Hoping stalled projects will revive on policy tweaks: NHAI

June 21, 2013

The year 2012-13 was one of the most challenging years in terms of awarding of projects, says National Highways Authority of India (NHAI) chairman RP Singh.

(We have to create conditions where the private equity funds come in a big way into road sector)

RP Singh)

Chairman

NHAI

The year 2012-13 was one of the most challenging years in terms of awarding of projects, says National Highways Authority of India (NHAI) chairman RP Singh.

The original target of awarding 8,800 km was increased to 9,500 km by PMO mid-year; the target was lowered to 8,500 km and then to 5,000 km. However, NHAI ended up awarding 1,000-1,100 km. The poor performance was on a high base and construction per day was down from 16 km per day to approx 10-12 km per day.
Singh says award of projects is a market-driven phenomenon, adding that the NHAI is now looking to award projects only on EPC basis versus BoT as most developers do not want to bid for the latter due to funding constraints.
Banks are holding their funds towards the roads sector until assured of design and traffic growth details. NHAI believes the Indian road sector needs to get private equity players, along with other ways to pay premium. “We do not see NHAI taking up too many cash contract projects,” he told CNBC-TV18 in an interview.
However, in a major relief to the road development sector, the Supreme Court on March 12, 2013 ruled in favour of the NHAI by delinking the environment clearance (EC) and the forest clearance (FC). Now, the contracting companies do not have to wait for the FC and can commence the construction work once the EC is received. This will allow projects to get completed faster, Singh believes.
The work on 20 stalled highway projects worth Rs 27,000 crore, which were stuck for a long time for want of EC, would be executed soon after the clearance from the Ministry of Environment and Forests (MoEF) and the projects are set to get back on track.
Meanwhile, the government has asked banks to ease funding for the road projects and consider toll revenues as tangible assets. The finance ministry has proposed RBI to treat loans to the roads project as secured. NHAI says if government’s proposals are implemented, credit flows to the fund-starved sector could grow by at least 20-25 percent. The road ministry has been making a lot of representations to the Finmin lately to discuss sector issues.
On GMR exiting Rs 7,700 crore Ahmedabad- Kishangarh highway project, and GVK exiting the Shivpuri-Dewas Expressway in MP, Singh says NHAI is working out details to back-end premiums for GMR and GVK projects. “The companies exited the high profile projects as they turned unviable for them,” he says. GMR, however, had indicated fresh interest in the project if the premium terms are tweaked.

http://img.moneycontrol.co.in/news_image_files/vid_img/2013/04/848617.jpg

Source- http://www.moneycontrol.com

Written by ITW Editor · Filed Under Interviews, NHAI

Spadework for renovation of NH-143 finally begins

June 21, 2013

By Express News Service – ROURKELA

National Highways Authority of India (NHAI) has finally started the spadework for widening NH-143 (earlier NH-23) stretch from Birmitrapur to Barkote passing through Sundargarh and Deogarh districts.

NHAI sources said of the total 125.615 km of the NH, the stretch of around 88 km between Birmitrapur and Rajamunda would be converted into four-lane while the rest stretch till Barkote would be two-lane with ‘paved shoulders’.

The NHAI under the National Highway Development Project (NHDP) Phase-IV has allocated `778.60 crore for the project. It would be executed by the Birmitrapur-Barkote Tollway Ltd (BBTL) which has been appointed by principal construction firm Gammon Infrastructure Project Ltd on design, build, finance, operate and transfer (DBFOT) basis. The BBTL submitted a design to the NHAI a couple of days back.

The project includes a new Brahmani bridge at Panposh to replace the existing rickety one. Manager (Technical), NHAI, Madan Mohan Sahu said the bridge will be located between the existing bridge and the railway-over-bridge at Panposh to minimise displacement. There would be bypasses at Birmitrapur, Kuanrmunda and Lathikata while at Rajamunda there would be a rotary. Once they get the land and forest clearance, the project could be completed in 30 months, Sahu said.

Following a review meeting, Sundargarh Collector Roopa Roshan Sahoo appointed Rourkela ADM RN Mishra as the authority to acquire land. The Collector said all technical issues are being sorted out on priority basis.

The ADM informed that the notification for the bridge area under the provision of the NHAI Act has been done and the required notification for rest areas would be done by June 16.

Counting of trees between Rourkela and Rajamunda to be felled for the highway project has been completed and the process towards Birmitrapur is pending.

Administrative sources apprehend that acquisition of forest land may delay the project as the Highway passes through several reserve forests under the Rourkela and Bonai forest divisions in the district. Rajgangpur MLA Gregory Minz who raised the issue several times insisted on timely completion of the project.

