Santa Cruz link road work in final phase

November 12, 2013

MUMBAI: The much-delayed Santa Cruz-Chembur Link Road Project (SCLR) finally seems to be on its way to completion. The authorities are now beginning work on the most crucial part of the project-that of launching girders above the railway tracks between Vidyavihar and Kurla stations. This is significant as it will connect the over-pass from Kurla (W) to Lokmanya Tilak Terminus, Amar Mahal Junction and Nehru Nagar.

Central Railway’s chief public relations officer Atul Rane said, “Preparatory works have been on since November 9 to launch the girder. There will be a block on train movement when the girder is launched on the pillars on November 12 midnight. If work goes on satisfactorily, further block can be approved.”The launching of the girder has to be undertaken post-midnight as the suburban and mail express traffic should not get affected during the course of the work. A total of 14 girders have to be launched.The Mumbai Metropolitan Region Development Authority ( MMRDA), the project’s nodal authority, which was earlier set to complete the project by December this year, has revised its deadline and will now complete it by the end of this financial year.

The 6.54-km SCLR comprises a double-decker flyover with the top deck catering to traffic between Amar Mahal junction on the Eastern Express Highway and Western Express Highway at Vakola junction via Kalina. The lower deck will provide connectivity between Lokmanya Tilak Terminus and Kurla Dairy in Nehru Nagar from Kalina.

The project is being implemented by the MSRDC.

Ministry eyeing overseas road shows for road projects

November 12, 2013

Ministry is disappointed by dismal response of domestic companies to road projects opened up for bids this year

Ragini Verma
The road ministry has already extended the closing date for submission of the request for qualification document for three projects. Photo: Pradeep Gaur/Mint<br />

The road ministry has already extended the closing date for submission of the request for qualification document for three projects. Photo: Pradeep Gaur/Mint

 

New Delhi:   Disappointed by the dismal response of domestic companies to road projects opened up for bids this year, the road ministry is considering taking its big-ticket projects to international markets.

Road secretary Vijay Chhibber has written a letter to R.P. Singh, chairman, National Highways Authority of India, to explore the option of conducting road shows abroad for major expressway projects such as the Eastern Peripheral Expressway and the Delhi-Meerut Expressway that are being monitored by a group set up by the Prime Minister.
“There is an overdependence on the domestic players who have either run out of equity or have defaulted on some infrastructure debt or the other and are struggling to get finance from banks,” said a senior road ministry official who did not want to be named.
“So we are looking to bring in international competition and market our bigger projects outside.”
The ministry of road transport and highways has already extended the closing date for submission of the request for qualification (RFQ) document for three projects—the two mentioned above and the Mumbai-Vadodra expressway.
These project have a total cost of around Rs.25,000 crore and are being monitored by a steering committee chaired by the principal secretary to the Prime Minister. The committee was set up by the prime minister in July to fast-track infrastructure projects with investments above Rs.1,000 crore.
The ministry extended the deadline in order to get regulatory approvals that are pending. “Domestic players understand that by the RFP (request for proposal) stage, the ministry might get the remaining clearances, but the international player would refer to a checklist. In order to market our projects better in the international market, we would like to get all the clearances.”
“So we will extend the closing of the RFQ date till all clearances are in place,” the official said.
While most clearances for the Eastern Peripheral Expressway have been secured, wildlife clearance for the Delhi-Meerut Expressway and land acquisition for the first phase of the Mumbai-Vadodra Expressway are pending, the official added.
Another senior road ministry official confirmed the development, saying: “We are exploring the option of conducting road shows in countries like Singapore, Hong Kong, Malaysia and Beijing (China). A recent visit abroad made us realize most other countries are not well aware of our projects.”
The move is likely to delay the deadline set by the steering group for these projects. But, the first official said, “It is preferable to get a better response for the project than meeting the deadline.”
The steering group had asked the ministry to award the Eastern Peripheral Expressway by 31 December 2013, the Mumbai-Vadodara Expressway by 1 March 2014, and the Delhi-Meerut Expressway by 15 March 2014.
The ministry failed to attract bids for 20 road projects worth Rs.27,000 crore, totalling 2,900km between March 2012 and October 2013.
“The Eastern Peripheral Expressway has been marketed several times; it has viability issues. Mumbai-Vadodra is a good project and perhaps one of the largest project that NHAI will ever bid, so it needs serious marketing,” said Parvesh Minocha, managing director of transportation business at infrastructure consultancy Feedback Infrastructure Services Pvt. Ltd
.
“The Delhi-Meerut project is a difficult project. In today’s environment, I am not sure which international company will bid for these projects. Clearances is not the biggest issue—the ministry needs to structure these projects better,” Minocha said.

