Eastern Freeway to be completed today
March 29, 2013
Eastern Freeway to be completed today
MUMBAI: The city’s longest flyover, connecting the 9.29-km stretch from Orange Gate on P D’Mello Road to the Mahul creek salt pan between Anik and Chembur, will be completed on Saturday. It will also be the second largest flyover in the country, the largest being the one that connects Hyderabad airport to that city.
Still, the Eastern Freeway elevated road will be the longest such in an urban area in the country once the final concrete block is lifted and placed on Saturday afternoon. The bridge will have 313 pillars and 3,340 segments.
With the development, massive traffic decongestion on the eastern road corridor of the city will be achieved from May onwards, as the flyover forms part of an upcoming 17-km signal-free freeway. Mumbaikars would be able to enter and exit the road from eight points. While six pairs of ramps would become be operational in May, the remaining two will be opened to traffic in June at the earliest.
A 4.5-km mixed road-tunnel-flyover connectivity willcome about between Anik and Chembur; the freeway will offer Mumbaikars a much-awaited 20-minute road journey from CST to Chembur—the entry point there being at Panjarpol near R K Studios.
Thus, the 17-km freeway is divided in three parts: the 9.29-km elevated road, the 4.3-km road-tunnel-flyover and an elevated 2.5-km flyover from Panjarpol till the Mankhurd-Ghatkopar Link Road (MGLR) via Govandi.
“By May end, we will start the four-lane road up to Shivaji Chowk, Chembur, from CST, but for the last leg (till MGLR), we may need another one or two months,” said a senior MMRDA official. “The second part of the freeway will be eight-laned to take traffic from four lanes of flyovers and four lanes of roads below.
Source- http://timesofindia.indiatimes.com/
Infra sector: Opportunities abound, problems aplenty
March 29, 2013
Infra sector: Opportunities abound, problems aplenty
V. RISHI KUMAR
The country’s infrastructure sector, seen as a growth engine for economy, is beset with problems.
The 12th Plan projects an investment of Rs 55 lakh crore ($1 trillion) in infrastructure with private sector contributing about 47 per cent.
While private sector is seen to contribute a major chunk of the potential opportunity, players in the sector are faced with liquidity crunch and funding is hard to come by lately. While several measures have been initiated by the Government to address the sector concerns, it is still some way away in terms of returning to normalcy.
The infrastructure sector woes include tough macro economic conditions, high interest rates, mounting debt, liquidity concerns, tough scenario in the capital markets, making entry and exit difficult. There are also a slew of regulatory issues, including environmental, contributing to slowdown leading to delays in project implementation.
LIVING ON HOPE
Interaction with several leading infrastructure companies shows that they are all living on hope and a changed business environment to help them turn around.
Even the measures announced by the Government and the Reserve Bank of India to lower repo rates, to accelerate growth, have not begun to impact at the ground level. Banks have not yet passed on the benefits.
Prime Minister Manmohan Singh and a core team are looking into concerns of the sector and to help create the necessary feel good factor to accelerate the growth.
Union Finance Minister P. Chidambaram in the Budget for 2013-14 has announced several measures to restart the growth engine to attract more investments — domestic and foreign.
Power sector and construction of roads have been adversely hit due to fuel supply concerns and environmental issues. The Government is now seeking to address this problem by setting up a regulator for roads and a Cabinet Committee on Investment.
GROWTH CORRIDORS
The industrial corridors such as Delhi-Mumbai corridor connecting major cities and industrial hubs in South will be one big unfolding opportunity for infra companies to play a role in their development.
The Department of Industrial Policy and Promotion and the Japan International Cooperation Agency are preparing a plan for Chennai-Bangalore Industrial Corridor to be developed in collaboration with the Governments of Tamil Nadu, Andhra Pradesh and Karnataka. It is also proposed to take up yet another major corridor between Bangalore and Mumbai. While the planning and execution may take a few years, they will open up big opportunity for development of expressways, industrial hubs dotting these corridors and towns and cities along will benefit with improved infrastructure.
With such projects running into thousands of crores, the Government is banking on investments from multilateral agencies. Japanese companies, in particular, are keen to play a big role in these corridors, a recent delegation that visited Hyderabad told Business Line.
The Government hinted at setting up of two large ports in Andhra Pradesh and another one in Tamil Nadu, the latter with an outlay of Rs 7,500 crore.
