5th India Roads Conference 2012

Among the few that performed well in infrastructure last year is the roads sector. Inclusive growth will remain the underlying theme for the 12^th Five Year Plan. With a 4 per cent growth aimed in agriculture growth, Prime Minister Dr Manmohan Singh has announced that “In the 12th Plan (2012-17), we will pay special attention to the remote areas of our country and to rural areas. Connecting such areas by rail and road will get the top-most priority.”

The National Highways Authority of India (NHAI), the National Rural Roads Development Agency(NRRDA) and the state road development corporations will be busy next year. A major part—about 20,000 km—of the National Highways Development Programme’s(NHDP) Phase IV will be bid out in 2012. On another front, the Pradhan Mantri Gram Sadak Yojana (PMGSY), targeted at covering rural habitations with motorable roads, will see a large augmentation in budgetary allocation in the 12^th Plan, and will be more aggressive. Many states have shown aggression in connecting their states, cities, towns and villages better next year.

While more projects likely to be offered next year on wards on an EPC model, experts forecast that many rural road projects may be awarded through PPP by bundling in packages: New pilot schemes including the “modified EPC basis” will be on the anvil.

How will our country achieve the objective that the Prime Minister has set? Practitioners in the roads and related industries will have a critical role to play, starting with a platform such as this conference to understand, analyse, discuss and recommend ways forward.

The 5^th India Roads Conference 2012 is scheduled to happen on 15^th & 16^th February at , New Delhi.

Theme: Connecting Rural with Urban India for Inclusive Growth.

Conference Chair: Day 1

Dr. J. N Singh, Member(Finance), National Highways Authority of India
Conference Chair : Day 2

Dr. Arvind Mayaram, Additional Secretary & Financial Adviser, Ministry of Rural Development , Government of India

The conference will also describe new initiatives and methods in Road sector, debate on relevant questions, and make recommendations. Some of them are:

l Looking forward to the new Five Year Plan: Issues and ways forward

l Premium bids in highways

l Rural connectivity plan analysis

l Aiming for quality construction

l Project management and monitoring processes in roads

l Financing highways and rural roads

l Viability of rural roads

l Tendering processes

l Modified EPC and other new modes of delivery

l Connectivity as enabler of cold chain and agricultural warehousing industries

l Domestic and international case studies in roads sector

l Recommendations and ways forward

Key Takeaways

l What are the lessons the policymakers have learnt from the 11th Plan in infrastructure, and how will they translate into roads sector?

l How much of the outlay can and should attract private investment?

l How will negative VGF (premium) highways fare next year?

l Should more expressways figure in future plans?

l Will “Modified EPC”, which operates like PPP, work better?

l What is the government planning to augment private participation in rural roads?

l Will rural roads projects achieve scale to attract competition from bigger players who can assure quality?

l How can the tendering process for awarding rural road projects be improved, especially as the segment is starting to attract bigger, national players?

l In what ways will enhanced connectivity multiply investments in cold chains and other rural segments?

Format

Our conference is headed by a Conference Chair, an eminent personality connected with the policymaking sphere relating to the industry. The Chair, along with Session Chairs, leads and summarizes the conference’s key points, and makes recommendations to policymakers and the industry.
ASAPP Conferences believes that interactivity at conferences results in better spread of understanding ground issues as well as in involving our delegates in discussions in regards to operations, technology and policy. Such interactivity also helps in evolving critical issues and taking them further in the form of recommendations. Consequently, the conference is replete with panel discussions, often involving delegate participation, and exhaustive Q&A sessions.
A typical session opens with the Session Chair’s lengthy introduction to the session’s main subject. This is followed by related addresses by the panelists in that session, a panel discussion, and Q&A. The session concludes with a comprehensive summary by the Session Chair
Our typical conference includes two coffee breaks and a lunch break during the day, allowing plenty of time for business and professional networking opportunities among attendees.

Annual National Conference on Road Infrastructure in India 2011

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Dear Reader

Indian tollways team is glad to share the moments of  conference which was successfully conducted by Annual National Conference on Road Infrastructure in India 2011 on 6th Dec 2011 at Mumbai. 14 speakers and about 100 delegates were presented in the conference.

Theme of the conference was Planning, Designing, Modernization & Investment for Indian Roads to match International standards.