NHAI, ministry agree on realistic highway award targets

November 12, 2013

Dipak Kumar Dash, TNN |

NEW DELHI: Government on Monday approved flexibility to award highway projects on public funding mode, or EPC, where private players are not bidding for works on public-private partnership (PPP) model. At a review meeting – chaired by Prime Minister Manmohan Singh – it was decided that the highways ministry and NHAI won’t rush to award more projects simply to achieve targets.

The ministry has reduced its award targets drastically on both PPP and EPC modes. Against the original target of awarding about 3,200 km on PPP model, NHAI and the ministry have awarded only 700 km. Similarly, while the target to award on EPC was kept at 6,950 km, it has been whittled down to around 5,000 km.

“We are hopeful of awarding about another 1,000 km on EPC of the 2,000 km that NHAI had planned to bid out on PPP mode after the PM and finance minister has favoured our stand. We submitted how there is a need to go slow and to shift to EPC mode since private players are not putting bids for quite some time,” said a senior ministry official.

Though officials also submitted that the ministry and NHAI are in a position to invite tenders for three expressway projects – Eastern Peripheral Expressway, Delhi-Meerut and Mumbai-Vadodara – they are unsure whether there will be bids on PPP mode.

Meanwhile, department of economic affairs secretary Arvind Mayaram said that the bad patch for private investment in infrastructure will pass. Speaking on sidelines of Indian Roads Congress (IRC) convention, he said private investment will resume in the next six-eight months as economic condition has started improving.

Planning Commission member B K Chaturvedi also admitted that private investment has fallen significantly due to global financial situation. “During our mid-term review we will consider whether there is a need to rework the financing model to increase government funding. Obviously, we now want more projects to be on EPC mode,” he added.

 

Source-http://timesofindia.indiatimes.com

Mohali-Patiala road to be four-laned

November 11, 2013

Vibhor Mohan, TNN |

CHANDIGARH: Travelling between Mohali and Patiala will become much safer and faster as Punjab Infrastructure Development Board is set to upgrade SAS Nagar – Landhran – Chunni -Sirhind – Patiala state highway by making it four-laned and adding features such as overbridges, truck lay bays and padestrian crossings.Four-laning of 50.7-km long Zirakpur-Patiala national highway number 64 is already underway and road acquisition has been done at most places. A feasibility study has already been conducted and after getting financial bids in 2012, trees have been felled along the existing road.

A large number of regular commuters between Patiala and Chandigarh have begun using the Sirhind-Patiala road link due to relatively lesser traffic and better road. The route is particularly used by those coming to PGI or Panjab University as they get a direct link to these institutes.

A Punjab government official said Punjab Infrastructure Development Board is working on widening of the SAS Nagar – Landhran – Chunni -Sirhind – Patiala road link and request for proposal for preparing the detailed project report has already been invited by the board.

Both the projects would be taken up by raising loans from the World Bank and in public-private partnership. For this, commuters will have to pay at toll plazas to be set up on the basis of surveys conducted by consultants.

The proposed upgradation of the state highway will include construction of bus bays and bus shelters and truck lay byes located near check-barriers, places of conventional stops of the truck operators. Pedestrian and cattle crossing by way of unnderpass/overpass will be provided on the basis of traffic count assessment.

The existing national highway is single lane and prone to accidents as the road is not just narrow, it has no road dividers and railing is missing at most places on narrow bridges on water bodies.

On the Zirakpur-Patiala stretch, toll plaza will be set up at one point between Zirakpur and Rajpura and another between Rajpura and Patiala.

