L&T, IRB among 5 to bag Rs 11k cr road projects

NEW DELHI: L &T-ECC, Emirates Trading Agency-KMC Construction, IRB Infrastructure Developers-Deutsche Bank, IJM Corporation-IDFC Ltd and Isolux Corsan Concessions-Soma Enterprise have bagged five national highway projects worth Rs 10,912 crore.

The projects, part of the fifth phase of National Highway Development Project (NHDP), are the first one to be under the new model concession agreement.

Secretary (road transport and highways) Brahm Dutt said this at a media briefing on Friday.

Under NHDP V, a total of 6,500 km of existing four-laned national highway have to be widened to six lane through build operate and transfer basis.

Two projects aggregating to 148 km had earlier been awarded based on the old concession agreement.

In the earlier awarded two projects, grants used to be the bidding criteria and NHAI got an upfront negative grant of Rs 975 crore.

Under the new MCA, the concept of grant has been changed to revenue share model.
On the Delhi-Jaipur section of national highway eight, the wining consortium of Emirates Trading Agency and KMC Construction has quoted 48.06% as the revenue share for NHAI.

IRB Infrastructure in tie-up with Deutsche Bank quoted 38% for Surat-Dahisar section on national highway 8. For Chennai-Tada on NH 5 and Panipat-Jalandhar on NH 1, L&T-ECC have quoted 17.07% and Isolux Corsan, have quoted 20.14% as revenue share that the government will get out of tolling revenue.

“All the revenue share will start right from the appointed date within 180 days of signing of the agreement.

In only one case, where the traffic is low, the share of revenue will start at 2% after nearly four and half years,” said Dutt. Isolux Corsan-Soma Enterprise quoted the 2% revenue share for the Panipat-Jalandhar section.

As the existing highways are already under tolling by NHAI, toll collection by the private entrepreneurs will be integrated with the existing tolling infrastructure though there will not be any increase the tolling rates.

The five consortia will be required to furnish an additional performance security, the toll will be credited to an escrow sub-account, drawal from which is linked to the achievement of project milestones.

Source: dnaindia.com

9 infrastructure firms booked for evading import duty

Nine infrastructure firms having interests in road building have been booked by the Customs authorities for allegedly evading import duty totalling Rs 20 crore on heavy engineering equipment.

The firms, including Punj Llyod Ltd, Gammon India and Era Constructions, have allegedly imported machinery for purposes other than for which they were allowed to be imported duty free, a Customs official said here.

“Duty exemptions were granted to the firms working on National Highway Authority of Indian projects and other projects funded by international development agencies like those of Asian Development Bank and United Nations,” the officer said.

The companies, however, have been found to have diverted machinery imported under duty exemptions to other private projects and hence were liable to pay necessary duties, he charged.

During initial investigations, the authorities have established alleged duty evasion of Rs 20 crore.

Notices were sent to all the nine firms and Rs 12 crore in duties have already been recovered, he said, claiming the firms have admitted to have diverted the machinery.

“We started investigations into the matter around five months ago. Though many of the firms are based outside the city, the cases have been made in Mumbai as all the machinery had landed at the Mumbai port. It will take some time for us to impose the penalties,” the officer said.

Source: timesofindia.indiatimes.com

Gayatri Projects to hive off invesments in BOT road projects

Gayatri Projects is planning to hive off investments in BOT road projects to its subsidiary company with an intention to dilute a part to strategic investors to raise funds for further investment into BOT projects.

A meeting of the board of directors of the company will be held on Feb. 26, 2008, to consider the issue of convertible equity warrants to promoters in accordance with the provisions of SEBI Guidelines, 2000 and allotment of equity shares to FCCB holders upon conversion.

The board will also consider incorporation of new objects clauses in the memorandum of association.

Shares of the company gained Rs 8.4, or 1.62%, to settle at Rs 527.75. The total volume of shares traded was 13,891 at the BSE. (Tuesday)

Source: myiris.com

Concrete gains

Mega investments in infrastructure and the recent market correction offers an exciting investment opportunity in construction stocks.

The robust GDP growth rate experienced by the country in the last few years is indeed commendable and was aided by investment in infrastructure. To sustain growth rates, it is imperative for India to make higher investments towards setting up world-class infrastructure. As per the planning commission estimates, investments in infrastructure is set to go up by a whopping 130 per cent to $520 billion for the eleventh Five Year Plan (FY 2008-12) as against the $226 billion made during the tenth plan (FY 2003-2007).

