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Home › October 2013
Mohua Chatterjee, TNN
(In his letter, Ramesh said…)
NEW DELHI: Soon after West Bengal chief minister Mamata Banerjee wrote an angry letter to the PM complaining about norms being flouted in allotment of funds to states, rural development minister Jairam Ramesh wrote to the CM saying his department had finalized funds for 421 roads covering 1,887 km in the state.
While Banerjee wrote to the PM on October 5, Ramesh’s missive came three days later.
In his letter, Ramesh said road work in Bankura, Purulia and Pashchim Medinipur districts would be taken up under the Pradhan Mantri Gram Sadak Yojna (PMGSY) and an agreement would be signed between the PSUs undertaking the job and the Centre and the state government within the next 30 days.
Interestingly, Ramesh mentioned in the letter that funds were usually disbursed through central PSUs doing the work but it was now decided to hand over the funds directly to the state government. “I have been of the view that we should encourage state governments to exercise more direct control on project execution so that quality standards are maintained. Hence, we have decided that for West Bengal, we will release the funds directly to the state government who will then deal with the central PSUs,” Ramesh wrote.
“I am sure you will agree with me that West Bengal has received unprecedented level if cooperation in the matter of PMGSY roads as it has for other rural development programmes. This reflects the central government’s continuing priority to the welfare and well-being of the rural people of West Bengal,” he wrote.
Source-http://articles.timesofindia.indiatimes.com
Shubhashish
Traffic is a synonym of Mumbai. Coupled with narrow roads and the potholes, which now I am beginning to believe are a part of an idea to help people save a trip to the moon or perhaps Mars.
– DNA
What is it about the financial capital of India that the basic infrastructure of roads is in such a state? And if this is the state of roads in the so-called ‘best urban centre in the country’ I can’t even begin to imagine the state of roads in other parts.The blood-boil is coupled by the fact that the moment you step out of the cities and hit the highways the roads are butter-smooth, although still dangerous. Our roads are such beautiful pieces of gems that they deserve to awarded the ‘best imitation of the moon’s surface’. And the irony that the minister for road transport and highways is Mr ‘Oscar’ Fernandes is just not a coincidence.
Just for the sake of the tone of this column, I decided to check the website of this ministry. Describing itself, the ministry states, “An apex organisation under the Central Government, is entrusted with the task of formulating and administering, in consultation with other Central Ministries/Departments, State Governments/UT Administrations, organisations and individuals, policies for Road Transport, National Highways and Transport Research with a view to increasing the mobility and efficiency of the road transport system in the country. e Ministry has two wings: Roads wing and Transport wing.”
Nowhere the epitaph speaks about the basic task of building roads. Unless the government believes that our roads are already built and are in order. Just like how the government has brought down poverty in India to 22 per cent by formulating an ingenious policy of lowering the Below Poverty Line (BPL).
Also, read the last sentence of ministry’s self-description closely. The first word is ‘e’. I believe they wanted to write ‘The’ but ‘Th’ must have fallen in the depth of the potholed roads.
Now let’s read what the “Road Wing’ of the ministry actually states as its objectives: ‘Deals with development and maintenance of National Highway in the country.’ The road to development manoeuvres through the highways, touches the cities, misses it till it catches the next highway. After all, India lives on the highways. Cities and villages are too hipsterisque.
The main responsibilities of the ministry again begin with the importance given the national highways through planning, development and their maintenance. By now I am hoping the government should also form a ministry to look into a direct helicopter services from cities to these highways because clearly those are only roads the government is interested in.
The second and the only point that talks anything about the roads that makes our insurance premiums payments cry, it says, “Extends technical and financial support to State Governments for the development of state roads and the roads of inter-state connectivity and economic importance.” If the conditions of our city roads are anything to go by, then NASA should contract the Indian government to supply the technology to recreate the moon and its craters on Earth.
As you can read in this article of 2010, Prime Minister Dr. Manmohan Singh outlined the spending on India’s infrastructure to the tune of $1 trillion in the 12th five year plan currently underway.
In the current and the second year of this five year plan, Singh finalised a spending of Rs 1,15,000 crore on the infrastructure sector, or roughly one-fourth of the total target of $1 trillion in these five years.
However, the impetus, as you can see, is not on the roads sector.
