By 2022, govt to lay 18,637km of expressways

December 3, 2009

NEW DELHI: The government has drawn up an ambitious target to lay 18,637km network of brand new expressways by 2022. These high-speed, access-controlled roads will be of the four-lane and six-lane variety with 3,530 km to come up in the next three years.

The highways ministry is ready with a Master Plan for the National Expressway Network. The new target of expressway length was projected after receiving observations from 11 states including Madhya Pradesh, Bihar, Gujarat, Karnataka and Uttar Pradesh. Earlier, the final draft report prepared by the highways ministry had proposed to develop 17,661 km of expressway network.

The expressways network will not be an upgraded national highway network but will be developed entirely as greenfield projects. These will preferably be built with three-metre high embankments and will have service roads along the stretches where there is a need. Officials said there was an urgent need to develop expressways network as road transport would remain the mainstay for sustaining the economic momentum of the country.

“The existing arterial network cannot meet the latent and the emerging demands for connectivity and accessibility while ensuring the desired level of safety,” said a senior ministry official.

As per estimates, the construction cost per km would be Rs 14 crore in case of 4-lane and Rs 20 crore in case of 6-lane expressways excluding land acquisition and other expenses. A recent presentation made before the top brass of National Highways Authority of India (NHAI) and the ministry also mentioned that while majority of identified stretches would be built on build-operate-transfer (BOT) mode, stretches which were unviable could be developed on annuity basis.

The Master Plan document has also phased the expressway development programme for 2012, 2017 and 2022 and this has been done on the basis of financial viability, relative traffic intensity along various corridor segments, network comprehensiveness, connectivity warrants and relative economic potential of each proposed project.

The ministry is already in the process of preparing a draft for creation of a National Expressways Authority of India (NEAI) on the lines of NHAI and the highway regulator has also got an exclusive wing for the expressway as a stop-gap arrangement.

Source: timesofindia.indiatimes.com

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Reliance Infra bags Rs 590crore Jaipur project

October 26, 2009

New Delhi: Reliance Infrastructure, the Anil Dhirubhai Ambani Group (ADAG) company, has won the Rs 590 crore Jaipur-Reengus highway project in Rajasthan from the National Highways Authority of India (NHAI).

The project is expected to be completed by 2011.

The company is currently implementing road projects worth Rs 4,500 crore and aims to increase its road portfolio more than four-fold to over Rs 20,000 crore by 2012.

Reliance Infra bagged the Rajasthan project on the basis of the lowest quote for grant at Rs 103 crore. The upgrade work of the 53 kilometre stretch will be implemented on a build operate and transfer (BOT) basis for a concession period of 18 years, including the construction period. After completion of the project, the company will earn toll through the remaining period before handing over the project to NHAI.

“Jaipur-Reengus contract is the seventh road project won by Reliance Infrastructure. With this, the company would be committing more than Rs 4,500 crore for the road sector. We are planning to increase the total road project portfolio over Rs 20,000 crore by 2012-13,” Lalit Jalan, CEO, Reliance Infrastructure, said in a statement.

The deal is likely to be signed in a month and the construction will begin soon thereafter. The group has a market capitalisation of around Rs 1,50,000 crore, and net worth of over Rs 64,000 crore. Also, the operating cash with the group is to the tune of Rs 13,000 crore.

The company’s two Tamil Nadu projects became operational last week. The projects, Namakkal-Karur and Dindigul-Samynalore, are worth Rs 763 crore and span 96 kilometres.All the remaining road projects are expected to be operational by March 2011.

Also, Reliance Infra is bullish on the infrastructure growth in the country.”Infrastructure will be a major source of revenue for us and we will bid for most of the projects being planned in the country,” Jalan said.

It is undergoing the tendering process in projects worth around Rs 50,000 crore. The company has achieved financial closure for the Rs 2,356 crore first phase of Mumbai Metro project and has also bagged the Rs 11,000 crore second phase of the project to develop a 32 kilometre stretch for a concession period of 35 years.

