The document provides a weekly summary of infrastructure news from September 26, 2015 to October 2, 2015. Key points include: 1) The government is emphasizing the development of waterways as an economical mode of transport and plans to open the Haldia-Varanasi waterway next year. 2) Rapid land acquisition is expected to increase national highway construction to 17-18 km per day by April 2016. 3) Lanco Infratech has deferred the sale of its power assets due to restrictions in the power sector. 4) An expressway linking Katra and Delhi via Amritsar is planned to minimize travel time between the locations.

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Industry News
 Emphasis on growth of waterways
The Ministry of Surface Transport is laying emphasis on the development of waterways - an economical
mode of transport. The awaited 1620-km Haldia-Varnasi waterways would be opened next year and
water ports would be constructed along the way. Over the next six months a sea plane would be
launched, while a sea bus would be commissioned in the next three months. A bill for water transport in
101 rivers, covering 82,000 km is pending clearance in the Parliament. The government also intends to
build an INR 25,000 crore bridge linking Rameshwaram and Sri Lanka.
 Rapid land acquisition stimulates National Highway drive
With land acquisition being expedited, road construction is expected to increase to 17-18 km daily by
April 2016, and further during the next fiscal year from the current 13km/day. In the first five months of
the year 4,272 sq. km were acquired and in August another 1,620 km land was obtained. In 2014, 8000
km was allocated for upgradation and this year the goal is 10,000 km. The plan aims to sell competed
highway projects to generate INR 50,000 crore which can be utilized for taking up more projects.
 Lanco defers asset sale
Lanco Infratech has decided not to proceed with its asset disposal, as the ability amidst buyers to absorb
large assets is currently sluggish due to several restrictions in the power sector. However, the company
would sell a minimum 3,000 MW of its power assets with a value of INR 25,000 crore in FY2018. The firm
had sold the 1,200 MW Udupi thermal power project and the 70 MW Budhil hydropower project in 2014,
to lessen debt and infuse equity. Presently, Lanco has 3,460 MW of operating power assets and is
building a further 4,436 MW capacities, which would take its total operating capacity to more than 8,000
MW by FY2018.
 Expressway to link Katra, Delhi
The town of Katra in the Reasi district of Jammu & Kashmir, famously known as Katra Vaishno Devi, is
scheduled to be linked to Delhi via Amritsar through an expressway. The proposed expressway will be the
longest in India covering a distance of 600 km and passing through Haryana, Punjab and Jammu and
Kashmir. Construction work would begin immediately at a cost of over INR 15,000 crores. The new
expressway will minimize the travel time through small towns by nearly five to six hours, while making
the road journey more enjoyable.
 Satellites to assess speed of road construction activity
The National Highway Authorities of India (NHAI) will sign an MoU with ISRO for the adoption of best
technologies to monitor road construction as part of Road Asset Management System (RAMS). In keeping
with international best practices, the modern, digitalised asset management system for roads will utilise
ISRO–aided satellites and drones. The project would use GAGAN and BHUVAN satellite systems to
prepare a complete mapping of road assets. This would not only facilitate timely repair of roads, but also
in the formulation of Detailed Project Reports. The project which is being funded by World Bank will help
in accurate and scientific planning of road projects.
Infrastructure News
September 26, 2015 – October 2, 2015

2.  Differently-abled friendly infrastructure on the cards
All primary airports, railway stations and 4,000 major buildings in the country will be made differently-
abled friendly, as part of the Accessible India campaign. By July 2016, 75 A1, A and B category railway
stations and international airports and 4,800 buildings will be made approachable through retro-fitting.
As required, minor structural changes will be made, including ramps for wheelchairs or tactile strips and
braille signage for the visually challenged will be installed. An access-audit of nearly 100 important
government buildings in 48 cities will be conducted by the Ministry of Social Justice and Empowerment.
They will then be converted into fully accessible infrastructure for the differently abled. India has around
2.68 crore differently abled people.
Investment News
 Andaman and Nicobar allotted INR 1000 crore
Andaman and Nicobar islands are poised to become the country’s first maritime hub with an outlay of
INR 1000 crore, of which two crore has already been sanctioned. Infrastructure development will include
an expanded dry dock and ship repair industry in the capital Port Blair. The ship repair industry will be
implemented through private participation, for which the government has set aside INR 1,000 crore. The
plan also includes the development of port infrastructure, the purchase of tugs for safe berthing, the
acquisition of vessels to run mainland-island services and improving docking capacity. An amount of INR
50 crore has been allocated for the development of a sea route from Port Blair to Baratang. The Central
government’s plans will protect the original Jarawa residents while enhancing the tourism potential of
the islands
 Proposed investments of INR 1 lakh crore in Iran
India expects to make heavy investments to the tune of INR 1 lakh crore in Iran. Talks between the two
countries will involve setting up a gas-based urea manufacturing plant at the Chabahar port, besides
developing a gas discovery made by ONGC. Projects involving iron ore, steel, highways and railways are
also in the pipeline. The total investment in the projects will depend on negotiations on oil pricing.
 ABD lends for tourism infrastructure
The Asian Development Bank (ADB) has entered into an agreement with India to improve tourism
infrastructure in Himachal Pradesh, Uttarakhand and Punjab. The third tranche of INR 123.51 million loan
is part of the Infrastructure Development Investment Programme for Tourism and has a 20-year term,
including a grace period of five years. The loan of would be utilized for the development and preservation
of natural and cultural attractions. Under the agreement, new facilities would be created – such as
centers for art and craft, eco-parks and eco-tourism to attract tourists. A minimum of 30 community-
based societies would be made operational in the management of natural and cultural sites. Further,
more than 4000 members would be trained in tourism related skills.
 Infrastructure investment needs to be raised
Assocham and Thought Arbitrage Research Institute (TARI) in a report have declared that India needs to
escalate its investment in infrastructure sector to 10 percent of GDP from the current 6 percent. Since
pension and insurance funds are long time investments, they should be utilized for infrastructure
spending and engineering, procurement and construction model should replace the public-private
partnership (PPP) model. It further suggested that the failure of Special Economic Zones in attracting
investments need to be analysed.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Infrastructure News
September 26, 2015 – October 2, 2015

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Infrastructure News
September 26, 2015 – October 2, 2015
Weekly Snapshot
Source: Ministry of Shipping
Ministry of Shipping - Capital Expenditure Details in INR crore in 2014-15 (up to 31.12.2014)
Planned Non-Planned Total
Capital outlay on fisheries 3.88 0 3.88
Capital outlay on forest and wildlife 0 0 0
Capital outlay on ports and lighthouses 227.55 -4.82 222.73
Capital outlay on shipping 0 0 0
Capital outlay on civil aviation 0 0 0
Other transport services 3.02 0 3.02
Capital outlay on tourism 0.03 0 0.03
Loans for engineering industries 0 8.78 8.78
Loans for ports and lighthouses 50 0 50
Loans to government servants 0 0.22 0.22
Total Capital Expenditure 311.29 4.18 315.47

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Infrastructure News, September 26, 2015 – October 2, 2015
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