Old framework for transportation sector to be modernised: Nath

The “old regulatory framework” relating to the transportation sector will be modernised to make it “practical”, Minister for Roads Transport and Highways Kamal Nath said today.

“Some of the very old regulatory frameworks we have relating to transportation like multiple permit and others have to be looked at (anew)… We are looking at new models,” Nath told reporters here while taking charge of the Ministry.

He also said that the outlay for constructing roads and highways has to be utilised and the programmes and mechanisms for road development have to be made workable and practical.

Nath, who was Minister for Commerce and Industry in the previous Government, said he will work towards meeting the challenge of providing stimulus to the economy through developing roads and highways.

“With the current global recession and the (slowdown) in the country, it is important that this (development of roads and highways) provides economic stimulus, this provides jobs and this is going to the biggest challenge,” he said.

His ministry will also look at the impediments in implementing plans for infrastructure development in the country, Nath said.

Source: business-standard.com

Bid to widen highway begins

Ranchi, Aug. 1: National Highways Authority of India (NHAI) has set the ball rolling for the four-laning of Hazaribagh-Ranchi stretch of NH-33, considered to be the lifeline of Jharkhand.

NHAI, which functions under the Union ministry of road transport and highways, has invited a global expression of interest (called request for qualification in technical parlance) from construction majors. The last date to respond is August 29.

“It would be a 75km stretch of NH-33 costing around Rs 600 crore. The tenders would be on build, operate, transfer (BOT) annuity basis,” said H.C. Arora, the chief general manager of NHAI, who looks after projects in Uttar Pradesh, Uttarakhand, Bengal, Bihar, Jharkhand and Delhi.

This would be the third time that NHAI has invited tenders for the same stretch.

Earlier, two efforts to finalise the project through BOT-toll basis proved futile with no parties responding to pre-qualification bids apparently due to Naxalism and law and order problems in the state. Under BOT-toll, the contractors awarded works are supposed to invest the entire project cost and realise the same by collecting toll taxes for the next 30 years or so.

Under the annuity basis, although the construction company would invest the entire project cost, a fixed annual sum as annuity from the government would ensure that the former gets back its invested money.

In a related development, the ministry is contemplating to turn the 150-km stretch of NH-33 between Ranchi and Jamshedpur into a single package. Earlier, the stretch was divided into two packages — one between Ranchi and Rargaon and the other between Rargaon and Mohulia.

Arora added that the NHAI would soon invite expressions of interest for the Ranchi-Jamshedpur stretch, too.

The ministry was in favour of inviting the tenders on BOT-toll basis. The overall cost of the project would be around Rs 1,300-1,400 crore.

The proposed Hazaribagh-Ranchi four-lane road would end near Vikas Vidyalaya by taking a bypass of about 20km before meeting Ranchi-Jamshedpur highway near Rampur.

The state and central authorities are discussing whether the proposed Ring Road project for Ranchi can be merged with the highways’ proposed bypass on a cost-sharing basis. Arora added that the four-laning project of both the stretches would be part of National Highway Development Programme-Phase III.

Source: telegraphindia.com

Gammon India Ltd sees FY09 topline at Rs 3K cr

Gammon India has declared its results for the quarter ended June 2008 (Q1). The company’s standalone net sales were at Rs 585.24 crore versus Rs 540.31 crore.

Parvez Umrigar , MD, Gammon Infrastructure Projects said that Gammon India Limited, the contracting arm of the company will book a topline turnover of Rs 3,000 crore for the current year. He added that Gammon Infrastructure, the development arm is more of a value based play and they have capital investment plans of around Rs 7,500 crore scattered over the next few years.

Excerpts from CNBC-TV18’s exclusive interview with Parvez Umrigar:

Q: Numbers look good, Operating profits margins stood at about 71%, the key concern right now is whether are not incremental orders are expected to slow down and more importantly for the current order book that you enjoy at Rs 9,500 crore is there an issue on execution?

