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Nl infrastructure oct 24 - oct 30, 2015


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Gyan Research weekly newsletter on Infrastructure

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Nl infrastructure oct 24 - oct 30, 2015

  1. 1. © Gyan Research and Analytics Pvt. Ltd., 2015 1 Industry News  Fiber grid project in AP to be completed by March 2016 The Andhra Pradesh government has instructed Infrastructure Corporation of Andhra Pradesh Limited to finish the work on the INR 333 crore, 30,000 km fiber gird in the state by March 2016. It further set the deadline for the completion of the works in Visakhapatnam, Srikakulam and Vizianagaram for December this year. The completed grid will make three services - video, internet and telephone - available in the state. The state government also appreciated the efforts of the Energy Department for lessening transmission and distribution losses to 10.37 percent and asked for further reduction of losses to 9 percent.  Union Government to award 100 road projects The Union Government plans to award 100 road projects under the public-private-partnership mode in the next financial year. The projects would be awarded on the newly conceived hybrid annuity model, wherein projects will be sanctioned along with land and environment clearances. About 40 percent of the cost will be borne by the government, while 60 percent will be funded by private players. Of the 60 percent, banks will provide 30 percent of the requirement. With this scheme, the government aims to bring in private investment worth INR 75,000 crore in the road sector. The new method has been adopted as investor interest in the sector has reduced due to problems of land acquisition, approvals and public rebellion to toll collection. In 2015, seven projects worth INR 11,500 crore have already been awarded.  NHAI to carry out risk measurement The National Highways Authority of India (NHAI) announced that it will carry out risk monitoring before rolling out projects, in order to avoid delay in project take off, for which tenders would be floated. As a result, the government is not awarding any highway project unless it has 80 percent of land and the necessary clearances in place. Projects on engineering, procurement and construction (EPC) basis will continue to be the mode of delivery of road projects for the next two years so that private investment can regain confidence. The Union Government aims to push the award of highway projects to 12,000 km yearly, from the current 8,000 km, at an investment of around INR 5 lakh crore.  RFP for Mopa greenfield airport The Goa government is likely to float a Request for Proposal (RFP) for the greenfield international airport at Mopa in north Goa. The first phase of the project will cost about INR 1,800 crore and would be completed by 2019, to serve 4.9 million passengers. The total cost of the Mopa airport, including six- laning of the road from the airport to National Highway 17, would be around INR 3,300 crore. The five companies chosen by state government for the qualification process are Airports Authority of India, GVK, GMR, Essel Infra and Voluptas Developers. After the RFP is issued, proposals would be submitted by these firms and the winning firm would operate the airport for 60 years. The successful bidder would also run an aviation skills development center, along with the state government, to coach local talent for further aviation and airport linked jobs. Infrastructure News October 24, 2015 – October 30, 2015
  2. 2. © Gyan Research and Analytics Pvt. Ltd., 2015 2 Infrastructure News October 24, 2015 – October 30, 2015  Ashoka Buildcon wins INR 277 crore road project Major infrastructure firm, Ashoka Buildcon, has won an INR 277 crore road project from the NHAI. The company has received the Letter of Award from NHAI with regard to the development of the 4-lane Islampur bypass of 10.31 km on NH-31 in West Bengal, under NHDP Phase-II on EPC basis. The company has a base of 28 public-private-partnership projects across nine states. It also has a presence in the power transmission and distribution sector, with several projects in Maharashtra, Chhattisgarh and Tamil Nadu.  NGT orders PWD to cease work The National Green Tribunal (NGT) has ordered the Public Works Department (PWD) to cease work on the third phase of Barapullah elevated road, connecting Sarai Kale Khan with Mayur Vihar, until it gets environmental clearances. However, according to the PWD, since this phase consists of a bridge over Yamuna, it is much smaller and thus requires no environmental clearance. The major objection relates to a ready mix concrete cement plant, which the PWD is setting on the eastern side of the river, and another one which is already present on the western side. Further, the petitioner has alleged the dumping of debris on the floodplains. The project is anticipated to be completed by 2017, but it would be delayed if court insists on environmental clearances. Investment News  Heritage development approved INR 431 crore The Ministry of Urban Development has sanctioned action plans for eight cities under the Heritage City Development and Augmentation Yojna (HRIDAY) initiative, at a total cost of INR 431 crore. The eight cities are Varanasi, Mathura, Ajmer, Dwarka, Badami, Warangal, Amaravati and Vellankini. Apart from enhancing sanitation through solid waste management, the plan aims to preserve and develop primary heritage assets of these cities by providing signages for easy access, interpretation centres, landscaping, provision of green spaces, among other things. Some of the projects in the eight cities have been sanctioned and funds have been released even before comprehensive plans were approved.  Telangana to spend INR 405 crore in 11 AMRUT cities The Telangana government plans to spend INR 405.17 crore to provide water supply in 11 cities in the state under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) in the current fiscal year. It has already given a State Annual Action Plan to the Union Urban Development Ministry for approval. The state government has decided to improve water supply, since supply in the selected cities is below the stipulated 135 litres per capita per day (LPCD). At present water supply in the state’s AMRUT cities ranges from 65 LPCD in Ramagundam to 114 LPCD in Greater Hyderabad Municipal Corporation. Among other mission cities, the water supply position in Mahaboobnagar is 75 LPCD, Warangal 80 LPCD, Suryapet 90 LPCD, Miryalaguda 90 LPCD, Khamman 100 LPCD, Adilabad 102 LPCD, Nalgonda 102 LPCD, Nizamabad 108 LPCD and Karimnagar is 109 LPCD. The AMRUT plan incorporates infrastructure development in 500 cities across the entire count.
  3. 3. © Gyan Research and Analytics Pvt. Ltd., 2015 3 Infrastructure News October 24, 2015 – October 30, 2015  Rajasthan to have two new highways The Rajasthan government plans to build two new highways on the Nagaur-Pilani and Chaksu-Phalodi routes that will link the state to Delhi and stimulate tourism. The new national Nagaur to Pilani highway would be constructed via Tarnau-Jayal-Deedwana-Salasar-Laxmangarh-Jhunjhunu and the other Chaksu to Phalodi via Dudu-Sambhar-Makrana-Khatu. Additionally, INR 48 crore would be spent on constructing missing road links to improve network in Nagaur district, INR 63 crore on availability of power in villages of Nagaur district, and another INR 13 crore on the four-lane cement road to be built in Merta City. Weekly Snapshot Indian Infrastructure Output Growth during September 2014 – August 2015 Month Growth in output (in percent) September 2014 1.89 October 2014 6.32 November 2014 6.73 December 2014 2.37 January 2015 1.83 February 2015 1.45 March 2015 -0.09 April 2015 -0.42 May 2015 4.40 June 2015 3,00 July 2015 1.10 August 2015 2.60 Source: Various Published Sources
  4. 4. © Gyan Research and Analytics Pvt. Ltd., 2015 4 Infrastructure News, October 24, 2015 – October 30, 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: Website: Branch Office - Mumbai Branch Office - Bangalore Branch Office - Hyderabad