While some of the initiatives of State Governments, such as the development of petroleum and petrochemical region in Andhra Pradesh, are still struggling to attract investments, industry watchers say that the situation may improve as LNG terminals come up in the South and the gas output improves in the Krishna Godavari basin.
TOUGH TIMES
While new opportunities are opening up for development in infrastructure sector, top companies executing projects are passing through tough times. Their corporate debt has been mounting and profitability dwindling due to high interest rates.
Faced with liquidity crunch, they are in the process of churning portfolio. But with most companies planning to divest stake in matured projects to trim debt and redeploy funds for new projects, the focus has shifted from build, operate and transfer mode projects to EPC contracts, the latter ensures there is low debt.
While there have been couple of deals where GMR has divested stake in a road project in Andhra Pradesh, and power project in Singapore, GVK in its rail and transportation project in Australia, the market conditions are still not conducive for deal making, infra companies say.
The Government move to set up national investment and manufacturing zones and electronic clusters will spur new activity in development of infrastructure associated with such projects. Andhra Pradesh, for instance, has been allocated two such zones. Several projects at advanced stages, including two power projects in AP, have been impacted by agitations by locals. And many other projects are still awaiting clearances adding to hurdles in bridging the demand-supply mismatch.
LAND HURDLE
Land acquisition continues to be a major hurdle for power projects and dozens of road projects, close to completion, have been impacted due to acquisition issues.
All these contribute to delays and lenders are feeling the pinch.
Source-http://www.thehindubusinessline.com
Bankers launch initiative to get stalled infra projects moving
March 29, 2013
Bankers launch initiative to get stalled infra projects moving
K. RAM KUMAR
The wheels of the Government seem to be turning to get new and stalled projects in the power, road, iron and steel, cement, and port sectors off the ground.
Following Finance Minister P. Chidambaram’s meeting with the chiefs of public sector banks (PSBs) and state-owned financial institutions on March 18, the process of region-wise stock-taking of new and stalled projects has begun.
The first meeting, organised by Canara Bank, was held in Bangalore last week. Top representatives of major banks headquartered in the South, their large clients having projects in the region and top Finance Ministry officials were present at the meeting.
Similar meetings would be held in Delhi, Mumbai and Kolkata.
GDP AND INFRASTRUCTURE
The stock-taking initiative on new and stalled projects comes at a time when growth has decelerated significantly. India’s GDP growth at 4.5 per cent, in the October-December quarter of 2012-13, was the weakest in the last 15 quarters.
According to Reserve Bank of India Deputy Governor H.R. Khan, infrastructure development facilitates economic growth and economic growth in turn increases demand for more infrastructure. Thus, development of adequate and quality infrastructure is a necessary condition, if not sufficient, to maintain growth momentum in any economy.
Finance Ministry estimates show that there are 215 projects, each with a project size of Rs 250 crore and above, that are stalled. Out of 215 projects, 106 are in the power sector, 79 in roads, 20 in iron and steel, and 5 each in cement and port sectors.
All these projects, which collectively involve an outlay of over Rs 7 lakh crore, have been supported by PSBs. As at December-end 2012, PSBs had disbursed Rs 54,000 crore to the projects.
Delays in land acquisition, resettlement and rehabilitation issues, environmental clearances, tie-up of project financing, non-availability of fuel for power generation, lack of infrastructure support and linkages are some of the reasons for the projects being stalled.
During the current financial year up to December 2012, PSBs received 126 new projects — in power, power, road, iron and steel, cement, and port sectors — involving a collective outlay of Rs 3,55,880 crore. The projects are at various stages of appraisal and sanction.
ADDRESSING BOTTLENECKS
At the March 18th meeting, Government officials sought to assure bankers that the issues relating to coal linkages are getting addressed with bids being called for new projects.
Delays associated with environmental clearance are also likely to be sorted out shortly with the proposal to de-link forest clearance from environment clearance and an agreement being reached between various Ministries to expedite the clearance process.
Most of the issues relating to highway projects were being addressed and there is a likelihood of the various roadblocks being duly addressed by the Cabinet Committee on Investment. Issues relating to 37 road projects, where the selected promoters were not performing, would also be addressed shortly.
As regards electricity distribution companies, issues with related to settlement on the interest rate (on outstanding loans) to be charged are likely to be resolved.