A: The privatization space across the sectors continues to keep pace and infact the government has given us a choice that would like to promote more on a privatization model.

We have had some slow down in the road sector because the implementation under NHI new model agreement have had some issues raised by some developers and that once in a while you do change a model agreement so those things arise but otherwise if you see the action in BOT (Build, Operate, Transfer) space for example the government just announced the qualifications of Ennore.

Q: So out of the Rs 9,500 crore of order book, how much execution will be possible in this year and the incremental orders that are coming in, what is the average size that you are looking to bid right now?

A: Gammon India Limited, the contracting arm will book a topline turnover of Rs 3,000 crore for the current year. Gammon Infrastructure, the development arm is more of a value based play and they have capital investment plans of around Rs 7,500 crore scattered over the next few years.

Q: We understand you have 14 projects underway, what is the kind of outlay for these projects?

A: The 14 Special Purpose Vehicles (SPV) companies that we have has an overall capital outlay of Rs 7,000 crore which would involve an equity investment of Gammon itself of around Rs 500 crore.

Q: What is the overall target for FY09 for Gammon Infrastructure at this point in time and what are the kinds of projects you are bidding for right now?

A: Gammon Infrastructure for the current year we expect to grow our current 14 SPVs by at least four more, there two SPVs where we are lowest in the bid and we await the letter of intent (LOI) ending which we can make the official announcement. The topline for the current year on a turnover basis will be around Rs 250 crore.

Source: moneycontrol.com

HCC joint venture bags Rs639-crore Andhra irrigation project contract new

Mumbai: Hindustan Construction Company (HCC) jointly with SEW Infrastructures Ltd and Megha Engineering & Infrastructures Ltd (MEIL) has bagged a Rs639-crore contract for building a barrage of around 3.5 km on river Pranahita near Tummidi Hetti village in Adilabad district of Andhra Pradesh.

HCC will have a share of Rs326.03 crore in the work being undertaken for the Pranahitha-Chevella Package-3 being undertaken by the Irrigation & Command Area Development (ICAD) department of the government of Andhra Pradesh.

The contract covers detailed investigation, preparation of designs, drawings and construction of a barrage including fixing of gates, head regulator and 500 meter long gravity canals. The project will be completed in 48 months.

The project is a part of the government’s ‘Jalayagnam’ programme, an initiative to provide immediate irrigation benefits to all underdeveloped regions of Andhra Pradesh.

Pranahitha-Chevella lift irrigation scheme will irrigate an ayacut of 12.20 lakh acres and provide drinking water to about 1,000 villages in Adilabad, Karimnagar, Nizamabad, Medak, Nalgonda and Rangareddy districts in Telangana region.

HCC is currently involved in construction of Godavari lift irrigation phase I and Phase II in Andhra Pradesh where Phase I has already been commissioned and phase II is in advanced stages of completion. In addition, HCC is currently executing four major projects in Andhra Pradesh, including the country’s first cavern for strategic storage of crude oil at Visakhapatnam, the Veligonda lift irrigation project, the Rajiv Sagar lift irrigation project and a 30 km highway of NHAI on NH-7 under north-south corridor on BOT basis.

HCC constructed the first bridge over the river Godavari at Shahgar, in Andhra Pradesh way back in the 1930s. Since then it has built several infrastructure projects, including the Godavari Barrage at Rajahmundry, the Papavinasam Dam, the Vizag Monolith & West Wall Protection and the Railway Bridge over Godavari which is the first and only bow-string bridge in India, the company said in a release.

HCC has so far constructed over 45 dams, barrages and 15 powerhouses in the sub continent, contributing to over 30 per cent of the country’s installed hydropower capacity.

Source: domain-b.com

Ministry unlikely to pay highway companies for higher input costs

The Ministry of Road, Transport and Highways is unlikely to accept a demand of private contractors engaged in the construction of national highways for reimbursement of increased costs, incurred due to the unprecedented hike in cement and steel prices.

