Govt clears Rs 30,274 cr Delhi-Ghaziabad-Meerut Regional Rapid Transport System

Source: IBEF.org, Feb 20, 2019

New Delhi: The government Tuesday approved construction of a Rs 30,274 crore worth Regional Rapid Transport System (RRTS) to connect the national capital with Meerut through Ghaziabad.

According to the government, the 82 kilometer-stretch will be covered in less than 60 minutes by high-speed and green public transit.

The approval was given at a Cabinet meeting chaired by Prime Minister Narendra Modi.

The RRTS is a first-of-its-kind, rail-based, high-speed regional transit system to be implemented in India. Once operational, it will be the fastest, most comfortable and safest mode of commuter transport in the National Capital Region (NCR). Read the rest of this entry »

Advertisements

Nitin Gadkari to unveil Rs 11,000 crore highway projects in UP

Source: The Economic Times, Feb 20, 2019

New Delhi: Union minister Nitin Gadkari will inaugurate and lay the foundation stone of Rs 11,595-crore highway projects in Uttar Pradesh on Wednesday, the government said.

In addition, the minister will also lay the foundation stone of several projects under the Namami Gange programme, accompanied by Uttar Pradesh chief minister Yogi Adityanath.

Gadkari will inaugurate in Moradabad the 146-km Aligarh-Moradabad stretch on NH-93 built at Rs 950 crore, and will lay the foundation stone of the 100-km long six-lane Hapur Bypass-Moradabad section of NH-24 to be constructed at a cost of Rs 3,441 crore, the Ministry of Road Transport and Highways said.

A statement said he will lay the foundation stone in Meerut for three projects — the 88-km four-lane Meerut-Budhana-Shamli-UP/Haryana Border (Karnal) section of NH-709A to be built at a cost of Rs 708 crore, the 54-kmlong four-lane Meerut-Najeebabad section of NH-119 at Rs 2,120 crore, and construction of additional facilities on 78-km-long Meerut-Muzaffarnagar section of NH-58 at Rs 207 crore. Besides, the foundation stone will be laid for the Rs 3,367-crore Garhmukteshwar-Meerut stretch, it said.

Infrastructure companies eye litigation funding to settle claims

Source: Business Standard, Feb 18, 2019

Mumbai: Litigation funding, or monetisation of pending claims through a third party, is finding its feet in India.

A common practice globally, the Indian version of the funding comes with a catch.

As Indian infrastructure companies struggle with stressed assets and huge pending claims, there is the case of Patel Engineering, which has been successful in litigation funding. Besides, sources said, the HCC was in an advanced stage to execute a similar deal. Even lenders to Era Infra Engineering are believed to be looking at it, albeit as a last option.

In some cases, the upfront cash payout is securitised against a pre-decided amount and a coupon rate. While the principal is serviced by the holding company’s cash flow, the interest is dependent on the outcome of claim settlement. Read the rest of this entry »

Rlys’ station development arm considers ₹ 600 cr to award projects

Source: The Hindu Business Line, Feb 12, 2019

Indian Railway Station Development Corporation (IRSDC) — which has been made the nodal agency for redeveloping stations – is likely to get a loan of ₹ 600 crore from Indian Railway Finance Corporation (IRFC). These funds will be used for Anand Vihar, Bijwasan and Chandigarh on engineering procurement contract (EPC) basis. Work on project will start by the end of this month.

IRSDC requires ₹ 7500 crore to develop 50 railway stations. It is working on various modes of developing these stations. That said, when it awards the stations for development to various developers, the present contracts will continue, Vishwesh Choubey, Member-Engineering, Railway Board, said.

From these 50 stations, for 43 stations, it has handed over the planning and project management consultancy work to four public sector enterprises.

The PSUs – RITES, Engineering Projects (India) Limited, Bridge and Roof Company (India), Metallurgical and Engineering Consultants (India) Limited, and National Project Construction Corporation – have been awarded 43 stations for deciding the architect, and plan for the development. IRSDC has done this to utilise the expertise of various public sector enterprise.

The stations for development were decided on the basis of a study by Boston Consulting Group, which identified the feasible stations.

“We will try to get upfront payment for station development, so that we can use the funds for different projects. We will have upfront payment by developers, along with revenue share for stations where there are not much takers for revenue share,” said Sanjeev Kumar Lohia, Managing Director, IRSDC.

IRSDC plans to invite tenders for Nagpur, Baiyappanhalli (Bengaluru), Amritsar, Gwalior and Thakurli, which will be developed on either government funded (engineering procurement contract mode). Surat multi-modal hub will be on done on design-build-finance-operate and Terminate basis.

