21 September 2019

Table of Contents for Ticker Tape





Infrastructrure

Bullet train work to start from Jan’19

 

Work on the the 508 km long Mumbai- Ahmedabad bullet train is expected to begin from Jan 2019. The mega project worth `1.08 lakh will be completed by 2022. The land acquisition work for this project is expected to end by December this year. Land acquisition for this project has started in Mumbai. The Indian Railways will spend `10,000 crore for the complete land acquisition spanning 1,400 hectares of linear land in Maharashtra and Gujarat. The National High Speed Rail Corporation (NHRC), which is in charge of train operations on high speed corridors, is the implementing agency for the mega project.

 

 

Mumbai stations to be revamped

 

Around 19 stations in Mumbai under the Mumbai City Traffic Project are going to be transformed in the coming years. Reports suggest that the among the 19 stations, eight stations are on the Western route, and 11 stations on the central line. The target of 2022 has been set for the ultra-modernization of the station. A sum of `880 crores will be spent for this work. The plan for all stations will depend on the arrival and departure of the passengers from that station. The project has been undertaken by the Indian Railway Station Development Corporation and the Mumbai Rail Vikas Mahamandal.

 

 

 

Govt expects earning `200 crore from 25 projects in 9 states

 

The Government is expected to earn a sum of `200 crore from the monetisation of 25 additional National Highways stretches scattered in nine states from next month. This comes after the successful collection of `106 crore from nine highway projects. Reports suggest that Detailed project reports (DPRs) are being formulated for about 25 more highway projects which will be auctioned in three tranches. It is learnt that highway projects spanning around 1,640 km on a cumulative basis, will be bid out under TOT beginning next month. Out of the 1,640 km projects, National Highways stretching around 1,000 km are to be bid out in the second and third tranches in May while the remaining about 640 km is planned to be put under hammer in the fourth tranche likely in June or July. The projects are scattered in nine states and highway stretches in Odisha and West Bengal are being prepared to be put for auction in the second tranche, followed by stretches in Rajasthan, Gujarat, Tamil Nadu and Telangana in third phase.

In addition to this,t he fourth tranche projects will be from Uttar Pradesh, Bihar and Jharkhand.

 

 

 

Schedule lags in 107 highway projects; legacy issues for majority

 

Even as the contracts for highway project awarded in the previous year rose to new heights, the older projects are lagging and are way behind the schedule. Reports suggest that there is a possibility that 107 projects had or would miss the originally scheduled completion date. Though most projects were awarded prior to when the present government took charge, 19 of 107 projects were awarded between May 2014 and August 2016.The average completion time stipuled in the contract for any road project is between two to three years. In some cases, extending to four years, depending on the length of road and nature of the work.

 

 

 

Gadkari woes  Korean businesses to invest  in India

 

Union Minister Nitin Gadkari has recently urged Korean businesses to invest in India’s roads, waterways and other infrastructure segments. The government is planning to 12 expressways at a cost of `1 lakh core.  India is also planning to develop shipbuilding, fisheries and the port sector will also create investment opportunities, the water resources, river development and Ganga rejuvenation.  Additionally, the government is leaving no stone unturned to explore ways of greater involvement in financing projects such as inter-linking of rivers, highway construction, developing logistics parks and shipbuilding in India. The government is eyeing for a partnership wherein Indian highway engineers and shipbuilding engineers can be trained at specialised training institutions of Republic of Korea to expose them to the systems in place there.

 

 

 

Bengaluru airport to raise `133 crore for new terminal, runway

 

Bengaluru International Airport Ltd (BIAL), India’s third largest airport is set to raise a sum of `133 crore for the construction of building a new terminal and runway which are expected to become operational within three years. The company expects to raise funds at 0.25-0.50 over the MCLR (marginal cost of funds-based lending rate) with a tenure of about 15 years. The parent At present, the traffic is growing at about 13 per cent year-on-year and is expected to settle down at a steady 10-12 per cent. Reports suggest that the current terminal has a capacity of 20 million passengers, whereas the current traffic is about 26 million passengers. The new terminal will increase the capacity by another 25 million passengers, which will be enough for another five-six years. BIAL has invested a sum of `3,800 crore for building the airport as well as expansion.

 

 

HSIIDC to develop IMT Sohna under PPP Mode

 

Reports suggest that the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) has planned to foray into the joint development of integrated Industrial Model Township (IMT) at Sohna. This will be done via PPP mode. HSIIDC has proposed development of IMT spread across 1,292 acres of land through PPP (Public Private Partnership) mode. The proposed IMT will span around to the north of Kundli Manesar Palwal Expressway in Mewat region. The plan will develop the industrially backward region of Mewat through a Joint Development Model and bring in world class Industrial Township, giving the entire area a makeover.