Confirm speakers for the conference were:

• Shri Nitin R.Gokarn, Joint Secretary, Ministry of Road Transport & Highways
• Mr. Sudhir Hosingh, CEO-Roads, Reliance Infrastructure Limited
• Prof M.N.Sree Hari, Advisor to Gov. Karnataka T.T & Infrastructure
• Mr. Satish Pendse, President – Highbar Technologies Limited -Hindustan Construction Company
• Mr. Alon Globus, Director, i-Tec-India
• Mr. N.K.Sinha, Chairman International Road federation Indian Chapter
• Shri Sudhir Thakre, Secretary, PMGSY
• Shri Ajay Saxsena, PPP Expert, Asian Development Bank (ADB)
• Mr. N.N.Kumar, Dy. Chairman, JNPT
• Mr. Rajesh Rohatgi, Sr. Transport Specialist, World Bank
• Mr. Brijesh Koshal, MD, Daiwa Capital Market
• Mr. Kamal Bali, President & CEO, LeeBoy India Construction Equipment (P) Ltd
• Mr. Sachin Bhatia, CEO, Metro Infrasys p Ltd.
• Ms. Archana, Prof. RV College of Engineering
• Dr.  S. L Dhingra, Chair Professor, IIT Mumbai etc.

IRB Infra project cancellation just a one off case: NHAI

The National Highways Authority of India cancelled the Goa road project that it had awarded to IRB Infrastructure in January 2010 due to the inability to acquire land for the project.

In an interview to CNBC-TY18, AK Upadhyay, chairman of NHAI says, this is just one off case. “I don’t think this is a serious concern,” he adds.

He expects land acquisition costs to rise going forward.

Upadhyay expects awards of close to 7,000 km by year-end.

Below is the edited transcript of his interview with CNBC-TV18’s Latha Venkatesh and Sonia Shenoy. Also watch the accompanying videos.

Q: The most disturbing news we heard lately was the cancellation of Goa road project given to IRB Infra because of the inability to acquire land. Can you just confirm this for us? How disturbing it is that you are not able to acquire land?

A: This is just one off case. In some states, we do face problems, but you don’t take it as a repetitive case. The other projects are going on very well. It is just one-two projects, out of 40-50 projects that we are going to bid this year. So, I don’t think this is a serious concern.

Q: What went wrong? Where did the resistance and the inability to acquire land come from?

A: The state government has solutions. Because the alignment was passing through some fishermen’s areas and they wanted to have an elevated highway for a very long stretch, it made it difficult to fund it. We had to restructure the project. So, the project as it was structured that could not go ahead. So, we had to cancel the bid. I would again say this is a one off case.

Q: What kind of interaction have you had with IRB on this and penalty that you may have to pay them?

A: I don’t think so because this is not at the award stage, so no liability has yet occurred. But I don’t think there should be any major penalty.

Q: How much are you expected to raise via the bond issue? hHw much demand do you see for these kind of tax free issuances at this point?

A: Our perception is that the bonds will be highly in demand. We hope to have full subscription. We are going for first tranche of Rs 5,000 crore with option to retain up to Rs 10,000 crore. From whatever feedback we have got, our impression is that this is going to be very successful.

Q: How many projects in 2011 went on a premium?

A: Let me talk of this fiscal starting from April 1, out of 33 projects, we have awarded so far of over 4300 km, 22 have gone on premium.

Q: In that case, would you consider increasing the viability gap funding for those that did not go at a premium?

A: Viability gap funding has 40% cap. If you over 40%, you might as well fund it entirely from public funding. Therefore, it is a rational limit. We don’t think it’s necessary to increase that. But what it means is that the funds we are getting it would help us in case of any increase land acquisitions cost. After the viable projects under BoT toll are exhausted, we will have to go for more and more EPC projects. That would be almost entirely public funded. So, therefore, this premium is good for us, it has cushioned for future years.

Q: From now, up until FY13, what is the order target that you have? How many have been awarded? How many you expect government to approve?

A: To give you a picture of this financial year, the total target we had set was 7,300 km. This was about 40% more than last year’s target. We are on course. We have awarded over 4,300 km.  Another 1,000 km of the bids are in the pipeline either in evaluation or the bids have to come shortly. So that means that very shortly we will be crossing 5,300 km. Another 2,000 km of 14 projects are in various stages of evaluation and approving process.

Source: moneycontrol.com

Major achievements of Road Transport Ministry in 2011

A length of 3800 km is proposed to be funded from a World Bank loan of US $ 2.96 millions and the balance length is proposed to be taken up through budgetary resources.

