crore pilot project under NHAI. I had a meeting with Urban Development Minister Venkaiah Naidu and it was finally decided that we can execute it under the NHAI Act. Previously, it was being explored whether to do it under the Tramways Act or the NHAI Act,” Road Transport and Highways Minister Nitin Gadkari told PTI. The minister said four initial tenders have been received and the government will soon invite financial bids for the Metrino project that will let passengers travel in driverless pods suspended on a ropeway in the national capital region. The pilot project will be for about Rs. 800 crore for a 12.3-km stretch from the Delhi-Haryana border on NH 8 (near Ambience Mall) to Badshahpur via Rajiv Chowk, IFFCO and Sohna Road. “Four global companies — one from London which has done work in this regard at the Heathrow airport, one from the UAE, one from the US and one from Poland have qualified in the initial technical bids. Once the road transport and highways ministry approves it, we will float financial bids,” an official told PTI. The official said there will be 13 stations on the 12.3-km stretch and five people would be able to travel in one pod. “Initially, we are planning 1,100 pods and the system will be such that if one has to travel from station 1 to 12th, on a specific command that particular pod would reach the 12th station without any halt,” the official explained. The Rs. 4,000-crore public transport project provides for travel in driver-less pods suspended on a ropeway in the NCR. Jarred Tinordi Authentic Jersey
Centre to float first bid for road project mgmt under TOT model shortly
The Centre is likely to float its first bid for management of projects under the toll-operate-transfer (TOT) route within the next three months. The TOT route – often called asset recycling – is a unique asset monetisation exercise. Around 75 operational projects (or roads) set up with public funds will be handed over to private players. The Centre is looking to raise close to Rs. 50,000 crore through this monetisation model. According to Rohit Kumar Singh, Joint Secretary, Ministry of Road Transport & Highways, the Centre will target global funds with patient capital, including pension funds and sovereign funds from West Asia, among others. Contracts will come in bundle form – a number of road projects – being clubbed together. Around Rs. 1,200 crore may be raised in the first tranche. “Within the next three months the first such bid is likely to be floated. We expect around Rs. 1,200 crore; but this is a rough estimate,” he said on the sidelines of an infrastructure seminar organised by the Bengal Chamber of Commerce and Industry (BCC&I) Singh, however, said the “bundles” and draft guidelines have not yet been finalised. The monetisation programme has been cleared by the Cabinet. The model concession agreement and RPF documents are being finalised and will soon be taken up by the Ministry of Finance for clearances. Operation model Under the TOT model, roads will be given for a 30-year lease period. They will include projects which have been operational and generating toll revenues for at least two years. The payment for the lease will have to be made “upfront”. The bidders will recoup their investments by collecting toll over the lease tenure. According to Singh, around 20 global funds, including Nomura, Macquarie and Abu Dhabi Investment Authority, are expected to participate in the bidding process. Ron Hextall Jersey
NHAI awards contract for two national highway projects in Karnataka
The National Highways Authority of India (NHAI) has issued letter of award (LOA) for two national highways sections in Karnataka on engineering-procurement-contract (EPC) mode under the national highways development project. The projects are: Four laning of 144 km Hubli-Hospet section at an expenditure of Rs 2293 crore and four/six laning of 95 km Karnataka-Andhra Pradesh border section of Hospet-Ballari at an expenditure of Rs 1625 crore. The first project was awarded to the joint venture of BSCPL-KNR, and the second to Gammon India. The Hubli-Hospet section connects district headquarters of Gadag, Koppal, Hubballi-Dharwad to Hospet town which is home to many iron and steel industries. The 95 km long Hospet-Bellary-Karnataka/AP border section falls in Ballari district and covers towns like Hospet, Toranagallu and Bellary. Hampi, near Hospet, is a world heritage site and attracts large number of tourists. While the Hubballi-Hospet will take three years for completion, the Ballari-Hospet section will require two years. According to NHAI, development of Hubli-Hospet-Bellary-Karnataka/Andhra border section would not only facilitate transportation of minerals, iron, steel and coal but also promote tourism. This section is also a crucial link between eastern and western coasts of the country. Haason Reddick Jersey