AREAS OF CONCERN
Iron ore mining was still stuck in the courts and it was not clear when this issue would be addressed.
Gas supply for power projects remains a concern.
In the case of road projects, huge funds are stuck in arbitration. Hence, bankers want the Finance Ministry to intervene and impress upon the National Highways Authority of India to settle these cases out of court at the earliest so that funds could be released into the system.
Escalation in project costs due to time and cost overruns is likely to raise problems for banks.
Source-http://www.thehindubusinessline.com
GMR Infra’s Canadian arm Homeland Energy to sell stake in 2 African projects
March 29, 2013
28 MAR, 2013, 07.35PM IST, PTI
GMR Infra’s Canadian arm Homeland Energy to sell stake in 2 African projects
The purchaser of HEGL’s interest in the Eloff Mines is its existing partner, who holds rest of the 50 per cent stake in the property.
According to a filing of HEGL to Toronto Stock Exchange (TSX), the deal value is about USD 12 million for selling 50 per cent stake in Eloff Mines.
“HEGL wishes to announce that it has entered into an agreement dated March 25, 2013 to dispose of its 50 per cent interest in the Eloff Property, through the sale of shares of Tshedza Mining Resource (Pty) Ltd, in consideration for the payment of ZAR 110 million (approximately USD 12 million),” it said.
According to HEGL, the coal from Eloff can get exported to India but due to logistics infrastructure difficulties and evacuation costs, it would be uneconomical. Besides, risk associated with the project are too high, it said.
Moreover, HEGL has also entered into an agreement for selling its entire stake in Ferrat Coal (Kendal) Pty Ltd,GMRBSE 3.11 % said but did not disclosed the deal value.
GMR Energy, a subsidiary of GMR Infra, is the majority shareholder in HEGL. The two deals are subject to necessary regulatory approvals.
The Kendal mine is an operating mine and sell coal in African market, while the Eloff mine is under development stage, it added.
The two sell offs are part of GMR’s “asset light – asset right” strategy. Under this, the Bangalore-based infrastructure firm had raised about Rs 2,500 crore some time back by selling its entire 70 per cent stake in a Singapore-based power project and 74 per cent stake in a highway project.
Shares of GMR today closed at Rs 21.55 apiece on the BSE, up 3.11 per cent from the previous close.
Jobs generation gets a boost as India Inc unfazed by slowdown, says CII
March 29, 2013
Despite the sluggish economy, the Business Outlook Survey by industry chamber Confederation of Indian Industry (CII) for January-March 2013 revealed that 51% of the firms expect no change in their employment levels while 22.4% expect it to decline. More than 30% of the firms saw a fall in their staff levels in October-December 2012.
“However, expectations have improved as 23.5% foresee an increase in their employment levels in the fourth quarter compared with 11.7 % in the third quarter,” CII said. The report showed that in the third quarter of 2012-13, 58.3% of the respondent firms kept their staff levels unchanged as opposed to 30.1%, which saw a fall in their employment levels.
However, high levels of corruption, persisting inflation, threat to continuation of reform process, escalated interest rates and political uncertainty remain the major concerns.
Despite the GDP growth falling to 4.5% in the October-December period of the current fiscal compared with 6% in the same period of last fiscal, the CII survey indicated that 43.5 % of the respondents expect the Indian economy to expand by 5-5.5% for 2012-13. On the inflation front, 42 % of respondents expect average WPI inflation to lie in a range of 7-8.0 % in 2012-13. For 2013-14, however, 37.4 % respondents hope inflation to moderate and come down in to 6-7 %.
As for the current account deficit too, the CII said most of the respondents expect it to lie in a range of 4-5% of GDP in both current as well as next fiscal. Considering all these aspects and reflecting the recent reform steps initiated by the government, the CII Business Confidence Index, which had slipped below the psychological 50 level mark in the third quarter of the current fiscal, rose to 51.3 in the final quarter.
“Though the index has strengthened in the final quarter of the current fiscal, it is too early to assume that the slowdown has bottomed out and the green shoots of recovery have begun to emerge,” said CII director general Chandrajit Banerjee.
Source-http://www.indianexpress.com
Preliminary hearing on GMR arbitration on April 10
March 28, 2013
Preliminary hearing on GMR arbitration on April 10
Source: PTI
 |
Four months after Maldives terminated the contract given to Indian infrastructure major GMR to develop and operate the international airport in Male, the two sides will sit down next month in London to begin the multi-million dollar arbitration process.
