MP promises solution to highway issue

December 12, 2007

Ongole, December 12: Magunta Sreenivasulu Reddy, MP, has assured people that he will prevail upon the National Highways Authority of India (NHAI) officials to lay the second bypass road away from town limits as part of widening the highway from the present four lanes to six lanes between Tada and Vijayawada.

Addressing a meeting got up by the Second Bypass Road Committee here on Tuesday, Mr. Sreenivasulu Reddy also promised to lead a delegation to the Union Minister of State for Surface Transport and also Prime Minister to achieve the demand. The MP said he had already taken up the issue with the Minister who responded favourably and issued directions not to widen the existing bypass road to six lanes in the town limits. So the officials concerned were not making any attempt to acquire the land for the purpose, he said.

But, as it would take some time to lay the second bypass road, heavy vehicles would continue to ply on the existing four-lane highway in the town limits, he said.
Traffic increases

Mr. Sreenivasulu Reddy pointed out that the Central government had agreed to widen the Chennai-Kolkata NH 5 from four lanes to six lanes in the stretch between Tada and Vijayawada to meet the needs of the increased traffic density.

The decision, however, caused agitation among people of Ongole and Chilakaluripet where the highway is passing through thickly-populated areas causing traffic and pollution problems. People began agitating for the second bypass road in these two towns and their concerns have been taken to the notice of the Government.

Committee president B. Ramagopala Reddy, who presided, said that people had opposed laying of the four-lane highway in 2002 itself. But, the NHAI officials ignored their objections and widened the road after giving an assurance to the High Court that the highway would be shifted while expanding it to six lanes.

The highway has virtually divided the town into two parts making it difficult for people to shuttle.

Ongole MLA, Balineni Sreenivasa Reddy, MLA, said that the Government wasted nearly Rs. 20 crores for constructing a flyover on the bypass road near Kurnool road. It should at least consider the opposition from people and shift the bypass away from town limits while widening it to six lanes.

Senior advocate and freedom fighter Karavadi Venkateswarlu stressed the immediate need to lay second bypass road as part of the expansion programme.

Source: siasat.com

Written by ITW Editor · Filed Under Uncategorized

3 major roads in first phase

December 12, 2007

BHUBANESWAR: Three major roads will be taken up for development in the first year of the phase-1 programme under Orissa State Road Project (OSRP) with World Bank assistance.

The World Bank has agreed to provide funds for improvement of road infrastructure of about 1,400 km with an estimated cost of Rs 1,480 crore.

While the loan component is Rs 1,175 crore, matching fund from the State will be Rs 305 crore. The project will be implemented in five years.

In the first year, 204-km stretch of road will be taken up for improvement. The three road projects which will be developed include the 99-km Chandbali- Bhadrak-Anandpur road, 70-km stretch of Khariar-Bhawanipatna road and 41-km road from Berhampur to Taptapani.

The State has identified five major roads having a length of 835 km for development in the first phase. Detailed project report (DPR) and economic viability and feasibility study of the projects have been completed.

The 152-km road stretch of Jagatpur-Kendrapara- Chandbali-Bhadrak, 138-km Bhadrak-Anandpur- Karanjia-Tongabilla, 213-km Khariar-Bhawanipatna- Muniguda-Rayagada-Kereda, 202-km stretch Berhampur-JK Puri- Rayagada and 127-km Banarpal-Daspalla- Bhanjanagar-Aska road have been finalised for the first phase.

Reviewing the road projects at a high-level meeting here on Tuesday, Chief Secretary Ajit Kumar Tripathy asked the Revenue Department to issue instructions to the district collectors concerned for initiating measures for land acquisition.

The 204-km road stretch, that will be developed in the first year, is passing through 160 villages.

Since land acquisition is a timetaking process, the Chief Secretary said the district collectors concerned must ensure that the land owners are properly compensated and the projects are completed in time.

The Revenue Department informed the meeting that notification had been issued to the district collectors for land acquisition. Works Department, the nodal agency for the State Road Project, has planned to develop 294 km of roads in the second year.

The Department will submit the first three road projects to the World Bank for approval and sanction of loan, official sources said.