Improvement of road connectivity in Left Wing Extremism (LWE) affected areas: The Union Government has approved a scheme for development of about 1,125 km of National Highways and 4,352 km of state Roads in Left Wing Extremism (LWE) affected areas as a special project estimated to cost about Rs. 7,300 crore.

During the year 2011, works in a length of 1127 km costing Rs. 1593 crore have been awarded upto November, 2011.

Special Programme for 2-laning of entire balance NH network not covered under any approved programmes: – Ministry of Road Transport & highways has taken initiatives to develop 6,700 km of single lane / intermediate lane National Highways to minimum 2 lane standards on corridor concept. A length of 3800 km is proposed to be funded from a World Bank loan of US$2.96mn and the balance length is proposed to be taken up through budgetary resources.

During the year 2011, works in a length of 699 km costing Rs. 1675 cr have been awarded. Consultancy studies for preparation of Feasibility study/ DPRs for the entire length of 3800 km to be funded out of World Bank assistance are in progress and targeted to be completed by March, 2012

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

The scheme has been envisaged to be taken up under three parts as under:

• Phase ‘A’ of SARDP-NE approved by the Government envisages improvement of about 4,099 km length of roads (2041km of NH and 2058 km of state roads).  The SARDP-NE Phase A is targeted for completion by March, 2015.
• Length sanctioned & awarded during the calendar year up to November, 2011 – 91 km
• Length completed during the calendar year up to November, 2011 – 10 km
• Work in progress as on 30th November, 2011 is 1608 km.

Phase ‘B’ of SARDP-NE, covering 3723 km (1285 km NHs and 2438 km of state roads) has been approved for DPR preparation only and so far, DPRs for about 450 km have been completed (up to 30th November, 2011)

Special Package for Arunachal Pradesh:  The Arunachal Pradesh Package for Road & Highways involving development of about 2319 km length of road (1,472 km of NHs & 847 km of State / General Staff / Strategic Roads) has also been approved by the Government.  Projects on 776 km are to be taken up on BOT (Annuity) mode and the balance 1,543 km is to be developed on EPC basis.  The entire Arunachal package is targeted for completion by June, 2015.

Length sanctioned & awarded during the calendar year and work in progress as on 30th November, 2011  – 311 km

Development of NHs entrusted with State PWDs which are not covered under any approved programme such as NHDP, SARDP-NE etc.

Physical progress of non-NHDP sections of National Highways during 2011-12:

Highways Wing

Cabinet Committee on Infrastructure (CCI) during the calendar year 2011 has approved 31 Road projects for a length of about 4318 Kms. with Total Project Cost of Rs. 41,109.03 Crores and projects for 4036 Kms. have been awarded. Detail of the projects approved by the CCI during the year 2011 is as follows:

National Highways Authority of India (NHAI)

In order to improve transparency and accountability NHAI has switched to e-procurement and e-tendering for all types of projects including BOT since July, 2011.  In e-tendering mode 101 tenders have been floated by NHAI till 30.11.2011 of which 21 tenders are of BOT, 55 tenders are for Tolling on Reverse Auction and others of varied nature.

For Planning, Monitoring and Management of National Highways with the help of GIS based Satellite Imagery, specially in difficult areas like Left Wing Extremist (LWE), North-East (NE) and other States, inputs have been received from National Remote Sensing Center (NRSC),  20 National / International firms have been short-listed through a Global Tender.  The work is expected to commence shortly.

Public grievance redressal system of NHAI made interactive with the help of user friendly social networking site viz. Face Book (available at http://www.facebook.com/pages/National-Highways-Authority-of-India/1865851480  28027). Between January, 2011 and  November, 2011,  more  than  4 lacs  persons have visited this site and about 3000 have registered themselves.  NHAI’s officers are regularly replying to the public queries directly on the Facebook wall of NHAI. Concessionaries of BOT projects have been advised to provide link to their sites on NHAI Facebook wall – for quick response to road users.

To upgrade the existing Assets Management System by basing it on web-based Geographical Information System (GIS) for the purposes of planning, construction and operation and maintenance of National Highways. Global tenders have been invited for 15000 Kms of stretches having been identified for this on both BOT and EPC projects to cater to both asset management and project management.

All concession agreement documents between the NHAI and concessionaire are now available on NHAI website at http://www.nhai.org/concessionagreementcj.asp.  CVs of key personnel’s of the Independent Engineers overseeing the BOT projects are being uploaded in phases on the NHAI website.