Source-http://newindianexpress.com/

Written by ITW Editor · Filed Under Highway, NHAI

Golden Quadrilateral Highway Network, India

June 20, 2013

The Golden Quadrilateral is a network of highways connecting India’s main cities.

Overall length of the Golden Quadrilateral is 5,846km.

The whole stretch of the Golden Quadrilateral was operational by 2012.

The Golden Quadrilateral project is phase I of the NHDP.

It is operated by the National Highway Authority of India (NHAI).

Key Data

Golden Quadrilateral is a network of highways connecting India’s four top metropolitan cities, namely Delhi, Mumbai, Chennai and Kolkata, thereby, forming a quadrilateral. The largest highway project in India, the Golden Quadrilateral project was launched in 2001 as part of National Highways Development Project (NHDP).

The overall length of the quadrilateral is 5,846km consisting of four / six lane express highways. The project was estimated to cost INR600bn ($13.2bn) but was completed at about half of the estimated costs, at INR308.58bn. The whole length of the quadrilateral was operational by January 2012.

An efficient road network is essential for a large country like India to maintain national integration and socio-economic development. India has a large network of highways maintained by the National Highway Authority of India (NHAI).

These highways altogether account for just two percent of the country’s total road infrastructure but they carry 40% of the total national traffic.

NHAI’s Golden Quadrilateral project

“The largest highway project in India, the Golden Quadrilateral project was launched in 2001 as part of National Highways Development Project (NHDP).”

The Golden Quadrilateral project is phase one of the NHDP. It establishes transportation links between major cities of India, such as New Delhi, Jaipur (Rajasthan), Gandhinagar (Gujarat), Mumbai and Pune (Maharashtra), Bangalore (Karnataka), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Bhubaneswar (Orissa), Kolkata (West Bengal) and Kanpur (Uttar Pradesh).

The Golden Quadrilateral has four sections. Section I is a 1,454km stretch of National Highway 2 (NH2) from Delhi to Kolkata. It runs through Delhi, Haryana, Uttar Pradesh, Bihar, Jharkhand and West Bengal. It connects major cities in these states, such as Delhi, Faridabad, Mathura, Agra, Firozabad, Kanpur, Allahabad and Varanasi.

Section II is a 1,684km stretch from Kolkata to Chennai. It consists of NH6 (Kolkata to Kharagpur), NH60 (Kharagpur to Balasore) and NH5 (Balasore to Chennai). It passes through the states of West Bengal, Orissa, Andhra Pradesh and Tamil Nadu.

Section III is a 1,290km stretch from Chennai to Mumbai. It constitutes parts of NH4 (Mumbai to Bangalore), NH7 (Bangalore to Krishnagiri, Tamil Nadu) and NH46 (Krishnagiri to nearby Chennai). It passes through Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu.

Section IV is a 1,419km stretch between Mumbai and Chennai. It constitutes parts of NH 8 (Delhi to Kishangarh), NH 79A (Ajmer bypass), NH 79 (Nasirabad to Chittaurgarh) and NH 76 (Chittaurgarh to Udaipur). It passes through the states of Maharashtra, Gujarat, Rajasthan, Haryana and New Delhi. It connects major cities which include Delhi, Gurgaon, Jaipur, Ajmer, Udaipur, Gandhinagar, Ahmedabad, Vadodara, Surat and Mumbai.

Planning and construction of the highway network connecting India’s main cities

The planning for the Golden Quadrilateral project was completed in 1999. It included construction of a few new express highways and extension of the existing road to four or six lanes. The project was officially started in 2001.

It was planned for completion by 2006, but land acquisition issues and re-negotiations with contractors delayed the progress of the project. The project was almost complete by January 2012, with a few smaller sections being renovated.

Contractors and financing behind the major Indian road project

Being a huge project, the construction of the Golden Quadrilateral was divided into several sections based on the state provinces. Construction contracts for each section were individually awarded.

“An efficient road network is essential for a large country like India to maintain national integration and sociology-economic development.”

Major contractors involved in the project are Larsen & Toubro, LG Engg. & Construction, Nagarjuna Construction, Consortium of GVK International and BSCPL, IRCON International, Punj Lloyd, Progressive Construction, ECSB-JSRC, B. Seenaiah & Co., Madhucon Projects, Sadbhav Engg., KMC Construction, Gujarat Public Works Department, SKEC – Dodsal, MSRDC, Mumbai, Skanska Cementation India, Hindustan Construction Company, RBM – PATI, Unitech, CIDBI Malaysia and PATI – BEL.

