Govt. allocates funds for key infrastructure projects
The earmarking of Rs.50 crore by the State government for the airport extension of the Seaport-Airport Road is expected to provide the much-needed impetus to the critical thoroughfare that holds the key to decongesting the Edappally-Kundannoor NH Bypass and the Edappally-Angamaly NH 47 corridor. The Roads and Bridges Development Corporation of Kerala (RBDCK), which owns and maintains the road, is also expected to widen the Bharat Matha College-Collectorate Junction corridor into four-lane, as part of the project to decongest the road. The project is expected to cost Rs.28 crore. “We will take a call on how best to use the Rs.50 crore based on a Government Order that is awaited. We submitted detailed project reports to the government on the extension of the road. The extension is being carried out at a width of 45 metres, and a four-lane road is being built,” said a senior RBDCK official. The construction of the 5-km-long NAD-Asoka-Mahilalayam Road is expected to commence soon. The project is likely to cost Rs.280 crore. The total cost of extending the road from HMT Junction to the airport by 14 km is estimated at Rs.662 crore. Work is on to develop the 2.7-km-long HMT-NAD corridor. The funds allotted to widen the Thammanam-Pullepady Road has come to a total of Rs.35 crore, with the government sanctioning an additional Rs.10 crore recently. “The government had allotted Rs.25 crore three years ago. But this is hardly enough, since the total project cost hovers around Rs.200 crore, considering the cost of land acquisition for the 3-km-long corridor that will link Padma Junction with Chakkaraparambu on the Palarivattom-Vyttila NH Bypass,” said an official of the Kochi Corporation. Victor Antipin Jersey
Smart city project: Northeast wants 90:10 ratio in funding
Tripura Chief Minister Manik Sarkar has requested Urban Development Minister M. Venkaiah Naidu to share the investment in smart city projects for the northeastern states by adopting a 90:10 ratio — 90 per cent by the central government and 10 per cent by the state. Sarkar met Naidu on Friday in New Delhi and urged him to adopt a separate funding policy for the backward northeastern states, Tripura Urban Development Minister Manik Dey told reporters on Saturday. The present funding pattern for the smart city project is on a 50:50 basis between the central government and the states. “The Finance Ministry had issued a circular earlier that the 90:10 ratio norms would be followed in all central government launched projects,” Dey said. “Naidu remained noncommittal after Sarkar put up the proposal,” Dey said, adding that northeastern states are unable to bear the huge financial burden to implement the smart city projects. The minister said that other northeastern states have already made similar demands. Three cities in the northeastern region — Guwahati (Assam), Imphal (Manipur) and Agartala (Tripura), have been selected for the implementation of the ambitious smart city plan so far . Other cities of northeastern states that participated in the fast-track competition, included Shillong (Meghalaya), Aizawl (Mizoram), Kohima (Nagaland) and Pasighat (Arunachal Pradesh). These cities failed to fulfil the stipulated criteria and can submit their revised smart city plans for evaluation in the third round of competition likely to be held a few months later. Aiming at the all-round development of the infrastructure of the cities, the Smart City Mission marks a paradigm shift towards overall urban development in the country since it is based on a ‘bottom up’ approach with the involvement of citizens in the formulation of a city vision and smart city plans and the urban local bodies and state governments piloting the mission with little say for the Ministry of Urban Development. The Tripura Chief Minister also requested the Urban Development Minister to give relaxation in the centre-state funding pattern for northeastern states in the implementation of the Pradhan Mantri Awas Yojana (Urban), Atal Mission for Rejuvenation and Urban Transformation, Swachh Bharat Mission and Heritage Development and Augmentation Yojana. Louis Domingue Jersey
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
Highways sector poised for growth, says NHAI chief
The highways sector is poised for rapid growth as new opportunities unfold for construction of highways and some mega pipeline projects, according to Raghav Chandra, Chairman of National Highways Authority of India. Outlining the overall vision, the NHAI chief said the focus is on development with a changed approach from output-based thinking to outcome-based thinking where PPP mode projects will be not only for constrction component but also for service aspect in highways development. He said: “The national highways management has moved from construction-based to service-based achievement approach aimed at enhancing competitiveness and user satisfaction.” During his address at the national conference on Highways Construction Technology, Chandra mentioned