Construction companies will be among the first beneficiaries of these investments and will deliver good and sustainable long-term growth.

Since the investment plans for each of the sub-segments in infrastructure space varies, based on priorities, there is reason to believe that not all the segments or companies will grow at all times. For instance, regional players or less diversified ones may experience volatility in revenues. For companies, faster project execution capabilities and access to key construction machinery (equipment) are equally critical, which in turn will determine the growth rates and profitability margins, respectively for any company. For example some companies are looking at purchasing their own equipment to tackle rising hiring costs and protect margins.

Thankfully, despite issues, the huge opportunity dwarfs concerns. Says Satish Ramanathan, head equities, Sundaram BNP Paribas, “While the future is promising, earnings could be volatile. Choose companies on valuations, order book and services portfolio.”

Last, but not the least, the recent correction in stock markets provides an opportunity to buy good companies in the space at reasonable valuations. Among many stocks, we have picked 10 stocks—four large caps (Read: Bigger the better) and six mid-caps, which are likely to emerge as key beneficiaries of the ongoing investments in the infrastructure sector. Bigger companies are well-established, diversified and less risky. Investors with low risk appetite can consider them. The smaller ones are efficiently managed and are on the growth path with good earnings visibility. Notably, they may also grow faster, given the size of the opportunity and their individual strengths. But, small size also means that there is an element of risk and hence, investors need to review them on a quarterly basis and look at the flow of new business and financial performance.

Era Infra Engineering

Era Infra Engineering, which was earlier into the construction of industrial and commercial space, has diversified into verticals such as railways, roads and highways, airport, urban infrastructure and oil and gas. The company now commands a sizeable order book of Rs 4,100 crore, which is thrice its FY08 estimated revenue.

The company is also developing commercial and residential buildings on its 500 acre land in and around Delhi and Jaipur. Though some of these projects will only be completed by FY10 and FY11, four of them will be completed in FY09 thus providing significant revenue growth.

Besides, the company is also investing about Rs 200 crore in growing the building structure segment. Building structures, which includes the construction of metal structures used at public and private places, is a high growth and high margin business accounting for 21-22 per cent operating margins. The company is currently having total capacity of 45,000 tonne per year of structure, which will be expanded to 185,000 tonne per annum by September 2008. The contribution from new capacity will reflect partially in FY09 and fully by FY10. The expanded capacity at current realisation of Rs 58,000 per tonne can get additional revenue of Rs 750-850 crore per year, assuming 70-80 per cent capacity utilisation.

Additionally, the company is also investing in plant and equipment to scale up its in-house capabilities; currently, 75 per cent of its equipment requirement is met in-house (gross assets at Rs 500 crore). The company will further spend about Rs 200-250 crore over the next year towards purchase of equipment. This will help cut costs and generate additional revenues by way of renting out to third parties.

That apart, Era also plans to increase its Ready Mix Concrete (RMC) capacity 10-fold by installing about 50 new RMC plants over the next 2-3 years, at an estimated cost of Rs 350-400 crore. About 90 per cent of the new RMC production will be sold to third parties. Expect this business to contribute a large chunk to revenues.

Given its in-house equipment and RMC facilities, Era enjoys healthy operating margins of about 20 per cent and RoNW (return on net-worth) of 30 per cent, among the best in the industry. The company’s core business is growing at robust pace, which along with the strong order book and investments will drive growth.

Sadbhav Engineering

Sadbhav Engineering, with a focus on the road segment, would be a key beneficiary of the ongoing investments in this segment. Of the company’s current order book of Rs 2,300 crore, road projects account for over 70 per cent, including 32 per cent from BOT projects. Enhanced focus on BOT projects has seen the company win four BOT road projects in consortium with other players over the last six months; Sadhbav’s equity contribution is pegged at Rs 92 crore. Going forward, the BOT projects are expected to contribute significantly to revenues as the company has achieved financial closure of Aurangabad-Jalna and Nagpur-Shinoi project during Q3FY08. It expects the Mumbai-Nasik expressway project to achieve closure by December 2008.

