Roads regulator close to reality, cabinet nod likely by December

September 25, 2013

Ragini Verma |  Asit Ranjan Mishra

Development comes nearly seven months after finance minister proposed setting up regulator
The roads ministry has set up a task force for looking into the framework of the authority. Photo: Abhijit Bhatlekar/Mint
The roads ministry has set up a task force for looking into the framework of the authority
Photo: Abhijit Bhatlekar/Mint

 

New Delhi: Nearly seven months after finance minister P. Chidambaram proposed setting up a roads regulator to address challenges such as financial stress, construction risk and contract management issues, the roads ministry is close to finalizing the structure and role of the proposed regulator.

 

“We will get the cabinet approval for the roads regulator by December,” Vijay Chhibber, roads secretary, told reporters at a conference organized by industry lobby Federation of Indian Chambers of Commerce and Industry.

 

The ministry of road transport and highways has proposed that the roads regulator have an adjudicatory role for contract dispute resolution, renegotiation of future contracts and enforcement of contractual obligations.

 

For issues related to renegotiation of existing contracts, tariff structuring and toll mechanisms, project entry and exit options and specific policy issues, the regulator is proposed to play an advisory role.

 

“Road ministry is working on these terms of reference and the constitution mechanism and organizational structure of the roads regulator is under finalization,” Chhibber said.

 

The roads ministry has set up a task force for looking into the framework of the authority. The ministry has proposed that the regulator be headed by a board with a chairperson and two members, to whom an executive wing with technical and secretariat support will report.

 

“Toll-paying users under the current architecture do not get a fair voice. We should have a third party whom users can approach if they are not being provided with the services promised in the contract,” said Chhibber. “Then we are struggling with (contract) renegotiations. A roads regulator will help address these issues.”

 

Economic affairs secretary Arvind Mayaram, speaking at the same conference, said independent regulators such as in the roads sector are necessary to avoid situations where private parties and government bodies are blaming each other for issues arising out of project implementation.

 

“Regulators must begin to do this. If there is a concession issue, if there is a problem about the economics of the project which can happen, then we very clearly look at the stress test. It should very clearly look at where culpability lies and some haircut needs to be put in place so that the moral hazard issue is properly answered,” he said.

 

The roads ministry saw a sharp decline in award of contracts for highways last year. Against a lowered target of 8,100km, only 1,116km of highway projects were awarded.

 

The ministry will ramp up award of road projects under the engineering, procurement and construction (EPC) mode in the absence of interest from private players for build, operate, transfer projects, Chhibber said.

 

The ministry is looking to award 6,500km of road projects through the EPC mode in 2013-14, he added.

 

 

“The primary role of the proposed road regulator should be appropriate risk and reward allocation between government, developers, lender and especially the users,” said Parvesh Minocha, managing director of the transportation business at infrastructure consultancy Feedback Infra Pvt. Ltd. “If this is done and a proper structure is put in place to implement it then the downstream remedial roles like dispute resolution and failure handling will get significantly reduced.”

Work awarded for AIIMS-Digha elevated road

September 25, 2013

Faizan Ahmad, TNN |

PATNA: Yet another glamorous project of Bihar State Road Development Corporation (BSRDC) started taking shape on Tuesday when the work for about 12km-long 4-lane elevated road corridor between AIIMS and Digha in Patna was awarded to a construction major.Once completed, the road will provide much relief from the traffic congestion in the city, particularly on the narrow Ashok Rajpath as it would be connected with the Ganga Path at Digha end. Eleven construction firms took part in the bidding, which was aggressive as well as close. The project was awarded to M/s Gammon India Ltd which quoted the lowest bid of Rs 717.14 crore.”This project is for the construction of 2-lane semi-elevated and 4-lane elevated highway over Patna canal as approach road of rail-cum-road project across the Ganga at Digha. The length of the elevated road is 11.9km,” said BSRDC managing director Pratyaya Amrit in whose presence the tenders were opened.The starting point of the project is 6.8km of NH-98 near AIIMS and the end point is at the junction of Ganga Path. It will have 2km of 2-lane semi-elevated and 9.90km of 4-lane elevated roads. The BSRDC had projected Rs 1,289 crore as the total cost of the project. Among the major bidders included L&T, Punj Lloyd, HCCL and Navyuga Engineering. A few months back, Navyuga was awarded the Ganga Path project work which is scheduled to commence on October 11.

