Operators blame cash users for traffic snarls on e-way
September 25, 2013
Aditya Dev, TNN |
DGSCL failed to open a single sale point for smart cards along the expressway. The concessionaire was required to promote the sale of smart cards by making it available at petrol pumps and other convenient places along the expressway. It has been able to issue just 18,000 smart cards since last October.
A memorandum of understanding (MoU) between the highway authority and the concessionaire, signed in September, 2012, has made it obligatory for DGSCL to introduce touch card technology on the toll plazas. Later, following an order of Punjab and Haryana High Court, Gurgaon police had suggested opening of outlets for selling smart cards at vantage points along the expressway to popularize it. The concessionaire opened one such sale point near the 32-lane toll plaza.
Now, this has also been shut and smart cards are only available at the three toll plazas of the expressway.
The drive to penalize cash users entering in the tag lanes also failed to take off. Out of 32 lanes, eight are earmarked for electronic tag users. But, the facility rendered useless with cash users also using this lane. In such a scenario, tag users are also made to wait in queues.
DGSCL has so far issued 1,37, 973 tags, out of which 1,23,006 are active, revealed an RTI reply given to a city resident Aseem Takyar.
A DGSCL spokesperson said, “Tag users are not able to get the benefit of a smooth passage as cash users deliberately get into tag lanes. This is one of the biggest reasons for congestion at the toll plaza. Ideally waiting time in tag lanes should be minimal if only tag users use the tag lane.”
“However, when cash in tag lane violation is high, the transaction rates in these “mixed” lanes, where cash users also enter tag lanes, sometimes dips to levels even lesser than the transaction rates of cash lanes. This is clearly a driving discipline issue that can only be resolved by challaning the errant cash drivers who enter the tag lane. Since as a concessionaire, we do not have the authority to challan such errant vehicles, we had written to the NHAI to give us the rights to challan such errant vehicles. As that did not happen, we have repeatedly requested the traffic police to step in as they have the authority to challan cash users who enter tag lanes. This needs to be done on regular basis,” the spokesperson added.
When contacted, joint commissioner of police (traffic) Bharti Arora said, “There is no such rule in Motor Vehicle Act to challan motorists for entering tag lanes. But, National Highway Authority of India (NHAI) and the concessionaire can fix a penalty for this.”
Never an emergency on express-way?
September 25, 2013
Aditya Dev, TNN |
While agreeing that the concessionaire, Delhi-Gurgaon Super Connectivity Ltd (DGSCL), hardly receive any calls on SOS booths and stated that commuters prefer calling in directly on the toll free number and the other two helpline numbers from their mobile phones.
There are 26 DGSCL booths along the expressway.
The booths have remained out of the order for most of the time since its installation on account of vandalism and not being repaired by DGSCL. The Friday visit was no difference. The booths were out of order there was no response from them
.
The RTI applicant, Aseem Takyar, had sought reply from the National Highway Authority of India (NHAI) about the total number of complaints, requests for SOS service in the last one year. NHAI stated that no complaint, requests were received. The authorities, however, added that more information is being obtained from the concessionaire.
NHAI said through the SOS helpline any service/help can be obtained from the corridor control of the concessionaire. As per the concessionaire agreement, the concessionaire is also required to provide medical room, first aid material in ambulance. There are four ambulances deployed by the concessionaire.
A DGSCL spokesperson said, “In case of any breakdowns or accidents, commuters prefer to call in from their cell phones directly at the toll free numbers that are mentioned along the expressway and on the toll receipt. They can call in at the toll free number 1800-103-1700 or at 9717890175 and 0124-2450800.”
More than a 100 calls are received every day on the toll free number and another 25-30 calls are received on the other two numbers which our corridor control teams respond to speedily, added the spokesperson.
BOX
DGSCL yet to receive NHAI notice
The DGSCL is yet to receive the notice issued by the NHAI regional office issued on Monday. NHAI office issued notice to the concessionaire directing it to immediately take up the road repair work of the expressway and service lanes. A DGSCL spokesperson stated Friday that the concessionaire has not yet received the notice. However, we would be responding to it as soon as we receive it. The maintenance of service roads on the expressway is also part of the matter being heard by the Delhi High Court where the matter is sub judice and would be next heard by the court in July.