From Q4FY08 onwards, its projects in the relatively higher margin mining segment (9 per cent net margin) would be a positive trigger, and will help in improving its bottom line. The revenue will accrue from its ongoing project with GHCL and the recent Rs 245.24 crore order from the Northern Coalfields. Sadbhav Engineering currently has 15 per cent of its current order book from mining. However, the mix is expected to go up as domestic companies are allotted more mines and thus, reflects huge potential for excavation work.

Considering its current order book, which is over three times its FY08 estimated revenue, the company is expected to maintain revenue growth of over 50 per cent for the next two years. Also, with the increasing share of mining and the captive resources, the operating margins are expected to improve from 11.9 per cent in the FY07 to 12.5 per cent in FY08 and 13 per cent in FY09. The expansion in margins will also lead to the higher earnings growth. While these positives are partly reflecting in the higher valuations, the stock has good potential.

Pratibha Industries

Pratibha Industries is emerging from being a small player handling projects with an average size of Rs 10-20 crore to a bigger player. The most recent order bagged by the company is as big as Rs 300 crore. The company, which was primarily into the water projects (about 70 per cent), has diversified into other construction segments such as industrial projects, roads, urban infrastructure, airports, railways, pipeline and tunneling. The company has a strong focus and expertise in handling water-related projects, accounting for 60 per cent of its total order book.

Further, to grab the growing opportunities in the water segment, micro tunneling and piping projects, the company has formed a JV with Ostu Stettin of Austria, the world’s third largest tunneling company. It will help getting complex projects involving tunneling for laying pipes in high density urban areas for underground tunneling.

Besides, the company is also integrating backwards into manufacturing of SAW spiral pipes, with a capacity of 90,000 tonnes per annum. These pipes will be used for captive consumption as well as commercial sales to other companies for use in water transmission, oil and gas, sewerage and other industrial usage.

Within construction, the company has also diversified into some of the high potential segments, having undertaken (either independently or jointly) construction of complexes, buildings, airports and roads.

A strong order book of almost 4.5 times its FY08 estimated revenue and better outlook for urban infrastructure and water-related projects, indicates a robust future for the company. Besides, growth would be driven by the increasing revenue share of pipe manufacturing business in FY09. According to estimates, the SAW pipe segment alone can add about Rs 240 crore of revenue in FY09 at 60 per cent capacity. Overall, the stock is attractive from a long-term perspective.

Ahluwalia Contracts

Ahluwalia Contracts, primarily into construction of residential and commercial projects, is now diversifying into the urban infrastructure space. Although urban infrastructure still contributes just 3 per cent of its revenues, the company plans to increase its share to 20-25 per cent over the next three years.

On these lines, the company will bid for select BOT projects, especially multi-level car parking and bus terminus. The company has already been awarded a BOT project in Rajasthan for constructing a bus terminus, which also includes a commercial complex, wherein the targeted IRR (internal rate of return) is a sound 20 per cent. There is huge opportunity in the multi-level car parking segment, as over 30 projects are likely to be awarded in Delhi alone.

The company being an established player in the National Capital Region (NCR) is expected to gain from the residential and commercial projects consequent to the 2010 Commonwealth Games, to be held in Delhi and also the all round infrastructural development in the NCR region. It has already won some of these projects, including the recently bagged Rs 688 crore Commonwealth Games 2010 village residential project.

Considering its growth plans and projects in hand, the company is incurring a capital expenditure of around Rs 55 crore in FY08 and Rs 110 crore in FY09. This will also include the expansion of its RMC capacity from 210 cubic meter per hour currently to 300 cubic meter per hour in FY09. The RMC division, which contributed over 18 per cent to revenues in FY07 (Rs 81.40 crore), should see its revenues grow at a healthy pace over the next two years.

The healthy order book (3.24 times of FY08 estimated revenues) provides earnings visibility over next two years. Over the long-term, growth will be aided by the company’s diversification.

Tantia Construction

North East and eastern India are considered to be underdeveloped. Investments are required towards construction of roads, ports, power and other infrastructure facilities. The Centre has already indicated that it intends to spend Rs 50,000 crore towards construction of roads and another Rs 2,000 crore for rail connectivity in the North-East over the next five years.

Tantia, which generates about 96 per cent of its revenue from the eastern and north eastern region by undertaking roads and railway projects, will be the key beneficiary.