The preliminary hearing that will structure the arbitration process over the abrupt termination of the 25 year contract with GMR Group for the development of Ibrahim Nasir International Airport (INIA) by the Maldives government has been slated for April 10.
“It is the initial meeting of the arbitration process,” Sidharth Kapur, Chief Financial Officer of GMR Group told PTI in New Delhi. “We will sit down and talk. The GMR has not given us any figure as yet. Forensic audit is still going on,” Maldives’ President Mohamed Waheed’s Press Secretary Masood Imad told PTI in Male.
In addition to the three arbitrators, government and Maldives Airports Comp any Limited (MACL) lawyers along with representatives of GMR will participate in the sit-down.
“It’s not a hearing to argue the case. The hearing will only decide a date to start arbitration proceedings and its structure. Things that need to be decided before the proceedings begin will be discussed during that hearing,” Maldives’ Deputy Solicitor General of the Attorney General’s Office Ahmed Ushaamhe said.
Singapore National University Professor M Sonaraja will represent the Maldives government while GMR’s arbitrator is former Chief Justice of UK Lord Nicholas Edison Phillips, Haveeru news reported.
Retired senior British Judge Lord Leonard Hubert Hoffman is the arbitrator mutually agreed by GMR and the government, the report said.
The arbitration will go on at the Singapore Arbitration Centre as mentioned in the agreement. GMR had previously stated a figure of USD 800 million as compensation based on their intial estimates. However, company officials said they are yet to come to a final figure.
Sources in the Maldivian government too said GMR has not given a final figure yet.
However, the sources reiterated the Maldivian government’s stand that the airport operator agreement with GMR had been annulled on “void ab initio” (invalid from the outset) and that the government does not have to bear any compensation for the termination.
Source-http://www.moneycontrol.com
IRB Infra subsidiary in concession agreement with NHAI for four laning project on DBFOT basis
March 28, 2013
IRB Infra subsidiary in concession agreement with NHAI for four laning project on DBFOT basis
IRB Infra bags order for 4-laning road project, stock gains
March 28, 2013
IRB Infra bags order for 4-laning road project, stock gains
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Shares of IRB Infrastructure Developers gained more than 2 percent on Tuesday after the company’s subsidiary IRB Westcoast Tollway (special purpose vehicle) has executed concession agreement with NHAI for the road project.
The project includes construction of four laning of Goa/Karnataka border to Kundapur section of NH-17 in the State of Karnataka on design, build, finance, operate and transfer (toll) basis.
“Estimated cost of the project is approximately Rs 2,600 crore and the construction is to be completed within 910 days from the appointed date,” the company said in a release sent to exchanges.
The SPV will get tolling rights on NH-17 upon completion of construction. The grant sought by the SPV from NHAI is Rs 536.22 crore.
At 14:09 hours IST, shares went up 0.72 percent to Rs 112.30 on Bombay Stock Exchange.
Market capitalisation of the company currently stands at Rs 3,732.45 crore.
Source- http://www.moneycontrol.com
Metro Bus Service: Smart traffic signals still not operational
March 28, 2013
File photo of Metro Bus. PHOTO: EXPRESS/ ZAHOORUL HAQ.
LAHORE: The Intelligence Transportation System (ITS) installed for the Metro Bus System (MBS) might take another 20 days to become functional, The Express Tribunehas learnt.
Peter Jacob, an Australian SCAT (Sydney Coordinated Adaptive Traffic System) expert, supervised the installation of the modern fifth generation traffic signals for four days before returning to Australia on Sunday.
The signals have been installed at Gulab Devi Junction, Qainchi Junction, Gazi Road Junction, Kamahan Junction, Masjid Ibrahim Junction, Chungi Amar Sidhu Junction, Kalma Chowk and Azadi Chowk.
According to an MBS official, six of these signals are expected to become functional in 10 days but the signal at Kalma Chowk might take two more weeks. The Traffic Engineering Transport Planning Agency and the Sui Northern Gas Pipelines Limited were carrying out civil works at Chungi Amar Sidhu, he said.
ITS Urban Unit Project Coordinator Muhammad Razzaq said, “We will complete work on seven traffic signals in a week.” The traffic signal at Kalma Chowk would take some time but would be put in an adaptive mode soon.
