NHAI floats Rs 3,700-cr bond issue

May 31, 2008

NEW DELHI: National Highways Authority of India (NHAI) has floated a fresh tranche of capital gains bonds to raise Rs 3,700 crore for funding new projects over the medium term. This is the second time in less than one year that NHAI has issued bonds. In September 2007, the organisation raised Rs 2,000 crore through such bonds.

The bonds issued by NHAI will yield an interest of 5.75% per annum and mature in three years. The face value of each bond is Rs 10,000. The Authority will accept a maximum application size of 500 bonds from a single entity or person. The bonds have been issued under Section 54 EC of the Income-Tax Act and the issue will close at the end of the current fiscal (March 31, 2009).

The issue is being marketed by banks such as Union Bank of India (UBI), IDBI Bank, selected branches of Syndicate Bank, HDFC Bank, Canara Bank and Punjab National Bank (PNB).

The government has authorised the NHAI to issue capital gains bonds with a ceiling of Rs 3,700 crore during 2008-09. Section 54EC of the Income Tax Act 1961, provides that capital gains arising from transfer of a long-term capital asset shall not be taxed so far as such gains are invested in a long-term asset within a period of six months after the date of transfer.

The NHAI is about to launch two more projects under the National Highway Development Programme (NHDP) VI and VII, which are currently in the planning stage. Both the projects have a planned investment of Rs 16,680 crores each.

NHDP VI involves the construction of a 1,000 km expressway in the western region. The cabinet committee on economic affairs has already approved the development plan of NHDP VII and the ministry of road transport and highways is in the process of setting targets for the stage by stage completion of the same.

NHAI is engaged in building the golden quadrilateral, which is part of NHDP-I and II projects. NHAI funds highway projects through issue of bonds, funds raised through fuel cess and loans from multilateral funding agencies such as Asian Development Bank and World Bank.
Source: www.economictimes.indiatimes.com

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Himachal CM Proposes Six-lane Parwanno-Shimla Expressway

May 27, 2008

Shimla: Chief Minister Prem Kumar Dhumal put forth a proposal for a six-lane expressway between Parwanno and Shimla, keeping in mind the increased traffic and future needs on the route.

Presiding over a review meet consisting of officials from the National Highway Authority (NHAI) and the state government the chief minister said that detailed project report for a six-lane expressed could be prepared.

He said the government was keen to start work on the four-laning of the 40.75 Km Parwanno – Solan stretch of the highway. Work on the Solan – Shimla stretch would be taken up in the next phase, he said. The four lane express way project between Parwanoo and Solan was likely to cost Rs 440.56 crore.

NHAI had proposed to construct the entire length of road as four-lane road but the state government was keen that the entire road be made into a six-lane one, said Dhumal.

Traffic pressure was mounting with every passing year, said Dhumal, and to meet the transport needs for the next fifty years it was essential to plan for it today. Vehicle movement on the existing highway from both ends was estimated to be around 23,000 per day which was projected to rise to about 66,500 by 2030. Such projections needs to be kept in mind while preparing a DPR for the expressway said Dhumal.

Roads remained the life line of connectivity for the hill capital, said the chief minister, as the Shimla-Kalka narrow gauge rail line was in the process of being declared a World Heritage rail track and the possibility of it being expanded into a broad gauge track was remote.

Planning and designing was required to be in consonance with the future demand of the area and required preparations made well in time to envision the additional land acquisition for the six lane express way, he said.

Public Works Minister Gulab Singh Thakur, said that spade work had been carried out for getting the project started early.

Dr. Rajeev Bindal, health minster, sought details of the habitations falling between Parwanoo and Shimla and urged authorities not to disturb the same in the process.

Ravi Dhingra, Chief Secretary said that the state had initially proposed the construction of six lane express way which was the need of the state keeping in view future growth requirements.

Balram Sharma, Secretary PWD, gave a detailed presentation about the departments preparedness to get the project executed.

PK Dass, General Manager, NHAI gave the presentation about the express way project and assured that necessary steps would be taken to make preparations for six lane road while initially constructing a four lane road.

Solan district legislators Hari Narayan Singh Saini, Smt. Vinod Chandel, Gobind Sharma and Dr. Rajeev Saijal, Principal secretary to the chief minister Bhim Sen, Director general of police Ashwani Kumar, special secretary PWD Mohan Chauhan, HPPWD engineer in chief BS Rajpal, Project director NHAI Col. K.P.Sharma, consultant NHAI Faquir Chand and other senior officers were present in the meeting.
Source:www.himachal.us

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M’lore: High-tech Four-lane Road from Kundapur to Talapady Soon

May 2, 2008

Govind D Belgaumkar/The Hindu

Work on the 90-km stretch likely to begin after the monsoon season
Contractors to apply for pre-qualification before May 30
Work to be awarded on build, operate and transfer basis

Mangalore, May 2: A smooth ride on a high-tech road from Kundapur in Udupi district to Talapady on Karnataka-Kerala border may be a possibility very soon. However, vehicle users will have to pay for using the road.

The work is being taken up under the third phase of National Highway Development Project (NHDP), aimed at building world-class highways to fuel the growth of the economy.

Although the work on the stretch between Nanthur and Surathkal has been tardy, the National Highway Authority of India (NHAI) has invited tenders for the remaining 90-km stretch. The Surathkal-Nanthur stretch has been taken up under the Port Connectivity Project of the NHDP.

Process

Considering that the process of awarding the tender takes a few months, as suggested in the authority’s website, the 90-km project implementation may begin only after the monsoon season.

The authority intends to pre-qualify six applicants, who will be eligible to bid for the project. In the next step, the bidders have to submit their financial offers for the project.

The NHAI has set May 30, against the previous May 5, as the deadline for contractors to apply for pre-qualification. Queries from the applicants will be entertained till May 5, after which a conference will be organised to clear their doubts on May 7. It will be a tolled road to be awarded on build, operate and transfer (BOT) basis. A special purpose company will be created to undertake the project implementation.

The contractor winning the project will have to design, engineer, finance, construct, operate and maintain the road till its transfer to the NHAI.

Scope of work

The scope of the project includes, rehabilitation of displaced people, improvement and widening of the existing carriageway to four-lane standards with construction of new pavements, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, and the operation and maintenance thereof.

Features

The NHDP hopes to provide enhanced safety features on the roads taken up for four-laning or six-laning, besides better riding surface, better traffic management and noticeable signage, divided carriageways and service roads, grade separators, over bridges and underpasses, bypasses and wayside amenities. The third phase envisages construction of more than 12,000-km of road. Of this, about 10,000 km is yet to be awarded, according to the NHAI website. Under NHDP, the authority has almost completed the golden quadrilateral which connects the four metros.
source:www.daijiworld.com

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