‘Absence of enough maintenance reserve puts lenders at risks’
Absence of adequate major maintenance reserve ( MMR ) for road projects based on build, operate and transfer ( BOT) model has exposed lenders to default risks , Icra today said in its latest study on the Indian road sector. According to Icra, concerted efforts to address execution bottlenecks have yielded positive results, as reflected in the 39 per cent increase in the pace of national highway execution at 5.39 km per day during April 2015-February 2016. “Icra’s assessment of major maintenance costs across several national highway projects reveals that the median cost per lane km was Rs 1.8 million. If lenders do not enforce creation of MMR immediately on commissioning of projects and instead allow tail periods to shrink through loan top-ups at the time of the first major maintenance, they could be exposed to default risks,” it said in a statement. Major maintenance (MM) is the largest expense item during the operations phase of a BOT road project, with each cycle involving expenditure of about 12 per cent of initial construction cost, it said. As per Icra estimates, the total estimated expenditure towards major maintenance during the project life could be as high as 60 per cent of the initial construction cost as a BOT project goes through 3-5 MM cycles depending on the length of the concession period. The study on 15 NH road projects, commissioned between 2005 and 2009, suggests that MMR was not created in 60 per cent of the operational BOT projects whereas it was not adequate to fund the MM cost in the remaining 40 per cent. Although the common loan agreements stipulate the creation of an MMR, lenders have not been proactive in enforcing the same, thereby allowing temporary surpluses, if any, to leak out of SPVs, it said, adding that adherence to MMR creation is higher in the case of debt raised in the form of bonds or NCDs. Rohit Inamdar, Senior Vice-President, Icra, said, “In the absence of adequate MMR, road SPVs are either dependent on sponsors for funds infusion or have to fall back on its tail period to raise additional debt. Therefore, the credit profile of most operational BOT projects are crucially linked to sponsors’ ability and willingness to fund MM cost and the sufficiency of tail period.” Inamdar, added that while high growth in commercial traffic boosts toll collections, it also increases major maintenance frequency and pushes up costs due to higher and faster wear and tear. The Ministry of Road Transport and Highways (MoRTH) plans to increase both awards and execution in the current fiscal by 2.5 times, from those of the 2015-16 levels. For NHAI, the targets are more steep with target execution of 8,000 km (21.92 km/day) and awards of 15,000 km. The target for 2016-17 is almost four times higher than what was achieved during 2015-16. Jermaine Gresham Jersey
Jaipur to be first Light House City of South Asia
Jaipur would be the first smart connected community Lighthouse City in South Asia. With the announcement, which came on Wednesday, Jaipur has joined the league of Cisco Lighthouse cities globally such as Hamburg (Germany), Barcelona (Spain) and Adelaide (Australia). Cisco Lighthouse City status credential is assigned to a list of selected cities all over the world. The Lighthouse City engagement would be enabled through a joint working group which would focus on deploying next generation technologies to impact citizens and society. Cisco is collaborating with the city of Jaipur on a number of key initiatives aimed at advancing Jaipur’s vision of becoming a global model and standard for sustainable urban development. The Jaipur Development Authority (JDA) has chosen to develop smart city infrastructures that would improve the efficiency and quality of services for its 3.5 million residents and over 40 million tourists who visit the city every year. Chief minister Vasundhara Raje said that this is the first step towards realising the vision of digital Rajasthan. She claimed Jaipur had been chosen because of rapid transformation and modernisations that the city authorities had undertaken over the last couple of years. “Citizen centric solutions, which are ahead of its times, were implemented in the last two years,” she said. The announcement would enable Jaipur to gain access to Cisco’s huge global network and channel program capabilities. The city would also benefit from the economic and social transformation which is set to occur with the initiation of next phase of the Digital India program in the country. Keeping in view the huge competition between cities for talent, business, investment and tourism, a growing role for technology is being envisaged to enable the development of communities that champion social, environmental and economic sustainability. A smart connected community is designed with technology at the center to improve the efficient management of city operators and the development and delivery of new services to citizens. In addition Cisco in collaboration with technology leaders such as Qualcomm technologies, General Electrical and 3M India Limited announced the launch of innovation center at Jaipur. The innovation center would be housed and operated by Genpact and help accelerate co-innovation of Internet of Everything (IOE) based solution. The innovation center would be hosted by JDA and team up with startups, developers, government agencies and academic communities who as the same goal of bringing innovative ideas to life and jointly accelerating development of IoE solution of global skill. Robert Woods Jersey
Smart City: Government to announce names of 14 more cities soon