The elevated road project will have major crossings at Bailey Road and Ashok Rajpath and will have connectivity with important places like Danapur railway station, proposed Patliputra railway station and AIIMS. Besides, it will also have connectivity with the Ganga Path and one railway bridge at Khagaul (Patna-Delhi) line. One minor bridge will also be linked to this project which is scheduled to be completed in three years from the start of the work.

Gammon India is already working on some projects in the state, including the state highways 69, 70 and 91 besides Muzaffarpur-Hajipur road, Ara-Buxar road, Munger bridge and Baluaha bridge. Some of these projects have been delayed, admitted company’s regional office vice-president B K Singh. He said the delay was due to land acquisition and other issues. “Almost all companies are facing these problems due to government policy,” he added.

Amrit said since this is one of the prestigious projects, the BSRDC will strictly monitor the schedule of the work and keep a close vigil on other related issues to ensure that the firm maintains the deadline.

SBI stops loans to road projects with land trouble due to rising NPAs

September 25, 2013

By Sangita Mehta, ET Bureau |

SBI stops loans to road projects with land trouble due to rising NPAs
SBI stops loans to road projects with land trouble due to rising NPAs
MUMBAI: State Bank of India has stopped lending to road projects that have not completed land acquisition for any part of a proposed stretch, a move aimed at stemming the spike in bad loans that has led the Chief Vigilance Commission andCentral Bureau of Investigation to urge banks to tighten their norms.”Unless you have 100% land acquired and in your possession, we will not finance the project. Earlier, we would do so with 95%,” SBIBSE 0.45 % chairmanPratip Chaudhuri told ET.

“This means that road projects will have to be capitalised on day one. If it is a single road, we will say please get 100%, otherwise we will have enough letters blaming us for financing it.”

As per the Reserve Bank of India, the state-run bank’s exposure to roads projects stood at 1.4 lakh crore in July, up 23% from the year-ago period.

Along with its associate banks, SBI, India’s biggest lender, accounts for about a fifth of the loans, prompting apprehensions that its latest move could hold up infrastructure projects that are reeling under severe funding constraints.

However, Chaudhuri clarified that the bank would consider a proposal if it came from a large state-run company.

“If it is a company like NTPCBSE 0.31 %, if they have 25 power plants and if they are starting two more, we will take a view that if these two flop the other 25 can keep the repayments going,” Chaudhuri said.

CBI director Ranjit Sinha had in August indicated that officers of public sector banksshould be made accountable for the rise in loan defaults.

His comments came amid a sharp rise in defaults and restructured loans that jointly account for 10% of the bank’s loan book. Sinha’s comments, however, evoked sharp criticism from bankers.

Subsequently, at a close-door meeting with officials of the RBI and the finance ministrya few months ago, Chaudhuri took a strong stand on banks being blamed for the rise in bad loans. “If the government and RBI continue to blame banks for rising NPAs, we will be forced to insert impossible conditions in loan covenants that will make it difficult for borrowers to avail the credit facility,” Chaudhuri said, according to a banker present at the meeting.

Bankers have been blaming the government, saying undue delays in giving clearances have led to the rise in bad loans. “Is it the banks’ failure in monitoring or is it the government’s that it has not delivered what it promised,” said a banker, who did not wish to be named.

Source-http://economictimes.indiatimes.com

Govt to set up infra trust funds to spur investments

September 24, 2013

Road Ministry to award 6,500 km of projects on EPC basis in 2013-14

The Union government is looking to set up an infrastructure trust fund, similar to real estate investment trusts in countries such as Singapore, by November to spur investments in the infrastructure sector.

India’s infrastructure sector has been struggling for the past few years due to lack of investments as banks have been wary of lending due to policy constraints.The government is looking to improve investments in the sector even as the parliamentary elections are less than a year away.

Under the infrastructure trusts, the underlying revenue of a projectwill be transferred to a trust, which will issue units to investors, including foreign investors who want to buy the units.

“A major reason why some PPP (public-private partnership) projects in the infrastructure sector have run into problems is that many private partners did not price the risk in projects over a 25-year time frame. We are looking to set up an infrastructure trust fund in two months to ensure long-term management of projects,” said Arvind Mayaram, secretary, department of economic affairs.

Mayaram added the government was looking to develop the corporate bond market and encourage the Employees’ Provident Fund Organisation (EPFO) to invest in infrastructure projects.

Meanwhile, in a move to boost investments in the road sector, the ministry of road transport and highways is also looking to award close to 6,500 km of road projects through the engineering, procurement and construction (EPC) mode in 2013-14.

“We are planning to award 6,500 km of road projects on the EPC basis this year,” said Vijay Chhibber, secretary, ministry of roads.