It has been decided to implement a combined state of the art Enterprise Resource Planning (ERP) for Ministry of Road Transport and Highways and National Highways Authority of India with the objective to integrate end to end business processes that were traditionally disjointed and share information through a common database. ERP when implemented will enhance the productivity and efficiency of both the organisations.  Ground work of Functional Requirement Study has been completed.

NHAI has large number of legal cases including with its contractors / concessionaire and vendors.  The entire system was handled earlier manually.  A web based customized software has been developed by NHAI through which it will be possible to retrieve information on Arbitration, Writ Petitions, Land Acquisition cases, Civil Contract cases, Criminal Cases and Central Administrative Tribunal (CAT) cases and tackle these disputes better.

In order to track the progress of construction and maintenance of the National Highways, a state of the art system is being developed to capture information / photos / videos directly from the site using tablet / notepad / personal digital assistant (PDA) / mobile phones and its retrieval on desktop / laptop by all concerned on real time basis.

Annual Pre-qualification of Bidders:

With a view to implement the recommendations of BK Chaturvedi Committee NHAI has adopted Annual Pre-qualification of bidders during the year 2011.  It has already completed the process of Annual pre-qualification and pre-qualified about 100 applicants/bidders.  These applicants are not required to submit voluminous documents at project specific RFQ. They will only submit the pre-qualification letter issued by NHAI.  This Annual pre-qualification is valid upto 31.12.2011.  NHAI has again taken up fresh pre-qualification.

Tax Free Bonds

As per 2011-12 BE, NHAI would raise a sum of total Rs. 11900 crore out of which 54EC Bonds contribute Rs. 1,900 crore and Tax Free Bonds contribute Rs. 10,000 crore.  The Government has authorized NHAI to issue, during the financial year 2011-12, tax free, secured, redeemable, non-convertible bonds aggregating to Rs. 10,000 crore. The draft shelf prospectus has been filed with BSE, NSE and SEBI. The issue is likely to open in the 3rd week of December 2011.

Outcome

Award of contracts

The pace of award of contracts has been accelerated to achieve the target of 20 kms in a day. As compared to achievement of award in 2009-10 of 3360 km and 5058 km in 2010-11, a total of highway length of 4036 km with total project cost of Rs. 36381.49 Cr. have already been awarded till November 2011. The balance is in advance stage of award for meeting the target of 7300 km planned for this year.

Feasibility Studies

As an advance preparation efforts have been made to keep the shelf of feasibility study available to increase the award of contracts beyond 7300 km. During the period from Jan’ 2011 to Nov’ 2011, Feasibility Studies of 6708 kms have been completed and out of which some are in pipeline for award.

Excellent Response from bidders

Despite the economic slowdown this year has witnessed a revival of interest among private investors and acceleration in award of projects due to new policy initiatives  taken to usher in fair competition & transparency. NHAI has received record premiums in the projects which have been bid out in the current year. In fact in one of the projects, 6-laning of Kisangarh-Udaipur-Ahmedabad section of 560 kms fetched premium of Rs. 636 crore (with 5% annual increase). This trend is very encouraging and validates the policy framework for PPP projects that has been established. In 20 projects, higher premium have been offered by the bidders as compared to the approved estimate by CCI.  Similarly in 6 projects, VGF grant demanded by the bidders are less as compared to approved estimate by CCI.  As a result of this, the net present value (NPV) of savings on account of premium / grant quoted by the bidders as compared to the same projected by NHAI in respect of 26 projects is Rs. 21,070 crores.

Land Acquisition

Despite an adverse climate in the field regarding land acquisition and reluctance on the part of farmers to part away their land on current rate of compensation in the hope of getting better compensation under new Act which is likely to be effective shortly, sufficient progress has been made in the matters of land acquisition for national highways.  In the current financial year 7800 hectares of land has been acquired till November, 2011 as compared to a total acquisition of 8533 hectares in 2010-11 and 6244 hectares acquired in 2009-10.

Source: indiainfoline.com

Concession agreement signed for widening of Nechipu to Hoj road

he Nechipu – Hoj Section of NH-229 is a part of Trans Arunachal Highway. The construction of 2 lane Trans Arunachal highway from Tawang in Arunachal Pradesh to approaches to Bogibeel bridge in Assam was announced by the Prime Minister on 31st January, 2008 during his visit to Itanagar.