BOX
An RTI application was filed seeking information from the NHAI about the total number of complaints/ requests for the SOS service
There are 26 SOS booths along the expressway
The booths are out of the order since its installation on account of vandalism, neglect
Commuters prefer calling in directly on the toll free numbers displayed on the route. There are three numbers 1800-103-1700 or at 9717890175 and 0124-2450800.”
More than 100 calls are received every day on the toll free number
Approval for development of four laning of Solapur-Yedeshi section of NH 211 in the State of Maharashtra under NHDP Phase IV
September 25, 2013
Government of India
Cabinet Committee on Economic Affairs (CCEA)
The Cabinet Committee on Economic Affairs has given its approval for four laning of the Solapur-Yedeshi section of National Highway-211 in the state of Maharashtra under the National Highways Development Project (NHDP) Phase IV on Build, Operate and Transfer (BOT-Annuity) in Design, Build, Finance, Operate and Transfer (DBFOT) pattern.
The cost is estimated to be Rs.1,057.82 crore including the cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road will be approximately 99 kms.
The project will expedite improvement of infrastructure in the State of Maharashtra and also reduce the time and cost of travel for traffic, particularly heavy traffic, plying between Solapur and Yedeshi. This road stretch runs between the Solapur-Yedeshi section of NH-211. Development of this stretch will also help in uplifting the socio-economic condition of this region of the State of Maharashtra. It will also increase employment potential for local labourers for project activities.
Source- http://pib.nic.in
October date for Khasmahal-Asanboni road project
September 25, 2013
B Sridhar, TNN |
It was after the demand from local MP Ajay Kumar and Potka and Jugsalai legislators, Menaka Sardar and Ramchandra Sahis respectively, that the then DC of East Singhbhum Himani Pandey asked the concerned department to prepare a project estimate for the road construction work and sent it to the state headquarters for approval.
“The construction work will commence from October and in six months time it would be completed,” said executive engineer of Rural Engineering Organization Rameshwar Kumar.
One of the busy streets on the fringes of the city which has thousands of vehicles particularly bi-cycles, two-wheelers and passenger mini buses plying on it during the day, the road was in dire need of re-construction for the past several years.
With the construction of the rundown road, the near one lakh residents of Khasmahal, Sarjamda, Barigora, Rahargora, Gadra and Asanboni area will benefit the most.
With two Greenfield projects, Bhushan Power and Steel Company Ltd’s 3MTPA integrated steel plant and 900MW captive power plant and Jindal Steel and Power Ltd’s 5MTPA steel plant coming up in Potka-Ghatshila stretch in the district, the proposed road is likely to witness manifold increase in traffic movement in the near future.
Roads regulator close to reality, cabinet nod likely by December
September 25, 2013
Ragini Verma | Asit Ranjan Mishra
The roads ministry has set up a task force for looking into the framework of the authority
New Delhi: Nearly seven months after finance minister P. Chidambaram proposed setting up a roads regulator to address challenges such as financial stress, construction risk and contract management issues, the roads ministry is close to finalizing the structure and role of the proposed regulator.
“We will get the cabinet approval for the roads regulator by December,” Vijay Chhibber, roads secretary, told reporters at a conference organized by industry lobby Federation of Indian Chambers of Commerce and Industry.
The ministry of road transport and highways has proposed that the roads regulator have an adjudicatory role for contract dispute resolution, renegotiation of future contracts and enforcement of contractual obligations.
For issues related to renegotiation of existing contracts, tariff structuring and toll mechanisms, project entry and exit options and specific policy issues, the regulator is proposed to play an advisory role.
“Road ministry is working on these terms of reference and the constitution mechanism and organizational structure of the roads regulator is under finalization,” Chhibber said.
The roads ministry has set up a task force for looking into the framework of the authority. The ministry has proposed that the regulator be headed by a board with a chairperson and two members, to whom an executive wing with technical and secretariat support will report.
“Toll-paying users under the current architecture do not get a fair voice. We should have a third party whom users can approach if they are not being provided with the services promised in the contract,” said Chhibber. “Then we are struggling with (contract) renegotiations. A roads regulator will help address these issues.”
Economic affairs secretary Arvind Mayaram, speaking at the same conference, said independent regulators such as in the roads sector are necessary to avoid situations where private parties and government bodies are blaming each other for issues arising out of project implementation.
“Regulators must begin to do this. If there is a concession issue, if there is a problem about the economics of the project which can happen, then we very clearly look at the stress test. It should very clearly look at where culpability lies and some haircut needs to be put in place so that the moral hazard issue is properly answered,” he said.