To further capitalise on this, the company is foraying into other segments of infrastructure and BOT projects. Its relatively smaller size and limited presence is reflecting in the lower valuation it enjoys vis-à-vis its peers, which should hopefully correct as the market gains confidence in the company. What is currently playing in its favour are opportunities and relatively less competition in the North East.

Considering the industry outlook and healthy order book to be executed over the next 30 months, the company may maintain revenue growth of over 50 per cent in the next two years.

Gayatri Projects

In a recent development, Gayatri Projects signed an MoU with DLF to jointly undertake construction of road projects on BOT basis. The new entity will leverage the capabilities of the two companies and, is expected to develop projects worth over Rs 1,000 crore every year. The tie-up with DLF is also expected to provide Gayatri Projects an entry into the real estate business; it would be developing properties along with DLF. Gayatri Projects is a focused player in the construction of roads and irrigation segment, which account for about 98 per cent of its order book. The company is now venturing into urban infrastructure and the water treatment segments, which will not only help diversify revenue streams but also improve margins; these are already high at over 15 per cent compared with the industry average. That’s because, the company owns nearly 100 per cent of the project related equipments.

Apart from constructing infrastructure, like other companies, the company is looking at capitalising on the growing opportunities in the BOT segment. It currently has five BOT road projects, which have already achieved financial closure. Of this, revenue from three projects is expected to start flowing from March 2010. Analysts value the BOT projects at Rs 120-170 per share, based on the discounted cash flow method. The BOT projects will provide a sustainable or steady cash flow in the long run and help in improving its profitability on the back of higher margins.

Given the high opportunities in the infrastructure sector and diversification into other geographies and segments, the cash contract (non-BOT) business will continue to grow at a robust rate, over the longer term. For the next two years though, earnings will grow on a sustainable basis, backed by the strong order book of Rs 3,400 crore (almost 4.5 times its FY08 estimated revenue) executable over the next 30 months. At current price levels, the stock is trading at a relatively lower valuation, compared with its peers and, is capable of delivering good returns.

Bigger the better

Bigger companies score heavily on size, services portfolio, strong execution capabilities and have a proven track record, all of which provide great comfort and hence justify premium valuations.

IVRCL Infrastructures & Projects

The increasing allocation towards water-related projects augurs well for IVRCL, which generates 57 per cent of its revenue from it. Besides, IVRCL is also present in other growing segments such as roads, building & structures and power. Its order book of Rs 11,000 crore provides strong revenue visibility. Analyst value the company at Rs 550-650 per share on a sum-of-parts valuation of its different businesses and investments in subsidiaries like Hindustan Dorr Oliver and IVR Prime.

Hindustan Construction Company

A dominant player in transport segment, Hindustan Construction is now focusing more on profitable segments such as water and power. Of its order book of Rs 9,050 crore, power projects accounts for 44 per cent and water projects 22 per cent. This diversification will not only help it grow faster but also improve margins. Long-term growth will be aided by improving revenue mix, strong order book and its real estate business (12,500 acre Lavasa project, valued at Rs 60-100 per share. On a sum-of-parts basis, analysts value its share between Rs 210-260.

Nagarjuna Construction

Nagarjuna Construction has been growing at 58 per cent annually over the last four years and is expected to grow at about 40-45 per cent during FY08-10. The growth will be driven by robust order book coupled with expansion of volumes and margins, led by diversification into segments like metal, oil & gas and real estate development. Nagarjuna is investing in BOT projects; has five road projects, two hydro power and two sea port projects. Its businesses are valued at Rs 315-395 per share.

Punj Lloyd

After acquiring Singapore-based Sembawang in FY07, Punj Lloyd tapped the growing global energy market with extended services portfolio. In the domestic market, it has forayed into onshore drilling, real estate and ship building business with 25.1 per cent stake in Pipavav Shipyard. Its consolidated order book of Rs 18,500 crore, provides reasonable comfort. Going forward, net profit is expected to grow faster on the back of turnaround of Sembawang; consolidated operating margins are expected to improve to 10 per cent by FY09 (8 per cent in FY07).

Source: Jitendra Kumar Gupta : business-standard.com

India’s Largest Toll Plaza – Delhi-Gurgaon

Kapsch Metro JV has commissioned the Delhi Gurgaon Expressway with 3 Toll Plazas with a total of 59 toll lanes. The largest toll plaza has a total of 32 + 4 reversible toll lanes.