The road ministry had set an ambitious target of building 20 km of roads a day in 2009. However, in 2011-12 the average road construction, as this story suggests, was just half of it.In 2012-13, the road ministry failed to even meet the half way mark of 4400 km in awarding road projects.
Even in the current fiscal, the bickering between the ministry and the National Highway Authority of India (NHAI) continues on the model that the government should adopt to award the road projects. As per this story, a ministry official commented, “Just because PPP projects have not taken off in the recent past doesn’t mean we junk the model and switch over to cash-contracts. We need to innovate and try all options before taking such a step.”
This indicates, if nothing else, continued delays in the road construction in India. And if this is what is happening to the government’s blue-eyed highways which are just a tiny fraction of India’s vast road network, us city dwellers and village folk can continue to save our amusement park money by enjoying the bumpy ride every day.
(Shubhashish is a journalist who is now pursuing Masters in International Studies and Diplomacy in London. )
Source-http://www.dnaindia.com
Pavan MV, TNN |
BANGALORE : Inspection of ongoing infrastructure projects is springing surprises at every turn , with decision makers finding that basic approvals haven’t been sought.On Tuesday , Bangalore development minister R Ramalinga Reddy found that the BDA requires 3.2 acrestocomplete the Nayandahalli flyover near Mysore Road which has been hanging fire for two years .Shockingly , the BDA commenced construction without completing land acquisition . The construction of the 960-metre long flyover began in 2010 and was scheduled to be completed by 2013 . Even if BDA gets the required land now , it needs five months to completethe project .Theland belongs to over 40 people .
Last week, during the inspection of the Road Over Bridge near Byappanahalli , mayor Sathyanarayana found that BBMP had commenced work on two ROBs at Byappanahalli and Jakkur without completing land acquisition .
The delay in the Nayanhahalli flyover has become a huge problem for commuters on Mysore Road due to frequent traffic jams . Alongside , work on the Metro rail is on and is adding to the gridlock .
Ramalinga Reddy said , “Since the property is situated on Mysore Road , its value is quite high and the owners expectusto pay the market value . We’ll sort out the issue soon .”
Metro corridor
After inspecting the Metro corridor work , Ramalinga Reddy said the National College Metro corridor will be completed by March 2014, and the train will run from Byappanahalli station to Mysore Roadstation by 2014.He also assured that Metro services from Peenya to Malleswaram would be operational by this year-end and work from Kaggalipura to City Market will be completed by 2015.
Pradeep Singh Kharola , MD, BMRC, said there is a proposal to concretize the road below the Metro corridor from MG Road station to Byappanahalli station . Asked about bad roads below the Metro corridors , he said road work cannot be taken up till Metro work is on .
On parking
BBMP is gearing up to provide parking for Metro commuters. BS Sathyanarayana said BBMP will identity properties belonging to it near all Metro stations. “Ramalinga Reddy has told us to utilize funds under the Jawaharlal Nehru National Urban Renewal Mission scheme for this project,” he said.
YASHODHARA DASGUPTA, ET Bureau
(The road developers sought…)
NEW DELHI: A week after the government approved a bailout of the highways sector and set up a committee that will draft its details, developers told Prime Minister Manmohan Singh that the rescue plan shouldn’t end up being similar to what they described as the “flawed exit policy” that has failed to attract takers.
The committee headed by C Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, is expected to give its recommendations on the premium restructuring in a month. The final decision will be implemented by the highways ministry after it is approved by finance minister P Chidambaram.
“The guidelines for the rescheduling of the premium for the highway projects are required to address the concerns raised by the sector as a whole, otherwise it will not only defeat the purpose of the policy but also not help in the revival of the road sector,” the National Highway Builders’ Federation (NHBF) said in its letter to Singh. “In the past it is a known fact that because of the flawed exit policy for the road sector announced by the government, it has not been able to attract even a single investment.”
The road developers sought a reduction in costs they have to pay for deferring the premium. According to the Cabinet note sent by the highways ministry, which included suggestions of the finance ministry and the Planning Commission, developers need to pay 12 per cent on the premium as well as a penalty of up to 0.5 per cent of the total project cost in case the default was attributed to them. The concessionaires would also have to give a bank/corporate guarantee to the extent of the maximum difference between the premium promised at the time of bidding and that under the revised payment schedule, according to the cabinet note.