Source: dnaindia.com

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UPA-2 road plans hit a bump

October 26, 2009

NEW DELHI: This could be an indicator of how the ambitious highway development programme has been a non-starter in UPA-2. National Highways

Authority of India (NHAI) has awarded only 17 projects for 1,574 km since January against the plan of awarding 135 projects (14,384 km) in the current financial.

A presentation made by the highway regulator at a CII conference on consulting services on Tuesday pointed to the huge gap between the projection and actual pace of award of projects in the past 10 months. As per the presentation, only 17 projects costing Rs 17,757 crore were awarded including one project on BOT (annuity). It further showed that nine more projects on BOT (toll) and two on annuity modes were under the process of award. However, information was not available on how many highway projects were awarded since the change of guard in the ministry.

NHAI officials blamed the slow pace on certain “controversial clauses” and provisions in the request for quotation (RFQ) and request for proposal (RFP) and the model concession agreement. “We had prepared a plan to award 60 projects last year but the economic downturn hit us hard and only 12-13 projects could be awarded. Many projects could not achieve financial closure even after awarding. This time it’s equally worse due to certain contractual provisions and clauses of the bid documents including the conflict of interest clause,” said a senior official.

Road, transport and highways minister Kamal Nath has already identified the interpretation of ‘conflict of interest’ as the biggest roadblock in the fast tracking of highway projects.

Transport secretary Brahm Dutt admitted on Tuesday that the award of projects was taking time while the ministry had set a target of achieving construction of 20 km highway per day.

Source: timesofindia.indiatimes.com

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Toll on two-lane roads to drive costs down

June 30, 2009

More than 10,000 kms of roads may get tolled across the country. In what may be called a first, the ministry of road transport and highways is considering a proposal to toll two-lane roads. This is being done to not only recover the cost of construction but also ensure funds for their maintenance and upkeep. According to a senior government official, the move has come as a part of the government’s attempt to attract more road developers and also reduce the burden on annuity and build operate transfer (BOT) projects.

So far two-lane roads are not tolled across the country. But the idea is being considered especially because the government may award the construction of two-lane national highways on certain lean traffic areas across the country. This is being done to reduce the cost at a time when developers have been shortage of funds, as the official said.

The move will require making changes to the toll policy of the government, which provides for tolling of four and six lane highways currently. The ministry had introduced a new toll policy in December 2008 by the way of which toll rates had been doubled or trebled on certain stretches.

The current toll policy stipulates a fee of Rs 0.65 per kilometre for cars jeeps etc, Rs 1.05 per km for light commercial vehicles, Rs 2.20 for buses and trucks, Rs 3.45 for heavy construction machinery and Rs 4.20 for vehicles with over seven axles. However, these are the recommended rates for four and six lane highways and a similar schema would have to be prepared for two lane highways, if the proposal gets implemented.

The fee for two-lane highways is expected to be much lower but the location will also matter in determining it. For instance, it may be higher for hilly terrain roads.

The government has been working on a plan to re-engineer roads and thereby reduce their cost. The National Highways Authority of India (NHAI) is considering the removal of a number of additional structures on highways that escalate the cost. Taking this further, the minister for roads recently suggested that even in areas where two lane roads are being considered tolling should be implemented.

However, there is a flip side two lanes as well. They are less safe than four or six lane highways as there is no divider to prevent head on collisions. Even though we support the idea, the viability of tolling two lane highways would have to be considered in the light of the administrative cost of collection, a road expert from the National Highways Builders Federation (NHBF) said.

Currently there is a network of over 70,000 kms of national highways in the country, the maintenance of which comes under the central government. Even though national highways are only 2 per cent of the total road network, they carry bulk of the country’s traffic at over 65 per cent.

Source:indianexpress.com

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NHAI fails to meet projects, expenditure targets

January 27, 2009

New Delhi: The NHAI (National Highways Authorities of India) is lagging behind in reaching most of its targets. While, it will not be able to spend a third of its targeted expenditure of Rs 31,000 crore in the current financial year, it is also running behind schedule in awarding new projects.