The Project has a total of 24 ETC with some of them mixed type with cash and smart card facility ; the remaining being cash and smart Card type.

All lanes are equipped with Automatic vehicle classification systems . All the three plazas are interconnected through a WAN.

The First Kapsch Toll System In India Finalized: Toll System For One Of The Most Frequented Highways Is Up And Running.

Since End of January 2008 runs the operation of the first road toll project of Kapsch TrafficCom AG in India with no problems. Within a joint venture structure – the Kapsch Metro Joint Venture – Kapsch TrafficCom alongside the Indian Metro Road Systems Ltd. fitted one section of the National Highway No. 8 with a modern manual/electronic toll system. This highway covers the route from Delhi to Gurgaon and is one of the most frequented roads in the region. The central toll plaza with altogether 32 toll lanes is one of the largest toll stations in all of Asia.

Since January 2008, the road from Delhi to Gurgaon features a modern manual/electronic toll system based on microwave technology (CEN 278). Completion of this toll system marks the successful finalization of the first road toll project of Kapsch TrafficCom in India. The principal, licensee DS Constructions Ltd., decided to award the contract to the Kapsch Metro Joint Venture in September 2006.

“For us, the selection of KapschMetro JV as a technology partner was an important step in the management of the traffic volumes on the project. The technology selected is stable, secure and has processed over 3 million transactions to date with no problems. The installation of the equipment was done in difficult circumstances with live traffic of over 130,000 per day travelling through the lanes during the installation period. The equipment implementation of the Delhi-Gurgaon toll project is a success story, Kapsch Metro JV delivered the project on schedule and to our complete satisfaction“, explains Allan Le Roux, Chief Operations Officer- Tolling of DS Constructions Ltd.

“Kapsch has already performed successful projects in India in the past, contracting GSM-R work for Indian Railroads, the Indian national railway system. With this commission, we were able to enter the Indian toll system market within an extremely short time, owing our success largely to our staff’s wealth of know-how and to the many years of experience we have in the Asian area. For me, the route that has now been completed is just the beginning of numerous further business ventures in Asia“, says Erwin Toplak, Board Member of Kapsch TrafficCom AG.

The Toll Road project is constructed on a 20 year BOT basis and has a length of 27 km long and rates among the most heavily trafficked projects in the region and provides important connectivity to the Indira Gandhi International Airport of New Delhi and the “New Millennium City” Gurgaon which boasts as having one of the worlds biggest shopping malls! The three toll plazas on the project have a total of 56 toll lanes. The main toll plaza located on the Delhi Haryana Border has 32 toll lanes. Motorists are able to use cash or use a Smart Card in at all lanes except the 4 dedicated non stop lanes with exclusive payment via microwave TAGs.

Kapsch TrafficCom AG is a global provider of innovative road traffic telematic systems, products, and services. Kapsch TrafficCom develops and supplies electronic toll collection systems, in particular multi-lane free-flow (MLFF) systems, and is also able to act as the technical and commercial manager for operating these systems. Further, Kapsch TrafficCom offers traffic management solutions (with the focus on road safety and traffic control), electronic access control systems, and parking space management. Kapsch TrafficCom has established itself among the global market leaders for ETC systems with more than 140 installed toll systems in 30 countries in Europe, Australia, Latin America, the Asian/Pacific Area, and South Africa, which altogether feature more than eleven million transponders and about 11’000 fitted lanes. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 18 countries.

Vienna on 27th March, 2008

For further information, please contact:
Brigitte Herdlicka
Public Relations & Sponsoring
Kapsch Group
Phone: +43 (0) 50 811 2705
1120 Vienna, Wagenseilgasse 1
E-Mail: [email protected]
www.kapschtraffic.com
www.kapsch.net

APPROVAL FOR NEW PHASES OF NHDP, PROPOSAL OF DEDICATED BODY ON ROAD SAFETY AND AMENDMENT IN THE MOTOR VEHICLE ACT MARK THE ACTIVITIES IN THE ROAD SECTOR DURING 2007

The Government’s approval for construction of Ring Roads/Bypasses etc. around the major cities across the country, upgradation of National Highways under NHDP Phase III A and III B, awarding of 18 contracts by NHAI under NHDP Phase III, IV and VI and approval of modified SARDP-NE programme for widening of NHs in NE States marked the major activities of the Department of Road Transport and Highways during the year 2007. The Department of Road Transport notified the rules for accreditation of bus body builders, Government approved the amendments in the Motor Vehicle Act and Sunder Committee recommended the creation of a dedication body on road safety and traffic management during the year.

