Tuesday, September 21, 2021

Table of Contents for Ticker Tape





Ticker Tape- Infastructure

 

Highway construction target raised manifold; to construct 40 km roads per day

 

Despite the pandemic and the elusive private investor, the government has set a ambitious target to build roads worth Rs.15 lakh crore over the next one-two years. This is a stiff rise from Rs.1-1.3 lakh crore per year spent on constructing highways in recent years; while the amount hovered around Rs.1 lakh crore between FY18 and FY20, analysts estimate that around Rs.1.4 lakh crore was spent in the last financial year, given the 30% jump on year in the highway length added in the year.

 

Announcing the ambitious goal, minister for road transport and highways Nitin Gadkari said that that the process related to land acquisition and environmental clearances were being expedited. Gadkari, who had set a 40 km/per day highway construction target for the current fiscal, up from 36 km/day achieved in the last fiscal, had on March 18 this year informed Parliament that “expenditures incurred (by the government) on the development works on the national highways” were Rs.1,00,178 crore in 2017-18, Rs.1,27,993 crore in 2018-19 and Rs.1,03,258 crore in 2019-20.

 

While the highway sector has been a silver lining when other sectors of the economy are languishing, analysts discounted the possibility of road construction worth Rs.15 lakh crore in a couple of years, even if the construction of roads other than highways, including village roads under the PM Gram Sadak Yojana (annual spend of roughly Rs.15,000 crore) is included. Obviously, the government is expecting larger private sector participation through the HAM and BOT routes, while also trying to augment government expenditure by pooling in resources including the proceeds of toll-operate-transfer projects.

The National Infrastructure Pipeline had pegged spend on roads at Rs.20.34 lakh crore between 2020 and 2025.

As on March 31, 2021, works on 2,108 highway projects with a cumulative length of 64,010 km, costing Rs.9,22,404 crore, were ongoing, according to the ministry of road transport and highways.

Providing the highest-ever Rs.1.18-lakh-crore capital outlay for the ministry for 2021-22, finance minister Nirmala Sitharaman said in the latest Budget that more than 13,000 km length of roads, at a cost of Rs.3.3 lakh crore, has already been awarded under the Rs.5.35-lakh-crore Bharatmala Pariyojana. Of this, 3,800 km of the roads have been constructed.

By March 2022, another 8,500 km projects would be awarded and an additional 11,000 km of national highway corridor would be completed, she said.

The increasing pace of highway construction, analysts believe, is the result of a slew of measures the government initiated in recent times like shifting from milestone-based billing (typically ranging between 45-75 days) to monthly billing and release of retention money, performance security in proportion to the work already executed which have helped in reducing cash conversion cycle

favoring the contractors.

 

 

Futuristic infra project to elevate Udaipur’s rank under Smart City Mission

 

In the online ranking released by the Union government, four of Rajasthan’s cities, Udaipur, Kota, Ajmer and Jaipur, have secured the 8th, 11th, 29th and 36th rank among the 100 smart cities of the country. While the Government is making efforts to elevate cities’ infrastructure, private players are executing futuristic infra projects that will make regular activities convenient for the citizens and add value to tourism.

 

In this direction, Damodar Ropeway and Infra Limited (DRIL) will be investing approximately Rs.20 crores to make the ropeway project, which is scheduled for completion by the end of 2022. The ropeway planned by DRIL will add feathers to the cap of Udaipur, ranking 8th among 100 smart cities of the country, which has always been popular as a picturesque tourist destination due to the magnificent palaces, and the second-largest artificial freshwater lake in Asia.

 

The company has chosen two prominent locations for the project — famous Fateh Sagar Lake and ancient temple Neemach Mata located on a hill on the banks of the lake. The 430 m long ropeway will start near SCERT Hostel, Fatehsagar Lake, and end at Neemach Mata Temple at Hill Top.

 

The company holds an accident free record for nearly four decades in constructing ropeway and cable car projects at multiple locations in India and abroad. The major ropeways in India built by Damodar Ropeways are – Ropeway at Science city, Kolkata, Ropeway at Maihar, Satna, MP, Naina Devi, HP, Gangtok, Sikkim, Namchi, Vaishnodevi, Tawang, Trikut and many more. Indian players such as DRIL with decades of experience have the potential to redefine commuting in urban cities with a positive impact on the environment by reducing carbon footprints.

 

 

Indira Gandhi Canal Project: How its restoration work in Rajasthan and Punjab was achieved in record time

 

 Amid the second wave of the COVID-19 pandemic, the states of Rajasthan and Punjab accomplished civil work of restoring around 70 kilometers of both feeder canals and main canal of the Indira Gandhi Canal Project in a record time of 60 days. It was a challenging task as the repairs required canals’ closure, while 1.75 crore people, numerous cattle, army cantonment along the international border as well as thousand hectares of farms in the state of Rajasthan were dependent on the canals for water. The COVID-19 pandemic added more challenges to the restoration work. The system’s rehabilitation was needed urgently as lining of the canals had been severely damaged due to continuous flow. Thus, to achieve the target on time, thousands of workers, as well as government officials, worked round the clock following strict Covid protocols.