Centre to invite bids from foreign funds for asset recycling
The Union Ministry of Road Transport and Highways will invite bids from foreign pension funds for recycling of brownfield projects to raise funds, a senior official said. “The Cabinet has approved the proposal last month. There is a need for model concessional agreement after which the Request For Proposal (RFP) will be finalised,” Joint Secretary with the Ministry of Road Transport and Highways Rohit Kumar Singh said on the sidelines of a BCCI seminar here. Once the request for proposal was ready, bids would be invited, he said adding “We are expecting to invite bids in the next two or three months.” The process involves handing over of 75-odd brownfield road projects across the country to these foreign funds for a concession period of 30 years, he told reporters. During this period, the foreign funds would collect toll as per law and maintain them while ownership would not be transferred. “The ownership will remain with the government,” he said. Mr. Singh said in this way, the government was expected to garner Rs.50,000 crore which would be given upfront by the fund managers and would be then ploughed back in creating other new road assets. “This mechanism of called asset recycling which is quite popular in other countries like Australia,” Mr. Singh said. Carlos Henderson Womens Jersey
Centre to utilise waterways to transport logistics: Nitin Gadkari
Looking to bring down the cost of logistics, government would utilise waterways in the country to transport goods including fertiliser, cement and steel, Union Minister Nitin Gadkari said today. Gadkari said this hailing the arrival of car carrier ship MV Dresdan with 500 cars at Coachin Port. This is a successful experiment and effective utilisation of this (waterways) system will help increase water transport in the country, Gadkari, Minister for Road Transport and Highways said here. “We want to diversify road traffic to water transport,” he said adding goods transportation through water costs barely 20 paise per km in comparison to Rs 1.5 a km through road and Re 1 per km through railways. The logistics cost in India is 18 per cent, which is higher than China (8-10 per cent), Japan (10-12 per cent) and European Union (8-12 per cent), he noted. “Now this can be a very successful experiment by which we can take cargo including fertiliser, cement and steel on the water,” he told reporters. Recalling the recent transportation of Maruti cars from Varanasi to Assam through waterways, the Minister said per car, the cost could be reduced by Rs 3,000 to 4,000 as the transportation expense was very less. The car carrier ship, arrived here, is of Cyprus registration, which has obtained licence for coastal run between the ports in India. It has the circuit of Ennore-Cochin-Kandla-Cochin-Ennore, connecting the automobile production hubs in Tamil Nadu in the East coast and Gujarat and Haryana in the West coast of India. The ship has 13 decks with the capacity to carry 4,300 cars. The operator of the Car Carrier is SICAL Logistics based in Chennai, which is a leading player in bulk operations in many ports and operates a Coal Terminal at Ennore. The Car Carriers, which are Roll on-Roll off (Ro-Ro) ships, are highly productive with automobiles being driven in and out of the ship. The operator carried the vehicles of Renault, Ford, Hyundai and Toyota from Tamil Nadu and Honda and Ford from Gujarat. Cochin Port has identified the Q7 berth at Ernakulam Wharf for handling the ship, and a clean yard of 4,000 Sq m area at Q7 is allotted for storage of cars until delivery to the dealers, which is normally expected in a week’s time. Kerala is a major consumption centre of cars with annual sales of about 1,50,000 to 1,80,000 units, which is highly significant in determining logistic patterns. Brock Coyle Jersey
In tolls and foreign players, roads sector eyes new funds