The government is all set to announce 14 more cities to be included in the first set of cities to receive funds under the smart cities mission, taking the total number to 34. “We will announce the next set of cities in one or two days and these will be included in the first set of cities that will receive the first tranche of funding,” urban development minister Venkaiah Naidu said at a CII event in New Delhi on Thursday. Under the mission, the government plans to develop 100 cities as smart cities with advanced infrastructure and facilities. It had earlier shortlisted 98 cities. Naidu said the 20 cities that had already been announced may require an investment of $8 billion whereas once all 100 cities were selected the cities may require $40 billion. Ryan Carpenter Jersey
Shipping Ministry rescinds 6 more obsolete rules
The Shipping Ministry has notified the final rescinding of six rules under the Merchant Shipping Act, 1958. These rules are Merchant Shipping (Safety Convention Certificates) Rules,1975; Merchant Shipping (Radio Direction Finders) Rules, 1968; Merchant Shipping (Distress Messages and Navigational Warnings) Rules 1964; Merchant Shipping (Muster) Rules 1968; Merchant Shipping (Pilot Ladder) Rules 1967; Life-boatmen’s (Qualifications and Certificates) Rules 1963. Total 13 Earlier, seven obsolete rules were rescinded through a notification on November 17, 2015. With the latest order, the Ministry has so far rescinded 13 rules under the Merchant Shipping Act, 1958. Many of the old rules have become redundant and are causing delay. The context, purpose and objectives of the rules and regulations were studied and 13 were found obsolete. It was decided to rescind them in keeping with the government’s motto of minimum government, maximum governance. The officials expressed the hope that the new step would simplify the legislative framework governing merchant shipping sector and streamline the processes and procedures. ‘Not much difference’ However, shipping experts are of the view that the current move does not make any significant difference to the industry, but it should be supported so that DG Shipping will be encouraged to bring Indian maritime legislation up to international standards. There is need to strengthen the manpower at DG Shipping. The under-staffed agency, which is responsible for regulating the industry, is now more concerned with managing their workload, experts said, adding that recruitment of more surveyors would free up senior management to focus on regulations and modernisation. All maritime legislations such as Indian Ports Act, Major Port Trust Act and Merchant Shipping Act are outdated, they added. Bruce Bowen Jersey
How Sweden is relocating an entire city
Kiruna, the northernmost city in Sweden, is sinking. In fact, by 2050, most of its structures will have collapsed into the iron mines below it. So engineers have embarked upon an ambitious project to move Kiruna-along with its 20,000 residents-two miles to the east. A new documentary explains exactly how they plan to do it. Back in 2004, knowing the city was doomed to sink into the mines below (a process known as “deformation”), the state-owned mining company Luossavaara-Kiirunavaara AB held a splashy global design competition to find the best idea for moving the city. Architects at White Arkitekter AB won the competition for their plan Kiruna 4 Ever and broke ground on the new city in 2014. All of the residents will be completely moved within two decades. This Is Kiruna: How to Move a City is a delightful little film made by the Swedish government that focuses on the massive infrastructural effort required to relocate a city-and one above the Arctic Circle no less, where it’s very cold, covered in deep snow, and completely dark for some of the year. Only three historical structures will actually be moved-the rest will be “recycled” with their materials reclaimed for use in new construction. There’s also an explanation for how everyone gets re-housed. Luossavaara-Kiirunavaara AB is giving the owners of sinking properties a choice. It will either buy these homes at market value plus 25 percent or offer residents a brand-new home for free in a new part of town. (Renters will get subsidized rent to help them transition into what will likely be more expensive buildings.) Continuing to mine the valuable iron ore from below the old Kiruna will supposedly keep the city economically flush-although not everyone believes this will be the case. What’s most amazing to see in this film is how casual the residents are about the prospect of uprooting their lives. I feel like a similar plan in the United States would be a political disaster rife with protests and lawsuits. But I think this is largely a credit to the great care that Sweden has taken to make sure that Kiruna’s citizens are upgrading to a better urban experience. When I spoke with one of the firm’s principals two years ago, it was intriguing to hear how this was a chance to fix many of the existing city’s problems. Namely, it’s an opportunity to build a denser, more compact center, but it’s also about proving to residents that an improved city design can better meet their daily needs, says architect Mark Szulgit. “The biggest challenge is to move the minds of the people.” Logan Couture Jersey
Babus tried to ‘scuttle’ Maha CM’s plan for Smart City project near Panvel