A  Concession Agreement has been signed in the Ministry of Road Transport and  Highways for  “ Widening of existing road to 2-lane national highway standards from Nechipu to Hoj on hybrid BOT (Annuity) model under the Arunachal Pradesh Package of Roads and Highway. The Nechipu – Hoj Section of NH-229 is a part of Trans Arunachal Highway. The construction of 2 lane Trans Arunachal highway from Tawang in Arunachal Pradesh to approaches to Bogibeel bridge in Assam was announced by the Prime Minister on 31st January, 2008  during his visit to Itanagar.

The Trans Arunachal Highway is a very important Highway which runs across the State of Arunachal Pradesh. The project road will improve the internal connectivity of western districts of Arunachal Pradesh with Itanagar, namely Seppa, Bomdila, and foster socio-economic development of the whole of the State. Apart from this, the road would help in hydro power projects coming up in Arunachal Pradesh. The road would also greatly facilitate the security/ defence agencies to combat anti-national activities and threat on border areas.

• Length of the Project: 311 km;

• Total Project Cost (TPC): Rs. 1486 cr;

• Civil construction cost of the project: Rs. 1255 crore

• Construction period: 4 ½ years

• Concession period: 17 years

• Cash support during Construction period: Rs. 1004.0   crore

• Semi Annual Annuity (25 nos.) : Rs. 39.0 crore each; to be paid  to Concessionaire during maintenance period.

• NPV in 2011-12 of Government Cash flow to the project @ 10% discount rate is Rs. 1077 crore.

This project have been approved by Cabinet/CCI in its meetings held on 9th January, 2009, 30th June, .2009, 4th March, .2010, 6th May,.2010 & 9th June,.2011; Tendering for 2 times were annulled owing to high annuity quotes;

The project is to be implemented on hybrid BOT (Annuity) model. This is a hybrid model under which 80% of the estimated construction cost will be disbursed to the concessionaire during construction phase and remaining construction cost and maintenance cost etc. will be defrayed through annuity payments. The target to complete 2-lane is by June, 2016.  The concessionaire will also maintain the road for 12 ½ years after the construction period of 4 ½ years and Ministry will pay 25 semi-annual annuity to concessionaire during maintenance period of 12 ½ years.

Source: indiainfoline.com

WB’s proposed state highways authority to woo pvt investment

West Bengal’s proposed state highways authority will work to attract private investment in road infrastructure development, State Finance Minister Amit Mitra has said.

“With the state highways authority, West Bengal can undertake road projects on a Build-Operate-Transfer (BOT) basis,” Mitra told PTI.

The Mamata Banerjee-led government has proposed to create infrastructure through the PPP model, officials said.

A decision to set up a highways authority similar to the National Highways Authority of India (NHAI) is a step toward achieving goals in the road sector, sources said.

Mitra said, “The initial corpus for the authority has not yet been finalised and could be known when the proposal comes to the Finance Department.”

At present, the Public Works Department controls and maintains highways in the state. The state highway authority is likely to take over this role once it comes into place, officials said.

West Bengal has a total road network covering 92,023 km, of which National Highways comprise 2,578 km and state highways cover 2,393 km.

States like Jharkhand and Uttar Pradesh have already set up a state highways authority to improve their road infrastructure.

Source: business-standard.com

37 road infrastructure projects to be completed during current year: Dr Arbab

ISLAMABAD(SANA): The National Assembly was informed on Thursday that thirty-seven road infrastructure projects will be completed by National Highway Authority during the current fiscal year.

Minister for Communication Dr. Arbab Alamgir Khan told the House during question hour that 2305 million rupees have been spent on repair of Highways and Motorways damaged by the floods.

He said a PC-1 of 23.56 billion rupees has been forwarded to Executive Committee of the National Economic Council (ECNEC) for approval to carry out reconstruction of the remaining flood damaged road infrastructure. A loan agreement has also been signed with the Asian Development Bank for the flood emergency reconstruction project.

To a question, the Minister said the Kallar Kahar portion of Motorway will be realigned to avert serious accidents there. He said the National Highway Authority has planned to undertake dualization of Muzaffargarh to Dera Ghazi Khan through public-private partnership from October next.

He said toll connection on motorways is being upgraded and replaced with electronic toll traffic management system. The Minister said that the National Highway and Motorway police has taken a number of measures to ensure safety of passengers road users. Four permanent trauma centres are being constructed on different Motorways.