The NHBF letter, also sent to Chidambaram, Rangarajan and roads minister Oscar Fernandes, argued that deferral of premium payments should be allowed at a 9.75 per cent discount rate, the rate at which Cabinet last year allowed telecom operators to stagger spectrum fee payments. NHBF explained that “the proposal of highway sector’s deferment of premium is similar to telecom sector on contract terms and conditions on period of contract and cost involved…”
“A case for some form of relief can be made and the 12 per cent rate needs a relook in the current context.The situation in some sense is similar to the telecom sector relief because they too were going through stress at the time,” said Arvind Mahajan, partner at KPMG, who added that both sides needed to make some sort of concessions. “Many companies involved in projects are highly leveraged. They are also facing execution challenges because of delays on part of NHAI and escalation in project cost,” Mahajan said.
NHBF has argued against the penalty clause saying the viability of most of these projects were eroded because of delays in environmental clearance, land acquisitions, a ban on the procurement of aggregates and so on. NHBF has also opposed the corporate or bank guarantee clause saying most concessionaires are either undergoing corporate debt restructuring and are over-leveraged or bankers are not willing to lend to them.
Source-http://articles.economictimes.indiatimes.com
By Claude Arpi
The Indian press recently reported that China was building ‘a massive infrastructure in Bhutan’. A report of Research and Analysis Wing (RAW), intelligence agency, apparently warned that the People’s Liberation Army (PLA) had constructed a new road from Gotsa to Lepola via Pamlung.
While it is difficult to ascertain the details of the RAW report, it is an open secret that China has been very active on Bhutan borders. On August 9, Kuensel, a Bhutanese publication, reported that the National Security Advisor (NSA) Shivshankar Menon arrived in Thimbu to ‘congratulate’ the new Prime Minister Tshering Tobgay after the latter assumed office. Tobgay was indeed happy to host Menon in Bhutan; Delhi had just promised some 5,000 crore Rupees to assist the implementation of Bhutan’s 11th Plan and its Economic Stimulus Plan. However, oh surprise, Shivshankar Menon was accompanied by the new Indian Foreign Secretary, Sujatha Singh. Why this ‘double’ visit? The NSA does not usually travel with the Foreign Secretary. Indeed, there was more than the usual patting. It soon became clear that the NSA’s main purpose was to advise the Bhutanese Government on how to handle border talks with China.
The 21st round of boundary talks between Bhutan’s Foreign Minister, Rinzim Dorje and the Chinese vice minister in the Ministry of Foreign Affairs was to be held a couple of weeks later. This made Delhi nervous. These border talks indeed have serious strategic implications for India’s security and Delhi’s own negotiations with China probably needed to be ‘synchronised’ with Thimpu. The New Indian Express asserted: “NSA spoke to his interlocutors about the current status of the India-China border talks. But, with the political leadership in Bhutan being brand-new, Menon took the opportunity of the Foreign Secretary’s visit to share Indian ‘experience’ and knowledge of Chinese negotiation tactics to advice Thimpu on the way forward.”
Delhi was particularly anxious after Thimbu had decided, during a previous round of talks with China, to have a joint technical field survey in one of the disputed areas in the central sector (eventually, the 21st China-Bhutan border talks held in Thimphu on August 22 agreed to conduct the joint survey of the 495 sqkm in the Pasamlung area, north of Bumthang). Another claim by China, the Doklam Plateau is adjacent to the hyper-strategic Chumbi Valley. That is the real nightmare for India.
It is a fact that China never liked India’s monopoly over Bhutan’s foreign affairs. Liu Zengyi, a research fellow at Shanghai Institute for International Studies wrote in The Global Times, “New Delhi sees Bhutan as little more than potential protectorate”. Referring to China’s attempts to establish diplomatic relations with Bhutan, the Chinese scholar admitted: “India won’t allow Bhutan to freely engage in diplomacy with China and solve the border issue.”
The Global Times’ article alleged that Indian ambassador to Bhutan VP Haran followed a ‘carrot-and-stick’ policy and ‘played a big role’ in the victory of the Opposition Peace and Democratic Party (PDP) over the Druk Phuensum Tshogpa (DPT). Beijing acknowledges that for India, China’s advances in the Doklam area is a strategic threat to the Siliguri corridor: “As a country located between China and India, Bhutan serves as a buffer and is of critical strategic importance to the Siliguri corridor, a narrow stretch of land (known as ‘chicken’s neck’) that connects India’s northeastern States to the rest of India. …Delhi worries that China will send troops to the corridor if a Indian-China military clash breaks out.”