For the canal restoration work, the Rajasthan feeder of the Indira Gandhi Canal Project was closed and it had directly impacted requirements of drinking, irrigation, army cantonment along the international border as well as industrial usages in the state’s border districts. The Rajasthan government had worked a water contingency plan for a duration of sixty days for these areas and defined a strict deadline for repair work of the 90 km long stretch of the Indira Gandhi feeder and main canal.

During 60 days closure from 30 March to 28 May 2021, relining of nearly 23 Km long stretch, costing an amount of Rs.202.92 crore, was successfully executed by Punjab and during 30 day closure period from 29 April to 28 May 2021, relining of about 47 Km long stretch, costing to Rs.238 crore, was executed by the state of Rajasthan successfully.

Another major task was that the feeder canal had a bed width of approximately 40 metres with a side sloping height of 11.5 metres. Concreting in bed had to be done in three strips. Thus, each day, around 13650 cubic meter of concrete needed to be laid. To complete the task, a three-shift, 24X7 work plan was executed by the Rajasthan Water Sector Restructuring Project for Desert areas (RWSRPD). Accordingly, installation and commissioning of around 81 Batching plant, as many as 320 Transit mixtures, 150 Paver as well as deployment of over 3500 skilled and semi-skilled labour was done with help of 73 contractors.

 

 

 

NHAI to mop up Rs.15,000 cr via monetisation this fiscal

 

The National Highways Authority of India (NHAI) has set a target to raise around Rs.15,000 crore through monetisation of its operating assets through toll-operate-transfer (TOT) and Infrastructure Investment Trust (InvIT) routes in the current fiscal. the authority’s maiden InvIT, through which NHAI plans to raise around Rs.5,100 crore and for which market regulator SEBI has given clearance, is expected to be launched in a month or so. The units are proposed to be listed in the NSE. Proceeds from the listing will be utilised for infusion of debt or equity into the SPV concerned —National Highways Infra Projects Pvt Ltd (NHIPPL). The SPV will collect tolls on the stretches under it for 30 years.

The NHAI InvIT, the second one promoted by a public sector entity after PGlnvlT, sponsored by power transmission utility PGCIL, was launched in late April. It will be out of bounds for retail investors.

 

NHAI may raise further funds of around Rs.5,000 crore by transferring more assets to the InvIT later in the year.

 

NHAI also plans to raise at least Rs.5,000 crore through monetisiation of toll roads through the ToT route, but whether it would comprise one bundle or more is yet to be decided. It will entirely depend on the return of the traffic on the roads.

 

According to rating agency Icra, toll collections fell by around 10% in April 2021 over March 2021 and estimated to have declined by 25-30% in May 2021 over April 2021.

 

NHAI has raised around Rs.17,000 crore through the ToT model so far by granting in long-term lease in three bundles out of the five attempted so far. The sixth bundle could also have taken off by now but for the subdued traffic on roads.

Proceeds from the asset monetisation programme are used to repay debt and develop highways. As on March, 2021, NHAI had Rs.3 lakh crore debt.

The authority was given the task of executing the Bhartmala Pariyojona project in October, 2017 under which the government plans to develop 34,800 km highway project (including 10,000 km residual NHDP stretches) with an estimated outlay of Rs.5.35 lakh crore. Out of this, as on March-end, 2021, it has awarded 14,679 km of stretches worth over Rs.4 lakh crore.

For the current fiscal, NHAI has been allocated Rs.57,350 crore in the Budget for 2021-22, up from Rs.49,050 crore (RE) in 2020-21. NHAI has also been permitted to borrow Rs.65,000 crore in 2021-22, same as in 2020-21.

 

 

NHPC signs MoU with BSHPCL

 

NHPC is engaged in electricity generation has signed a Memorandum of Understanding (MoU) with Bihar State Hydro-Electric Power Corporation (BSHPCL) on June 14, 2021 for execution of Dagmara HE Project (130.1 MW) in the State of Bihar by NHPC on ownership basis.

 

Government of Bihar shall provide a grant of Rs.7 billion for the Project, as per Capex requirements, proportionate to equity infusion by NHPC.

 

The government of Bihar shall purchase the entire power to be generated from the Project for its complete life at the rate as determined by CERC Tariff regulations as applicable at the time of actual Commercial Operation Date (COD) of the Project.

 

The cost of Project is presently considered as Rs.24.36 billion to be actualized as appraised by CEA during Detailed Project Report (DPR) clearance.

