Nitin Gadkari’s tenure as Maharashtra PWD minister saw private firm’s meteoric rise

October 29, 2012

Dattatraya Pandurang Mhaiskar, the original promoter of IRB, might be insisting that hisRs.164 crore “loan” toNitin Gadkari’sPurti Group was out of his personal savings.

But it cannot be denied that the projects given to IRB duringGadkari’stenure as the Maharashtra PWD minister played a significant role in the company’s rise.

Mhaiskar, a civil engineer, started IRBPL as a private company in 1977. Even though the company did a number of odd road construction projects during the first 18 years of its existence, the turning point came in 1995, when it signed the concession agreement for the first phase of the Thane Bhiwandi Bypass, its first Build-Operate-Transfer (BOT) project.

Incidentally, it was in 1995 that Gadkari became the Maharashtra PWD minister.

Between 1995 and 1999, the years Gadkari was at the helm of the state’s PWD ministry, the Mhaiskars got a flurry of big road construction contracts on a BOT basis. It’s completion of the Thane Bhiwandi bypass within two years worked as an advantage and it got contracts for the construction of a bridge over Patalganga river, the Khambatki Ghat project, the Kaman Paygaon project and the Bhiwandi Wada project during this period.

Gadkari emerged as one of the major champions of the BOT model and IRB was one of the main companies that benefited from the system.

During this period, Gadkari is said to have come into conflict with the then powerful Union minister Pramod Mahajan, over the Mumbai-Pune expressway project. It is believed Mahajan and Shiv Sena chief Bal Thackeray wanted the project to be given to a prominent industrial house but Gadkari pushed the case of the Maharashtra State Road Development Corporation.

Even this worked out in IRB’s advantage in the long run as it got the contract for maintenance and toll collection in 2004.

From a small company started by a civil engineer, IRB is one of the country’s largest road construction and infrastructure companies today.

It’s hardly surprising that the group’s USP is its ability to get crucial government contracts.

According to a report by PINC research, “IRB’s unique ability to win bids at competitive levels is a trademark”. The total worth of the contracts IRB got during Gadkari’s tenure as the PWD minister is estimated to be aboutRs.60 crore.

Gadkari, on his part, denies granting any special favours to IRB. “I gave numerous contracts when I was PWD minister as the maximum road construction took place during my time. I have no stake in IRB. These are just efforts to malign me,” Gadkari said. He also maintains that there is nothing wrong if IRBPL invested in the Purti Group. “Anyway I am no longer the chairman of Purti Group,” he said.

Source: http://indiatoday.intoday.in

Written by ITW Editor · Filed Under BOT

Contractors line up for govt-funded projects

October 29, 2012

NEW DELHI: Highway contractors, who have been facing financial crunch, have lined up for road projects to be built with 100% government funding. In the past two weeks, at least 50-60 companies for each such project on engineering-procurement-construction (EPC) mode have applied for pre-qualification to bid for these works.

Initially, National Highways Authority of India (NHAI) has identified eight such projects in Rajasthan and the second set of such works in Uttar Pradesh would be out soon. “All types of road construction companies including the big ones like L&T, GMR and Gammon have applied for pre-qualification. We expect good response when financial bidding starts,” a senior NHAI official said. All the eight projects in Rajasthan are in the range of Rs 200 crore to Rs 500 crore. Officials said projects have been designed in a manner where contractors won’t get more than 10% profit in executing these works.

Industry insiders said that response for such projects is much more since companies don’t need to raise loans from banks.The risk of EPC projects is with the government. “You will get back the entire amount. All responsibilities of clearances are with government. There is no need to invest from your pocket whereas in the build-operate-transfer (BOT) projects, getting loan has become difficult,” a private contractor said.

Source: http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under BOT, Highway, NHAI

Workshop On Finding Traffic Solutions For Gurgaon

October 22, 2012

Workshop Agenda

Gurgaon’s traffic problem is cited as one of the most serious issues facing the city. The quality of traffic infrastructure in the city has gone from bad to worse. The volume of inbound and outbound traffic has grown manifold leading to perpetual jams on key intersections.
Several roads intersections are poorly planned and structured. They need widening to improve the flow of traffic.
Other roads need structures like foot-overbridges, underpasses and flyovers to not only decongest traffic but also improve safety for pedestrians.
Sectoral roads have potholes and need maintenance. Poor quality of roads is one of the main reasons for low speeds and riding quality.
Besides some key roads in Gurgaon need service lanes to improve accessibility and avoid traffic criss-crossing.
The Delhi-Gurgaon expressway has become a sore point and a major bottleneck despite being developed into a sixlane
world-class facility. Simple and innovative traffic management solutions can help remove the bottlenecks on this strategic road.
Public transport is far from the desirable levels. Buffer connections with metro stations and inter-city transportation need to be improved.
More parking spaces including multi-level parking involving the private sector can also help decongest roads and widen their capacity.
Private companies be it tolling, traffic management solution providers, road maintenance companies need to involved.

