July 8, 2014
Prime Minister Narendra Modi on July 3 said his meeting with Facebook Chief Operating Officer Sheryl Sandberg was “very fruitful” as they discussed ways to use this platform for governance and better interaction between the people and governments.
“Had a very fruitful meeting with Sheryl Sandberg. She pointed out that India is a very important country for Facebook, considering the high number of active Facebook users in India,” the prime minister said in his Facebook post.
“Being an avid user of social media myself, I talked about ways through which a platform such as Facebook can be used for governance and better interaction between the people and governments. I also talked about how Facebook can be used to bring more tourists to India,” he said.
He also sought Facebook’s assistance in commemorating the 150th birth anniversary of Mahatma Gandhi.
“We intend to commemorate Mahatma Gandhi’s 150th birth anniversary year with a special focus on cleanliness and I spoke to Ms. Sandberg on how Facebook can assist us in this endeavor,” Modi posted.
Modi is the second most popular politician on Facebook, with over 18 million friends.
Both Modi and Sandberg posted pictures of their meeting on their respective Facebook pages.
Modi is an avid social networking and microblogging site user.
July 7, 2011
The Polish Directorate for National Roads and Highways (GDDKiA) has said that the Kapsch TrafficCom consortium has successfully launched the country’s ‘viaToll’ electronic toll collection (ETC) system this week. The Kapsch consortium has implemented a comprehensive and state-of-the-art ETC system on the existing road network of approximately 1,560km (970 miles), which applies to all vehicles weighing over 3.5 tons. The consortium will also provide commercial operation of the system for the next eight years through its Polish operation’s company and will continue to extend the existing system to additional roads during the operational period. The Polish Finance Ministry expects that the system will increase the country’s revenues by about US$145 million (PLN400 million) by the end of this year.
“The entire system is now operational,” enthused Michael Gschnitzer, Kapsch TrafficCom’s sales director. “Until today we had successfully registered more than 300,000 vehicles – in the upcoming days we expect to distribute around 25,000 onboard units daily. As a result of the big interest of the road users, we extended the capacity and working hours on most of the points of sale. The mobile enforcement units already successfully control whether vehicles above 3.5 tons are properly equipped with OBUs. The system was implemented in record time. For the whole implementation, we had not more than eight months. There is still enough to do for us, but the system could now successfully go into operation.”
September 4, 2008
Kapsch TrafficCom impresses yet again with a new project in Asia: The company is constructing modern toll systems for three of the largest motorways in Bangkok. Kapsch TrafficCom Sweden will be working with two Thai companies under the joint venture FKS. The order for more than 55 kilometres of motorway in total will be completed in August 2009. Its worth is estimated at 8.5 million euros.
(Signing of contract – Christer Weiner, Kapsch TrafficCom Sweden, together with the Thai partners and customers)
As from autumn 2009, visitors to Bangkok will be escorted on their journey into the centre of the city by Austrian toll equipment. For Kapsch TrafficCom was able to notch up an order recently to fit out three large motorways in Bangkok. More specifically, the company will install the system by order of the Expressway & Rapid Transit Authority of Thailand (EXAT), in cooperation with the two Thai companies Fatima Group and Smart Traffic Co Ltd – as FKS Joint Venture. The Chalerm Maha Nakhon Expressway (consisting of three sections with a total length of 27.1 kilometres), the Chalong Rat Expressway (six-lane with a length of 18.7 km) and the Ramindra Outer Ring Project (with a total length of 9.5 kilometres) are set to be equipped with toll systems.
“Kapsch TrafficCom has repeatedly been successful in Asia. By replacing the 8-year old equipment and upgrading the electronic toll system, the flow of traffic on these three motorways will be sped up and traffic jams will to a large extent be avoided. This was possible primarily because of the extensive expertise of our employees and due to our many years of experience on the Asian market”, declares Erwin Toplak, Member of the Board, Kapsch TrafficCom AG.
The contract to set up the largest electronic toll system to date and a central system for registering and guiding traffic comprises altogether 80 lanes. The new infrastructure will include 100,000 CEN DSRC compatible transponders, 100,000 non-contact smart cards and other equipment (i.a. server equipment, a network and a CCTV video camera system). The system will be completed in autumn 2009 and comprises an order volume of approximately 8.5 million euros.
Kapsch TrafficCom is an international supplier of innovative road traffic telematics solutions. Its principle business is the development and supply of electronic toll collection (ETC) systems, in particular for the multi-lane free-flow (MLFF) of the traffic, and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems, with a focus on road safety and traffic control, and electronic access systems and parking management. With more than 140 reference projects in 30 countries in Europe, Australia, Latin America, in the Asian/Pacific region and in South Africa, and with almost 12 million on-board units (OBUs) and nearly 11,000 equipped lanes, Kapsch TrafficCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 20 countries.