Red-tape did not even spare chief minister Devendra Fadnavis, as babus scuttled his plan to open up a huge area in 11 villages near Panvel for a Smart City project, and a month later, after he was was apprised of the blunder, it was brought back on track. Had it not been corrected, it would have been big blow to even Prime Minister Narendra Modi, whose Make in India mission propagates easy access to land and infrastructure for quick industrialization. On February 17, when Fadnavis, as Cidco chairman, signed a Rs 10,000 cr land deal with villagers to develop a Smart City along the Pune Expressway during the recent Make in India summit at BKC, it came to light that at the same time his trusted Mantralaya babus took away the deal from under his nose by transferring the strategic rural area (9,000 acres) to another department through a government resolution (GR). The land is close to upcoming Navi Mumbai airport and is being eyed as the next industrial hub, with international majors like Foxconn being promised land in its proximity. The CM’s March 18 deal with the local body of Khalapur and 10 other villagers will make available 9,000 acres within a year, for development of another Smart City around the international airport. But the urban development (UD) department officials released a GR that same day, that instead of Cidco, the land comes under the Maharashtra State Road Development Corporation’s (MSRDC) jurisdiction. Either the officials were unaware that these villages were part of the Cidco deal or it was a tug-of-war between politicians and administrators who, at least for a month, forced the CM to fall back on his promise the day he made it. It took a month for him to get a GR that restored the land to Cidco, giving a lease of life to the first-of-its-kind CM-villagers agreement. Though senior MSRDC officials said the change in agency would not have made a difference to the project, experts closely attached to the deal said it may have taken few more years for MSRDC to come up with its own Smart City detailed project report (DPR) and then discuss it with villagers to seal the deal. The officials said the land in 11 villages, out of 85 they already possessed, was a smaller portion and they were not averse to giving it to Cidco. “The political leadership was to decide. Even if the land was retained, we could have developed it into a new urban magnet as MSRDC too has a strong force of chief engineers and planners who are capable of implementing such projects,” they said. MSRDC is developing a new office in Navi Mumbai for this purpose. Cidco officials said though MSRDC could implement infrastructure projects like an expressway, Cidco being a developer of cities, had expertise and machinery to quickly develop new cities and maintain them. “Instead of giving all the land to Cidco, as in earlier projects, villagers will be partners and will earn perpetual benefits with the increase in land value and growth in investment in their area,” said Anil Sule, an ex-urban planner, who is involved in conceiving the SPV and terms and conditions of the agreement between the villagers and Cidco. THE DEAL The purpose | Creation of smart cities around upcoming Navi Mumbai airport Special Purpose Vehicle * 15,000 persons from 11 villages have volunteered land partnership through a special purpose vehicle * The villagers have land spread across Khalapur, about 20-30km from Panvel * Cidco will retain 15% land and it will use 25% for creating civic amenities * The remaining 60% will belong to villagers and land lease holders, who will be the stake-holders with a primary share of Rs 4,050 per acre * Over the next five to 10 years, all villagers can get about Rs 2,500 per square metre (Rs 1-1.5 cr per acre) as compensation through land leases that are expected once the city’s development begins * By 2017, hundreds of domestic and international majors wanting to invest in a big way in Mumbai metropolitan region may have land easily available from this SPV, constituting villager land-owners * The deal was one of the major agreements Maharashtra signed to gather over Rs 8 lakh crore investment assurances from foreign and domestic companies during the Make in India Week Demetrius Harris Womens Jersey
Gujarat CM to launch smart village drive on May 22
Chief minister Anandiben Patel is expected to launch the smart village programme on May 22, the second anniversary of her government. She will felicitate villages that have 100% toilet facility. The CM will attend the Accessible India campaign workshop on May 21. The CM will also attend Lok Samvad Setu programme in Umparpada and Ankleswhar in central Gujarat on May 20, and in Olpad and Choryasi on May 19. Patel will be present at an education department workshop and announce various projects on May 25. She will dedicate a new science college and girls’ hostel in Jetpur in Rajkot on May 31. GCCI poll process begins: Twenty forms were taken by aspiring candidates on day one of form distribution at the Gujarat Chamber of Commerce and Industry (GCCI), on Tuesday. The election process for 24 seats of the GCCI executive committee and posts of office-bearers has begun. The forms for both GCCI and Business Women Wing were made available from Tuesday. The last date to file nominations is May 28 and last date to withdraw nominations in June 1. Voting will be held on June 18 from 10 am to 4 pm. City student gets scholarship: A student from the city-based Cept university, Mitraja Vyas, a senior researcher at the Design Innovation and Craft Resource Centre of the institute, has received a research scholarship from the Charles Wallace India Trust and Simon Digby Memorial Charity to conduct a short research project in the UK. The research project is titled ‘Vernacular Furniture of Gujarat’. Alex Anzalone Jersey
Digital energy cluster to attract global energy players to SmartCity Kochi