Date & Venue of Workshop On Finding Traffic Solutions For Gurgaon

Date: November 21, 2012

Venue : The Palms, Sushant Lok-I, Gurgaon

CONTACT: [email protected]. Call us up at: 0124-4384669; +91-9910148148
Visit at: gurgaonfirst.org

Specifically, the workshop will address questions like:

Which agencies and authorities are responsible for various roads in Gurgaon?
What are the some of the big issues facing Gurgaon’s road and traffic sector?
What are some of the technologies that can make a difference?
How can the Delhi-Gurgaon expressway be decongested?
How can high volume traffic chowks be decluttered?
What are some of the traffic management solutions being used elsewhere in Mumbai and Bangalore as well as outside
India that can be brought to Gurgaon?

Target Audience

The workshop should interest:

Gurgaon road authorities
Traffic solution providers
Traffic consultancy providers
Toll plaza operators
Road construction and equipment companies
RWAs of Gurgaon
Gurgaon traffic police
Road research Institutes
Apex bodies
Civil society bodies/associations and NGOs

traffic workshop brochure

Written by ITW Editor · Filed Under Expo & Events

Highway contractors line up for government funded projects

October 22, 2012

NEW DELHI: Highway contractors, who have been facing a financial crunch, have lined up for road projects to be built with 100% government funding. In the past two weeks, at least 50-60 companies for each such project on engineering-procurement-construction (EPC) have applied for pre-qualification to bid for these works.

All the eight projects in Rajasthan are in the range of Rs 200 crore to Rs 500 crore. Officials said the projects have been designed in a manner where contractors won’t get more than 10% profit in executing these works.

Industry insiders said that response for such projects is much more since companies don’t need to raise loans from banks. Moreover, the risk of EPC projects is with the government. “You will get back the entire amount. All responsibilities of clearances are with government. There is no need to invest from your pocket whereas in the build-operate-transfer (BOT) projects, getting loan has become difficult,” a private contractor said.

National Highways Builders Federation ( NHBF) secretary general M Murali said EPC projects will get more takers since financing BOT projects has become difficult. “In the past couple of years, interest rate has increased from 8.5% to 15%. Banks have become stringent. Moreover, how can you get at least Rs 2.1 lakh crore finance that you need to execute 7,500 km highways work for three continuous years,” he added.

NHAI officials feel contractors in the BOT segment will come for good projects. In fact, after almost a six-month lull, NHAI received two bids for a BOT-Toll project last week. The four-laning of 154 km Salasar-Haryana border project costing Rs 601 crore was cleared by the Cabinet last week. NHAI officials said while the government had set 33% viability gap funding (VGF) for this project, one of the bidders quoted 27% VGF. GR Infra and Galfar Infrastructure are the two bidders for this project.

“EPC is certainly less risky for contractors. Medium and small players, who were earlier sub-contractors, would take more projects. But we feel the big players will eye viable BOT projects since greater risk can bring more revenue,” a highway ministry official said.

Source: http://timesofindia.indiatimes.com/

Written by ITW Editor · Filed Under NHAI

IRB acquires MVR Infrastructure & Tollways

October 15, 2012

Pic for representation only. IRB Infrastructure Developers (IRB) has completed the acquisition of 74 per cent stake of MVR Infrastructure & Tollways. IRB had earlier entered into a definitive agreement with the shareholders of MVR Infra to acquire their entire holding. As per this agreement, acquisition of remaining 26 per cent holding of MVR Infra will be completed once NHAI approves the share transfer.

Virendra Mhaiskar, CMD, IRB said, “Inorganic growth through acquisition of BOT projects in the secondary market has been an integral part of our evolving growth strategy. We will continue to evaluate such opportunities in future which can be value accretive.”

MVR Infra is the concessionaire for Omallur Salem–Namakkal BOT road project in Tamil Nadu. The company was formed for the purpose of widening of existing two-lane road to four-lanes from Km 207.050 (Salem) – Km 248.625 covering 41.55 Kms, on NH-7 in the State of Tamil Nadu. This also involved improvement, operations and maintenance of Km 199.200 (start of Salem Bypass) Km 207.050 (Salem) on NH-7. The concession agreement for this project was executed in February 2006 for a 20 year period (commencing from the appointed date) including construction period of 2.5 years. Toll collection started in August 2009.

The project stretch of 68.7 kms is located on the busy Bangalore–Kanyakumari section of NH 7. This project constitutes a 68.625 km four-lane highways between Omallur and Namakkal in the state of Tamil Nadu. Also, Salem is surrounded by steel and mining industry. The project stretch connects Hyderabad, Bangalore in the North to Salem, Namakkal, Karur, and Kanyakumari in the South.

