Arunachal Pradesh pursuing tri-nation highway with Centre

October 21, 2013


     (A proposed highway through…)

TAWANG: A proposed highway through the historic Stillwell road connecting Arunchal Pradesh with South East Asian countries is being pursued with the Centre, Chief MinisterNabam Tuki said today.

Speaking at the inaugural function of the second edition of three-day International Tourism Mart, the Chief Minister said the highway will herald growth of international trade and tourism and be a harbinger of bilateral relations among the nations of South East Asia and North East India.

 This in turn would serve to end the insurgency menace, mushrooming of youth organisations and avoidable crimes in the region for lack of socio-economic development, he said.

Air services to the land-locked state would improve considerably with the operationalisation of seven airfields being upgraded by the Indian Air Force at Ziro, Tezu, Pasighat, Mechuka, Anini, Wallong and Tuting, he said.

He pointed out that the Gopinath Bordoloi Airport at Guwahati has been made an international airport to air-link most South East Asian countries to give an impetus to the tourism industry.

Besides this, the Harmuti-Itanagar railway line is nearing completion while construction of a greenfield airport at Itanagar would be started soon to improve air connective, he said.

Organised by the Union Ministry of Tourism with the Northeastern states, the international mart would highlight the tourism potential of the region in the domestic and international markets.

Stating that the Northeast has been referred to as ‘the Paradise Unexplored’, the chief minister said “Northeast India has a lot to offer to any tourist visiting this part of the country.”

“You came as strangers, but must leave as friends and forge a lasting partnership with the representatives of the travel industry of Northeast India in generating good business for the region,” the CM said in an appeal to delegates.

He said promotion of tourism sector was top most priority for his state government as it could generate massive self employment avenues while enriching the state exchequer.




Worli-Sewri elevated corridor: Five companies submit bids

October 19, 2013

Express News Service : Mumbai,

The plan for an elevated road between Worli and Sewri to boost east-west connectivity in the island city got a boost Friday, with five engineering companies submitting bids for construction of the corridor.

The companies that have submitted bids for the 4.5-km elevated road are Larsen & Toubro, Hindustan Construction Company, Gammon India, Simplex Infrastructure and National Construction Company.

“We have opened the technical bids. We will need around two weeks to evaluate the proposals after which we will open the financial tenders. The evaluation of the financial bids will take another two weeks,” said an official from MMRDA.

The construction of the Worli-Sewri elevated road, which will cost around Rs 490 crore, is likely to begin early next year and will take nearly four years to be completed. The project will require the rehabilitation of around 800 families living along the alignment of the road. The corridor will begin at Narayan Hardikar Marg in Worli and end near Sewri railway station.

MMRDA had originally planned the Worli-Sewri corridor primarily as a connector to the showpiece Sewri-Nhava Mumbai Trans Harbour Link (MTHL) for traffic to make the sea-link across the Mumbai harbour accessible to the western suburbs. However, the 22-km harbour link project saw a setback earlier this year when not even a single company responded to MMRDA’s call for price bids to construct the harbour link in public private partnership mode, though five consortia were shortlisted.

MMRDA has decided to go ahead with the elevated road project, as it could benefit the city even as a standalone project.




October 15, 2013

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6.    Advancements in Technology: Driverless
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7.    Tackling
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8.    Providing
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Roads: clearing obstacles will take time

October 15, 2013

Vatsala Kamat


The Sep quarter too will see earnings of most infrastructure firms being weighed down by high interest and depreciation costs
The government’s desire to give a push to infrastructure projects may result in some relief from the problems of poor order inflows and low financial viability of existing projects. Photo: Ramesh Pathania/Mint
(The government’s desire to give a push to infrastructure projects may result in some relief from the problems of poor order inflows and low financial viability of existing projects. Photo: Ramesh Pathania/Mint)


Last week’s decision by the government to reschedule the premium payable by developers to the National Highways Authority of India (NHAI) is aimed at giving jammed road projects a new lease of life. The decision to reschedule the premium arose out of the fact that many developers quoted a hefty premium to win orders, as competition increased between fiscal years 2012 and 2013, which led to some projects turning financially unviable.


No doubt, the decision to reschedule will not change the profile of projects overnight. Analysts’ data indicates that more than 80% of the build-operate-transfer (BOT) projects awarded in fiscals 2012 and 2013 have not started construction yet. It is now widely known that land acquisition and environmental clearances, highly leveraged balance sheets, poor cash flows on existing projects and high interest rates are key reasons for a slowdown in the roads sector.


Around 23 projects caught in a quagmire will be examined on a case-to-case basis. However, a note by Citi Research says that one of the conditions to ensure smooth payments by developers after rescheduling is that the firms should furnish bank guarantees. “Given the tightening lending standards to road projects and leveraged balance sheet of developers, it may be difficult to furnish the bank guarantee,” it says.


As has been the case during the past several quarters, the September quarter too will see earnings of most infrastructure firms including roads being weighed down by high interest and depreciation costs. A report by IDBI Capital Market Services Ltd expects companies such as Hindustan Construction Co. Ltdand IVRCL Ltd to be in the red during the September quarter. And, others such as Simplex Infrastructures Ltd, Nagarjuna Construction Co. Ltd and IRB Infrastructures Developers Ltd are likely to see a decline in earnings compared to the year-ago period. Revenue expansion is likely in some cases where execution is on track.


But analysts’ data reveals that against a normal road completion time of 48 months, most projects awarded in fiscal 2009-10 are complete to the extent of only 50-60%.