The digital energy cluster, coming up as part of SmartCity Kochi, will be the first-of-its-kind in India as it will help harness affordable energy for generations. The cluster will comprise industries that will develop clean energy technology for the energy industry domain and technical training centres. It will provide facilities like digital technology labs, testing centres, technology and services hosting infrastructure and remote operations support, like Cloud, infrastructure services, engineering services and supply chain management among others. It will also consist of remote real time operations support centre for global energy giants. The digital energy cluster, to be established by KenCel Infratech Pvt ltd formed by Texas based technology company along with a leading Indian builder, will come up in 4.37 acres with an area of 7.61 lakh sq ft. It is expected to attract major international players of the energy sector and will open up avenues of high-end and highly skilled job opportunities for about 10,000 skilled professionals. The prospective global clients will be oil and gas operators, petroleum and energy related companies, renewable energy leaders and technology providers, thereby making it a unique IT-energy zone inside SmartCity. “The combined strength and expertise of global leaders of energy industry including renewable energy and information technology, coupled with excellent trainable talents available in Kerala will bring a new trend in development and specialization and thus open gates to world renowned companies in the energy industry to Kochi,” said Dr. Baju George, CEO SmartCity Kochi. Jason Pierre-Paul Womens Jersey
Railways to form joint venture with Karnataka govt: Suresh Prabhu
The Railways will form a joint venture company with the Karnataka government in three months, Railway Minister Suresh Prabhu has said. Stating that this will help develop rail infrastructure projects in the State, the Railways needs small and medium enterprises to supply components to it. He was addressing the valedictory of the platinum jubilee celebrations of Kanara Chamber of Commerce and Industry (KCCI) here on Monday. Infra focus Highlighting the role of infrastructure development in the growth story, Prabhu said the Railways has been investing heavily in infrastructure projects such as track development, hi-speed rail line, and dedicated freight corridor. Two of the major international companies have been given the task of making electric and diesel locomotives for the Railways. Stressing on the need to explore the potential of the west coast of the country, he said organisations such as KCCI should come forward and work with the Railways to explore this potential. Nalin Kumar Kateel, Member of Parliament from Dakshina Kannada, Ramanath Rai, Minister in charge of Dakshina Kannada district, and JR Lobo, Member of Legislative Assembly (Mangaluru South), spoke on the occasion. PTI adds: Speaking after renaming Bengaluru city railway station as Krantivira Sangolli Rayanna Station in Bengaluru on Sunday, Prabhu said the idea is for the State government to collaborate with the Railways to create fast and accelerated infrastructure for the State. “Within the next three months, we will operationalise this (joint venture) company. The Chief Minister has invited me for a meeting on this. We will take the next step forward to ensure that the company is operationalised and take up infrastructure projects,” he added. In February, the Union government had cleared a proposal allowing the Railways to form JV companies with State governments with equity participation to help identify areas that require new railway lines, acquire land for projects and help pool funds as well as jointly monitor these projects. Station renamed The Bengaluru station was named after Karnataka’s prominent freedom fighter Sangolli Rayanna (1798-1831), the head of the army in the princely State of Kittur ruled by Rani Chennamma. Prabhu also laid the foundation stone for Yelahanka-Penukonda (120 km), Arsikere-Tumakuru (96 km), Hubballi-Chikjajur (190 km) doubling projects, and road overbridge at Koppal. The road overbridge at Davangere was also commissioned today during the event that was attended by Karnataka Chief Minister Siddaramaiah, former Prime Minister HD Deve Gowda, Union Ministers Venkaiah Naidu and Ananth Kumar, among others. Track doubling Prabhu promised that doubling of Mysuru-Bengaluru line will be completed in six months and Bengaluru-Hassan new line project of 165 km will be done before the end of 2016. The Ministry is exploring the possibility of having ‘semi high speed’ railway between Bengaluru-Mysuru and Hubballi-Bengaluru. Detroit Lions Jersey
Rehab plan for 96 families in Kolhapur progresses
The civic body has drafted a Rs 10-crore project to provide flats to 96 families from Kapoor Vasahat slum under the Pradhan Mantri Awas Yojana (PMAY). The project is the first to be submitted to the central government under the scheme which is also known has ‘Housing for all by 2022’ scheme. The central and state governments and the beneficiary have to share the cost of the housing unit. Prasad Sankpal, programme co-ordinator for the PMAY said, “We have planned to rehabilitate the slumdwellers from the area in six-floor apartments. The central government will contribute Rs 1 lakh and the beneficiary has to share 15% of the total cost of the housing unit. The state government will also make a contribution and the rest will be generated from through public-private partnership basis.” “The project report will be tabled in the general body meeting on May 20. After the general body’s approval, it will be submitted to the Maharashtra Housing and Development Authority, which will submit it to the central government,” Sankpal said. The scheme envisages providing houses to three types of beneficiaries — slumdwellers with property cards of their own, homeless people, and those with their own property but lacking ‘pucca’ houses. The Kolhapur Municipal Corporation has finalised around 550 beneficiaries belonging to the homeless category. The project report for Subhashnagar slums is in the final stage. The civic body had finalised the detailed project report to provide flats to over 100 poor families at Subhashnagar slums under the earlier Rajiv Awas Yojana and had submitted it to the state government. However, the project was not approved. After the new government launched the new scheme, the KMC had to revise the DPR owing to the changes in the funding pattern. Cortez Kennedy Jersey