Target for highway projects halved

November 11, 2013

Proposal to cut the target of contracting out 4,028km of highway projects to be placed at a review meeting today

Ragini Verma 
The roads ministry awarded just 1,322km of road projects in 2012-13 against a target of 9,500km. Photo: Mint<br />

The roads ministry awarded just 1,322km of road projects in 2012-13 against a target of 9,500km. Photo: Mint

 

New Delhi: India’s roads ministry has nearly halved its target of awarding highway projects to 2,128km in the year to March because developers are not showing interest in bidding for many of these. “There is no interest from the private sector and the slowdown is severe on the PPP (public-private partnership) projects front,” a ministry official said.
The proposal to scale down the target of contracting out 4,028km of highways projects will be placed at a review meeting on Monday that Prime Minister Manmohan Singh is expected to attend. This is the second lowering of the target that was set at 7,500km at the beginning of this fiscal year.
Road projects worth Rs.27,000 crore totalling 2,900km did not receive any bids between March last year and October, the official said, requesting anonymity. The ministry has so far in the current fiscal awarded just 123km of highway projects to be implemented in partnership with private firms against the target of 2,023km. “We do not expect to be able to award any more highway projects under the PPP mode,” the official said. “We will focus on meeting our target for awarding projects under the EPC mode.”
EPC stands for engineering, procurement and construction, under which the government pays a contractor a sum to build a project awarded through competitive bidding.
At the meeting with Singh, the ministry will also bring up the issue of the mandatory requirement of 90% land acquisition at the bid stage as slowing down the award process.
The ministry awarded just 1,322km of road projects in 2012-13 against a target of 9,500km. The sector has seen a slowdown due to the overall economic downturn, lack of equity in the market, cautious lending by banks and the highly leveraged balance sheets of developers.
“Developers are shying away mostly because they do not have liquidity right now. The government has little option but to carry on with EPC projects,” said Abhaya Agarwal, a partner at EY Llp who oversees the infrastructure practice at the consultancy. “When the market becomes more balanced, I think the government should look to focus on the annuity model. The government should also be sympathetic to the problem of cost overruns on account of land acquisition and environment clearances and do more to address these issues.”
Although the government has announced a series of measures such as delinking environment and forest clearances, relaxing the exit policy for developers and the lending norms for road projects, it has failed to revive the sector.
The review on Monday will also focus on an update on expressway projects that have been put on a fast track by a steering group of civil servants constituted by Singh in July.
The ministry on 1 September invited requests for qualifications for two such projects—the Eastern Peripheral expressway and the Delhi-Meerut expressway. It will invite similar requests from developers for the Mumbai-Vadodra expressway by mid-December and for the Delhi-Jaipur expressway in January. These highways involve a total project cost of nearly Rs.30,000 crore. The steering group had asked the ministry to award the eastern peripheral expressway by 31 December, the Mumbai-Vadodara expressway by 1 March and the Delhi-Meerut expressway by 15 March. “Certain project-specific issues that could delay the projects will be taken up with the Prime Minister at the meeting so those can be resolved,” said another government official, who also declined to be named.

Connectivity of northeast India with Bangladesh to be developed

November 11, 2013

IANS

Agartala, : Surface connectivity between India’s northeast region and Bangladesh would be further developed for the economic development of the region, a union minister said here Sunday.
“Prime Minister Manmohan Singh has recently directed to the concerned ministries to further improve the rail, road, and air connectivity in the northeastern region. The surface connectivity between the region and Bangladesh are being developed,” Oscar Fernandes, Union road transport and highways minister told reporters.
He said: “The central government would accord top priority in developing road, rail and air connectivity in the northeastern region. To strengthen the economy of the northeastern region, improvement of the connectivity within the region and with Bangladesh is very essential.”
Fernandes said that the union commerce ministry would provide funds for the construction of a bridge over the river Feni in southern Tripura’s Sabroom, to get access of the Chittagong international sea port.
The Chittagong port in southeast Bangladesh is just 75 km away from the southern Tripura’s border town Sabroom, 135 km south of Agartala.
The central minister accompanied by senior officials arrived here Sunday and laid the foundation for the double lane of the National Highway 44, the life-line of Tripura’s surface link with the rest of the country.
Responding to the demands of the Tripura government, the minister said that an additional national highway would be developed between Tripura-Assam and rest of the northeastern region. For this, the Tripura government would arrange required lands.
Earlier, the union minister held separate meetings with Tripura Chief Minister Manik Sarkar, Finance Minister Badal Chowdhury, and senior officials of the central and state Public Works Departments. He reviewed the progress of the highway projects in Tripura.
Source-http://www.morungexpress.com