A senior official in the Ministry of Road, Transport and Highways said: “We have received the demands of the highway contractors. However, it is very difficult to rework the cost escalation norms and reimburse the escalated price in a running contract. The government has taken several measures to address the price issue and in the coming days the prices of steel and cement are expected to come down”.

He added the projects undertaken on a public-private partnership (PPP) basis always have a risk element involved.

The risk is addressed to a certain extent as the contract is based on the star rate (the base rate at which the contract is signed for any given commodity used) and in which there is a provision to reimburse the escalated price.

Brahmdutt, president, National Highway Builders Federation, said: “The unanticipated sharp rise in the price of cement, steel, bitumen and other raw materials over the last year have hit hard the contractors undertaking National Highway Authority of India’s (NHAI) projects. The escalation clause of most contract documents are insufficient to accommodate the large variations in prices of construction materials. As a result such variations transfer themselves to the contractor in the form of increased costs”.

Over the last year, prices of steel, cement and bitumen have increased at an average of 76.96 per cent. This has led to increase in cost of building a 1 km four lane project from Rs 6 crore to Rs 7.84 crore

Ankideedu Maganti, director, Soma Enterprises Ltd, which is undertaking a couple of National Highways Authority of India, projects said: “At the time of bidding we assume a inflation of 7-8 per cent on materials.

But right now, our assumptions are not able to accommodate the 40-50 per cent rise in the price of raw materials”.

Source: www.business-standard.com

SIX Laning of delhi-Dehradun National Highway

Delhi-Dehradun stretch of NH-58 & 72 has been identified for 4/6-laning under National Highways Development Project (NHDP) Phase III on Build, Operate & Transfer (BOT) mode based on the criteria of high density of traffic and connectivity of State capitals with corridors of NHDP Phase I & II .  The present status of this stretch is as under:

• Delhi-Meerut section of NH-58 is already 4-laned and preparation of Detailed Project Report (DPR) for 6-laning is in progress.
• The work of 4-laning of Meerut-Muzaffarnagar section of NH-58 on BOT basis is in progress and targeted for completion by March, 2009.
• The work of 4-laning of Muzaffarnagar-Haridwar section could not be awarded as only single bid was received and the same was cancelled. For re-bidding of this section, updation of Detailed Project Report (DPR) as per new Model Concession Agreement (MCA) as decided by Public Private Partnership Appraisal Committee (PPPAC) is in progress. The Haridwar-Dehradun section is passing through Rajaji National Park and clearance is to be obtained from the Central Empowered Committee constituted by the Hon’ble Supreme Court of India. After clearance from Central Empowered Committee and PPPAC, bidding process is to be taken up for award of 4-laning work.  It is too early to indicate the completion time of 4-laning work of Muzaffarnagar-Haridwar-Dehradun section at this stage. However, the same may not be completed by 2010 keeping in view the time taken in obtaining the clearance from Central Empowered Committee & PPPAC as well as response of bidders.

This information was given  by the Minister of   State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa  in a written reply in the Rajya Sabha today.

Source: pib.nic.in

STATUS OF WORK ON SELECTED HIGHWAY STRETCHES IN PUNJAB

The status of Chandigarh-Kiratpur, Amritsar-Pathankot and Jalandhar –Amritsar stretches are as under:

(i) Chandigarh-Kiratpur stretch: The Chandigarh-Kurali section is of 28.6 km length. Out of this, the stretch from km 0.0 to km 11.4 is four/six laned. Four laning from km 11.4 to 15.4 has been sanctioned for Rs.13.51 crore on 31.03.2008 by Ministry. Four laning of the remaining section from km 15.4 to 28.6 is to be taken up under National Highways Development Project (NHDP) Phase – III. The 4 – laning of Kurali-Kiratpur section has been awarded in June 2007 on BOT basis and the work is likely to be completed by June 2010.

(ii) Jalandhar-Amritsar stretch : The Detailed Project Report (DPR) to take up the work of four- laning on Build, Operate and Transfer (BOT) toll basis for Jalandhar-Dhilwan section has been updated by the consultant. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance. The four – laning of Dhilwan to Verka Chowk, Amritsar section has been started in May 2006 and the work is targeted to be completed by November 2008.