ROAD SECTOR

– India has about 3.3 million kilometers road network, which is the second largest in the world. It includes National Highways, State Highways, Major District Roads and Rural Roads.

– National Highways (NHs) having length of 66590 km, constitute only 2 per cent of the total road network but share approximately 40 per cent of the total traffic on roads.

– Overall Achievements made by the Ministry through all agencies i.e. NHAI, State PWDs and BRO under different schemes of development of National Highways during the calendar year 2007 from January 2007 to October, 2007 are as under

National Highways Development Projects Phase I, II, III and V

The present status of NHDP I, II, III and V as on 30th November, 2007, is as under:

Golden Quadrilateral (GQ): Out of total Length of 5846 Km, four laning of 5629 km has been completed and the balance length is under implementation.

During the calendar year 128 km length has been completed.

North-South & East-West Corridors: Out of total length of 7300 km for four laning, 1559 km length has been completed and 4762 km length is under implementation. The remaining length is under various stages towards award of work.

During the calendar year 707 km length has been completed.

Port Connectivity Project & Other National Highways: Under Port Connectivity, out of 380 km, 163 Km has been completed and 211 km is under implementation. The work is yet to be awarded in remaining length. Out of 945 km of other National Highway, so far 337 km has been completed and four laning of 605 km is under implementation.

During the calendar year 28 km length has been completed for the Port Connectivity

National Highways Development Project Phase – III, V, VI & VII

Government has approved up gradation of 780 Km of National Highways under NHDP Phase-IIIA in Bihar at an estimated cost of Rs,6782 Crore in April 2007. With this approval, total length approved under Phase-IIIA is 4815 km at an estimated cost of Rs.33,069 crore.

Government has approved upgradation of 7294 km under NHDP Phase IIIB at an estimated cost of Rs.47557 crore in April 2007.

With approval of NHDP Phase-IIIB, total length for NHDP Phase-III is 12109 km at an estimated cost of Rs.80,626 crore. NHDP Phase-III is targeted for completion by December, 2013.

12 nos of contracts involving a length of 749 km under NHDP phase III have been awarded so far.

Government has approved construction of stand alone Ring Roads, Bypasses, Grade Separators, Flyovers, elevated roads, tunnels, road over bridges, underpasses, service roads, etc. on BOT (Toll) mode under NHDP Phase VII in December 2007 at an estimated cost of Rs.16680 crore.

In all 18 Nos. Contracts for the length of 928 km amounting to Rs. 6816 Crore were awarded by NHAI under NHDP Phase III,IV & VI.

Special Accelerated Road Development Programme for North-East (SARDP-NE)

The modified SARDP-NE programme approved by Govt. on 1.10.2007 envisages widening of 3846 km of National Highways and improvement including widening/improvement of 4891 km of State roads. This will ensure the connectivity of remaining 58 district head quarters to the National Highways / State Roads in the 8 North-Eastern States.

Ministry has set up a High Powered Inter Ministerial Committee to approve and co-ordinate individual sub projects under SARDP-NE. Till date Committee has approved various sub projects covering 664 km length at an estimated cost of Rs. 1613 Crore under Phase “A” of the program.

Central Road Fund

Under the Central Road Fund Scheme, an amount of Rs. 12830 crore has been earmarked for all categories of roads (including share of Railways). Out of this, Rs.6541.06 crore have been allotted for National Highways, Rs.1565.32 crore for the State Roads, Rs.3825 crore for the Rural Roads and a sum of Rs.173.93 crore to be given as grants for development of Inter-State Connectivity and Economic Importance Roads. An amount of Rs. 724.69 Crore has been allotted to the Ministry of Railways for construction of Road Over Bridges/ Road Under Bridges and other safety works in unmanned level crossing.

During the calendar year 2007 till 30^th November 2007, 408 proposals amounting to Rs. 1263.09 Crore have been approved for improvement of State Roads under CRF.

Economic Importance & Inter-State connectivity (E&I and ISC)

In the current financial year 2007-2008 an allocation of funds of Rs 173.93 Crore has been made for E & I and ISC.