45-metre-wide national highways for Kerala: Minister

November 8, 2013

TNN

THIRUVANANTHAPURAM: Works minister V K Ebrahim Kunju on Tuesday said the national highways in the state would be developed in 45 metres only. The National Highway Authority of India (NHAI) had informed the government that it would not be able to develop the highways in 30 metres, he said.

“We proposed 30 metres in view of the hurdles in land acquisition. The NHAI said the state would have to take charge of the highways if the width is 30 metres. It is not possible for us to develop the highways and we have informed the ministry that we agree to the 45-metre plan,” he told a news meet.

The minister dismissed the chances of elevated highways, saying they are not feasible. “It can be done only in special cases.”

He said the KSTP phase II and state roads improvement projects were on track. On condition of roads after rain, he said a performance guarantee of three years has been imposed for bituminous macadam and bituminous concrete roads and five years for heavy maintenance roads.

Source-http://articles.timesofindia.indiatimes.com/

Tariff dodging takes its toll on India’s highway developers

November 8, 2013

BY MATTHIAS WILLIAMS

(Reuters) – Flashing lights on the roof, tailgating politicians’ motorcades, smashing up toll booths, and beating up toll collectors.

Welcome to India’s network of privately run highways, where endemic toll dodging is a drag on the finances of road operators such as GVK Power and Infrastructure and Reliance Infrastructure, and a deterrent to private investment in a country where poor infrastructure shaves an estimated 2 percentage points from economic growth each year.

Ambulances, fire trucks and the cars of senior government officials are among those exempted from paying tolls, but other drivers often claim a free ride, said Isaac George, GVK’s chief financial officer.

“If an MP (member of parliament) has to be exempted, it’s not just his car that is exempted. The entire entourage which follows or goes in front seeks an exemption,” he said. “The government has to do something because these are all revenue leakages.”

India’s cash-strapped government wants private companies to double their share of the cost of building roads and bridges by 2017 from about a fifth in the last five years.

Eight out of every 10 road projects, however, miss revenue expectations in their first year, with the shortfall as high as 45 percent, according to a 2012 study by Fitch Ratings. The slowing economy, and sometimes inflated forecasts, are partly to blame, but toll dodging is a significant factor, said Fitch India analyst S. Nandakumar.

“There is obviously resistance to tolling, particularly for brownfield or greenfield toll roads which have been tolled for the first time,” he said.

THEFT, BEATINGS

The resistance to paying tolls is part of a wider pushback against India’s attempt to charge for services such as electricity that have been heavily subsidised or free, and which are plagued by under-investment.

Drivers use threats, violence, protests and claims of powerful connections to demand toll exemptions. Road developers lose up to a tenth of their toll revenues because of dodgers, said Vishwas Udgirkar, an infrastructure specialist at consultancy Deloitte.

IRB Infrastructure Developers could not levy tolls on one road for nearly two years due to protests in the western state of Maharashtra, where Mumbai is located. Charges began on Oct. 17, after a court ordered the local government to provide police protection.

Last month, security camera footage showed 6 men, armed with rods, assaulting staff and stealing money from a toll booth outside New Delhi. Two years ago, a toll collector was shot dead during a payment dispute at a booth near Gurgaon, where cars are charged 27 rupees (44 cents).

This lawlessness comes at an economic cost.

The government awarded less than a fifth of its target for new road construction contracts to private companies in the last fiscal year, official data shows. GVK and GMR Infrastructure both pulled out of road projects stalled by bureaucracy. In July, local media reported that IRB pulled out of bidding for a harbour crossing in Mumbai because of its toll collection woes in Maharashtra.

In a bid to tackle toll dodging and ease congestion at toll gates, Road Transport Minister C.P. Joshi said he wants all national highways to use electronic tolls by 2014.

A senior government official, however, was less concerned.