The ministry has been actively looking to award projects on the EPC basis for the past few years as a number of projects have been struggling since they were awarded on the build-operate-transfer (BoT) model. The ministry will also award three major expressway projects by the end of the year, according to Chhibber.

The move comes at a time when the road ministry has been able to award only 1,400 km of road projects against a target of 9,500 km in the last financial year.

Under the EPC model, the government spends the entire money required to build roads unlike the BoT mode, where the constructor builds a project and charges a toll on the same.

The ministry has also said an independent road regulator will be in place before the end of the year and the authority is expected to play an adjudicatory role and advice the government on existing road projects in addition to working on the toll mechanism in the country.

“There have been contrarian views on a road regulator and we think we need a road regulator’, Chhibber said.

Road projects in the country have been held up since the past few years due to various reasons, including the Delhi-Gurgaon Expressway. The government had awarded close to 3,055 km through the EPC mode in 2005-06, but has since managed to award less than 500 km through the EPC route. Meanwhile, BoT projects continued to perform better during the years and the ministry managed to award more than 6,400 km in 2011-12 alone.

Meanwhile, the government is also looking to set up a fund to promote debt and equity investment in the infrastructure sector. “There will be greater deepening of the equity and bond markets for financing the infrastructure sector in the next few months,” Mayaram said.

The government is also looking to set up an International Trust Fund where the underlying revenue of a project will be transferred to a trust which will issue units to investors, including foreign investors who want to buy the units, he added.

Source-http://www.business-standard.com

NHAI, Collector play ping-pong over encroachments

September 24, 2013

Vendors have encroached both sides of service roads at Vyttila, stifling the movement of vehicles and pedestrians. Photo: Vipin Chandran

(The Hindu-Vendors have encroached both sides of service roads at Vyttila, stifling the
movement of vehicles and pedestrians. Photo: Vipin Chandran)

 NHAI unwilling to take the lead in removing encroachers on its service roads                                 along   Edappally-Aroor NH Bypass

The National Highways Authority of India (NHAI) is on a collision course with the district administration over removing encroachers from the service roads of the Edappally-Aroor NH Bypass.

The NHAI, which owns the stretch and collects hefty toll from motorists using the bypass, is unwilling to take the lead in removing vendors, encroachers and vehicles parked haphazardly on service roads. As a result, accidents and brawls between motorists and encroachers are becoming common on the stretches.

NHAI Kochi project director C.T. Abraham said it was up to the District Collector to initiate action. “The Collector is armed with magisterial powers and chairs the district-level Road Safety Committee. He can also take action based on court orders which permit a clampdown against encroachers. He can even direct the police to charge rule violators with causing public nuisance. He must form a committee comprising officials of various departments and launch an intensive anti-encroachment drive,” Mr. Abraham said.

Meanwhile, District Collector P.I. Sheikh Pareeth said the NHAI project director had wide-ranging quasi-judicial powers, using which he could remove encroachers and take action against illegal parking.

“The NHAI owns the highway and service roads and hence is its custodian,” Mr. Pareeth said.

On the NHAI’s complaint that the road safety committee not taking action against rule violators, the Collector said the NHAI was yet to present the matter before the committee despite encroachers thriving along the crucial and busy corridor. “We will assign police protection if the NHAI is willing to take the lead in removing encroachers,” he said.

The traffic police have for years been complaining that the NHAI was not cooperating with it in ensuring safe movement of vehicles and pedestrians along the bypass and its service roads. “We shot off numerous letters to the NHAI, demanding eviction of encroachers and augmenting safety measures along the 16-km stretch. The attitude of motorists who think that service roads are meant for parking has worsened the plight of road users,” said a senior traffic police officer.

The NHAI’s unwillingness to lead or coordinate the enforcement drive and its dissonance with otheragencies have resulted in the bypass and service roads becoming a haven for rule violators. A long-pending suggestion to limit parking to light vehicles along one side of the service road has also fallen on deaf ears.

As a result, encroachers have even gone to the extent of adding road shoulders to their property, by tying ropes up to 10 metres into service roads and treating the NHAI-owned area as their own, especially in front of a shopping mall at Vyttila.

Sources said frequent encroachments into service roads could be checked if the tarred surface was widened from 5.5 metres to seven metres.

“Service roads have ample width in most portions and tarring road shoulders will ensure smooth two-way traffic when traffic curbs are introduced as part of proposed flyovers at four junctions on the bypass. A proposal in this regard is pending with the Union Ministry of Road Transport and Highways for many years,” sources said.