Minister for Religious Affairs Syed Khurshid Ahmad Shah told the House that five point eight million families living below the poverty line are being given cash grant on regular basis under the Benazir Income Support Programme. He said these beneficiaries are also being given health insurance and a proposal is under consideration to exempt them from the payment of sales and other taxes. He said those living below the poverty line will also be given concessions in electricity bills.

He said a poverty survey has been completed in most parts of the country except FATA and some districts of Southern Punjab. He said the survey in the remaining areas will be completed by March next which will help determine the exact ratio poverty in the country.

Parliamentary Secretary for Information Technology Nawab Liaquat Ali Khan told the House that new technology is being introduced to bolster the agriculture produce and ensure food security. He said nine PSDP projects are being executive to popularize the already developed technologies. He said a number of agreements have been signed with different national and international organization to transfer technologies to the farmers as well as to the public department.

Responding to a supplementary question, Minister for Communication Dr. Arbab Alamgir Khan told the House that work on 133 kilometer Karachi-Hyderabad (M-9) will be started next year. He said negotiations for undertaking this project on Build Operate Transfer (BOT) basis with a Malaysian Company is in final stages and will be signed next month.

Minister for Religious Affairs Syed Khurshid Ahmad Shah informed the House that the government has no plans to privatize Water and Power Development Authority (WAPDA). He said the present government has always pursued pro-workers’ policies and abolished all black laws introduced by the dictators. He said we have a given a new concept of privatization by giving twelve percent shares to the employees of public sector under the Benazir Stock Option Scheme.

Parliamentary Secretary for Information Technology Nawab Liaquat Ali Khan told the House that sufficient urea is available in the country to meet the requirements of the growers. Responding to a call attention notice moved by Murtaza Javed Abbasi Minister for Religious Affairs Syed Khurshid Ahmad Shah told the House that eighty percent work in the earthquake affected areas of Azad Kashmir and Khyber-Pakhtunkhwa have been completed. He said twenty-four billion rupees are required to complete the remaining work in the affected areas. Ten billion rupees have been allocated for this purpose during the current financial year while the remaining fourteen billion rupees will be allocated in the next financial year.

He said the government is committed to the complete reconstruction and rehabilitation of quake affected areas and ERRA has been directed to expedite work on the remaining projects.

Responding to another call attention notice Minister for Petroleum and Natural Resources Dr. Asim Hussain informed the House that three point five million vehicles are running on CNG in the country.

These are moving bombs and pose threat to the lives of the people. He said during the last few days explosions in the CNG fitted vehicles have claimed the lives of many people. The Minister said the powers of checking the quality of CNG cylinders be delegated to the OGRA and Institute of Hydrocarbon to ensure the quality of the cylinders.

Source: sananews.net

‘Road sector bags maximum PPP projects in northern region’

The road sector has bagged the maximum number of PPP projects in the northern region with 94 projects (66.7 per cent), followed by urban development with 28 projects (19.9 per cent), energy sector with seven projects (five per cent), tourism and education four projects each, healthcare three projects and one airport project, according to the CII report on “Public Private Partnership in northern region: An Analysis”. The report is based on data from PPP India as on June 2011 and the Planning Commission.

Northern states comprising Chandigarh, Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Rajasthan, Uttar Pradesh, Uttarakhand, and Delhi have 141 PPP projects in various stages of implementation with an estimated value of Rs 80,544 crore. The report also highlights the intra state variations in terms of PPP projects.Within the region,

Rajasthan leads with 41.2 per cent of the total projects in the region; followed by Punjab, 23.0 per cent; Uttar Pradesh, 12.2 per cent; Haryana, 9.5 per cent and Delhi, 8.1 per cent. In terms of value, the top five states are Uttar Pradesh 33.5 per cent of the total; followed by Rajasthan, 18.4 per cent; Haryana, 17.1 per cent; Delhi, 13.7 per cent and Punjab, 7.9 per cent.

As on June 2011, out of the total 748 PPP projects under implementation across the country, northern region accounts for only 18.8 per cent as against 31.0 per cent for western region and 36.2 per cent for southern region. In terms of value of the projects, the share of northern region is 21.3 per cent, whereas, southern and western regions account 40.2 per cent and 27.2 per cent respectively.

The report also highlights that PPPs in social infrastructure sectors like education and healthcare is quite good with region’s share at 40.8 per cent and 24.1 per cent respectively.