Complicating the imbroglio is the fall in order inflows, which could get worse in the near term, given that elections typically see major decisions being postponed. This would stymie revenue expansion too. This fiscal year till date, NHAI has awarded only 479km of road projects costing Rs.2,700 crore, compared to the road ministry’s target of 5,000km of both EPC and BOT projects. EPC stands for engineering, procurement and construction.


Now, the orders that have already been given can mean healthy order book for some firms, giving decent revenue visibility for the next one or two years. Among the mid-sized firms, Sadbhav Engineering Ltd and Ashok Buildcon Ltd are better off than some of their peers.



The government’s desire to give a push to infrastructure projects may result in some relief from the problems of poor order inflows and low financial viability of existing projects. But the pace leaves a lot to be desired and it may be many more quarters before actual and substantial movement is visible. For now, nothing seems to have changed for the roads sector.

Pernem-Keri road a major threat to commuters

October 15, 2013


MAPUSA: The Pernem-Keri road, that has been damaged due to land slides at Pernem, is posing a great threat to commuters. The stretch of road is frequented by thousands of commuters from the villages of Pernem, Porascade, Devsu, Korgao, Arambol and Paliem.

The land slides at the culvert just half a kilometer before reaching Pernem have destroyed a major portion of the road at the sharp turn and this has become a cause of concern for the commuters.

“Firstly, the visibility is very low at the sharp turn, now with half the road deteriorated, there is very little space left on the road,” said a daily commuter, Prakash Naik.

“It has been more than 15 days now but the authorities have taken no measures to repair the damaged portion of the road. The life of commuters is at risk as that stretch of the road is also an accident prone zone,” added Naik.

“The damaged stretch has already seen many accidents because of the sharp turn and the poor engineering of the road, the land slides have only added to the woes. It should be immediately repaired,” said another local.

Only 75% toll during work on highways

October 9, 2013


(This rule will bring relief to lakhs of commuters on over 2,000 km of national highways which
 are scheduled to be taken up for  widening from four-lane to six-lane in the near future.)                                                                               

NEW DELHI: The Cabinet on Tuesday decided to allow developers to charge only 75% toll during work on six-laning of highway stretches. In its bid to ensure that developers don’t delay construction, it also allowed tolling to be suspended for failure to meet the deadline.

A senior government official said this provision will put pressure on both private road developers and government agencies such as National Highways Authority of India ( NHAI) and state PWDs to provide encumbrance free land and get statutory clearances for project development. “The party responsible for default will have to pay/bear the damage. Why should we allow people to suffer traffic jams and also pay toll charges,” the official said.

This rule will bring relief to lakhs of commuters on over 2,000 km of national highways which are scheduled to be taken up for widening from four-lane to six-lane in the near future.

In another decision, the Cabinet decided to bring more highways under the toll network. Tolling will be allowed on all future two-and-a-half lane roads (10 metres wide). Officials said the proposal is aimed to generate funds to keep roads in good condition.

However, the decision on fixing toll charges for expressways could not be taken due to difference of opinion. Sources said while Planning Commission favoured toll of 1.5 times than normal highways, road ministry wanted it to be capped at 1.25 times. A committee of three ministers has been set up to address the issue. The committee will submit its report in a week.

Guest Editor – Prerna Singh

October 1, 2013







Prerna Singh is currently working in Infraline Energy as a Senior Analyst and has more than four years of professional experience in Infrastructure Sector. Her work includes analysis of latest market trends pertaining to the sector, preparing research reports, product presentations; market mapping, formulating strategies & reaching out to the unexplored market segments for business expansion. Working closely with the business development teams in activities like business proposal letters, doing research on demand, product presentation and improving the quality of the deliverables for client retention. Continuous research on the sectoral developments and identify opportunities for events/conferences and regular updates on Roads Knowledge base.

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September 27, 2013

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Survey for Silk City ring road begins

September 27, 2013

Hrusikesh Mohanty, TNN |

BERHAMPUR: The proposed 45-km peripheral ring road around the Silk City may be a reality soon. Survey for the long-awaited project started on Monday. The survey to prepare a detailed project report (DPR) was stalled due to enforcement of model code of conduct for urban polls.A Bhubaneswar-based consultant would prepare the DPR after completing the survey while public works department (PWD) would execute the project, said executive engineer, PWD (Berhampur), and nodal officer for the project P K Das.The project was conceived about a decade ago by the Berhampur Development Authority to ease traffic in the city. The project aims at connecting peripheral areas with the city too.

While 13-km Raghunathpur-Ratanpur bypass road would be constructed by the National Highways Authorities of India, 15-km stretch connecting Dakhinapur with Lathi and Haladiapadar and 17-km stretch connecting Mandiapalli-Karapalli and Phulta would be taken up by the works department.

Land acquisition is likely to made in some areas as the width of the ring road is proposed to be 300 metre, including green and commercial zones on side of the road, Das said. The cost of the project would be known only after preparation of the DPR.

The proposed road assumes significance as the city is witnessing heavy traffic congestion during peak hours. “The ring road will not only ease traffic in the city but also make plying of proposed city buses smooth,” said Berhampur Development Authority chairman Kailash Rana. The ring road is also important as the urban body has decided to construct a bus terminal at Haladiapadar, on the outskirts of the town, he added.

The city bus service in Berhampur and its adjoining towns will start soon as the government has sanctioned Rs 5 crore and formed a special purpose vehicle (SPV) for facilitating the project.

A View Point of PHD Chamber and Infraline On Roads & Highways in India

September 26, 2013

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