The Centre is planning to push the new toll-operate-transfer (TOT) model in the roads sector, buoyed by indications of interest from sovereign funds such as the Abu Dhabi Investment Authority and the Qatar Investment Authority, as well as Canadian Pension Plan INvestment Board. If the pipeline of the 100-odd projects lined up under the TOT model can be successfully handed out to investors, the move would offer an avenue for monetisation of completed stretches of public-funded national highways that are up to two-years old, thereby helping mobilise additional resources for constructing of new highway sections. Alongside the TOT option, where interest has been shown by the Abu Dhabi Investment Authority, Qatar Investment Authority and Canadian pension funds, the government-owned National Highways Authority of India (NHAI) is also exploring the possibility of raising funds through infrastructure investment trusts, officials indicated. A major feature of private funding of roads is the collection of toll. In India, toll rates are calculated taking into account the base toll rate and the wholesale price index and are indexed to the projected costs of sections in the case of high cost structures. Toll revenue numbers from across the country point to an over two-fold increase in collections over the last five years, with road users increasingly coming to terms with paying tolls on highways (chart). This is even as the private participation in the roads sector witnessed a severe liquidity crunch in the years 2012-13, 2013-14 and 2014-15, which resulted not just limited or no participation in the new projects awarded on the default BOT-toll format, but also delays in completion of ongoing projects. The TOT push comes at a time when the overall outlook for tolling in India has improved, with Crisil Research pegging overall toll collection stretches to increase 1.5 times over next four years. According to the agency, the total stretch of highways under toll collection model for NHAI and key states is expected to increase 1.5 times from around 15,190 km in 2014-15 to around 22,200 km by 2018-19 and the total number of toll collection projects are projected to increase from around 250 (in 2014-15) to 360-365 in 2018-19. Of these, NHAI toll collection stretches are pegged to increase 1.4 times over next four years while toll collection on state highway stretches are expected to increase 1.5 times over next four years, according to Crisil. NHAI had initiated the process of awarding projects on tolling towards the end of 2009-10 and as of 2014-15, according to Crisil estimates, around 6,990 km of national highways constructed under EPC and BOT Annuity are under tolling. This is expected to increase 1.4 times over the next four years and touch 10,300-10,500 km by 2018-19, primarily driven by a number of to-be awarded projects to be implemented on EPC/Cash contract basis. The total number of toll collection projects are expected to increase from around 102-104 currently, to 128-132 by 2018-19 (assuming an average length of 80 km for NHAI toll collection project), according to Crisil. Several hurdles, however, plague toll collection in India, including some factors that are intrinsically linked to the consumer behaviour of road users in the country. Problems associated with toll collections in India: Transition from EPC to BOT: Most BOT project operators are companies that have evolved from EPC contractors into BOT concessionaires by leveraging their experience in constructing mega road projects. However, these companies had either no knowledge or very basic knowledge of tolling when they entered the tolling business, Ministry of Road Transport officials indicated. There is progressive realisation tolling is a very technical and complex activity and many varied factors contribute towards its success. Unwillingness to pay toll: Users treat roads as a public good where the service should be provided free by the government. Support from local authorities: The concept of BOT projects is not understood by the lower levels of administration with whom the concessionaires have to deal with on a daily basis. Pilferage: According to a rough assessment, toll pilferage on ill managed plazas can be as high as 25 per cent. Even a momentary failure of toll IT system can result in considerable toll pilferages. Detours: With wide-spread development of roads, taking a toll detour has become a standard practice by most road users. In a large number of concession agreements, there are no safeguards like check plazas. Therefore, to avoid loss of toll collections, choosing the correct location for the plaza becomes critical. Political interference: This generally commences from protests against land acquisition and finally culminates in obstruction of tolling activities. Explicit clauses for addressing the issue of disruption of tolling activities needs to be included in the agreements. The ‘Force Majeure’ clause in contracts currently, does not provide adequate safeguards due to the lengthy time stipulations. Toll plazas are usually the target of political agitation in the near vicinity culminating in impacting toll operations. Unauthorised exemptions: A large percentage of exemptions consists of road users who have to be necessarily exempted in order to ensure smooth and unhindered tolling operations. These road users have the potential to create problems. Tavon Young Womens Jersey