It is indeed a serious issue for India. Even if India’s special influence over Bhutan is acknowledged by China, New Delhi needs to keep a tab on the China-Bhutanese negotiations, which could definitively impact the India-China talks. Though China and Bhutan do not have direct diplomatic relations, last year, Jigme Thinley, the then Bhutanese Prime Minister met Chinese Premier Wen Jiabao on the sidelines of a United Nations summit in Rio, establishing a first formal contact. Historically, during the 1962 India-China border war, Beijing was not too happy when the Bhutanese authorities permitted some Indian troops to retreat through southeastern Bhutan.
Though Bhutan formally has maintained a policy of neutrality, during the following years, Thimphu quietly expanded its economic ties with India. In the 1970s, several incidents of cross-border intrusions by Chinese soldiers as well as Tibetan herders were reported and when Thimphu and New Delhi protested against the incursions into Bhutan, Beijing ignored the Indian protest, responding to the Bhutanese complain only.
In 1996, China offered a package deal to Bhutan: Beijing was ready to renounce its claim over the 495 sq kms of disputed land in the Pasamlung and Jakarlung valleys in exchange for the Doklam Plateau, a smaller track of disputed land measuring a total of 269 sq. kms located in the Northwestern part of Haa District. The Doklam Plateau is extremely close to India’s ‘chicken neck’ area (The Chumbi Valley) and the Siliguri corridor connecting the Northeast to the rest of the country.
Since then, talks are going on.
In 1998, China signed a peace agreement with Bhutan to ‘maintain peace and tranquility’ on the Bhutan-China border. For the Bhutanese, it was a de facto recognition of their territorial integrity and independence. A Bhutanese blogger believes that for Bhutan, “This is clearly a case of being caught between a rock and a hard place.” It is clear that the claim on the Doklam Plateau is a second thought for China. In 1959, there was no discrepancy between the Chinese and Bhutanese maps (except for eastern Bhutan where Beijing did not recognise the McMahon Line). At that time, Beijing commented: “The strength of a horse is known by the distance travelled, and the heart of a man is seen with the passage of time, …China’s peaceful and friendly attitude toward India will stand the test of time.”
The ‘passage of time’ has shown that China was an unreliable horse, not only the PLA has intruded in several areas of India and Bhutan, but it has also built important infrastructure, such as the road from Yatung to Phari in the Chumbi Valley cutting across the Doklam Plateau. The Chinese engineers have also built traversal roads and set up a communication network within the disputed area. How to dislodge the Chinese is not an easy proposition.
By grabbing the Doklam Plateau, Beijing considerably enlarged the Chumbi Valley and its access to Sikkim and Siliguri; let us not forget that the Siliguri corridor is one of India’s most critical areas along the India-China border. Let us hope that Delhi will keep watching and preserve its vital interests.
Source-http://www.niticentral.com
Mangalore, DH News Service
38 houses will have to be demolished if NHAI acquires 60-metre land for 4-laning from NITK to Pavanje
Rashtriya Heddari Bhoo Swadeena Santhrasthara Horata Samithi-Mukka office-bearers have opposed the move of the National Highway Authority of India (NHAI) to acquire 60 metre land for the proposed work on four-laning of the National Highway 66 from NITK to Pavanje.
Addressing a press meet here on Tuesday, Samithi Vice President Ramachandra M G said that if the NHAI goes ahead with the acquisition process, then 38 houses situated on the eastern side of the road in Mukka Pete will lose their houses. “We had approached Union Minister for Surface Transport Oscar Fernandes to urge him to direct the NHAI not to acquire 60 metre land for the road. The residents residing on the eastern side of the road in Mukka had parted their land for road from Mukka-Pavanje in 1968 and 1972. Now, the authorities are laying only 15 metre road. At the same time, 28 to 30 metre land is already available with the government. Inspite of it, by violating the rules, the government has passed gazette notification for the land acqusition for the third time.”
He exhorted the authorities to take note of the written directions given by the previous government to restrict the land acquisition to 45 metres for the four-laning of the road in Mukka and act accordingly.