“I won’t deny this is an issue,” he said, declining to be named as he did not want to publicly speak about the issue. “We are not concerned about his (a company’s) loss of revenue. He should be concerned about it.”

MAFIAS AND MINIONS

India’s toll roads tend to be better maintained and less congested than public routes. But unlike in Europe, for example, private roads, and not state roads, tend to become the main route between cities, leaving drivers with little choice.

This breeds resentment, especially if the road is pot-holed, unsafe or snarled by mind-numbing traffic.

Raju, who lives in Delhi, used to put a red flashing light on his car to pass himself off as a lawmaker to avoid tolls. He’s now befriended the driver of a genuine politician and often joins his entourage when travelling in northern India.

“They don’t provide facilities, so why should I pay a toll?” said Raju, who declined to give his full name. Highways are often congested, he said, and once, when he had a flat tyre on his way to a funeral, he waited two hours before help arrived.

Waiting for government help, and attitudes to shift, could take years.

K. Ramchand, managing director at road builder IL&FS Transportation Networks Ltd, said one way to manage toll dodgers was to let them have their way in the early days of the project.

“Most of the toll deviants are … cars normally owned by either the local mafia, the minister or his cronies,” he said. “It’s safer to keep them on your side and give them a free pass.”

“Otherwise what happens is, these 30-40 followers come on the toll plaza, make a noise and then everybody falls into that mob mentality and then it becomes a big issue,” he added. (Additional reporting by Anindito Mukherjee; Editing by Tony Munroe and Miral Fahmy)

Source-http://www.reuters.com

 

Queensland firm Global Road Technology Australia has landed a $116 million ($US110M) deal to lay its “instant highway” technology on 7,000 kilometres of road in India.

November 8, 2013

SOPHIE FOSTER SMALL AND MEDIUM BUSINESS   | THE COURIER-MAIL 

 

The firm, whose biggest projects to date have included infrastructure linked to resource industry development in Queensland, secured the deal with Indian construction and energy giant Triace this week.

It would see the firm’s road stabilisation technology applied on the ground through a joint venture with Indian firm Pearls Group – to be called Pearls GRT.

GRT director Ben Skinner said the technology was expected to create a road network that would transform regional Maharashtra – India’s third largest state.

“Our partnership with Pearls and the signing of the agreement in India demonstrates the demand for our products and their potential to provide infrastructure solutions globally for any number of industries and applications,” Mr Skinner said.

 “Pearls GRT’s road-building technology has the potential to revolutionise how roads are built and the company is entering an exciting time in its development.”

The technology would allow the construction firm to lay up to 6,000 square metres of road a day compared to traditional methods that could take up to a month per kilometre, he said. That meant rollout time from planning to finished road took a matter of days with GRT technology.

The firm expected to have a team of surveyors, geologists, civil engineers and industry consultants on the ground to assist with the project.

Among the firm’s biggest selling points was the fact that its technology was tested under some of Australia’s harshest conditions – at mining sites where haulage roads must remain open 24 hours a day to boost productivity.

The firm was already working across India, North and South America, he said, in major mining, oil and gas developments, and with government sector.

Source-http://www.couriermail.com.au

 

Government entices foreign developers to build roads in India ahead of general elections

November 8, 2013

Dailybhaskar.com   |

 (In pic: A photograph of the Grand Trunk Road)

 

New Delhi: The Ministry of Road Transport and Highways (MRTH) is to conduct road shows in foreign lands to entice companies abroad to take up road projects in India. The ‘road shows’ are to be conducted primarily in Australia and China over next few months, according to media reports.

‘One of the proposals (of a presentation to be made to PMO) is to do road shows abroad to ask investors to participate in PPP (public-private partnership) projects in India’, Business Standard quoted a MRTH official saying.
The situation to approach foreign developers has arrived due to Indian firms pulling away from domestic projects owing to various legal hurdles arriving every now and then.
The domestic developers — such as GMR and Larsen and Toubro — have disengaged from investing in road developing projects because of land acquisition difficulties, funding constraints, etc.
The idea to approach foreign developers has emerged in a time when general elections are round the corner. Road development is an issue not to be ignored ahead of the elections.

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