Gyan Research weekly newsletter on Infrastructure sector giving policy news, industry, investments news and weekly snapshot

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 Government approves INR 17,000 crore for highways up gradation
The Central Government has approved the upgradation of 1,000 km expressways, covering eight National
Highways (NHs), at an estimated cost of INR 16,680-crore. The eight stretches are 249 km Delhi-
Chandigarh section of NH-1 and NH-22; 334 km of Bangalore-Chennai section of NH-4; 261 km of Delhi-
Jaipur section of NH-8; 277 km Kolkata-Dhanbad stretch of NH-2; 66 km Delhi-Meerut section of NH-58;
200 km of Delhi-Agra section of NH-2 and 135 km length of Eastern Peripheral Expressway.
 Policies to revive highways
Recent policy initiatives such as rescheduling of premiums and the 5:25 refinancing schemes have given
Special Purpose Vehicles (SPV) a shot in the arm by restoring their financial health. With the introduction
of the hybrid annuity model and infrastructure debt funds, the government’s focus on the rising need of
an efficient and flexible financing path was highlighted.
 Government completed building 3.64 lakh school toilets
Under the Swachh Vidyalaya initiative, about 87 percent of schools have been provided with toilets since
last Independence Day. The final target is 4.19 lakh toilets. The construction of toilets in schools was
undertaken by the states and union territories, 15 central ministries, public sector undertakings and over
10 private sector units. Around 310 central observers were also assigned to review the progress of the
initiative. Some states such as Dadra and Nagar Haveli, Andaman and Nicobar, Daman & Diu, Puducherry,
Kerala and Sikkim have already achieved 100 percent target.
 National Smart Grid Mission invites plans from states
The Central government’s National Smart Grid Mission has invited proposals from states to set up of two
or three smart grid systems, as part of the proposed smart cities programme. The Centre will sponsor 33
percent of the project cost, while the balance will be borne by the states. The Smart Grid Forum is a joint
body by the ministries of power and of industry and will observe and control the power consumption of
every household on a real-time basis. The smart grid project can reduce equipment failure, lower
disruption in power lines, minimise distribution losses and reduce the illegal withdrawal of power.
 Centre eyes UAE’s USD 800 billion fund for infrastructure investment
The Central Government aims to secure a share of the UAE’s sovereign fund, worth USD 800 billion, for
infrastructural development. Currently, the UAE has invested around USD 8 billion in India, of which USD
3.01 billion is in the form of foreign direct investment while the remaining is portfolio investment.
Infrastructure News
August 8, 2015 – August 14, 2015

2.  International corridors for BBIN trade
The Chief Minister of West Bengal has approached the Prime Minister of India for funds to develop
international corridors that will facilitate sub-regional cooperation and trade between Bangladesh-
Bhutan-Nepal-India (BBIN). The aim is to develop infrastructure and improve trade with Bangladesh via
the Petrapole border. India shares 2,000 km land boundary with Bangladesh and shares borders with
both Nepal and Bhutan, which could be India's gateway to these countries.
Industry News
 Multi-level car parking facility and queue complex at Guruvayoor
Guruvayoor Lord Krishna Temple in Thrissur plans to construct a multi-level car parking facility and a
queue complex on the devaswom land next to the temple. The decision was taken at a high level meeting
between the temple and the Chief Minister of Kerala and the Devaswom minister. This was a long
pending request of devotees.
 Expert panel for housing projects
The Maharashtra government has decided to set up a committee of technical experts to suggest
guidelines to build affordable and technically sound houses. The committee will be supervised by the
Principal Secretary of Housing and the Secretary of Public Works Department. The latest technology will
ensure time and cost saving in buildings construction.
 Eastern Peripheral Expressway - India's ‘smartest’ highway
The 135 km Eastern Peripheral Expressway (EPE), a six-lane expressway connecting Palwal in Haryana
with Ghaziabad in Uttar Pradesh and Kundli in Haryana, will be the country's first highway with features
of most advanced Intelligent Traffic System (ITS). The EPE would consist of variable message display
system (VMS) and live signs to guide drivers about traffic jams or any accidents on the roads ahead. CCTV
camera footage will help to warn drivers against speeding.
 RInfra 1Q down by 12 percent
In Q1 2015, Reliance Infrastructures (RInfra) suffered a fall of 12 percent in its net profit to INR 401 crore
from INR 458 crore year-on-year. The reduction is due to a loss of INR 50 crore suffered by the Mumbai
metro and INR 39 crore by its cement business. The company’s total income, however, increased 6
percent to INR 4,829 crore in the April-June period of 2015-16, as against INR 4,548 crore earlier year.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Infrastructure News
August 8, 2015 – August 14, 2015

3.  Essel Group, CII sign pact to form technical consortium for Smart Cities
Essel Group has signed an MoU with the Confederation of Indian Industries (CII) to form a technical group
for smart city projects in the country, under the CII National Mission on Smart Cities. The two
organizations will be working towards bringing in other technology and infrastructure solutions for
developing smart cities in India.
 KEC International bags INR 838 crore orders
KEC International has secured orders worth INR 838 crore in transmission and distribution and telecom
cable businesses. The transmission and distribution orders have been secured in India, Bhutan and
America amounting to INR 778 crore, while an order of INR 60 crore has been secured in the cable
business for the supply of power and telecom cables.
Investment News
 DLF raises INR 1,000 crore through debentures
DLF has raised INR 1,000 crore through the issue of non-convertible debentures to increase internal cash
flows. After the Securities Apellate Tribunal (SAT) suppressed a three-year ban imposed by the Securities
and Exchange Board of India (Sebi) on the company in March, this is the first issuance of debentures by
DLF. The company had raised INR 10,000 crore through the sale of non-core businesses and land parcels
in the last 3-4 months.
 Government proposes investor-friendly contracts
Seeking the private sector’s interest in economic recovery, the Government has decided to issue new
contracts, with investor-friendly clauses, to build eight expressways. The development of 1,000 km of
expressways at an estimated cost of INR 16,680 crore has been planned. The expressways are Delhi-
Chandigarh (249 km), Bengaluru-Chennai (334 km), Delhi-Jaipur (261 km), Delhi-Meerut (66 km), Kolkata-
Dhanbad (277 km) on NH-2, Delhi-Agra (200 km), Vadodara-Mumbai (400 km) and the Eastern Peripheral
Highway outside Delhi. Most of them will be concrete cement expressways.
© Gyan Research and Analytics Pvt. Ltd., 2015 3
Infrastructure News
August 8, 2015 – August 14, 2015

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Infrastructure News
August 8, 2015 – August 14, 2015
Weekly Snapshot
* Include additionalallocation of 3,088 crore from balance under CRF
Source: Ministry of Road Transportand Highways
Toll Revenue Collected and Length Under Toll
Toll Revenue Collected
(INR crore)
Additional Length Brought Under Toll
(km)
Achievement 2014-15 5,927 1,488
Target for 2015-16 6,500 2,180
Allocation of Central Road Fund, for 2014-15
Grant to State Governments and UTs for State Roads 2,642.63
Grant to States & UTs for Roads of Inter-State
Connectivity and Economic Importance 293.63
National Highways* 14,065.81
Total 17,002.07

5. © Gyan Research and Analytics Pvt. Ltd., 2015 5
Infrastructure News , August 8, 2015 - August 14, 2015
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