For further information:
Public Relations & Sponsoring
Phone: +43 (0) 50 811 1705
A-1120 Vienna, Wagenseilgasse 1
August 2, 2008
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.
February 24, 2008
Lucknow, February 24 Planning to take the Lucknow-Kanpur highway? Get ready to pay for a smooth driving experience. The National Highway Authority of India (NHAI) is all set to introduce toll tax for the 48-km Lucknow-Unnao stretch on NH 25 by April this year. It will set up a toll tax booth just before Nawabganj.
NHAI officials said the recommendation in this regard has already been sent to the Ministry of Road, Transport and Highways and a notification is expected within a month.
The toll tax may be charged at reduced rates initially, they added.
“A toll plaza is generally set up at an interval of 70-80 km on the highway. But a railway overbridge in Unnao on Lucknow-Kanpur stretch is yet to be completed. So, the toll may be reduced proportionately,” said M K Jain, Project Director of NHAI.
The proposed site (near Nawabganj) for the toll plaza suggests that commuters coming from Lucknow to Unnao and Kanpur will have to pay the tax.
“Similarly, the people coming from Kanpur to Lucknow will also have to pay the toll. But, people travelling from Lucknow to Banthara or from Kanpur to Unnao would be saved from the tax,” an official said.
The proposed toll site, however, may be changed after the ROB in Unnao is completed.
While cars, jeeps and vans will have to pay a tax of around Rs 25, trucks and buses will be charged around Rs 95.
“The toll tax is calculated for 12 am to 11.59 pm for one-side trip. If a commuter has to return on the same day, he will have to shell out about one-and-a-half times of the toll rate,” a NHAI official said.
“For daily commuters, the NHAI can issue monthly passes,” he added.
According to NHAI norms, VIPs, defence vehicles, police vehicles, fire-fighting vehicles, ambulances, funeral vans, posts and telegraphs department vehicles will not have pay toll tax.
This will be the second highway after NH 2 in the state on which toll tax will be introduced.
“According to government policy, NHAI will set up toll plaza as soon a particular highway stretch is completed. And these are going to stay, so that NHAI could carry out maintenance and upgradation works effectively,” another official said.
February 23, 2008
Reliance Energy has quoted a concession period that has taken even MSRDC by surprise.
The Reliance Energy-led consortium’s ambitious bid, which helped it emerge the preferred bidder for the Rs 6,000-crore Mumbai Trans Harbour Link, has set a new performance benchmark in the infrastructure business.
The consortium has offered to build the 22-km six-lane bridge, which will connect Sewri and Nhava Sheva (see map), by 2013, recover the costs from revenues and hand it back to the nodal agency, the Maharashtra State Road Development Corporation (MSRDC), in just nine years and 11 months.
In technical parlance, this is known as the concession period.
To put this in context, the Mukesh Ambani-controlled Sea King Infrastructure, which was the only other bidder, quoted a concession period of 75 years.
Significantly, in 2004, MSRDC itself estimated a 35-year concession period for the sea link project. For the Mumbai-Pune expressway, the period was 30 years.
Indeed, Parvez Umrigar, managing director of Gammon, said his construction engineering company had decided to opt out of the sea link project because of the “frightening equation of risk and return”. Umrigar declined, however, to comment on the Reliance Energy bid.
So what made the Anil Ambani-controlled Reliance Energy quote a concession period that has taken even MSRDC by surprise?
Reliance Energy declined to comment on the issue.
In its 2004 study, the MSRDC had projected a traffic of 50,000 passenger car units (PCUs) a day when the bridge was completed.
But back-of-the-envelope calculations show just to break even, the Reliance Energy consortium would need a minimum of 1,09,589 PCUs a day paying an average toll of Rs150 for around 10 years.
A passenger car unit considers one truck as 2.5 passenger cars to calculate the overall traffic.
An industry expert said the operational cost for the project will be at least Rs 500 crore over 10 years.
Besides, the usual debt-equity ratio for such infrastructure projects is 70:30. Assuming a conservative 5 per cent interest rate on the debt, the interest cost for a 15-year loan would be around Rs 3,000 crore.
If the consortium wants just a 10 per cent return on its investment, the traffic requirement on the bridge would easily be around 250,000 PCUs a day — five times the MSRDC’s traffic estimate.
MSRDC, however, said the traffic demand has changed a lot since 2004 and the figure is expected to be much higher in 2013, when the bridge is operational.
