Conference on Tolling Issues In India- Feb 26th, 2013

January 30, 2013

Infraline Energy Research & Information Services, an accredited premier service provider of critical business information, industry databases, business intelligence and related services in the energy and infrastructure sector is coming up with Annual Conference on Tolling Issues in India, Planned vs Reality, February 26, 2013, Hotel The Lalit, New Delhi.

Infraline through this conference is trying to unite the policy makers and industry stalwarts to join hands together in solving the tolling issues in India. It is providing a forum focusing on industrial challenges, risk mitigation strategies, use of latest technologies, comprehensive vision for future development and opportunities offered by the sector.

The conference plans to throw light on issues such as:

Present status of tolling in India/ Current Scenario of Toll issues in India
Best practices of Tolling across the globe- Open System Vs Closed System
Finance mechanism of PPP projects
Opportunities for investments in BOT Toll projects
Concessionaires viewpoint while investing in Toll Projects
Viability Gap Funding scheme
Growing emphasis on OMT contracts
RFID tags and transceivers
Electronic Toll Collection system
- Open source software system v/s licensed software system for Central Clearing House (CCH)
Key risks associated in funding of BOT road projects
Operational issues in maintaining of CCH
Social issues pertaining to paying toll tax and Location of toll plaza
- Modifications required in Concession Agreement and suggested recommendation
- Effectiveness of EPC vs. PPP mode of awarding projects

The conference is targeted at:

Banks and Financial Institutions, Technology Providers, Consultants, Concessionaires & Designers Equipment Manufacturers, Infrastructure Developers and Stakeholders, Regulatory Agencies, Research Institutions and NGOs, EPC Contractors, National and State Roads Authorities etc

Thanks and Regards,

Gargi Goswami

Mobile: +91 8130 960957

Email: [email protected]

For more details, refer to the section below:

Toll Issues:

Written by ITW Editor · Filed Under Expo & Events

Infrastructure sector set to receive

April 26, 2010

More bank credit will soon flow to build infrastructure in the country with the Reserve Bank of India (RBI) on Tuesday reducing the level of provision against substandard loans to the sector from 20 per cent to 15 per cent.

The central bank’s decision to treat annuities and toll collection rights under build-operate-transfer (BOT) road and highway projects as tangible securities has also come as a major relief to infrastructure companies.

Banks and institutional lenders said the move on provisioning would enable lenders to loosen their purse strings for the infrastructure sector where long gestation projects often end up with issues that are beyond the control of both the lender and the borrower.

“There are many uncertainties in the infrastructure sector. Often there are delays due to reasons such as obtaining environment clearances and delay in equipment supplies that lead to assets becoming substandard. The RBI move will definitely encourage banks to go ahead and provide more advances to the infrastructure sector since it will provide a comfort factor,” SS Kohli, chairman and managing director of India Infrastructure Finance Company (IIFCL), the government’s flagship infrastructure finance company, told Financial Chronicle.

SBI chairman O P Bhatt said the announcement on infrastructure lending would help banks to finance such projects. “The treatment of annuities as tangible securities under BOT scheme will help attract private equity and give a boost to infrastructure sector,” he added.

UCO Bank chairman and managing director SK Goel echoed the view. “RBI move will reduce the burden of banks since loans to infrastructure projects often become substandard due to technical reasons. With only 15 per cent provisioning requirement, banks will be encouraged to lend more,” he said.

CMD of Bank of Maharashtra (BoM), Allen C A Pereira, said banks have been raising concerns over project delays and asset-liability mismatches in their infrastructure portfolio.

“Infrastructure projects are long gestation projects and several times things do not work out the way it was originally planned. Therefore, there was a strong case for easier provisioning norms for substandard assets. The RBI move is to ensure that banks do not suffer,” Tourism Finance Corporation of India CMD Archana Capoor said.

According to the planning commission, projected investment in infrastructure such as ports, airports, railways, power, irrigation, water supply and sanitation during the 11th plan (2007-11) is Rs 20,54,205 crore. The huge demand for funds can be gauged from the fact that the road ministry alone plans to award projects to build around 18,000 km during this financial year worth more than Rs 1,50,000 crore. Of this, 65 per cent of projects would be on BoT toll basis, 20 per cent on annuity and remaining 15 per cent on engineering, procurement and construction (EPC) model.