The authorities had planned to award 61 projects by December 2008 under the

BOT (build-operate-transfer) model with an estimated cost of Rs 67,000 crore to widen 6,343 km highways. Out of those, only three projects have recently been awarded and three are likely to be given soon.

“In this fiscal, NHAI has spent about Rs 16,000 crore and by March 2009, it is likely to spend another Rs 5,000 crore,” said Brahm Dutt, secretary, department of Road Transport and Highways.

These expenses are primarily public spending in the first three phases of the National Highway Development Programme. They exclude the expenditure on highways development by private developers (concessionaires) undertaken in the BOT model.

Citing economic downturn as the main reason for poor response to the 60 projects on offer, Dutt said, “market turmoil changed the scenario overnight resulting in NHAI getting response in only 16 of the 60 projects floated.”

Source: epaper.timesofindia.com

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LANCO bags two toll road projects in Karnataka

August 4, 2008

LANCO Kondapalli Power Pvt Ltd, a subsidiary of LANCO Infratech Ltd, has bagged the contract for construction and operation of two road projects in Karnataka on Build, Operate and Transfer (BOT) basis under the National Highways Development Project (NHDP) Phase III.

The company has formed two Special Purpose Vehicles (SPVs) – LANCO Hoskote Highways Pvt Ltd and LANCO Devihalli Highways Pvt Ltd for undertaking the projects. The concession agreements for the projects have been signed with the National Highways Authority Ltd. The two road projects are the 81 km Bangalore-Hoskote-Mudbagal stretch on National Highway 4 and 82 km Neelamangla – Devihalli stretch on National Highway 48. The project involves six laning of 16 km stretch and four laning of the remaining stretches. The total project cost is estimated at Rs 1,006 crore. The concession periods are 20 and 25 years for the two projects respectively, including 30 months of construction period. The contracts have been awarded through a competitive bidding process.

LANCO Group is one of the fastest growing corporate entities in India. LANCO has more than two decades of experience operating in the core sectors of Power Generation, Power Trading, Realty, Engineering and Construction, Information Technology and Manufacturing. At present, the power portfolio includes an operating capacity of 518 MW and additional capacities under construction aggregating to more than 3,200 MW. The Construction and EPC division of the company is executing various orders worth more than Rs 7,500 crore. LANCO is also developing LANCO Hills, one of the largest integrated township properties in Hyderabad, which will have a developed area of more than 30 million square feet and one of the tallest residential towers in the world. The development of the property is estimated to cost Rs 5,500 crore.

Source: moneycontrol.com

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Bid to widen highway begins

August 4, 2008

Ranchi, Aug. 1: National Highways Authority of India (NHAI) has set the ball rolling for the four-laning of Hazaribagh-Ranchi stretch of NH-33, considered to be the lifeline of Jharkhand.

NHAI, which functions under the Union ministry of road transport and highways, has invited a global expression of interest (called request for qualification in technical parlance) from construction majors. The last date to respond is August 29.

“It would be a 75km stretch of NH-33 costing around Rs 600 crore. The tenders would be on build, operate, transfer (BOT) annuity basis,” said H.C. Arora, the chief general manager of NHAI, who looks after projects in Uttar Pradesh, Uttarakhand, Bengal, Bihar, Jharkhand and Delhi.

This would be the third time that NHAI has invited tenders for the same stretch.

Earlier, two efforts to finalise the project through BOT-toll basis proved futile with no parties responding to pre-qualification bids apparently due to Naxalism and law and order problems in the state. Under BOT-toll, the contractors awarded works are supposed to invest the entire project cost and realise the same by collecting toll taxes for the next 30 years or so.

Under the annuity basis, although the construction company would invest the entire project cost, a fixed annual sum as annuity from the government would ensure that the former gets back its invested money.

In a related development, the ministry is contemplating to turn the 150-km stretch of NH-33 between Ranchi and Jamshedpur into a single package. Earlier, the stretch was divided into two packages — one between Ranchi and Rargaon and the other between Rargaon and Mohulia.