“As per the rules, the road should be widened equally on either sides from the central line. However, owing to vested interests, from Mukka-Padredwara, the authorities have changed the central line and amidst protest from the residents, have laid a road that passes in front of houses. Now, citing reason for shortage of space for service road, the authorities are hell bent on acquiring additional land,” he said. Samithi President K Mahabala Rai said, “engineers are citing the reason of alignment for changing the central line. There is no direct connection between Pavanje bridge and the present road. By making curves, the authorities have given scope for accidents on the highway,” he alleged.
Similarly, owing to the change in central line, land belonging to Sri Sathya Dharma temple and Kotyan Moolasthana will be acquired. The NHAI authorities have failed to make use of the available road for widening and laying service roads.
The samithi members have urged the authorities concerned to uniformly restrict the right of acquisition of land for the NH-66 widening. Though the highway passes through three states, all the three are following different rules. It is 30 metre in Kerala, 45 metre in Goa and 60 metre at a few places in Karnataka.
“We are not against development or widening of roads. However, the authorities should maintain uniformity and follow the guidelines while widening the roads,” said Rai.
In protest against the acquisition process, the Samithi members will hold a padayatra from Pavanje bridge to NITK on October 17. The road will be blocked for five minutes on the occasion. A petition will be submitted to the DC.
Source-http://www.deccanherald.com
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Web link www.metroworldcongress.com
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Metro World Congress 2013 is a great opportunity for eminent International and Regional speakers to congregate to share insights and initiatives for addressing issues and providing solutions to improve the quality and effectiveness of Metro Rail system in India. It will also provide a platform for participants, government officials, policymakers and academics to network and exchange views on Metro policies and planning, and the development and management of Rapid Transit systems. The Conference will give business opportunities to organizations from various industries providing solutions and services for Metro projects in India and Pan India region.
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For Delegate Bookings & Sponsorship Enquiry
Contact
Name: PoojaKapoor
Email: [email protected]
Mobile: +91 98197 02096
Tel: +91 22 2171 4825 |
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GUEST OF HONOUR & EMINENT PANEL OF SPEAKERS
Dr Sudhir Krishna, Hon’ble Secretary, Ministry of Urban Development, Govt Of India
Shri U.P.S. Madan, IAS Metropolitan Commissioner, MMRDA
Shri Sanjay Bhatia, Managing Director, CIDCO
Shri NVS Reddy, Managing Director, Hyderabad Metro Rail Ltd
Shri D.D.Pahuja (Director, Rolling Stock & Signalling &Electrical) Banglore Metro Rail Corporation Ltd |
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WHO WILL BE INVOLVED
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Private Sector
Contractors
Operators
Developers
Investors
Project Management Consultants
EPC Contractors
Systems Integrators
Signaling and Communication Companies
Rolling Stock Manufacturers
Utility and Power Supply Specialists
Electrification Specialists
Operations & Security
Equipment Suppliers
Heavy Machinery and Rail Plant Providers
Ticketing and Data System Providers
Risk and Safety Assessors
Repair and Maintenance Providers
Bogies and Running Gear Component Suppliers |
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Public Sector
Ministry of Railways
Ministry of Urban Development
Metro Rail Corporations
Central Government bodies
Regional Government based Transport Development Authorities
State Government bodies
PPP Cell, Department of Economic Affairs, Ministry of Finance |
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CONFERENCE DAY 1
1. Government Policies, Regulatory framework
& dealing with project delays
2. Standardization of metro framework
throughout the country
3. Overcoming Operational difficulties: Poor
planning in the city, managing traffic diversions
4. Finance & Investments: PPP structure,
D. B. F. O.T. model, 3rd party financing, FDI
5. Safety & Security during construction
and during metro operations
6. Advancements in Technology: Driverless
Trains – CBTC, ATO/ATP
7. Signaling and Train Control Management
Systems & Track structure
8. Smart Stations & Terminals: Ticketing
technologies, smart card designs, mobile ticketing
9. Panel discussion: Underground v/s
Elevated models
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CONFERENCE DAY 2
1. Manpower
and resourcing : Recruiting, training and managing skilled and unskilled
labour
2. Revenue
generators for the Metro models: Advertising & ancillary revenues
3. Solar
powered stations & Rain water harvesting
4. Waste water
management & water treatment options
5. Multi model
Integrations: Buses, cabs, autos, trams, mono rail
6. Panel
Discussion: Cutting the metro cost or losing out to other modes of transport
7. Tackling
Noise control during construction and during running of the Metro project
8. Providing
for Cost Effective and Sustainable Metro Rail Setup
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Written by ITW Editor · Filed Under Default
Vatsala Kamat
The Sep quarter too will see earnings of most infrastructure firms being weighed down by high interest and depreciation costs
(The government’s desire to give a push to infrastructure projects may result in some relief from the problems of poor order inflows and low financial viability of existing projects. Photo: Ramesh Pathania/Mint)
Last week’s decision by the government to reschedule the premium payable by developers to the National Highways Authority of India (NHAI) is aimed at giving jammed road projects a new lease of life. The decision to reschedule the premium arose out of the fact that many developers quoted a hefty premium to win orders, as competition increased between fiscal years 2012 and 2013, which led to some projects turning financially unviable.