During the calendar year so far, 41 nos. (16 of EI and 25 ISC) proposals amounting to Rs. 347.79 Crore with a central share of 302.93 Crore have been given in-principle approval for improvement of State Roads under Economic Importance & Inter-state Connectivity Scheme.

Public Private Partnership

BOT (Toll) Based Projects: So far 82 (56 NHAI+ 26 MoSRTH) projects valued about Rs. 23104.31 Crore on Build Operate and Transfer (BOT) basis (Toll based projects) have been awarded. Out of this, 32 (8 NHAI+ 24 MoSRTH) projects have been completed and 50 projects are under progress.

During the calendar year, 10 (NHAI) contracts for 698 km of length have been awarded on BOT (Toll) basis.

TRANSPORT SECTOR

Accreditation of bus body builders:

This Department has notified the rules for accreditation of bus body builders on 23.3.2007. As per these rules, the bus body builders in the country would be accredited through the system of Zonal and National Level Accreditation Board. It is expected that these rules would come into effect from 23^rd March 2008. This would bring uniformity in the bus body design and enhance safety and comfort to the passenger

Amendment in the Motor Vehicles Act, 1988

The Union Cabinet in its meeting held on 1^st March 2007 has approved the proposal of this Ministry to amend the Motor Vehicles Act, 1988 to enhance penalties for various traffic offences, to delegate powers to the states , to make the transport authorities in the States more responsive and to rationalize various provisions in accordance with new/emerging requirements as well as compensation to road accident victims. The Motor Vehicles (Amendment) Bill, 2007 has been introduced in Rajya Sabha on 15.5.2007 and the same has been referred to the Parliamentary Standing Committee on Transport, Tourism and Culture for examination and appropriate recommendation.

Creation of Dedicated body on Road Safety and Traffic Management

A committee under the chairmanship of Shri S.Sunder, Former Secretary erstwhile Ministry of Surface Transport was constituted on 23.11.2005 to deliberate and make recommendations for creation of dedicated body on Road Safety and Traffic Management. The Committee has submitted its report on 20.2.2007. The main recommendations of the Committee include creation of an apex body i.e. National Road Safety & Traffic Management Board at national level to promote road safety and improve traffic management in India, through an Act of the Parliament. In its advisory role, it has been proposed that the Board will advise Government on various road safety aspects. Creation of similar State level boards has also been suggested in the report. The Committee has suggested earmarking of minimum one per cent of total proceeds of cess on diesel and petrol for Road Safety Fund. A note for Committee of Secretaries for creation of a National Road Safety and Traffic Management Board is being finalised.

Carriage by Road Act, 2007

The carriage by Road Act, 2007 been notified in the Gazette of India on 1^st October 2007 after obtaining presidential assent on the Carriage by Road Bill, 2007 passed by Rajya Sabha and Lok Sabha on 7.9.07 and 10.9.07 respectively.. The new Act would replace the Carriers’ Act, 1865 and would cater to the need of the modern day trade and transport by road. The new Act would help to make the transport system transparent and modernise the systems and procedures of the transportation trade through registration of common carrier. It also provides scope for apportionment of liability between the common carrier and the consignor.

National Road Safety Council:

10^th meeting of the National Road safety Council was held on 21^st April 2007 at Coimbatore As a follow up to this meeting, a high powered committee under the chairmanship of Transport Minister, Tamil Nadu has been set up to address the problems faced by the States in enforcement of the provisions relating to overloading, speed governors, speed fixing limit of motor vehicles, other road safety issues and to suggest proper mechanism to formulate an effective National Road safety Policy.

Road safety activities:

During the current year grants-in-aid have been sanctioned to 121 number of NGOs for carrying out road safety activities in the country.

Refresher training to about 60000 drivers of heavy commercial vehicles in the unorganized sector has been sanctioned during the year 2007-08

Source: pib.nic.in

A K Bhattacharya: India`s infrastructure puzzle

National highways in India have seen a dramatic improvement over the last decade. Improvements are more evident in shorter stretches. For instance, Jaipur, Chandigarh and Agra are now well-connected with Delhi. Similarly, the highway that connects Mumbai with Pune can easily compare with the best anywhere in the world. This is true of many other national highways connecting major cities in southern and eastern India.