about Green Highway projects and the importance of safety in the highways. He said NHAI is keen to have private players to patrol the national highways, which would help in traffic management and maintain road discipline. The NHAI official said more than 30,000 km of road projects are in the pipeline. NHAI has around 250 projects across the country and has completed more than 400 projects in the past. Chandra said it is expected to spend about $15-16 billion dollars during 2016-17. Some 97 projects with a total length of 6,631 km, which entail an investment of Rs. 1 lakh crore, are being awarded during 2016-17. Some of the projects to be awarded include Vadodara-Mumbai 6/8 lane Expressway (Phase I ), Surat- Mumbai with a spur to Mumbai-Pune expressway and JNPT in Phase II, Delhi-Jaipur expressway, 6-8 lane semi-elevated Delhi-Meerut expressway, Somnath-Porbander-Dwarka section of NH-8E, Bihar/Jharkhand border-Barwa, Hospet-Bellary NH-63, Tamil Nadu Karnataka Border Bengaluru section of NH-209, Solapur-Bijapur section of NH-13, Salasar-Nagpur section of NH-65, Vikravandi-Thanjavur section of NH-45C, and four-laning Nagpur-Wardha-Nanded-Solapur-Ratnagiri section of NH-36. Some of the projects awaiting approval for award and execution include Hyderabad-Vijayawada-Amaravati Expressway of 278 km (Rs 2673 crore), Nagpur-Hyderabad expressway of 505 km (Rs 483 crore), Hyderabad-Bangalore Expressway, Kanpur-Lucknow Expressway, Ring Road Expressway at Amaravati, and Delhi-Amritsar-Katra Expressway of 600 km (Rs 2,125 crore). NV Shetty, Chairman of the conference and COO of GMR Highways Ltd, said, the highways sector contributes about 5-6 per cent of the country’s GDP growth. This is largely driven by the initiatives of the Government. Cameron Meredith Jersey
Odisha targets 489 km national highways network in FY17
The state government has targeted to add 489 km of national highways (NH) to the existing network in 2016-17. During 2014-15 and 2015-16, 867.39 km of NH was developed in the state. A high-level review meeting held on Wednesday revealed that 22 national highways are passing through Odisha after renaming of the roads.These high ways include the NH-16, 18, 20, 26, 49, 53, 55, 57, 59, 63,130C,143, 149, 153B, 157, 220, 316, 326, 326A, 353, 516 & 520. The total length of these roads running through the state is around 4,849.42 km out of which total 3,387 km of roads have been assigned to state public works department (PWD) and 1,462.42 km have been assigned to National Highways Authority of India (NHAI) for development. Chief Secretary Aditya Prasad Padhi emphasized on development of the NH from Vizag to Jagdalpur, which connects Andhra Pradesh, Odisha and Chhattisgarh.The road passes through Sunki-Koraput-Jeypore-Nabrangour-Buriguma-Kotpad in Odisha. Padhi also emphasized on expediting the works in Vijayawada-Ranchi corridor connecting Andhra Pradesh, Odisha & Jharkhand. NHAI has completed development of 610 km and work for 529 km is under progress. The bidding process for around 243 km is completed and the projects for development 596 km are in the pipeline. The chief secretary has emphasized on fixing monthly targets for completion. The state government had submitted 44 projects to the union ministry of roads and highways with an estimated cost of Rs 1,047 crore under Central Road Fund out of which the ministry has given in-principle approval to 12 projects worth Rs 400.97 crore. Apart from this, the state had submitted two projects with an estimated cost of Rs 148 crore under Inter State Connectivity Scheme and two projects with an estimated cost of Rs 198 crore under roads of economic importance scheme. All these four projects have received in-principle approval from the ministry. Red Schoendienst Authentic Jersey
Rise in bids for highways under hybrid annuity model
Noting recent positive trends in the Indian highways sector, American investment banking firm Jefferies on Wednesday said there was an increase in bids under the government’s hybrid annuity model for roads building. “Macro developments suggest positive trends in the sector with pickup in execution. Recent bids in Hybrid Annuity model (HAM) in May-June has seen participation increasing from two-four players to seven-eight players as risk-reward is favourable,” the Jefferies India said in a report. “Consequently, bids have become slightly aggressive as competition is becoming cognizant of the favourable risk-reward scenario in HAM versus EPC (engineering, procurement and construction) versus BOT (build-operate-transfer) model,” it said. “Execution was strong in May at a 22 km per day completion run-rate, and will be closely watched for in the coming months,” it added. Under HAM approved earlier this year, the government commits up to 40 per cent of the project cost over a period and hands the project to the developer to start work, clearing the way for restarting work on stalled road projects. Noting that non-performing assets (NPAs), or bad loans, have come down in the construction equipment segment suggesting borrower cash flows