 

 

 

Sargarmala projects worth `8 trillion in motion but funding remains challenge: ICRA

 

According to a report by ratings agency ICRA, the Sagarmala project will continue to have a fund raising problem even if 500 schemes worth `8 lakh crore are currently being undertaken. Sagarmala— the ambitious project of the government is about port modernisation, port connectivity enhancement, port-linked industrialisation and coastal community development for phase-wise implementation until 2035.

According to the data released by the Ministry of Shipping, out of the 700 projects initially identified for execution, about 500 different projects valued at about `8 lakh crore are currently in motion already and are at various stages of feasibility study/award process.

 

 

 

Foundation stone for six laning of Aurangabad - Chordaha Section of NH-2 laid

 

Prime Minister Narendra Modi  recently laid the foundation stone for a National Highways project for six-laning of the  70 km long section of NH-2, extending from Aurangabad in Bihar to Chordaha on Bihar-Jharkhand border. The cost of the project would be `882 crore. This section of NH-2 is part of the Delhi – Kolkata section of the Golden Quadrilateral.

After widening, it will be have one flyover, 15 underpass, 7 major bridges, 24 minor bridges, 174 culverts, 12 foot over bridges, 26 bus bays, 7 truck lay bays and 2 wayside amenities.

 

 

Second runway of Bangalore airport to be operational next year: BIAL

 

Bengaluru International Airport operator BIAL, recently declared that the second runway expected to be operational next year, while the new terminal will be operational by 2021. T2 would be constructed in two phases. In the first phase, the terminal would be able to handle 25 million passengers annually and the capacity would be increased to have 20 million more fliers. The construction is expected to begin during the middle of 2018. After the completion of both the projects, the capacity of the airport would reach the 65 million mark.

 

 

 

Highway construction reaches 10K Km mark

 

The National Highway construction in India reached the 10,000 km in the financial year ended on March 31.  This is on the background of the government upping the ante for the pace of implementation and awarding contracts.  Each day highways of length 27.5 km were constructed every day in FY18. Similarly, contracts for around 46 km per day were awarded. The expenditure on national highways is likely to exceed `2 lakh crore for FY19. Out of the `2 lakh crore, about `1 lakh crore will come from extra-budgetary resources (including NHAI borrowings and monetisation of existing national highways) and more than `70,000 crore through budgetary grants and tolls. NHAI is the single largest agency for implementation of national highways – it constructed more than 4,000 km in FY18 and awarded 150 projects of 7,400 km worth `1.22 lakh crore, the highest ever.

 

 

 

NHAI aiming to raise `18,500 crore for Bharatmala

 

India’s nodal highway construction authority, National Highways Authority of India (NHAI) is planning to raise funds worth `8,500 crore from national insurance corporation—LIC and another funds worth `10,000 crore from National Small Savings Fund to finance the ambitious road construction target under the Bharatmala highway development programme. A sum of `5,000 crore is to be raised by NHAI via masala bonds. These funds will be used for the construction of the 10 expressway projects across the country. The funds would be raised for a tenor of 15 years at an interest rate of a little less than 8 per cent. NHAI is also hoping to receive `9,681 crore in May through monetisation of highways.

 

 

 

Road ministry plans Delhi-Mumbai expressway

 

Media reports suggest that the central government is planning on having a greenfield expressway between Delhi and Mumbai. The highway is supposed to have a new alignment and pass through less developed areas falling in the region, road transport and highways. The government is planning to have greenfield highways instead of expanding lanes of existing highways. Reports suggest that the government will be opening open two expressway projects in and around Delhi in a few days. The Eastern Peripheral Expressway, which will act as a ring road for Delhi and the Delhi-UP Gate section, and the Delhi-Meerut Expressway will soon be inaugurated.

 

 

 

India to develop 2 lakh km of highways

 

The government of India is planning to develop 2 lakh km of highways and 12 expressways across the country. The developments are going to be carried out with the help of the state governments. The government has signed work contracts for projects valued at `850,000 crore for roads, ports, shipping, water resources in the coming years. The works on the construction of a new highway between Bengaluru and Mysuru at a cost of `7,000 crore has already started. Similarly, construction work on the `16,000 crore expressway project between Bengaluru and Chennai has also been started from early April.

 

 

 

India road awards may set `1 lakh crore record

 

According to IIFL Wealth Management, the Indian government in 2018 has awarded road contracts at a "breakneck pace”. The orders form NHAI might cross the `1 lakh crore from `60,000 crore a year ago. NHAI is expected to award more than 7,000 km of road contracts, about 60 percent more than last year. Contract awards were in slow pace during December, meeting just over a tenth of a the full-year target of 10,000 kilometers, due to delays in land acquisition and the roll-out of GST.

 




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