About two months ago, the district administration had threatened to slap criminal action against the NHAI for the shabby upkeep of the bypass. While the NHAI filled a few potholes at Vyttila Junction a week ago, nothing was done to resurface the potholed free-left turn towards mobility hub and Tripunithura. This has forced the police to issue a notice to the NHAI demanding urgent filling of all potholes on the bypass.

 

Source-http://www.thehindu.com

Oscar Fernandes urged to enhance road connectivity

September 24, 2013

TNN | Sep 23, 2013, 11.25 PM IST

MYSORE: The tourist hub requires improved road connectivity and the Centre will focus on it, said Oscar Fernandes, Union road transport and highways minister, here on Monday.Referring to the demand to upgrade state highway connecting Mysore to Malavalli as a national highway, the minister said that he will do it. “That should serve Mysore better,” he told reporters.

Chamaraja MLA Vasu and Mysore Chamber of Commerce & Industry team met the minister and submitted a memorandum, seeking improved connectivity to Mysore. They urged him to connect Mysore to Malavalli so that travellers between Mysore and Bangalore have an alternative route. This is because, NH-209, that connects Bangalore to Dindigul in Tamil Nadu, passes through Malavalli. They claimed that the stretch between Mysore and Malavalli is a missing link.

In his petition, Vasu has pointed out that Mysore is missed out from NHs’ network though two busiest highways – NH-212 and NH-209 — pass close to it. “People have been demanding that NHs provide connectivity to Mysore,” he said.

The minister said that projects in Karnataka are in focus, and connectivity is his main concern. “But the problem is land acquisition,” he said, adding that NH projects will be hastened following a clarification from the apex court that roadside trees do not require environment clearance.

CMDA plans grid of roads along ORR

September 19, 2013

By C Shivakumar – CHENNAI

 

The Chennai Metropolitan Development Authority (CMDA) is planning a grid of roads along the Outer Ring Road (ORR) to develop it as a potential area to absorb the future growth of the city. The authority has already accorded permission for developmental work along the Mudichur and Palanthandalam villages.

The plan to have grid of roads along the ORR is being taken up as a pilot project after Chief Minister J Jayalalithaa announced in the Assembly that whenever new roads are planned or upgradation of roads were made, it should be done in such a way that the adjoining areas witnessed development and that a grid of roads are evolved.

Even the Second Master Plan has identified areas along ORR as potential areas to absorb the future growth. The ORR was evolved as part of the recommendations of First Master Plan for Chennai Metropolitan Area to relieve the traffic congestion in the city by connecting the National Highway in Chennai Metropolitan Area. The 62.3-kilometre-long ORR connects NH 45 (GST Road) at Vandalur, NH 4 (GWT Road) at Nazarathpet, NH 205 (CTH Road) at Nemilicherry (Thiruninravur), NH 5 (GNT Road) at Nallur and TPP road at Minjur.

Sources said the area plans unit of the CMDA is currently receiving planning permission applications for large scale developments along the ORR.

Currently, action has been initiated to work out the grid of roads for the area adjoining ORR on the stretch between Vandalur and Palanthandalam.  CMDA sources said that the proposed road network suggested for Mudichur and Palanthandalam has already been approved during the authority meeting. CMDA sources said that the local bodies in the two villages have been given the sanction to accord planning permission for development projects in these two villages. “We have also identified several other villages that come under the first phase of ORR between Vandalur and Nemilicherry,” said a CMDA source.

Sources said that Detailed Development Plans (DDP) are also prepared under Section 27 of the Tamil Nadu Town and Country Planning Act and the maps prepared showed the ideal use of each piece of land in the area and guide infrastructure development by various department and agencies.

It is believed the DDP proposed by CMDA would focus on the grid of roads aimed at good connectivity to ORR, inter linkages and future requirements of physical and social infrastructure. The proposal also comes in the wake of development of a passenger-cum -freight railway line linking Ennore to Vandalur on the ORR stretch, which planners feel, would generate interest among the real estate developers. Besides the State government is also planning a satellite bus terminal in Vandalur.

 

Source-http://newindianexpress.com

 

Residents demand flyover on National Highway number 8 near Manesar

September 17, 2013

PRANAB SAIKIA, TNN

MANESAR: The more than 2.5-km stretch of NH-8, from IMT Manesar to the Polytechnic College is a death trap for residents on both sides of the highway as there is no designated crossing. Panchayats of several villages are planning to file case against the National Highway Authority of India for not replying to their grievances despite repeated reminders.”Due to absence of flyovers, the whole stretch, commuters from the opposite direction have to move in the wrong direction, risking their lives. We are not getting any response from the NHAI. We have not other ways than going to court against NHAI for their negligence. The village panchayats will take a decision soon,” said Dharam Vir, sarpanch, Manesar.