Many of these roads can be used only on payment of toll charges. Going by the available statistics on toll collections, these roads have become the preferred option for motorists and even heavy vehicle drivers. In fact, the toll charges are quite low compared to the benefits they offer to the road users. There is a clear case for raising these toll charges so that the maintenance of the roads can be ensured without any funds constraint. Not surprisingly, the National Highway Authority of India is planning to build more such toll roads connecting different cities across the country.

Yet, better highways have not led to a reduction in the total travelling time. This is ironical. If you are travelling from Jaipur to Delhi, you will take at least 45 minutes to an hour to cover a distance of about 10 kilometres within the city before reaching the national highway. Once on the highway, the journey is smooth and fast with about 250 kilometres being covered in about three and a half hours. The problem starts again once you are about to enter the city of Delhi. And depending on your final destination point, this might mean an additional travel time of a couple of hours. It is the same story if you were to travel by road from Chandigarh to Delhi.

So, national highways have made driving easy once you get out of the city. But to reach a destination, you need to travel through the city. And the bottleneck is at the entry point of the city. Nothing much has been done in any of these cities to decongest the arterial access roads. The city of Delhi may have seen more flyovers in the last few years, but the impact has been marginal because the growth in the vehicular population in the city has also been phenomenal.

Airlines should have gained from this increasing vehicular congestion at the entry points of all cities. But pause for a moment to reflect on what is happening to airport congestions in almost all the major cities, you will notice a virtual re-run of what has already happened to Indian highways. The flying time between Delhi and Mumbai is only about an hour and a half. But the wait on the tarmac (in addition to the early check-in requirements because of security reasons) before the aircraft can take off is almost half an hour. There is another 30-45 minutes of hovering in the skies before the aircraft can actually land and you can be taken to the arrival terminal building. In effect, you end up waiting for almost the same time that you take to cover the actual distance. All this is due to airport congestion. Gone are the days when once you were airborne, you could confidently estimate the time by which you would be home. Consequently, there is little to choose between taking a Delhi-Chandigarh flight and travelling this sector by car.

In any other country, the railways should have benefited from this immensely. Since most railway stations are located in the heart of these cities, there is no long wait before one can reach the final point of destination. But the irony is that the Indian Railways has failed to take full advantage of this situation. The Shatabdi trains that run on these sectors could have easily become a preferred option for those who fly or travel by road on such sectors. But the quality of service and an erratic punctuality record are major problems for the Indian Railways.

Things might change though in the next couple of years. Delhi, Mumbai, Hyderabad and Bangalore would get new or completely refurbished airports with a capacity to handle more passengers without causing congestion and delays. There might be more expressways connecting more cities. Even the Indian Railways is planning to launch faster trains to connect different cities in all the regions.

But the worries might still remain. India’s infrastructure problems arise not just from its inability to create facilities with adequate capacity. Equally frustrating is the failure of most managers of these infrastructure projects to identify the last-mile problems and fix them before they become unmanageable. Even the country’s best-managed infrastructure project, Delhi Metro Rail Corporation, is not free from this malaise. And the solution does not lie with these individual project managers. There is an urgent need for the civic authorities in each of these cities to move in tandem with the infrastructure project managers and create necessary facilities within the cities to resolve the last-mile problems and remove other bottlenecks so that the full benefits of these huge projects accrue to the people.

Source: business-standard.com

Feasibility study of 6-laning Pune-Satara Road begins

Pune, December 15 A Feasibility study of the six-laning of the 145-km Pune-Satara stretch has begun. The work for the same will begin in 15 months and the National Highway Authority of India (NHAI) has appointed Consultancy Engineering Services (CES) for the feasibility study. The six laning of this stretch was proposed last year with traffic on the stretch increasing along with five others stretches in the state. Pune project director Prashant Kodaskar NHAI said that the project will be given for Designed Build Finance Operations (DBFO) and the outlay for the same has not yet been estimated and it will done after drawing tenders for the same.

While technical manager NHAI SD Chitnis, said that six lanes would increase the width of the road by atleast 10 metres. The present width is 25 metres and the six-laning would make it to 35 metres.

Plans are afoot to have service roads as well develop the junctions and also will have concrete structures.

“Sub-ways and overbridges will be part of the six laning and the feasibility study will help us on the same,” he said. The construction activity will start only in 2009 after reviewing the feasibility study.

Source: expressindia.com

3 major roads in first phase

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

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

Source: newindpress.com

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

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

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