“The construction of the special economic zones (SEZs) by Reliance and the new airport in New Mumbai will increase traffic demand hugely,” said Vijay Garva, chief engineer for the link at the MSRDC. He, however, did not give any fresh traffic estimates.
The MSRDC officials added that a lot of traffic on the Mumbai-Pune route would also be diverted to the bridge. The sea link will also ease pressure on the Mumbai-Pune Expressway, National Highway-4 and Mumbai-Goa Highway, where traffic is expected to increase.
The MSRDC is asking for a Rs130-crore performance guarantee to be kept with MSRDC so that the bidder sticks to the construction time schedule of five years.
Nitin Gadkare, state BJP president and former public works minister, said Reliance Energy is obviously banking heavily on the new airport at Panvel and the SEZ.
However, the calculations may go awry if any of these projects gets delayed, he said.
Gammon India, however, is not expecting an exponential rise in the traffic from south Mumbai to Nhava Sheva, which is the gateway to traffic from Mumbai to Goa and Pune. Besides, there is already a link bridge in Vashi connecting south Mumbai to New Mumbai.
February 18, 2008
Mega investments in infrastructure and the recent market correction offers an exciting investment opportunity in construction stocks.
The robust GDP growth rate experienced by the country in the last few years is indeed commendable and was aided by investment in infrastructure. To sustain growth rates, it is imperative for India to make higher investments towards setting up world-class infrastructure. As per the planning commission estimates, investments in infrastructure is set to go up by a whopping 130 per cent to $520 billion for the eleventh Five Year Plan (FY 2008-12) as against the $226 billion made during the tenth plan (FY 2003-2007).
Construction companies will be among the first beneficiaries of these investments and will deliver good and sustainable long-term growth.
Since the investment plans for each of the sub-segments in infrastructure space varies, based on priorities, there is reason to believe that not all the segments or companies will grow at all times. For instance, regional players or less diversified ones may experience volatility in revenues. For companies, faster project execution capabilities and access to key construction machinery (equipment) are equally critical, which in turn will determine the growth rates and profitability margins, respectively for any company. For example some companies are looking at purchasing their own equipment to tackle rising hiring costs and protect margins.
Thankfully, despite issues, the huge opportunity dwarfs concerns. Says Satish Ramanathan, head equities, Sundaram BNP Paribas, “While the future is promising, earnings could be volatile. Choose companies on valuations, order book and services portfolio.”
Last, but not the least, the recent correction in stock markets provides an opportunity to buy good companies in the space at reasonable valuations. Among many stocks, we have picked 10 stocks—four large caps (Read: Bigger the better) and six mid-caps, which are likely to emerge as key beneficiaries of the ongoing investments in the infrastructure sector. Bigger companies are well-established, diversified and less risky. Investors with low risk appetite can consider them. The smaller ones are efficiently managed and are on the growth path with good earnings visibility. Notably, they may also grow faster, given the size of the opportunity and their individual strengths. But, small size also means that there is an element of risk and hence, investors need to review them on a quarterly basis and look at the flow of new business and financial performance.
|ON THE HIGHWAY|
Era Infra Engineering
Era Infra Engineering, which was earlier into the construction of industrial and commercial space, has diversified into verticals such as railways, roads and highways, airport, urban infrastructure and oil and gas. The company now commands a sizeable order book of Rs 4,100 crore, which is thrice its FY08 estimated revenue.
The company is also developing commercial and residential buildings on its 500 acre land in and around Delhi and Jaipur. Though some of these projects will only be completed by FY10 and FY11, four of them will be completed in FY09 thus providing significant revenue growth.
Besides, the company is also investing about Rs 200 crore in growing the building structure segment. Building structures, which includes the construction of metal structures used at public and private places, is a high growth and high margin business accounting for 21-22 per cent operating margins. The company is currently having total capacity of 45,000 tonne per year of structure, which will be expanded to 185,000 tonne per annum by September 2008. The contribution from new capacity will reflect partially in FY09 and fully by FY10. The expanded capacity at current realisation of Rs 58,000 per tonne can get additional revenue of Rs 750-850 crore per year, assuming 70-80 per cent capacity utilisation.
Additionally, the company is also investing in plant and equipment to scale up its in-house capabilities; currently, 75 per cent of its equipment requirement is met in-house (gross assets at Rs 500 crore). The company will further spend about Rs 200-250 crore over the next year towards purchase of equipment. This will help cut costs and generate additional revenues by way of renting out to third parties.
That apart, Era also plans to increase its Ready Mix Concrete (RMC) capacity 10-fold by installing about 50 new RMC plants over the next 2-3 years, at an estimated cost of Rs 350-400 crore. About 90 per cent of the new RMC production will be sold to third parties. Expect this business to contribute a large chunk to revenues.