However, bankers said the RBI move was not to make banks meet their overall credit growth target when of offtake to sectors such as real estate has slumped. “These issues are not linked. The slowdown in overall lending and to the housing sector may be due to other reasons. Housing loan borrowers may be adopting a wait-and-watch approach,” Pereira of BoM said.

UCO Bank’s Goel agreed: “This is purely to encourage flow of funds to infrastructure sector. Overall credit growth and trends for specific sectors cannot be linked.”

Meanwhile, infrastructure companies have welcomed the decision to treat annuities and toll collection rights under BOT projects as tangible securities, saying the decision would give private road developers easier access to funds at lower interest rates.

At present, in BOT road projects, there is nothing that can be considered as tangible asset. This is because the concessionaire has to transfer the land either to the National Highways Authority of India (NHAI) or the state government after about 30 years of the agreement. Toll collection is also uncertain and therefore treated as an intangible asset. This makes it difficult for developers to obtain loans under the secured category.

“Now that the RBI has allowed annuity and toll collection rights as tangible securities, where there are provisions to compensate the project sponsor if a certain level of traffic is not achieved, it will make banks pro-active to lend to the sector,” Issac A George, chief financial officer of GVK Power and Infrastructure, said.

In its credit policy, RBI said annuity and toll collection rights should be treated as tangible securities subject to the condition that banks’ right to receive them is legally enforceable and irrevocable.

“Most banks offer loans to road developers under secured categories. However, there are lots of provisions and agreements that the parties work out among themselves. The developers also pay a higher interest rate of up to one and a half per cent for unsecured loans. The RBI announcement will help developers to save the additional interest cost and avoid legal troubles,” said Vishwas Udgirkar, an executive director at PricewaterhouseCoopers.

The move is also expected to lower the cost of road projects. “The RBI move to treat annuities and toll collection rights as tangible securities will create a healthy market for securitisation of toll portfolio, thereby reducing the cost of road projects after construction,” said Hemant Kanoria, chairman and managing director of Srei Infrastructure Finance.

Source: mydigitalfc.com

Written by ITW Editor · Filed Under Uncategorized

Knowledge Base: Tolling Operational Manager IQ Test

December 3, 2009

Tolling Operational Manager IQ Test » Quiz Question Maker powered by: ProProfs

Written by ITW Editor · Filed Under Knowledgebase, Quizzes

Government moves towards open toll system for highways

October 22, 2009

Highway users, there is good news round the corner. Soon, you will not have to stop for payment at every toll plaza.

The government is on the verge of introducing an open road tolling (ORT) system in the country, by which toll payment would become a one-time transaction per trip. Gurgaon Toll Plaza

The toll fees will be deducted either from the users’ bank account, or it collected at the beginning of the journey, in the manner of pre-paid or post-paid phone connections.

The ministry of road, transport and highways (MoRTH) will on October 31 start a six-month pilot project to test the efficacy of ORT on three stretches on the national highways.

Three systems of ORT — Active, Passive and Calm tolling systems — would be tested for suitability.

The active tolling system (a microwave tag-based system that sends or receives signals) will be tested on the Gurgaon-
Jaipur stretch. The passive system (also microwave-based, but only send signals) on the Panipat-Jalandhar stretch. The calm ORT system, an infrared-based system that sends and receives signals and works on an optical fibre network, will be tried on the Surat-Dasihar stretch.

“We will finalise a system that is best suited for India. The tests have to be very elaborate and that is why they will carry on for six months,” a senior official at the ministry, who did not wish to be named as he is not authorised to speak to the media, told Hindustan Times.

A third party will independently evaluate the three systems for suitability for use in India.

The new toll system will significantly reduce the time spent by commercial vehicles at tollbooths. For instance, a commercial vehicle plying between Delhi and Mumbai has to stop at 20 toll plazas.

On an average, there is a toll plaza every 60 km in India.

“It will be a very good thing. Separate lanes for the new toll system will result in significant saving of travel time,” said Anil K.G., resident consultant of Bangalore-based logistics company Transworld International, which runs a fleet of 150 trucks.

Source: hindustantimes.com

Written by ITW Editor · Filed Under Default

4-laning of Amritsar to Wagah road okayed

October 14, 2006

With elections to the Punjab Assembly due early next year, the Union Cabinet today cleared the long-pending demand of four-laning of the Amritsar-Wagah section of National Highway 1 on built-operate-transfer (BOT) basis at an estimated cost of Rs 207 crore.

Written by ITW Editor · Filed Under Investment and Finance