are improving, the report said construction gear growth was exponential during January-June this year due to public spending in the road sector and improvement in National Highway Authority of India’s (NHAI) payment cycle. The NHAI in March invited bids for five projects under the hybrid annuity model. “A total of six projects extending up to 209 km and worth Rs 41 billion were awarded by NHAI in May 2016. Of this, five have been on HAM and only one on EPC mode. “This is in line with ministry’s commentary on awarding close to 85-90 per cent of the projects on HAM and EPC mode,” Jefferies said. “Media reports suggest that the ministry is working on a complete list of projects which it intends to award to achieve the 25,000 km overall FY17 target to lend more credibility to the target,” it added. The government has set a target of constructing 25,000 km of national highways during 2016-17 — up from 10,000 km in 2015-16. According to the Road Transport and Highways Ministry, of the total length of national highways targeted for award, 15,000 km would fall under NHAI, while the remaining 10,000 km will be under the purview of the ministry and National Highways and Infrastructure Development Corporation. The ministry said the last fiscal had many positive outcomes such as construction of 6,000 km of national highways, which marked a year-on-year increase of nearly 36 per cent. “The speeding up of road projects has been made possible due to several policy interventions which include the ministry being empowered to decide mode of delivery, increased threshold for project approval, enhanced inter-ministerial coordination exit policy,” an official statement said. Tyler Higbee Jersey
Haryana govt forms action plan to strengthen roads
Haryana government today said that an action plan of Rs 1,818 crore has been formulated to strengthen 5,605 km long roads in the state during the current financial year. During the 2016-17 financial year, special attention would be paid on fixing cat eyes and reflectors at dangerous curves of roads so as to prevent road accidents, Haryana Public Works (Building and Roads) Minister Rao Narbir Singh said. He said the department has prepared an advance action plan for works to be conducted throughout the year. In 2015-16, a action plan for 4,709 km long roads was prepared, Singh said. He further claimed that a WhatsApp number will also be launched in the next six months. Anyone can send a photograph of a damaged road and it will be repaired by the department within 72 hours. Singh said in the 21-months regime of the present government, work of strengthening of roads has taken place in the state. Haryana is celebrating its golden jubilee this year and my effort is to provide people with better road network, the minister said. Under the present BJP government, 12 highways have been declared as national highways, whereas in the ten-year regime of the previous government the state got only one national highway, singh said. Dennis Cholowski Jersey
‘Land allotment for 4 industrial cities in DMIC from October’
The Centre will start allocating land in all the four industrial cities being implemented under the Delhi-Mumbai Industrial Corridor (DMIC) project from October, a top official said today. “Land allotment for industries will begin in October this year for anyone who wants to put up an industry. We are looking at anchor investors, we are looking for some big industries to come up but we are open to all industries,” Assocham said quoting Alkesh Kumar Sharma, CEO and MD, DMIC Development Corporation Ltd. The four industrial cities that are being implemented under DMIC project include – Dholera Special Investment Region (Gujarat), Shendra Bidkin Industrial Park & Dighi Port Industrial Area (Maharashtra), Integrated Industrial Township (Greater Noida-Uttar Pradesh) and Vikram Udyogpuri (Ujjain-Madhya Pradesh). Sharma said the land pricing and disposal policies have already been finalised in Gujarat and it will be also finalised in a week’s time in Maharashtra. “We will also be finalising it in Greater Noida and in Ujjain within this month so that by September-October we can start allotting land,” he said. He informed that DMICDC had already developed a detailed land use plan and that it will also soon come up with a mechanism whereby one can apply online and the land shall be allotted. “You can identify a plot on the Google maps, fill in and you will see complete details of the plot that this plot is for industrial purpose, the size of the plot is 20 acres and this is the type of industry you can set up,” he added. The type of industries that have been identified for these industrial cities are the ones that are not highly polluting unlike chemical factories and others, Sharma said. Environment clearances had been obtained from the Ministry of Environment and Forests for all the projects, he said, adding that DMICDC would be following the best global practices be it transportation, power and water supply, water conservation and sewage treatment. Kurt Warner Authentic Jersey