(iii) Amritsar-Pathankot Stretch : The Detailed Project Report (DPR) preparation for four laning of this stretch is in advance stage of completion. The bidding process shall be started after Public Private Partnership Appraisal Committee (PPPAC) clearance.

This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok Sabha today.

Source: pib.nic.in

DEVELOPMENT OF EXPRESSWAYS UNDER NHDP-VI

The following stretches under National Highways Development Project (NHDP) Phase-VI have been identified for implementation.  

S. No.	Name of Expressway	Length (Km)	Status of work
1.	Vadodara-Mumbai	400	The consultant for fixing of alignment has been appointed.
2.	Delhi-Meerut	66	The proposal from the consultants for fixing of alignment has been invited.
3.	Kolkata-Dhanbad	277
4.	Bangalore-Chennai	334

            The Delhi-Jaipur stretch was one of the stretches announced by the Finance Minister in his budget speech for the FY 2008-09 for construction of Expressway.  The project was to be finally selected for implementation on the basis of traffic volume.       However, in view of the upgradation of existing alignment to six lane under NHDP Phase-V, which will be sufficient to cater to the traffic volume for another 10-12 years, the new Expressway is not envisaged, at present.

      NHDP Phase VI is targeted for completion by December 2015. 

This information was given  by the Minister of  State for  Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok  Sabha today.

Source: pib.nic.in

NHAI terminates road contract awarded to MP-owned company

Parliament member Samba Siva Rao’s Progressive Constructions was unable to build 55km road

New Delhi: Under pressure for poor results and with the government seeking an overhaul of its management team, the National Highways Authority of India, or NHAI, the country’s road regulator, has begun axing contracts for non-performance, including those awarded to companies with powerful political connections.

These troubled contracts are partially to blame for holding up completion of the so-called Golden Quadrilateral that would connect four regions of India through 5,846km of four-laned highways. Within the last month, NHAI has cancelled two contracts and encashed their bank guarantees.

The more high profile of the two was the termination of a contract awarded to a company run by the family of a Congress party member of Parliament, Kavuru Samba Siva Rao.

“These contracts had to be terminated because they had defaulted,” said NHAI chairman N. Gokulram, refusing to discuss the matter further.

As many as eight contracts under the Golden Quadrilateral have already been terminated between 2006 and 2007. Of the 5,846km of highways that were to be four-laned under the project, NHAI is yet to complete 206km.

Hyderabad-based Progressive Constructions Ltd, which was set up by Rao, a four-term MP, and is managed by his son Bhaskar Rao, was not able to complete the 55km stretch even four years after the initial deadline expired. Consequently, NHAI terminated the contract and encashed a bank guarantee of around Rs50 crore submitted by the company when it was awarded the Sunakhala–Ganjam highway project.

NHAI officials, who did not wish to be identified, insist that this is just the beginning and it “would spare no one regardless of their political connections”.

A dozen contracts, whose performance is holding up completion of the Golden Quadrilateral project which was started by the National Democratic Alliance government in 1998, but is yet to be completed, are being scrutinized by NHAI.

According to officials in the ministry, Progressive was awarded the contract in 2001. The highway work was to be completed by 2004. When the contract was terminated last month, the company was only half-way done, with the project valued at Rs163 crore.

“I am not looking after these things (management). My son Bhaskar Rao runs the company,” said Rao, adding that there was also a feeling among contractors that “all was not well with NHAI.”

While the MP declined to elaborate the reasons for not being able to proceed with the project, he maintained that problems faced by the contractors, such as land acquisition, threat from Naxalites and law and order issues, have not been addressed.

“NHAI could not hand over the land within the time frame and in the sequence as was stipulated in the contract. This has affected the project,” insisted a senior executive with Progressive.