The region has attracted Rs 755 crore in the education sector and Rs 442 crore in healthcare sector respectively. In northern region, the report highlights, that BOT (Built-Operate-Transfer)-Toll model is the most popular PPP model (75 are BOT-Toll type out of 141 projects in the region) adopted by Central and state in 94 road sector projects, followed by BOT-Annuity in 11 and BOT in five projects.

In social sector projects, BOT (3) and DBFOT (Design-Build-Finance-Operate-Transfer) (2) model are preferred. In the urban development sphere, BOOT (Build- Own-Operate-Transfer) and BOT are the preferred models with six projects each. In the state sector, BOT — Toll is the preferred model with 47 projects followed by BOT in 16 projects followed by BOT-Annuity (11.3 per cent).

In terms of state agencies implementing PPP projects, Rajasthan has the largest number of projects at 50, followed by Punjab, 27 projects; Delhi, 9 projects.

Also, 57 projects worth Rs 6,289 crore have moved from construction or implementation phase to operational phase in the region.

Source: business-standard.com

R-Infra may buy troubled road projects

The ride is getting bumpy for many roads developers. But Reliance Infra is making hay out of the current tough environment. Months after it announced that it was looking at distressed road assets in the market.

The ride is getting bumpy for many roads developers. But Reliance Infra is making hay out of the current tough environment. Months after it announced that it was looking at distressed road assets in the market, NDTV has learnt that it is in talks with several players including IVRCL, Madhucon Projects and SREI Infrastructure all of who are looking to sell stake in some of their existing projects.

While Reliance Infrastructure hasn’t pinned down on any particular asset as yet, a buyout could happen in the next 1-2 months.

This will be in Tamil Nadu and will have synergies with the company’s existing projects in the state.

It may be eyeing 400 KM of road projects, including IVRCL’s Salem to Kumarapalayam highway and Madhucon’s Madurai to Tuticorin highway.

While the existing developers, many of whom bid for these projects very aggressively aren’t able to keep them viable, R-Infra hopes it can cut interest costs and bring in other efficiencies.

Meanwhile the company is also looking to go global.

It plans to bid for a BOT project in Vietnam and has expressed its interest in a project in Turkey as well but going international could be a challenge as its efforts to make inroads in Sri Lanka & Nepal have still not take taken off.

Source: http://profit.ndtv.com

Prithviraj Chavan seeks Central funding to fix Maharashtra roads

Chief minister Prithviraj Chavan has urged the Centre to allocate funds under the Pradhan Mantri Sadak Yojna to enable Maharashtra to fix state roads.

Chavan indicated that large funds which were allocated to other states under the scheme was not availed by the state for several years leading to a disadvantage. The state was denied the funds as it had already declared 100% connectivity and good conditions using state funds.

However, in the last 15 years, the state had managed to make little investments in the road sector. A majority of the new projects which were envisaged and implemented related to built-operate and transfer basis (BoT).

An official in the ministry of planning and finance said, “If we compare the funds allocated to states like Andhra Pradesh, then we lost almost Rs3,000 crore per year. Between 1999 and 2009, the state should have pressed for at least Rs15,000 crore from the Centre to be undertaken in phases.”

The poor allocation of funds from the Centre was also on account of lack of political will to pursue the matter with the Planning Commission. In the 1990s, having attained almost maximum connectivity, the state focused on new projects but the investments required formaintenance was overlooked.

Now the senior NCP minister for public works department (PWD), Chhagan Bhujbal has decided to mobilise resources through public and private partnerships to fix state road infrastructure. The PWD has already undertaken major projects worth Rs33,000 crore through private-public partnership in phases.

Source: dnaindia.com

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• SBI inks pact with IIT-Kharagpur for fintech innovation
• Supreme Court refuses to stay Allahabad HC order of making DND fly-way toll-free
• An analysis by CRISIL on the pace of road construction
• Mumbai University gives way for better connectivity at BKC
• Debit card scare: A lesson for banks and their customers
• What is a Smart City ?

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The ITW Team

Sachin Bhatia Chief Editor

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Improved Car Seat Belt 40% Less Accidents

NHAI's First ETC(Electronic Toll Collection) PLAZA

• ETC based on Microwave Technology(CEN 278) implemented at Delhi - Gurgaon Super Connectivity
  Technology by: -Kapsch Metro JV.

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