UP is on an expressway-building spree

Source: The Economic Times, Feb 10, 2019

Uttar Pradesh is in love with expressways, be it any political dispensation in the state. While Mayawati as chief minister championed the case of twin expressways between Noida and Agra, Akhilesh Yadav built the expressway from Agra till Lucknow. Yogi Adityanath is now set to outdo his predecessors.

By the time Yogi’s term ends in 2022, UP could be covered by a network of eight expressways criss-crossing the state, totalling almost 2,500 kilometres — the highest for any state in India. And the Ganga Expressway is currently proposed to stretch 596 kms from Meerut to Prayagraj but it could top the 1,000-km mark as the government plans to extend it to the state’s northwest border with Haridwar in Uttarakhand and to Bihar in the southwest in phase II. Read the rest of this entry »

Big infrastructure boost for Odisha!

Source: Financial Express, Feb 06, 2019

Big infrastructural boost for Odisha! Today, Road Transport and Highways Minister Nitin Gadkari inaugurated many National Highway projects in Odisha in a bid to reduce traffic congestion and ensure the safety of road users. The minister laid the foundation stone for several projects including the four laning of 41.726 km Talcher-Kamakhyanagar stretch of NH 200/23, (New NH 53), worth Rs 795.18 crore; 51.1 km Kamakhyanagar-Duburi stretch of NH 200 (New NH 53), worth Rs 761.11 crore and 39.4 km Duburi-Chandikhole stretch of NH 200 (New NH 53), worth Rs 789.23 crore. These highway projects will include 45 km of service roads, 9 major bridges and 39 minor bridges, 19 vehicular underpasses, 3 bypasses and 1 flyover.

According to a press release issued by the Ministry of Road Transport and Highways, these National Highway projects will ensure better connectivity for the mineral-rich districts of Odisha, namely, Angul and Dhenkanal with the rest of the state. The ministry believes that by minimizing traffic congestion and the travel time between places, these projects will help in reducing the operating cost of vehicles along with bringing down the pollution levels.

Moreover, the projects will help in generating more employment opportunities in the region and will also improve the socio-economic condition of the local people, the release stated.

Meanwhile, Gadkari also launched a multipurpose clean cargo berth of capacity 50 lakh tons per year at Paradip port, which has been developed at a cost of Rs 431 crore. The berth is 450 m long, 30 m wide, 16 m draught and has the capacity to take in Capesize vessels up to 125000 DWT. Also, the ministry said that there is a railway line of 3.2 km with full-length siding. With the container handling capacity, the local industry will be enabled to find global markets. Additionally, the minister also laid the foundation stone for LPG Terminal at South Oil Jetty, mechanization of 3 coal handling berth, development of New Coal Import Berth, development of a Multi-Modal Logistic Park, connectivity of MCHP and IOHP at PPT, construction of second exit road including flyover from the port.

Cost overrun bill on 363 infrastructure projects rises to Rs 3.42 trillion

Source: Business Standard, Feb 03, 2019

New Delhi: As many as 363 infrastructure projects, each worth Rs 150 crore or more, have shown cost overruns to the tune of over Rs 3.42 trillion owing to delays and other reasons, a report said.

The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs 150 crore and above.

“Total original cost of implementation of the 1452 projects was Rs 18,27,757.29 crore and their anticipated completion cost is likely to be Rs 21,70,036.32 crore, which reflects overall cost overruns of Rs 3,42,279.03 crore (18.73% of original cost),” the ministry’s latest report for October 2018 said.

Of these 1,452 projects, 363 reported cost overruns and 375-time escalation.

According to the report, the expenditure incurred on these projects till October 2018 is Rs 7,91,102.87 crore, which is 36.46 per cent of the anticipated cost.

However, it said the number of delayed projects decreases to 304 if delay is calculated on the basis of latest schedule of completion.

For 700 projects, neither the year of commissioning nor the tentative gestation period has been reported. Out of the 375 delayed projects, 111 have overall delay in the range of 1 to 12 months, 61 are delayed by 13 to 24 months, 95 reflect delay of 25 to 60 months and 108 projects show 61 months and above delay.

The average time overrun in these 375 delayed projects is 45.14 months.

The brief reasons for time overruns as reported by various project implementing agencies are delays in land acquisition, forest clearance and supply of equipment.

Besides, there are other reasons like fund constraints, geological surprises, geo-mining conditions, slow progress in civil works, shortage of labour, inadequate mobilisation by the contractor, Maoist problems, court cases, contractual issues, ROU/ROW (right of use/right of way) problems, law and order situation, among others.

It also observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are under-reported.