Source: newindpress.com

Written by ITW Editor · Filed Under Investment and Finance

KAMAL NATH STRESSES ON IMPROVING ROAD CONNECTIVITY IN DMIC PROJECT

December 12, 2007

Shri Kamal Nath, Union Minister of Commerce and Industry, has called for improving the road connectivity of the four hubs / regions proposed to be developed in the Delhi-Mumbai Industrial Corridor (DMIC) Project. In his communication to the Chief Minister of Madhya Pradesh on 10th December 2007, Shri Kamal Nath has requested for initiating / undertaking the following action for improving the road connectivity of the four industrial regions (Pithampur-Dhar-Mhow; Neemuch-Nayagaon; Shajapur-Dewas and Ratlan-Nagda) under the DMIC Project:

i) The State Highway (SH-31) between Nagda (on National Highway-79) and Gujri (on National Highway-3) be four laned for providing the Pithampur-Dhar-Mhow Mega Industrial Region better connectivity with NH-79 and NH-59.

ii) Widening and strengthening of the Dewas-Ujjain-Badnawar stretch of State Highway (SH-18) to improve the connectivity of the Shajapur-Dewas Industrial Region to ensure improved linkage between National Highway-3 and National Highway-79, passing through Ratlam.

iii) Strengthening of State Highway-41 between Sarangapur-Akodia-Shujalpur-Ashta-Kannod for improving the road connectivity between National Highway-86 and National Highway-59A for serving both the Shajapur-Dewas Industrial Region as well as the Indore-Pithampur-Mhow belt.

iv) For converting the Jhabua-Thandla Road-Ratlam Road into a four laned State Highway to help the growth of the Ratlam-Nagda Mega Industrial Region.

v) To facilitate the growth of the Ratlam-Nagda region, Ratlam-Sailana road link for improvement/augmentation; and

vi) Jaora-Sailana-Banswara (Rajasthan) road be converted into a two / four lane State Highway.

Besides the above six road links, Shri Kamal Nath has suggested for improving the connectivity of Indore with Mumbai, the financial capital of the country. “I suggest that between Indore and Nashik, the road link be similarly converted into an expressway with the Government of Madhya Pradesh taking the responsibility of developing it between Indore and Shirpur on the Maharashtra-Madhya Pradesh border and for the remaining portion upto Nashik being so developed”, the letter says.

As regards National Highways, Shri Kamal Nath has written to the Minister for Shipping, Transport and Highways, Shri T.R. Baalu, explaining that the government has already accorded its in-principle approval to the development of the DMIC project, which passes through six states including Madhya Pradesh. Shri Kamal Nath has urged Shri Baalu to improve the transport connectivity in the above four industrial regions of Madhya Pradesh by four laning the Dewas-Sehore-Bhopal stretch of NH 86 extension and the road connecting Jaora on NH 79 with Maksi and passing through Mehidpur on SH 27 and Tararia being converted into an extension of the NH network.

Written by ITW Editor · Filed Under Uncategorized

Omaxe, GVK & NCCL applies for projects worth Rs 300 bn

December 8, 2007

Omaxe, through a consortium comprising of GVK Power & Infrastructure and Nagarjuna Construction (NCCL), submitted an application with department of infrastructure development, government of Uttar Pradesh in regard to development of 8-lane access controlled expressway project from Greater Noida to Ghazipur Ballia (Contract Package nos. 1,2,3,& 4) to be executed as BOT (Toll) project on DBFO Pattern under `Ganga Expressway Project` in the state of Uttar Pradesh.

Brief details of the Ganga Expressway Project:

The 8-lane access controlled expressway would involve an estimated total construction cost of the order of Rs 300 billion and will cover a total of 1,047 kilometers. The project is proposed to be executed in special purpose vehicle (SPV) on design, build, finance and operate model by collection of toll in the concession period which is of 35 years and then transfer assets to government of state of Uttar Pradesh.

The construction of the project has been divided into four phases:

Greater Noida to Fatehgarh (Link-I) of total 253 kms with an indicative value of contract of Rs 76.31 billion.
Fatehgarh to Dalmau (Link-2) of total 305 kms with an indicative value of contract of Rs 80.12 billion.
Dalmau to Aurai (Link-3) of total 211 kms with an indicative value of contract of Rs 61.24 billion.
Aurai to Ballia of total 278 kms with an indicative value of contract of Rs 80.25 billion.

Shares of the company gained Rs 52.4, or 12.2%, to settle at Rs 482.05. The total volume of shares traded was 1,636,713 at the BSE. (Thursday)

Source: myiris.com

Written by ITW Editor · Filed Under Investment and Finance

Navayuga Engg bags Rs 710cr NHAI project

December 6, 2007

Hyderabad-based multi-disciplinary engineering and construction player, Navayuga Engineering Company, has bagged a Rs 710 crore project from the National Highway Authority of India (NHAI).

The contract envisages designing, construction, financing and maintenance of an access-controlled highway project between the Bangalore and Nelamangala section on NH-4 on a build-operate-transfer (BOT) basis in Karnataka.