No doubt, the decision to reschedule will not change the profile of projects overnight. Analysts’ data indicates that more than 80% of the build-operate-transfer (BOT) projects awarded in fiscals 2012 and 2013 have not started construction yet. It is now widely known that land acquisition and environmental clearances, highly leveraged balance sheets, poor cash flows on existing projects and high interest rates are key reasons for a slowdown in the roads sector.
Around 23 projects caught in a quagmire will be examined on a case-to-case basis. However, a note by Citi Research says that one of the conditions to ensure smooth payments by developers after rescheduling is that the firms should furnish bank guarantees. “Given the tightening lending standards to road projects and leveraged balance sheet of developers, it may be difficult to furnish the bank guarantee,” it says.
As has been the case during the past several quarters, the September quarter too will see earnings of most infrastructure firms including roads being weighed down by high interest and depreciation costs. A report by IDBI Capital Market Services Ltd expects companies such as Hindustan Construction Co. Ltdand IVRCL Ltd to be in the red during the September quarter. And, others such as Simplex Infrastructures Ltd, Nagarjuna Construction Co. Ltd and IRB Infrastructures Developers Ltd are likely to see a decline in earnings compared to the year-ago period. Revenue expansion is likely in some cases where execution is on track.
But analysts’ data reveals that against a normal road completion time of 48 months, most projects awarded in fiscal 2009-10 are complete to the extent of only 50-60%.
Complicating the imbroglio is the fall in order inflows, which could get worse in the near term, given that elections typically see major decisions being postponed. This would stymie revenue expansion too. This fiscal year till date, NHAI has awarded only 479km of road projects costing Rs.2,700 crore, compared to the road ministry’s target of 5,000km of both EPC and BOT projects. EPC stands for engineering, procurement and construction.
Now, the orders that have already been given can mean healthy order book for some firms, giving decent revenue visibility for the next one or two years. Among the mid-sized firms, Sadbhav Engineering Ltd and Ashok Buildcon Ltd are better off than some of their peers.
The government’s desire to give a push to infrastructure projects may result in some relief from the problems of poor order inflows and low financial viability of existing projects. But the pace leaves a lot to be desired and it may be many more quarters before actual and substantial movement is visible. For now, nothing seems to have changed for the roads sector.
Timsy Jaipuria, Arun S | New Delhi |
Many banks have virtually stopped lending to road projects where the developers are unable to bring 50% equity capital upfront, do not have 100% of the required land in possession or have not obtained the requisite environmental clearances.”We have been insisting on these two requirements (100% land and 50% equity capital upfront by promoters) for quite sometime now,” a senior Punjab National Bank official told FE, wishing not to be quoted.Sources in the road sector and the National Highway Authority of India (NHAI) also confirmed that despite several meetings with NHAI and the road ministry, banks have started asking highway developers to show more equity contribution upfront before they lend to the project.
SBI, another big player in the area, has discontinued lending to road projects without 100% land in possession.
RK Dubey, chairman and managing director (CMD) of Canara Bank, said though the bank has not brought out general guidelines internally, it is getting selective when in lending to road projects. “Since we can’t choke funds to the sector, we have strengthened our due diligence process. We are giving loans only on the basis of the financial strength of the group that is developing the project. We have to safeguard the interest of our bank in all the possible ways as the non-performing assets are rising,” he said.