NHAI has also terminated the contract of Prakash-Atlanta, a joint venture between Prakash Building Associates Ltd and Atlanta Infrastructure Ltd, for failing to complete the Lucknow bypass on time. An NHAI officer said the regulator had also encashed the bank guarantee of Rs28 crore from the company.

However, the company says that it was its contractor who had initiated the termination proceedings. In a 14 March letter addressed to the NHAI chairman and the consulting engineer for the project, a copy of which was viewed by Mint, the contractor requested that the contract be terminated and NHAI provide compensation.

The letter said the contract was supposed to be completed in 30 months by August 2004. The contractor, however, alleged that a number of problems, including land acquisition and variance in scope of work, dogged the project.

“Another problem is the quality of the detailed project reports,” said an official with the company, who did not wish to be quoted. The project went to an arbitration tribunal following disputes over variation in costs of the project.

“Now it has become crystal clear to us that the policy of NHAI is to use the contractor as a resource and exhaust him completely before termination of the contract wrongfully and illegally, and further crippling the contractor by making demands on securities and bank guarantees,” the letter stated.

The letter also said the contractor filed two separate termination notices to NHAI. Each time, the contractor was persuaded to continue work on the project.

“On the one side, the government is insisting on completion. On the other side, bankers and shareholders are asking for results. So, any delay in finalizing the bills or making payments from government side may have lot of impact on the promoters credibility with the bankers and also with the government and of course the investors,” said Murali M., director general of the National Highways Builders Federation.

Source: livemint.com

Australia’s longest tunnel with Kapsch technology: Another contract from Australia for Kapsch TrafficCom AG

Kapsch TrafficCom will equip Australia’s longest tunnel. In March 2008, the company was able to secure contracts with a project sum of more than 11 million Australian dollars (more than EUR 6.4 million). More specifically, Kapsch will supply the road side equipment as well as the central telematics system for the tolling in the North-South Bypass Tunnel in Brisbane. With this contract, Kapsch TrafficCom is consolidating its strong market leadership in Australia.

“We are pleased about being awarded the contracts for equipping the North-South Bypass Tunnel. This traffic project emphasises Australia’s leading position in traffic systems and fully electronic toll systems. With this contract, Kapsch TrafficCom can also continue its success story in Australia – since 2000, several major projects have been realised in Australia – e.g. in Melbourne and Sydney”, explains Erwin Toplak, Management Board Member of Kapsch TrafficCom AG.

Upon its completion in 2010, the North-South Bypass Tunnel in Brisbane will be the longest in Australia. The tunnel, with a project length of 6.8 kilometres, includes two 4.8 km double-lane tunnel tubes. Kapsch TrafficCom is equipping this with a central traffic telematics system, including two signal bridges and a complete back-office solution. When complete the tunnel will create a new link for north-south traffic underneath Brisbane and will significantly reduce the volume of traffic in the city.

Further information also available at: www.rivercitymotorway.com.au

Kapsch TrafficCom AG is an international provider of innovative traffic telematics systems, products and services. Kapsch TrafficCom mainly develops and supplies electronic toll collection (ETC) systems, especially multi-lane free-flow (MLFF) ETC systems as well as offering technical and commercial operating services for these systems. In addition, Kapsch TrafficCom offers traffic management solutions focusing on traffic safety and traffic control, electronic access control systems and parking space management. With more than 140 installed toll systems worldwide in 30 countries in Europe, Australia, Latin America, the Asia-Pacific region and South Africa, and with a total of more than eleven million transponders and 11,000 equipped traffic lanes, Kapsch TrafficCom has positioned itself as a worldwide market leader for ETC systems. Kapsch TrafficCom is headquartered in Vienna, Austria and has subsidiaries and representative offices in 18 countries.

Vienna, 31st March 2008

For further information:
Brigitte Herdlicka
Public Relations & Sponsoring
Kapsch Group
Phone: +43 (0) 50 811 2705
A-1120 Vienna, Wagenseilgasse 1
E-mail: brigitte.herdlicka@kapsch.net
www.kapschtraffic.com
www.kapsch.net

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