The financing for the project is obtained from the taxes on petrol and diesel, which accounts to INR200bn, INR200bn through external assistance, INR100bn from market borrowings and INR40bn from private sector participation.

The project has been executed through a Public Private Partnership (PPP) between the NHAI and the corresponding contractors.

The contractors will collect the toll taxes for a specified concession period.

Future plans for the Golden Quadrilateral and the NHDP

Some sections between key areas on the highways NH2, NH5 and NH8 of the Golden Quadrilateral are planned to be extended to six lanes to make it an expressway and ensure smooth flow of traffic. The extension will be done on a design, finance, build and operate basis.

In September 2011, infrastructure group GMR won an Rs72bn ($1.4bn) contract from the NHAI to widen the 555km Kishangarh-Udaipur-Ahmedabad highway from four lanes to six.

The section forms part of the Delhi-Mumbai Golden Quadrilateral corridor. The company will construct about 3,336 lane kilometres and operate the highway for 26 years under the design, finance, build and operate concession.

Source-http://www.roadtraffic-technology.com

Written by ITW Editor · Filed Under NHAI, NHDP

CCEA approves 4-laning of Dimapur-Kohima highway in Nagaland

June 19, 2013

(The government on Thursday approved the 4-laning of Dimapur-Kohima National Highway in Nagaland at a total cost of Rs 1,089.87 crore.)

NEW DELHI: The government on Thursday approved the 4-laning of Dimapur-Kohima National Highway in Nagaland at a total cost of Rs 1,089.87 crore.”The Cabinet Committee on Economic Affairs today approved the implementation of the project of 4-laning of the Dimapur-Kohima section from 124.1 km to 172.9 km of NH-39,” Finance Minister P Chidambaram said at a press briefing.

This project is under the special Accelerated Road Development Programme (SARDP-NE) in North Eastern Region, he said.

The total length of the road will be 42.8 km with total project cost of Rs 1,089.87 crore (excluding land acquisition and pre-construction).

The concessionaire will make all expenditure to complete the project and will charge the annuity from the Government.

“The main object of the project is to expedite the improvement of infrastructure in Nagaland. It will facilitate reducing the time and cost of travel for traffic playing between Dimapur to Kohima. It will also increase the potential of employment to local labourers for project activities,” he said.

This project was delayed due to delay in land acquisition process in the state.

At present, Nagaland has 494 km of National Highways.

Source-http://economictimes.indiatimes.com

Written by ITW Editor · Filed Under Highway, NHAI, PPP

Road Ministry to approach CoS on GMR highway project in 2 weeks

June 19, 2013

By PTI

NEW DELHI: The Road Transport Ministry will approach the Committee of Secretaries for an amicable way out for the Kishangarh-Ahmedabad Highway project which is stalled after GMR’s exit.GMR Infrastructure BSE 0.50 % early this year had walked out of the project citing difficulties in taking up the project due to regulatory hurdles, including delays in environment clearance and land acquisition.

According to sources, GMR Infrastructure was ready to restart the project with some preconditions, including making piece-meal payments.

The Law Ministry, however, had already rejected the developer’s preconditions, including piece-meal payments, for resuming work on the project.

“We are going to the Committee of Secretaries (CoS) on the matter,” Road Secretary Vijar Chibber told reporters here. He said the meeting of CoS may take place in the next 10-15 days. The CoS is headed by Cabinet Secretary Ajit Kumar Seth.

The company has also said it would pay about 50 per cent of the amount to restart the work on project at present and pay the remaining sum including interest in subsequent years.

The Ministry and the company are already in discussions to rescue the project.

Sources added that the proposal from the Ministry is to ask the company to make requisite payments in time and to seek its guarantee to ensure that the project is not abandoned mid-way, leading to financial burden falling on government.

The project is estimated to have required an investment of Rs 5,387 crore. The Bangalore-based group had won the project in western India through international competitive bidding in September 2011 at Rs 636 crore annual premium for 26 years.

NHAI had said that the company exited the project on account of financial hurdles in arranging finance for the project and not due to lack of regulatory clearances.

It is to be implemented through the Public Private Partnership (PPP) model on Design, Build, Finance, Operate and Transfer basis.

Source-http://economictimes.indiatimes.com

Written by ITW Editor · Filed Under GMR, NHAI, PPP, Roads & Bridges

Sachin bridge to make twin-city concept a reality

June 19, 2013

Himansshu Bhatt, TNN |

SURAT: The 700-metre-long rail overbridge atSachin on Surat-Navsari Road is now ready after one-year delay. The work on the two-laneoverbridge had started four years ago. This bridge, built at a cost of Rs 18 crore, will cater to over 20,000 per car units (PCU) and 5,000 commercial vehicles per day (CVD).