M Narendra, CMD of Indian Overseas Bank, said banks have started a stringent scrutiny of the concession agreement, besides looking at annuity payments, toll projections of the project during the entire concession period and whether there are any pending legal hurdles in the land acquisition process.
Arun Kaul, CMD of UCO Bank, said his bank has decided to go slow on infrastructure projects, including road projects, and rebalance its portfolio, which was earlier heavily skewed towards infrastructure and large corporates.
“From 75-76% of the total lending to infrastructure and large companies and only the remaining in retail and SME lending three years ago, we have rebalanced, and brought it down to 50% for each segment by focusing heavily on retail and SME loans using our branch network and technology,” Kaul said.
“In the last three years, we have not taken on any road project and have become highly selective when it comes to such projects due to the stress in the economy and the problems faced by companies in that sector,” he added.
The Centre for Monitoring Indian Economy in a report last month said, “66 highways and road projects worth R1 trillion (R1 lakh crore) are facing delays or have not taken off due to problems related to land acquisition.”
“Out of these, 44 projects worth R936 billion (R93,600 crore) are promoted by the NHAI. Only two of the total 66 projects have received environmental clearance,” it added.
An NHAI official said: “The lenders are following a very cautious approach towards the road sector since the players are over-leveraged. Banks are not sure whether they would be able to get back their money. They have started asking the developer to show the equity capital upfront and are questioning where that equity money is parked at present. This is the first time that lenders are doing this. It’s causing private players trouble .”
Recently, Oscar fernandes, in an interview to FE, had noted: “The basic thing is unless the concessionaire brings in his capital the project can’t take off. If the developer depends on borrowed money for the whole of the project’s requirement, then why do we need him? If that is the case, then we (NHAI) can fund the project and recover the money on our own.”
“We seek partnership with private firms in the belief that they will bring equity, that is, initial capital. What happens in some cases is that the developers borrow on the basis of toll collections, which means they take no risk. Which concessionaire would give his personal property and guarantee to the bank before borrowing?” he said.
Gross bank credit outstanding to the sector as on March 22, 2013 was R1,31,300 crore, says RBI data.
Source-http://www.financialexpress.com
TNN |
ALAPPUZHA: It seems like that the public works department (PWD) and Kerala water authority (KWA) are playing with the lives of the people.Both these departments are not taking any steps to repair the roads, which were damaged after the pipes of the KWA burst repeatedly.
“I feel that authorities of the PWD and KWA here are neither afraid of the ministers nor of the media. On August 26, the PWD minister V K Ibrahim Kunju, who visited the district, directed the PWD to repair the roads like Cherthala-Kottayam within a week. Media has also reported about the bad conditions of the roads in the district. But the authorities concerned are acting as if there is nobody to question their lackadaisical attitude,” said Vinod K D, a driver from Cherthala.
The PWD minister had sanctioned Rs 87.21 crore for road repair works in the district.
Cherthala- Kottayam Road, which is a main road for going to Kottayam Medical College Hospital and Cherthala Taluk Headquarters Hospital, was repaired after the minister’s visit in the district. A sum of Rs 3 lakh was spent for levelling the potholes of the road. But it helped only to increase the number of potholes on the road. The pipes of the KWA through this road keep bursting daily. Pedestrians and drivers are bearing the brunt of it.
“There is dangerous curve at Muthalakkuzhi (near School Kavala) on Alappuzha-Madurai state highway. A huge pothole developed some months ago on the curve. Many two -wheeler riders were hospitalized after they fell in it. Thanks to the apathy of the PWD officials. Cars and heavy vehicles were also damaged due to this pothole,” said Sudheen Sudhakar, a driver from Muhamma.
“There have been no bus services through our village after the Alappuzha-Thanneermukkom Coastal Road developed potholes after the pipes of the KWA burst in different parts. We have approached the PWD and the KWA for repairing the road. But they were blaming each other. Finally, we ourselves repaired the road on Sunday,” said Aneesh Mohan, a student from Veliyambra, Thanneermukkom.
District collector N Padmakumar said that the repair works of all these roads will be started within this month and tenders have been invited for all the works.
The works of the roads will be completed within a month once it gets started, he assured.
“We have allotted tenders for the repair works of all the damaged road. And we don’t have fund shortage. The work was stopped only after the rain began. We hope that the work can be started this week and would be completed by the mid of November,” said PWD executive engineer Sanil S.
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