Arora added that the NHAI would soon invite expressions of interest for the Ranchi-Jamshedpur stretch, too.

The ministry was in favour of inviting the tenders on BOT-toll basis. The overall cost of the project would be around Rs 1,300-1,400 crore.

The proposed Hazaribagh-Ranchi four-lane road would end near Vikas Vidyalaya by taking a bypass of about 20km before meeting Ranchi-Jamshedpur highway near Rampur.

The state and central authorities are discussing whether the proposed Ring Road project for Ranchi can be merged with the highways’ proposed bypass on a cost-sharing basis. Arora added that the four-laning project of both the stretches would be part of National Highway Development Programme-Phase III.

Source: telegraphindia.com

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STATUS OF WORK ON SELECTED HIGHWAY STRETCHES IN PUNJAB

April 23, 2008

The status of Chandigarh-Kiratpur, Amritsar-Pathankot and Jalandhar –Amritsar stretches are as under:

(i) Chandigarh-Kiratpur stretch: The Chandigarh-Kurali section is of 28.6 km length. Out of this, the stretch from km 0.0 to km 11.4 is four/six laned. Four laning from km 11.4 to 15.4 has been sanctioned for Rs.13.51 crore on 31.03.2008 by Ministry. Four laning of the remaining section from km 15.4 to 28.6 is to be taken up under National Highways Development Project (NHDP) Phase – III. The 4 – laning of Kurali-Kiratpur section has been awarded in June 2007 on BOT basis and the work is likely to be completed by June 2010.

(ii) Jalandhar-Amritsar stretch : The Detailed Project Report (DPR) to take up the work of four- laning on Build, Operate and Transfer (BOT) toll basis for Jalandhar-Dhilwan section has been updated by the consultant. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance. The four – laning of Dhilwan to Verka Chowk, Amritsar section has been started in May 2006 and the work is targeted to be completed by November 2008.

(iii) Amritsar-Pathankot Stretch : The Detailed Project Report (DPR) preparation for four laning of this stretch is in advance stage of completion. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance.

This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok Sabha today.

Source: pib.nic.in

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PROPOSAL FOR SETTING UP NATIONAL ROAD SAFETY AND TRAFFIC MANAGEMENT BOARD IS IN FINAL STAGES OF APPROVAL

April 7, 2008

THIRU BAALU ADDRESSES CONSULTATIVE COMMITTEE MEETING

The Union Minister of Shipping, Road Transport and Highways Thiru T.R. Baalu has said that the proposal for setting up of the National Road Safety and Traffic Management Board, as recommended by the Committee on Road Safety and Traffic Management, is in the final stages of approval. Similar Boards would be set up in the States also. Thiru Baalu was addressing the Seventeenth Meeting of the Consultative Committee of Members of Parliament attached to his Ministry here today.

Thiru Baalu also informed the Members that the Department of Road Transport and Highways is also contemplating constitution of a Committee of Experts to suggest a comprehensive scheme to improve the public transport system. The proposed scheme would stipulate certain reform measures to be undertaken by the States to be eligible for seeking financial assistance from the Central Government.

The Minister further informed that a ‘Working Group’ has been constituted by the Government to determine the technology for Advanced Traffic Management System, Advanced Travel or Information System and Electronic Toll collection. He said that a System is proposed to be installed for automatic traffic counting and classification to have better assessment of traffic moving on National highways. He said that these steps are being taken as part of Government’s efforts to give more emphasis on the modernisation of the toll collection system for which introduction of Intelligent Transport System (ITS) is proposed to be gradually introduced.

Thiru Baalu said that a proposal has recently been approved for creation of State and National Registers of driving licenses and registration certificates envisaging inter-linking of all Regional Transport Offices. This would enable creation of authentic database for road transport sector, ensuring transparency in the process of registration of motor vehicles and issuance of driving licenses at a total cost of Rs. 148 crore. The project period is two years. It would check issuance of fake driving licenses / registration certificates and lead to better enforcement of the provisions of the Motor Vehicles Act / Rules, he added.