The roads ministry saw a sharp decline in award of contracts for highways last year. Against a lowered target of 8,100km, only 1,116km of highway projects were awarded.
The ministry will ramp up award of road projects under the engineering, procurement and construction (EPC) mode in the absence of interest from private players for build, operate, transfer projects, Chhibber said.
The ministry is looking to award 6,500km of road projects through the EPC mode in 2013-14, he added.
“The primary role of the proposed road regulator should be appropriate risk and reward allocation between government, developers, lender and especially the users,” said Parvesh Minocha, managing director of the transportation business at infrastructure consultancy Feedback Infra Pvt. Ltd. “If this is done and a proper structure is put in place to implement it then the downstream remedial roles like dispute resolution and failure handling will get significantly reduced.”
Work awarded for AIIMS-Digha elevated road
September 25, 2013
Faizan Ahmad, TNN |
The elevated road project will have major crossings at Bailey Road and Ashok Rajpath and will have connectivity with important places like Danapur railway station, proposed Patliputra railway station and AIIMS. Besides, it will also have connectivity with the Ganga Path and one railway bridge at Khagaul (Patna-Delhi) line. One minor bridge will also be linked to this project which is scheduled to be completed in three years from the start of the work.
Gammon India is already working on some projects in the state, including the state highways 69, 70 and 91 besides Muzaffarpur-Hajipur road, Ara-Buxar road, Munger bridge and Baluaha bridge. Some of these projects have been delayed, admitted company’s regional office vice-president B K Singh. He said the delay was due to land acquisition and other issues. “Almost all companies are facing these problems due to government policy,” he added.
Amrit said since this is one of the prestigious projects, the BSRDC will strictly monitor the schedule of the work and keep a close vigil on other related issues to ensure that the firm maintains the deadline.
SBI stops loans to road projects with land trouble due to rising NPAs
September 25, 2013
By Sangita Mehta, ET Bureau |
“This means that road projects will have to be capitalised on day one. If it is a single road, we will say please get 100%, otherwise we will have enough letters blaming us for financing it.”
As per the Reserve Bank of India, the state-run bank’s exposure to roads projects stood at 1.4 lakh crore in July, up 23% from the year-ago period.
Along with its associate banks, SBI, India’s biggest lender, accounts for about a fifth of the loans, prompting apprehensions that its latest move could hold up infrastructure projects that are reeling under severe funding constraints.
However, Chaudhuri clarified that the bank would consider a proposal if it came from a large state-run company.
“If it is a company like NTPCBSE 0.31 %, if they have 25 power plants and if they are starting two more, we will take a view that if these two flop the other 25 can keep the repayments going,” Chaudhuri said.
CBI director Ranjit Sinha had in August indicated that officers of public sector banksshould be made accountable for the rise in loan defaults.
His comments came amid a sharp rise in defaults and restructured loans that jointly account for 10% of the bank’s loan book. Sinha’s comments, however, evoked sharp criticism from bankers.
Subsequently, at a close-door meeting with officials of the RBI and the finance ministrya few months ago, Chaudhuri took a strong stand on banks being blamed for the rise in bad loans. “If the government and RBI continue to blame banks for rising NPAs, we will be forced to insert impossible conditions in loan covenants that will make it difficult for borrowers to avail the credit facility,” Chaudhuri said, according to a banker present at the meeting.
Bankers have been blaming the government, saying undue delays in giving clearances have led to the rise in bad loans. “Is it the banks’ failure in monitoring or is it the government’s that it has not delivered what it promised,” said a banker, who did not wish to be named.
Stop PPP projects, shift to cash contracts: NHAI to govt
September 25, 2013
Dipak Kumar Dash, TNN |
NEW DELHI: With few takers for road projects, the National Highways Authority of India (NHAI) wants the government to stop bidding out road projects through the public-private-partnership (PPP) route. Instead, the authority in a recent communication to the highways ministry has recommended that projects should be awarded in the form of cash contracts when the government finances the construction and maintenance for two years.
Pushing the EPC mode, Singh has said NHAI has been receiving bids for EPC projects and substantially below the total project cost (TPC). In case of PPP contracts both bidders and bankers have been alleging that TPC fixed by NHAI is underestimated.
To meet the fund requirement for EPC contracts, NHAI chief has said the ministry can allow it to raise higher amount through tax-free bonds and other instruments, besides restoration of the held back cess from fuel sale, which is at least Rs 7,000 crore.