“Traffic jams are a routine affair. There is no bus stand and buses halt dangerously on the highway. The road is accident-prone,” said Om Prakash, former sarpanch, Manesar village.

When TOI contacted NHAI, a spokesperson said, “We are looking at the feasibility of constructing a flyover at the stretch.”

Points to note

There more 35 thousand people live in Manesar. They are all affected due to the open road without any flyover

On an average two accidents happen on the stretch every month, according to the sources from Gurgaon traffic police

Commuters to pay toll

September 13, 2013

Mohsin Ali |

Commuters-to-pay-toll

Commuters will have to face toll collection soon for travelling on the 35 km long Patancheru-Shamirpet Outer Ring Road, as the government has issued the orders in this regard.

The Hyderabad Growth Corridor Limited, (HGCL), a joint venture company of Hyderabad Metropolitan Development Authority, (HMDA) and Infrastructure Corporation of Andhra Pradesh (INCAP), have proposed to construct and supervise Toll Administrative Buildings (TAB), Traffic Control Centres (TCC) and toll canopies at the toll plazas along the Outer Ring Road.

The work, costing `142 crore, will be taken up with loan from the Japan International Cooperation Agency (JICA). Under phase 2, PK Hospitality Services Ltd has finalised the contract for collecting the toll till March 2014. The contractor has to payback `26 crore per month to the Hyderabad Metropolitan Development Authority.

HMDA officials told Postnoon that the HGCL has invited requests for proposals for providing consultancy services for construction and supervision of the buildings.

The project comprises construction of toll plaza administrative buildings, traffic control centres and subcentres and connected works. The construction will involve use of modern equipment and construction practices.

For the ORR phase 2 that runs for a length of 35.6 km with a diversion of about 3 km at Kandlakoya, toll collection would be introduced at six interchanges at Patancheru, Sultanpur, Dundigal, Kandlakoya,

Medchal and Shamirpet.

Toll collection has recently started on the Outer Ring Road phase 1 between Pedda Amberpet to Patancheru, which includes the junction of Pedda Amberpet, Bangulur, Raviryal, Tukkuguda, Pedda Golconda, Shamshabad, Rajendranagar, APPA Junction, Nanakramguda, Kokapet, Edulanagulapally and Patancheru. The tender process for phase 2 is expected to be complete towards the last week of the month.

The toll fee structure of `84 for car, jeep, van, `1.37 for mini-bus, `2.87 for bus, `3.13 for 3-axles and, `4.49 for 4, 5, 6, axle trucks and `5.48 for seven or more axle vehicles has been decided by the government.

 

Source-http://postnoon.com

PMC to survey parking trends on main city roads

September 13, 2013

Ajay Khape : Pune,

Overcrowding of roads by private vehicles and parking problems have prompted the Pune Municipal Corporation (PMC) to undertake a survey of parking trends on main city roads.

The city has been facing serious traffic problems owing to inefficient public transport system, forcing citizens to use private vehicles.

“The civic administration will carry out a survey of parking trends on main city roads. This data will help us solve various traffic and parking-related problems,” said Additional City Engineer Srinivas Bonala.

The survey would be carried out through a private agency, which will gather information on vehicles parked every hour during peak hours from 8 am to noon and 6 pm to 10 pm. The agency will also have to provide details of parking space on city roads. “Once the data is compiled, it will be easier to analyse the number of private vehicles on city roads. It will also help find whether there is sufficient parking space available on main roads,” said a civic officer.

He said the data will help the civic administration in framing a policy to address the traffic and parking issue.

 

MKCL to undertake online recruitment of civic employees

The Pune Municipal Corporation (PMC) standing committee on Wednesday approved the proposal seeking appointment of Maharashtra Knowledge Corporation Ltd (MKCL) to implement the online recruitment for the civic body. The civic administration had proposed that MKCL be allowed to carry out the recruitment of civic staff through its special online service. “The committee members felt the civic body should allow MKCL to operate for six months and assess their performance,” said Vishal Tambe, Chairperson, Standing Committee. He said MKCL will not carry out the recruitment Class I officers. As per the requirement, the civic body will float tenders after six months.

 

 

source – http://www.indianexpress.com

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