The Minister also informed that to formulate a scheme for trauma care facilities across the country in general and along the National Highways in particular, his Ministry has been working closely with the Ministry of Health & Family Welfare to work out a -2- combined plan of action. For this purpose, Thiru Baalu informed that the Ministry of Health and Family Welfare has introduced a scheme for setting up of an integrated network of Trauma Centres along the GQ, North-South and East-West Corridors of the National Highways by upgrading the trauma care facilities in 140 identified State Government Hospitals at a total cost of Rs.732.75 crore during the Eleventh Five Year Plan period. Our Ministry has to supply 140 ambulances and NHAI has to provide 50 Ambulances with advanced life support equipment to identified hospitals.

Giving an account of the progress made on the National Highway Development Programme (NHDP), Thiru Baalu observed that upto February 2008, out of the 5,846 kms under the Golden Quadrilateral (GQ) Project, 4/6 laning of about 5,650 kms has been completed and works are in progress in the remaining 196 kms length. Out of about 7,300 kms length under the North-South and East-West Corridors, 4/6 laning was completed in 1,962 kms and works were under implementation in about 4,359 kms. Under NHDP Phase-III, out of 12,109 kms length, 4-laning has been completed in 330 kms and works are in progress in about 1,745 kms and under NHDP Phase-V, out of 6,500 kms length, 6-laning was in progress in about 1,030 kms.

So far 86 projects valued at Rs.29,576.94 crore have been awarded on BOT (Toll) basis. Out of these, 34 projects have been completed and 52 projects are in progress. Also, so far 25 projects valued at Rs. 9,411.88 crore have been awarded on BOT (Annuity) basis; out of which, 8 projects have been completed and 17 projects are in progress, the Minister informed.

The Members of Parliament who participated in the meeting are: S/Shri M.R. Reddy, S. Ajaya Kumar, L.R. Patil, Hari Kewal Prasad, M.L. Mandal, Tiruchi Siva and Ms. Mabel Rebello.

Source: pib.nic.in

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SA’s Intertoll barred from NH projects

March 27, 2008

NEW DELHI: After Chinese, Malaysian and Korean firms, the National Highways Authority of India (NHAI) has blacklisted South Africa’s infrastructure firm Intertoll for undertaking road sector projects in the country. Intertoll-led joint venture Intertoll-ICS-Cessons O&M, which had bagged the contract to operate and manage Gurgaon-Jaipur stretch (206 km), has been barred from carrying out any highway project in the country for the next 10 years. “The company has failed to comply with the obligation. It was also found that there was leakage in toll collection. After shooting off showcause notices five times to the firm we have now barred them for the next 10 years for undertaking any project directly or indirectly,” a government official told ET. Last year, the government had put nine firms including Lanco Construction and Essar group in the non-performers’ list. Foreign contractors in the list included Korea’s You-One Engineering Construction, Saudi Arabia’s Sticco, China Coal Construction Group Corporation and Moscow-based Centrodostroy. Four Malaysian companies — UEM Builders, Dolomite Industries, Pati SDN Bhd, and Bhumihighway — were also in the list of non-performers. All highway contractors were blacklisted on account of delay in completing highway projects and poor performance. The dispute between joint venture partners also lead to delay in the projects.“Before we bar any contract we give multiple chances to perform. In case of Intertoll we gave them three years’ time to comply with the contractual obligation,” the official said. Intertoll got the Rs 169-crore contract through competitive bidding to operate, manage and collect toll on the Gurgaon-Jaipur highway for eight years. Foreign infrastructure companies are, however, betting big on the country’s road sector. Recently, these firms won three highway projects out of five offered by NHAI under national highways development project (NHDP)-V. All the three companies — Emirate Trading Agency, Isolux Corsan Group and IJM Corp — which bagged various projects roped in an Indian firm. Source: http://economictimes.indiatimes.com

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