Debt syndication of Rs 540 crore has been done by
Bhubaneswar-based SRB Consultancy Private Limited from a consortium of banks.

The six-lane highway project, total length of which is 19.5 kilometres with elevated highway for 4.5 kilometres, terminates at Nelamangala. The scope of the work also includes underpasses and service roads for the entire length on both sides of the highway.

According to a company press release, revenues generated from the proposed tolling will accrue to an SPV (special purpose vehicle) formed for implementing the project.

The concession period of the project is 20 years, including the construction period of two years. The project is expected to be completed by the end of 2009, it added.

Source: business-standard.com

Written by ITW Editor · Filed Under Investment and Finance

CRISIL assigned IPO Grade 3/5 to KNR Constructions

December 6, 2007

Leading credit rating agency, CRISIL assigned IPO Grade 3/5 (pronounced `three on five`) to the proposed initial public offer of KNR Constructions (KNRCL). The public issue of 7,874,570 equity shares of face value Rs 10 targeting an issue size in the range of Rs 1,500-Rs 1,750 million. This grade indicates that the fundamentals of the issue are average, in relation to other listed equity securities in India.

The grading reflects KNRCL`s strong track record of project execution in both roads construction and operations and maintenance (O&M). The company has executed many projects as part of the NHAI`s NHDP program and has had a 7-year relationship with Patel Engineering as a joint venture partner.

The KNR-Patel JV has won 10 road construction projects so far. These include two BOT annuity projects as a part of NHDP Phase II, the combined value of which is Rs 9.6 billion. As of September 2007, KNRCL`s order book stood at Rs 16.25 billion, of which the roads sector constituted 89%.

The grading is however constrained by the relatively underdeveloped state of the company`s operating system, which in turn, could constrain its ability to augment the size of its operations. The grading also reflects the uncertainties associated with company`s plans to diversify into the power generation and real estate sectors.

Source: myiris.com

Written by ITW Editor · Filed Under Default, Investment and Finance

Govt approves Rs 16,680-cr NHDP Phase VII

December 6, 2007

NEW DELHI: The government on Thursday approved development of road projects including construction of ring roads, bypasses and tunnels under Phase VII of National Highways Development Programme at a cost of Rs 16,680 crore.

“The Cabinet Comittee on Economic Affairs (CCEA) today gave its approval for construction of ring roads, bypasses, graded intersections, flyovers, elevated roads, tunnels, road over-bridges, underpasses and service roads at a cost of Rs 16,680 core,” an official spokesperson said after the CECA meeting.

The total project would be executed on build, operate and transfer (BOT) basis.

Of the total money, the government would fund Rs 6,302 crore and Rs 10,378 crore would be ensured through private sector participation, she said.

Under NHDP-VII, Rs 10,500 crore will be spent on constructions for 700 km of ring roads and bypasses and the remaining money would be utilised to construct grade separated intersections, road over-bridges, elevated roads, tunnels, underpasses and service roads, the spokesperson said.

These constructions will improve traffic safety and ensure faster movement of vehicles with improved riding quality time.

“This will lead to reduction in vehicle operating cost and significant reduction in fuel consumption for the vehicles resulting in energy conservation,” she said.

The works on stand-alone ring roads and bypasses are likely to be awarded by March 2011 and is to be completed by December 2014.

Source: economictimes.indiatimes.com

Written by ITW Editor · Filed Under Investment and Finance

CONSTRUCTION OF STAND ALONE RING ROADS, BYPASSES, GRADE SEPARATORS, FLYOVER, ELEVATED ROADS, TUNNELS ETC. UNDER NATIONAL HIGHWAYS DEVELOPMENT PROJECT PHASE VII

December 6, 2007

The Cabinet Committee on Economic Affairs today gave its approval for Construction of Ring Roads/Bypasses (including improvement of NH links in city), Grade Separated Intersections, Flyovers, Elevated roads, tunnels, Road Over Bridges, Underpasses and Service Roads at a cost of Rs.16,680 crore (Rs. 6,302 crore from Government + Rs.10,378 crore from Private Sector), on BOT (Toll) basis. Out of Rs.16,680 crore of NHDP Phase – VII, Rs.10,500 crore will be spent on constructions for 700 km of ring roads and bypasses. The remaining amount of Rs.6,180 crore on stand alone Grade Separated Intersections, Road Over Bridges, Elevated Roads, Tunnel, Underpasses and Service Roads.

Construction of ring roads, bypasses, grade separators, flyovers, Elevated roads, tunnels, Road Over Bridges, Underpasses, service roads, etc. will improve traffic safety and improve faster movement of vehicles with improved riding quality and time. This will lead to reduction in vehicle operating cost and significant reduction in fuel consumption for the vehicles resulting in energy conservation.