The bridge is expected to play a significant role in the development of Surat and Navsari as twin cities in the future. It will reduce travel time by 40 minutes from Udhna-Surat to Navsari town in a car. The lanes of the bridge are 30 and 28 metre wide.Surat Urban Development Authority (SUDA) executive engineer PI Patel, said, “The bridge was to be ready by June 2012, but due to some unavoidable circumstances it could not be.”The bridge is located halfway between Surat and Navsari. “The bridge will be a major junction for heavy vehicular traffic on way to Hajira from National Highway 8. These vehicles coming from Mumbai or Ahmedabad need not enter Surat city,” Patel said.

The National Highway Authority (NHA) is building a six-lane bridge next to this rail overbridge that connects Palsana to Hajira. One lane has been completed so far. This infrastructure development is central to overall development of the proposed freight corridor of Surat-Hajira When Surat-Navsari twin cities become a reality in 2026 with a population of 1.20 crore, this ROB will bear the maximum burden of traffic going to and from Surat to Navsari. In the next five years, the vehicular traffic is likely to double.The ROB has been built from the funds sanctioned under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM). It would be dedicated to the people by this month-end

Source-http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under NHAI, Roads & Bridges

Hi-tech traffic signals in Bhubaneshwar await green light

June 17, 2013

Riyan Ramanath V, TNN |

BHUBANESWAR: If everything goes as per plan, then the traffic posts in city will have full-fledged technology-driven signal system. This will reduce burden on traffic cops and make catching of violators easy.

The Bhubaneswar Municipal Corporation (BMC) has roped in a private party to install upgraded signals called Intelligent Traffic System (ITS) on a build-operate-transfer (BOT) basis for 10 years. The private party, Stanpower, a Hyderabad-based company, known for its innovative technology applications, is likely to give a presentation on ITS to traffic and BMC officials next week. The BOT will facilitate the BMC to have full rights over the assets after 10 years. The company will only get advertisement rights and the cost of operation during the period.

The new system can assist traffic authorities in maximizing the operational efficiency of the signals, said BMC commissioner Sanjib Mishra. “ITS will help ease the traffic flow, reducing delays and fuel consumption of vehicles. It will also help monitor air and noise pollution,” said the commissioner. The ITS uses technology such as CCTV camera-linked traffic controllers and central operation centres, where the computers analyse the traffic flow and disseminate traffic management information, added the commissioner.

At present, the city has about 60 traffic posts of which 20 have signals, which can be operated both manually and automatically. However, human intervention is still required to monitor the violators. “At times we fail to penalize the violators as we have to run after them. Once the technology is installed, we can penalize the commuters later as the CCTVs will capture the registration number of violating vehicles,” said traffic ACP Binod Das.

The commissioner has written to Bhubaneswar DCP, National Highways Authority of India (NHAI), regional transport officers and chief engineer of roads seeking their cooperation to adopt the system in the city. “If the stakeholders are convinced about the benefits of launching the technology in Bhubaneswar, the company will be given the go-ahead,” said the commissioner.

“The traffic management in urban set-up has undergone many changes. It is no more limited to flashing of lights at intersections. Present system can’t monitor red light jumping and speed of vehicles. Secondly, there is human intervention while tracking the violators, who don’t wear helmets and drive without fastening seat belts. In many cities, the violations are documented by the technology,” said urban planer P R Rout.

“The ITS technology is so sophisticated that it is able to detect any solid object near traffic posts. The system runs through a central server, which can maintain the database of all traffic signals of the city,” said a BMC official .

http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under NHAI, Traffic Control

NHAI rules out additional structures on highway

June 5, 2013

Santosh Sonawane, TNN |

NASHIK: The National Highway Authority of India (NHAI) has made it clear that new work on the stretch can be undertaken only during the operation and maintenance period as the project cost has exceeded its limit.
With freak accidents becoming frequent over the widened Mumbai-Agra national highway passing through the city, both commuters and residents along the highway come up with new demands in respect to the inconveniences faced by them.

At a recent review meeting conducted by district guardian minister Chhagan Bhujbal following the death of a youth died in an accident near the Indiranagar underpass, traffic police officials pointed out the necessity of underpasses in the K K Wagh College, B D Kamgar Nagar and Jatra Hotel areas. They also raised demands for facilities such as traffic signals, speed-breakers, cat eye reflectors and signboards to stop accidents in the future.

According to NHAI officials, the project has already exceeded the five per cent additional cost kept reserved for unplanned work done under the change of scope of a particular project. They made it clear that any additional work on the 60-km stretch, which includes a 5.7 km flyover, can only be undertaken during the operation and maintenance period.

