Gyan research weekly newsletter on #infrastructure sector

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 Gujarat’s Amrut INR 15,000 crore action plan
The Gujarat government has proposed an INR 15,375 crore action plan to set up basic infrastructure in 31
cities under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) over the next five
years. Of the total investments, about 42 percent will be spent on providing water supply connections, 30
percent on sewerage connections, 12 percent on drainage facilities and the remaining on urban transport
and parks. At a total cost of INR 4,721.57 crore, 19 sewerage treatment plants will be constructed to
create a total treatment capacity of 869 million litres per day. The state government has sought
assistance of INR 2,478 crore from the center, while it will contribute INR 1,941 crore and urban local
bodies INR 7,00 crore. The remaining INR 10,282 crore will be met from the government’s ongoing
schemes. Gujarat expects to emerge as the second most urbanized state of the country by 2030, with
urban population increasing to 66 percent of the total population from the current 43 percent.
 GIM approves plan for four states
The National Mission for Green India (GIM), under the Ministry of Environment, has approved the
Perspective Plans (PP) and Annual Plans (AP) for Kerala, Mizoram, Manipur and Jharkhand. The total
financial outlay for the PP is INR 90,202.68 lakh for a period of 5-10 years, while that for the AP is INR
11,195 lakh for the current financial year. The total forest and non-forest area to be taken up in the four
states is 108,335 hectares. Of this, improving the density of existing forests will cover 81,939 hectares
and afforestation of new areas will comprise 16,396 hectares. Alternative energy sources namely biogas,
solar devices, liquefied petroleum gas, biomass-based systems and improved cook stoves have been
approved to lower the pressure on forests, to secure carbon benefits and to gain health benefits.
 Committee to expedite project implementation
The Union Government has set up a high level committee - Empowered Committee for Innovative
Collaborations - in order to expedite creative joint ventures projects with a ticket size of INR 2,000 crore
and more. Projects involving lower investments may also be taken up if they carry significant social,
economic or security benefits. The committee will meet every fortnight to advise the state governments,
Foreign Investments Promotion Board and other agencies to create procedures that foster and make
practical use of innovative ideas by converting concepts into implementable projects. It will also evaluate
proposals with respect to their desirability in public interest, employment generation, revenue
generation, import reduction, export promotion and similar socio-economic considerations.
 Maharashtra outlays INR 13,828 crore on road projects
The Maharashtra government will spend INR 13,828 crore over a period of five years under the
Mukhyamantri Gram Sadak Yojna for the construction and repair of roads. The programme is aimed at
bringing greater connectivity in the rural areas. About 30,000 km of road will be repaired and 730 km of
new roads will be constructed.
Infrastructure News
October 10, 2015 – October 16, 2015

2. © Gyan Research and Analytics Pvt. Ltd., 2015 2
Infrastructure News
October 10, 2015 – October 16, 2015
 New highway to connect Delhi and Jaipur
The Union Government plans to build a 250-km greenfield express highway between Delhi and Jaipur at
an investment of around INR 30,000 crore, which will bring down the travel time between the two cities
to less than two hours. The government will need to obtain 2,000 hectares of land costing INR 18,000
crore for the expressway. It is also building an INR 4,000 crore mass rapid transport system linking
Manesar to Dhaula Kuan.
Industry News
 Four laning of State Highway 37 nearing completion
The four laning of the State Highway 37 from Bareilly to Almora, costing INR 355 crore, is scheduled for
inauguration on October 18, 2015. This would be Uttar Pradesh’s first completed project under the
Public Private Partnership model. Executed by PNC Infratech, it consists of 54-km road with paved
shoulders, a flyover, service lanes, nine medium-size bridges, 56 small bridges and a toll plaza.
Investment News
 CCEA to fund incomplete highway projects
The Cabinet Committee on Economic Affairs (CCEA) will provide one-time financial aid to revive
physically incomplete national highway (NH) projects. Projects that are 50 percent complete by
November 2014 will qualify for the loan, provided at bank rates plus 2 percent. A tripartite agreement
will be signed between the funding agency, the National Highways Authority of India and the developer.
The funding will help complete 15 projects, involving an investment of INR 15,000 crore. According to a
latest Crisil study, half of the road projects under the build, operate and transfer model, with a
sanctioned debt of INR 45,900 crore, are in jeopardy of not being completed. Moreover, the Union
Government has recently approved an exit policy for highway developers who can exit the project two
years after commencement.
 JNPT expansion project kicked- off
The capacity expansion project at Jawaharlal Nehru Port Trust (JNPT), situated off Mumbai’s eastern
seafront has been kicked off. It will be carried out in two phases at an investment of 7,900 crore and is
likely to be completed by end-2017. The project involves the construction of two berths of 1 km in each
of the two phases; 70 hectares of land will be reclaimed from the sea for each of the berths. The project
is being executed by the Bharat Mumbai Container Terminal, a subsidiary of the Port of Singapore, on a
design, built, fund, operate and transfer basis, under which JNPT will get a 35.9 percent share in
revenues. At present, JNPT operates one of the three terminals at the port, while the other two are run
by DP World and APM terminals. Post-expansion, the total handling capacity of JNPT will be 10 million
standard units - up from the present 4.5 million standard units.

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Infrastructure News
October 10, 2015 – October 16, 2015
Source: Ministry of Shipping
Weekly Snapshot
Shipbuilding Income
Financial Year Income (in INR crore)
2008-09 986
2009-10 1,181
2010-11 1,320
2011-12 1,260
2012-13 1,268
2013-14 1,410

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Infrastructure News, October 10, 2015 – October 16, 2015
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