Source: http://www.constructionweekonline.in

Written by ITW Editor · Filed Under IRB Infra, MVR Infrastructure

Govt may miss road award target

October 15, 2012

NEW DELHI: Private highway developers, who are struggling to get finances for projects, are likely to impact government’s target of awarding 9,500 km during this fiscal. With only 600-odd km road stretches awarded during the first half of the financial year, now even senior National Highways Authority of India (NHAI) officials are conceding that they can award not more than 5,000 km till March, 2013.

At least 23 road projects awarded last year have missed their timeline to tie up funds. NHAI gives six months to contractors to get funds from banks and financial institutions for all build, operate and transfer (BOT) projects.

Source: http://timesofindia.indiatimes.com

Written by ITW Editor · Filed Under NHAI

Cabinet approves road projects worth Rs 1,500 crore

October 15, 2012

New Delhi: The government on Thursday approved Rs 899.24 crore investment proposal for building a section of National Highway 758 in Rajasthan.

It also cleared a project worth over Rs 600 crore for two-laning of Salasar-Haryana Border section of NH 65.

The Cabinet Committee on Infrastructure has approved the investment proposal for implementing the project for the development of 4-laning of Rajasamand-Bhilwara section of the National Highway 758 in Rajasthan, an official statement said.

The total project cost estimated of the project for implementing under Design, Build, Finance, Operate and Transfer (DBFOT) pattern will be Rs 899.24 crore out of which Rs 221.45 crore will be for land acquisition, rehabilitation, resettlement and pre-construction cost.

The total length of the project will be 87.250 km and is covered in the districts of Rajasamand and Bhilwara in Rajasthan, the statement said.

The main object of the project is to expedite the improvement of infrastructure in Rajasthan and reduce the time and cost of travel for traffic, particularly heavy traffic, plying between Rajasamand and Bhilwara.

The Cabinet in its meeting held in July 2008 had approved the proposal for up-gradation of 5,000 km. It was proposed that keeping in view of traffic justification, additional 2,000 km may be undertaken as four-laned stretches.

CCI note for a unified NHDP Phase -IV, for 20,000 km, subsuming within it the 5000 km already approved under NHDP Phase -IV-A was approved by the CCI on February, 2012.

Rajasamand – Bhilwara is one of the projects approved for 4-laning, included under NHDP Phase-IV and within the ceiling of 4000 km for 4-laning. The same is also the part of annual work programme for the year 2012-13 of this Ministry.

The Cabinet also cleared 2-laning with paved side shoulders of Salasar-Haryana Border section of NH 65 from start to km-154.141 km in Rajasthan under NHDP-IV to be executed on BOT (Toll) mode on DBFOT basis.

The total project cost estimated for implementation under DBFOT pattern will be Rs 601.19 crore out of which Rs 71.12 crore will be towards land acquisition, rehabilitation, resettlement and pre-construction cost.

The project aims at reducing the time and cost of traffic plying between Salasar and Haryana border.

Source: http://zeenews.india.com

Written by ITW Editor · Filed Under BOT, Projects

CCI approves 3 new highway projects

October 8, 2012

The Cabinet Committee on Infrastructure approved the development of 3 new national highway projects yesterday, allowing expansion of existing highways.

Projects approved:

Six laning of Handia-Varanasi section of NH-2 in Uttar Pradeshunder NHDP Phase V on Design, Build, Finance, Operate and Transfer basis in BOT (Toll) mode of delivery. The total length of the road will be 72.398 kms. The total cost of the project including land acquisition, rehabilitation and pre-construction activities will be Rs.944.90 crore. The concession period will be 28 years including construction period of 30 months.

Four laning of Hubli-Hospet section of NH-63 in Karnataka under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT/BOT) basis. The total length of the road will be 143.29 kms.

The total cost of the project including land acquisition, rehabilitation and pre-construction activities will be Rs.1442.48 crore. The concession period will be 27 years including construction period of 30 months.

Four laning of Kashipur-Sitarganj Section of NH-74 in Uttarakhand and Uttar Pradesh under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT) basis in BOT (Toll) mode of delivery. The total length of the road will be 77.20 kms. The total cost of the project including land acquisition, rehabilitation and pre-construction activities will be Rs.685.84 crore. The concession period will be 21 years including construction period of 30 months.

Source: http://www.constructionweekonline.in

Written by ITW Editor · Filed Under Highway

The Pain Passes, The Beauty Remains

October 4, 2012

Amit We think of you with love today, but that is nothing new. We thought about you yesterday and days before that too. We think of you in silence, we often speak your name. All we have are memories, And your picture in a frame. Your memory is our keepsake, with which we’ll never part. God has you in His keeping, we have you in our hearts.