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Nl infrastructure oct 10 - oct 16, 2015

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Gyan research weekly newsletter on #infrastructure sector

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Nl infrastructure oct 10 - oct 16, 2015

  1. 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. 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. 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. 4. © Gyan Research and Analytics Pvt. Ltd., 2015 4 Infrastructure News, October 10, 2015 – October 16, 2015 Market Entry Strategies Market/ Marketing Research Pre-Feasibility, Feasibility & TEV Studies Equity Research & Valuation Economic Intelligence Our Business Practices Business Research Central Delivery Centre BD-9, Sector-1, Salt Lake City Kolkata - 700 064, India Phone: +91-33- 40060084 Corporate Office LG 37-38, Ansal Fortune Arcade, Sector - 18, Noida - 201 301 Delhi NCR, India Phone: +91-120- 2511945 E-mail: reports@gyananalytics.com Website: www.gyananalytics.com Branch Office - Mumbai Branch Office - Bangalore Branch Office - Hyderabad

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