 

 

 

470 infra projects show cost overruns worth Rs.4.38 lakh crore

 

As many as 470 infrastructure projects, each worth Rs.150 crore or more, have been hit by cost overruns totalling more than Rs.4.38 lakh crore, according to a report.

 

The Ministry of Statistics and Programme Implementation monitors infrastructure projects worth Rs.150 crore and above. Of the 1,737 such projects, 470 reported cost overruns and 525 were delayed.

 

Total original cost of implementation of the 1,737 projects was Rs.22,33,409.53 crore and their anticipated completion cost is likely to be Rs.26,71,440.77 crore, which reflects overall cost overruns of Rs.4,38,031.24 crore (19.61 per cent of original cost).

 

According to the report, the expenditure incurred on these projects till April 2021 is Rs.13,16,032.62 crore, which is 49.26 per cent of the anticipated cost of the projects.

 

However, the report said that the number of delayed projects decreases to 375 if the delay is calculated on the basis of the latest schedule of completion.

 

Further, for 988 projects neither the year of commissioning nor the tentative gestation period has been reported.

 

Out of 525 delayed projects, 106 projects have an overall delay in the range of 1-12 months, 123 projects (13-24 months), 179 projects (25-60 months) and 117 projects (61 months and above).

 

The average time overrun in these 525 delayed projects is 45.63 months.

 

Reasons for time overruns as reported by various project implementing agencies include delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages.

 

Delay in tie-up for project financing, delay in finalisation of detailed engineering, change in scope, delay in tendering, ordering and equipment supply, and law and order problems, among others, are the other reasons, the report said.

 

The report also cited ‘state-wise lockdown due to COVID-19’ as a reason for the delay in implementation of these projects.

 

It has also been observed that project agencies are not reporting revised cost estimates and commissioning schedules for many projects, which suggests that time/cost overrun figures are underreported, it added.

 

 

 

 

J&K completed record 3,300 km rural roads in 2020-21

 

Jammu & Kashmir constructed a record 3,300 km of rural roads in 2020-21 under various schemes, thereby providing safe and secure all-weather connectivity to remote habitations across the union territory. The administration has now fixed a target to construct 4,200 km of road length in 2021-22. Most of the work was undertaken under the flagship programme ‘Pradhan Mantri Gram Sadak Yojana’. The projected target for 2021-22 includes 800 km and 3,400 km rural roads in Kashmir and Jammu provinces, respectively works.

 

 

National highway construction jumps 73.5% to 1,470 km in April-May

The road transport and highways ministry has constructed 1,470 km of national highways in the current financial year so far, an increase of 73.5 per cent as compared to the year-ago period. The ministry in a tweet said it had constructed 847 km of highway in the April-May 2021 period. The ministry awarded national highway projects of 663 km till May-end, compared with 747 km in May 2020.

 

 

 

First pier of Delhi-Meerut RRTS corridor completed

 

The first pier of the elevated section of the Delhi-Meerut Regional Rapid Transit System in the city has been completed near the upcoming New Ashok Nagar RRTS station, the National Capital Region Transport Corporation (NCRTC) said in a statement on Friday. The Delhi portion of the elevated RRTS section starts from Sarai Kale Khan RRTS station and passes above the existing Barapullah Flyover while crossing the Yamuna river to reach New Ashok Nagar RRTS station. The height of the constructed pier is 6.5 meter, and average height of the piers in the stretch varies from 5.6 meter to 17 meter, the NCRTC said.

 

It added that the first Regional Rapid Transit System (RRTS) Yamuna bridge is also under construction for crossing the river almost parallel to the DND Flyway.

 

The foundation work, including piling and pile caps, is in full swing between New Ashok Nagar to Kondli under package six contract and around 2 km of foundation work has already been completed out of the 9.2 km elevated corridor in Delhi. The construction work is in progress on the entire 82 km corridor with the help of 12 Launching Gantries (tarini).

 

 

ITD - ITD Cem JV announces successful completion of entire TBM tunneling work in Kolkata Metro East West Corridor
ITD Cementation India Limited (ITD Cem) has successfully completed  tunneling work by ITD - ITD Cem JV (of which the Company is a JV partner) in Kolkata Metro East West Corridor with the breakthrough of TBM “Urvi” at Bowbazar, Kolkata. This project is being executed for Kolkata Metro Railway Corporation, under the Ministry of Railways and has been completed efficiently in spite of challenging stretch of century old buildings and COVID scenario. With the breakthrough, entire TBM tunneling for East West Metro project has been completed. Post completion of this TBM drive, both the TBMs i.e ‘Urvi’ and ‘Chandi’ will be retrieved from retrieval shaft at Bowbazar. This tunnel boring completion is indeed a great momentous occasion for the Kolkata East - West Metro Project authorities and ITD - ITD Cem JV.

 




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