The works of stand alone ring roads & bypasses are likely to be awarded by March, 2011 and is likely to be completed by December, 2014.

Written by ITW Editor · Filed Under Investment and Finance

20 cos bid for longest expressway in India

December 6, 2007

The planned expressway will dwarf the 95km-long, six-laned, access controlled expressway connecting India’s financial capital Mumbai with Pune

Mumbai: Twenty firms have submitted initial bids for building India’s longest and biggest expressway project yet—a Rs40,000 crore, eight-laned, access controlled expressway linking Ballia in eastern Uttar Pradesh (UP) with Greater Noida—located on the border of the Capital, New Delhi.

The 1047 km-long road project dubbed Ganga Expressway will, when operational, cut travel time between the backward eastern part of Uttar Pradesh and the more prosperous western part of the state, by 16 hours from the current 24 hours.

For a traveller, it would take just about eight hours to zip from the holy city of Varanasi to New Delhi when the project is completed.

The planned expressway will dwarf the 95km-long, six-laned, access controlled expressway connecting India’s financial capital Mumbai with Pune and the under construction and controversy-ridden 111km-long expressway linking Bangalore with the garden city of Mysore.

The firms that have applied for pre-qualification include Larsen & Toubro Ltd, Reliance Energy Ltd, DLF Ltd, IL&FS Ltd, Gammon Infrastructure Projects Ltd with Australia’s biggest investment bank Macquarie, GMR Group, the Omaxe Ltd-GVK Group-Nagarjuna Construction Co. Ltd consortium, the Bajaj Hindusthan Ltd-Apollo Group-D S Constructions Ltd consortium, Jaiprakash Associates Ltd, Canadian firm SNC Lavalin with Progressive Constructions Ltd, Unitech Ltd, Punj Lloyd Ltd, Oman’s Gulfar Engineering & Contracting Llc., Zoom Developers Pvt. Ltd, Australia’s Leighton Group with Oriental Construction Co. Ltd, and PLUS Expressways Berhad, a subsidiary of Malaysia’s UEM Group, according to an official with the UP government overseeing the bidding process who did not wish to be named.

UP has taken inspiration for building the Ganga Expressway from legendary Afghan leader Sher Shah Suri, who built the Grand Trunk Road connecting Delhi with Kabul in the 16th century after temporarily displacing Humayun from the Mughal throne.

Suri’s road ran alongside the right bank of the Ganga; the new expressway will be built on the left bank of the river.

The eight-laned expressway will be constructed on an embankment to be built by the state’s irrigation department for controlling floods on the left bank of the Ganga.

The proposed expressway will start at Ballia-Gazipur and pass through Varanasi, Mirzapur, Sant Ravidas Nagar, Allahabad, Pratapgarh, Rae Bareli, Unnao, Hardoi, Farrukhabad, Fatehgarh, Shahjahanpur, Badaun, Bulandshahr, Gautam Buddhanagar and terminate at Greater Noida.

The expressway project will make available around 5,000 acres of land for real estate development including residential and industrial units. This will make the project economically viable for the developers.

The work on the expressway project will begin next year.

Source: livemint.com

Written by ITW Editor · Filed Under Default, Investment and Finance

Gayatri Projects achieves financial closure for 2 SPVs

December 5, 2007

Hyderabad-based leading infrastructure company, Gayatri Projects ltd, has achieved financial closure of Rs 932.71 crore ahead of the stipulated time for its two road projects, to be developed through special purpose vehicle (SPVs), at an interest rate of 11 %.

IL&FS has syndicated the entire debt and United Bank of India is the leader of the consortium of lenders for both the SPVs.

The projects undertaken by Gayatri Projects Ltd-led consortium are Hyderabad expressways pvt ltd (HEPL) and Cyberabad expressways pvt ltd (CEPL) with a project costs of Rs 430.96 crore and Rs 501.75 crore respectively.

While the total syndicated debt in case of HEPL is Rs 290.90 crore, it is Rs 376.31 crore for CEPL.

The infrastructure major-led consortium had won the bid for the HEPL and CEPL—the eight lane outer ring road projects— floated by Hyderabad Urban Development Authority (HUDA).

The construction period for both the HEPL & CEPL is 2 years and six months. HUDA will pay a semi-annual annuity of Rs 30.49 crore to HEPL during the annuity period of 12 years six months while the semi-annuity amount is pegged at Rs 39.50 crore in case of CEPL for the similar period.

Source: moneycontrol.com

Written by ITW Editor · Filed Under Investment and Finance

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