The 60 km stretch from Gonde to Pimpalgaon has become “a rollercoaster ride”, with five flyovers from the city – the 5.71 km elevated corridor, the flyovers at Adgaon, Lekha Nagar, Pathardi Phata and Garware point, apart from two others outside the city near Ojhar, said NHAI officials.

Further, underpasses have been built at Indiranagar, Rane Nagar, Phalke Smarak, Vilholi, Raigad Nagar, Vadivarhe, Chinchkhed, Umbarkhed, Saykheda and Ojhar. These projects, along with the additional structures under the change of scope works, leave little chance for any new construction.

Sources from PNG Tollways said that underpasses at Chichkhed, Umbarkhed, Ojhar, Indiranagar, Vadivarhe and Vilholi have been taken up under the change of scope works.

While the issues of Vadi Varhe and Vilholi have been resolved and the Indiranagar underpass already done, Ojhar residents are also demanding a flyover, dissatisfied with twin underpasses. Similarly, residents of Pimpalgaon are also demanding a flyover at Chinchkhed, instead of an underpass. There have been protests at Ojhar and Pimpalgoan to emphasise these demands.

Source_http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under Highway, NHAI

No funds to award projects, NHAI says

June 5, 2013

Dipak Kumar Dash, TNN |

NEW DELHI: The National Highways Authority of India (NHAI) has told the highway ministry that it won’t be able to award any project on toll mode during 2013-14 if the prevailing conditions don’t improve. In addition, it wants government to start awarding projects only when all conditions are fulfilled, and work can begin without delay.

Currently, private investment in highway sector comes for two types of projects – BOT (toll) and BOT (annuity). In the first instance, a private player recovers its investment from collecting toll, while for the latter government pays back the entire investment with interest in installments.

NHAI has informed the ministry that 33 projects — covering around 3,500km — awarded during the past two fiscals are yet to take off due to several reasons, including dearth of finance, equity, clearances and land availability. Moreover, 17 BOT (toll) and 3 BOT (annuity) projects did not get any response last year.

The Authority has submitted two targets. In the first case, unless things improve and government takes necessary steps, NHAI would end up awarding only 2,000 km of NH on engineering, procurement and construction (EPC) mode, where government pays the entire amount to private contractors.

In the second scenario, if the situation improves and finance is available for private players to take up work, NHAI can award around 4,000km – half of it on EPC, and the rest (50%) on BOT mode.

Planning Commission had asked NHAI and the ministry to submit two targets for the current fiscal after the Authority had pointed out how high target does not serve any purpose when government fails to resolve issues that impact execution of projects.

Source-http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under BOT, NHAI

Govt’s pre-fixation with PPP not good for infrastructure: Parliamentary Panel

May 10, 2013

PTI : New Delhi, Sun May 05 2013,

Urging the government to come out of “pathological prefixation” with public-private-partnership (PPP) model, a Parliamentary panel has asked it to build through budgetary support all highways where bidders have failed to respond.

“PPP as a model for the development of road project needs to be reviewed seriously in the light of our experience so far in this regard. That private capital is mainly for profit is borne out by the fact that the profitable projects are being bid out fast,” Standing Committee on Transport, Tourism and Culture has said in its latest report.

Committee Chairman and CPI-M MP Sitaram Yechury said: “Unfortunately the government has pathological pre-fixation with PPP which is hindering infrastructure development in the country as driven by the objective of profit, private sector is not coming forward to bid for unprofitable projects.”

Stressing upon the need for government’s thrust on infrastructure Yechury said: “No other country whether USA or China depended on private sector for building its infrastructure unlike India. Unfortunately the allocation has been reduced drastically for infrastructure as Planning Commission is encouraging private partnership.”

He said only such projects were bid out in the PPP mode where profit is envisaged, asking as to how there was no response for 13 bids invited by the NHAI last year. The report said that a vast country like India needed faster connectivity to its length and breadth and should “adopt an alternative model of project development which is development driven and not profit driven”.

It added: “Since profitable projects are sold out first, the government is facing problems in getting bidders for such non-profitable road projects as those in Left Wing Extremist and North-East Areas.”

Emphasising that India needs faster construction of roads, the Committee recommended that “all such projects without bidders should be developed with the budgetary support from the government and the Planning Commission needs to be more practical and careful about its role and function”. National Highways Authority of India (NHAI) had set a target to award projects for 7,464 km of roads during the last financial year, of which only projects worth 879 km could be awarded.

Source – http://www.indianexpress.com

Written by ITW Editor · Filed Under NHAI, PPP

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