The wiring for ITS at Chungi Amar Sidhu had been damaged during civil works…Repairs to the signal would be made after the civil works were finished, he said.
Published in The Express Tribune, March 25th, 2013.
Source-http://tribune.com
Evolving Australia’s truck weighing programme
March 28, 2013
Regulating heavy truck weight isn’t all about sensors in the road… this year marks a significant point in the progression of Australia’s Intelligent Access Programme as its administrators attempt to answer the scheme’s critics. Jon Masters reports.
Australia’s Intelligent Access Programme (IAP), the country’s telematics-based system of regulating movement of the heaviest vehicles, is now five years old. The IAP is administered byTransport Certification Australia (TCA) whose general manager for strategic development is Gavin Hill. “Five years is a naturally good point for some evolution,” he says.
The IAP is evolving in a number of ways. Notably, TCA is in the midst of introducing an ‘Entry Options’ initiative to the overall scheme, giving freight operators opportunity to sign up to the IAP and its monitoring protocols with their own in-vehicle units. “We are also working with IAP service providers to develop flexible pricing options,” says Hill. “This is for operators that only occasionally load to the higher mass limits (HML) cover
Legislative footing
The TCA was established in 2005 for the purpose of setting up such a system and acting in a support role for the regulators of Australia’s states and territories. The regulators would select the roads and structures that HML vehicles could and could not use (and as regulators, set and apply penalties as necessary). TCA, founded on a legislative footing as administrator and auditor, would establish all the necessary conditions for regulating private sector service suppliers, setting a national supplier framework contract and a standard for the technology to be used.
Fast forward to the present, and five IAP service companies have been certified by TCA to fit their accredited GNSS technology to operators’ vehicles and to provide back-office services and compliance reporting for state regulators.
Over 500 freight operators have signed up to the scheme, meanwhile, making a single up-front payment or paying a regular subscription to one of the five service providers, although only for freight transport in Australia’s Eastern Seaboard states so far.
This is possible because restrictions on the heaviest vehicles can be policed and enforced,” says Hill.
Dealing with legacy
The IAP has not been without its critics, however. Freight operators’ initial displeasure at being told access to HML routes would come at a cost has turned into a long-running dispute with industry over legacy systems. It is likely that many operators’ existing GPS equipment, fitted for fleet management purposes, would adequately serve to provide the same functions as that of the five service providers required under IAP rules. But this cannot provide the assurance of a regulated system.
“Many ask why we cannot trust them to provide their own route reporting to regulators,” Hill says. “In some cases we could, but in others, as soon as we ask to see their data for auditing, all of a sudden the data disappears, there is a tendency to hide or manipulate the information, or the lawyers appear.”
While a fully regulated system is necessary, TCA has introduced the Entry Options scheme to answer what Hill acknowledges as a “chorus of complaints” from Australia’s transport sector over the issue of Government recognition for legacy systems.
“We are saying, okay let’s look at what you’ve got,” he says. “So far we have worked with the Minister for transport and ports in New South Wales – so an upper echelon of government – looking at the equipment of three operators wanting to transport HML across the state. The message is that if you have your own equipment and it works for you, let’s get it assessed. Providing it meets requirements, there is no need to upgrade.”
Pricing issues
Operators are still required to pay a premium for registration to the IAP service, however. Hill also acknowledges this as a significant issue for freight operators and industry. The price of a monthly subscription is typically AUS$100-150 per vehicle, which compares to about AUS$80 per month for an uncertified system.
Hill says: “Cost is a big issue, but when industry is talking about pricing they are really meaning cost per vehicle utilisation. “The IAP was set up for regular hauliers of HML and special vehicles. What we missed out on was the low utilisation operators for whom the gains do not outstrip the cost. It is not for us to set prices, but we are working with the service providers on this and are hopeful of seeing introduction of more flexible pricing options. If we can get a trip-based charging system, or occasional HML vehicles on about $10 a month, then the cost/benefit ‘Entry Options’ initiative allows freight vehicle operators
“Controlling access is about managing risk,” Hill concludes. “Through systems such as IAP, engineers can limit heavy load access onto bridges, or apply speed restrictions, with greater visibility of data. A standard permit system is a crude way of controlling access. The IAP is a much better way of doing this.”
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