There is, however, no decision on the proposal. On Monday, highways secretary Vijay Chhibber told a conference organized by Ficci that the issue is a matter of discussion between NHAI and the ministry. In his address he said that this year about 6,500 km is targeted for awarding through cash contracts.
The finance ministry said gloom for PPP projects was overdone. Economic affairs secretary Arvind Mayaram said about 50% of such projects are doing well. “Traditionally, we (were) used to paying the private sector to do a job in two-three years after which the relationship ends. Now, the issue is how to manage relationships in post award framework,” he said.
Private highway developers petition govt for relief
September 25, 2013
Dipak Kumar Dash, TNN |
After receiving a proposal from National Highway Builders Federation (NHBF) and IRB that the proposed premium rescheduling scheme should be extended to all premium projects.NHAI has asked the ministry to put a supplementary note for Cabinet’s consideration. NHBF has said, “Selective approach in allowing rescheduling of premium will invite litigation and any policy amendments needs to be extended to all premium projects awarded, irrespective of these projects have been issued appointed date and started construction or not and allow the concessionaire who are opting for this scheme.”
It added any litigation on this issue may derail the scheme and will in turn affect the revival of this sector. NHBF has said due to economic slowdown last year and rate of GDP growth plummeting to a decade low 5% have impacted toll revenues as low as 50% than estimated in majority of projects.
According to NHAI sources, the premium committed in case of already started 16 projects comes close to Rs 55,000 crore in the next 20-30 years and developers of the yet to be started 23 projects have committed to pay Rs 1 lakh crore to the authority.
Ministry officials said it’s impossible to add fresh ones to the list of identified “stressed” projects since a consensus has already been achieved among law, finance and road ministries to allow premium rescheduling of 23 projects including GMR’s Kishangarh-Udaipur-Ahmedabad highway. “By bringing in more projects under this list we will open a new window for debate and objections. How can we say that projects where work has started are under stress?” asked a ministry official.
Moreover, the signal that economic affairs secretary Arvind Mayaram sent on Monday on premium rescheduling at a FICCI summit indicates the amount of heat this new proposal may generate. He had said that to avoid “moral hazard” because of this move, there is need to identify “stressed” projects objectively and to have a methodology.
He had added that there is need to find out whey the particular projects are stressed. “If it’s because of authority’s default then they must take the haircut. We can’t brush it under the carpet. If the developer is at fault then it must take the haircut,” Mayaram had said.
The expenditure secretary had also said that there is need of a regulator to deal with such issues objectively.
‘Regulator needed’ to deal with disputes in public-private road projects
September 25, 2013
OUR BUREAU |Mamuni Das
Govt officials cannot deal with such projects: Mayaram
Arvind Mayaram, Secretary, Department of Economic Affairs, stressed the need to have a regulator for the road sector to handle disputes in public-private-partnership (PPP) projects.
He said Government officials do not have the capacity to deal with PPP projects where contracts between the Government and private sector span 20-30 years, thus requiring constant interaction and adjustment between the two parties based on the changing circumstances.
“Traditionally, we were used to paying the private sector to do a job in two-three years, after which the relationship ended. How to manage relationships in post award framework is an area where there is scope for improvement,” Mayaram said speaking at a FICCI conference here on Monday.
The regulator can help manage when the Government’s relationship with the private sector gets rocky, said Mayaram.
Omnibus Bill
Incidentally, the Planning Commission has taken a stance against the idea of having a road sector regulator to deal with such issues. It has rather supported the idea of an omnibus Bill, which will spell out ways for dealing with disputes in PPP projects.
Infrastructure
The Government has been increasingly wooing the private sector to build infrastructure through public private partnership basis.
In 2005, it decided to bid out all road projects on BOT-toll mode first, where the private developer designs, finances and builds a road, maintains it, collects toll from users for a long-term period. Vijay Chhibber, Secretary, Road Transport and Highways, said the Ministry is working on a proposal to have a regulator, as was announced in the Finance Minister P. Chidambaram’s Budget speech this year.
Advisory role
The regulator would have an advisory role on renegotiation of existing contracts, setting of service standards, project entry and exit options, tariff structuring and toll mechanism and knowledge management, according to the proposal under the consideration of the Road Ministry.
It would also have an adjudicatory role on contract dispute resolution, renegotiation of future contracts and enforcement of contractual provisions.
This is for the first time that the Highways Ministry has officially spelled out its detailed proposal for the regulator.