Given its in-house equipment and RMC facilities, Era enjoys healthy operating margins of about 20 per cent and RoNW (return on net-worth) of 30 per cent, among the best in the industry. The company’s core business is growing at robust pace, which along with the strong order book and investments will drive growth.
Sadbhav Engineering, with a focus on the road segment, would be a key beneficiary of the ongoing investments in this segment. Of the company’s current order book of Rs 2,300 crore, road projects account for over 70 per cent, including 32 per cent from BOT projects. Enhanced focus on BOT projects has seen the company win four BOT road projects in consortium with other players over the last six months; Sadhbav’s equity contribution is pegged at Rs 92 crore. Going forward, the BOT projects are expected to contribute significantly to revenues as the company has achieved financial closure of Aurangabad-Jalna and Nagpur-Shinoi project during Q3FY08. It expects the Mumbai-Nasik expressway project to achieve closure by December 2008.
From Q4FY08 onwards, its projects in the relatively higher margin mining segment (9 per cent net margin) would be a positive trigger, and will help in improving its bottom line. The revenue will accrue from its ongoing project with GHCL and the recent Rs 245.24 crore order from the Northern Coalfields. Sadbhav Engineering currently has 15 per cent of its current order book from mining. However, the mix is expected to go up as domestic companies are allotted more mines and thus, reflects huge potential for excavation work.
Considering its current order book, which is over three times its FY08 estimated revenue, the company is expected to maintain revenue growth of over 50 per cent for the next two years. Also, with the increasing share of mining and the captive resources, the operating margins are expected to improve from 11.9 per cent in the FY07 to 12.5 per cent in FY08 and 13 per cent in FY09. The expansion in margins will also lead to the higher earnings growth. While these positives are partly reflecting in the higher valuations, the stock has good potential.
Pratibha Industries is emerging from being a small player handling projects with an average size of Rs 10-20 crore to a bigger player. The most recent order bagged by the company is as big as Rs 300 crore. The company, which was primarily into the water projects (about 70 per cent), has diversified into other construction segments such as industrial projects, roads, urban infrastructure, airports, railways, pipeline and tunneling. The company has a strong focus and expertise in handling water-related projects, accounting for 60 per cent of its total order book.
Further, to grab the growing opportunities in the water segment, micro tunneling and piping projects, the company has formed a JV with Ostu Stettin of Austria, the world’s third largest tunneling company. It will help getting complex projects involving tunneling for laying pipes in high density urban areas for underground tunneling.
Besides, the company is also integrating backwards into manufacturing of SAW spiral pipes, with a capacity of 90,000 tonnes per annum. These pipes will be used for captive consumption as well as commercial sales to other companies for use in water transmission, oil and gas, sewerage and other industrial usage.
Within construction, the company has also diversified into some of the high potential segments, having undertaken (either independently or jointly) construction of complexes, buildings, airports and roads.
A strong order book of almost 4.5 times its FY08 estimated revenue and better outlook for urban infrastructure and water-related projects, indicates a robust future for the company. Besides, growth would be driven by the increasing revenue share of pipe manufacturing business in FY09. According to estimates, the SAW pipe segment alone can add about Rs 240 crore of revenue in FY09 at 60 per cent capacity. Overall, the stock is attractive from a long-term perspective.
Ahluwalia Contracts, primarily into construction of residential and commercial projects, is now diversifying into the urban infrastructure space. Although urban infrastructure still contributes just 3 per cent of its revenues, the company plans to increase its share to 20-25 per cent over the next three years.
On these lines, the company will bid for select BOT projects, especially multi-level car parking and bus terminus. The company has already been awarded a BOT project in Rajasthan for constructing a bus terminus, which also includes a commercial complex, wherein the targeted IRR (internal rate of return) is a sound 20 per cent. There is huge opportunity in the multi-level car parking segment, as over 30 projects are likely to be awarded in Delhi alone.
The company being an established player in the National Capital Region (NCR) is expected to gain from the residential and commercial projects consequent to the 2010 Commonwealth Games, to be held in Delhi and also the all round infrastructural development in the NCR region. It has already won some of these projects, including the recently bagged Rs 688 crore Commonwealth Games 2010 village residential project.
Considering its growth plans and projects in hand, the company is incurring a capital expenditure of around Rs 55 crore in FY08 and Rs 110 crore in FY09. This will also include the expansion of its RMC capacity from 210 cubic meter per hour currently to 300 cubic meter per hour in FY09. The RMC division, which contributed over 18 per cent to revenues in FY07 (Rs 81.40 crore), should see its revenues grow at a healthy pace over the next two years.
The healthy order book (3.24 times of FY08 estimated revenues) provides earnings visibility over next two years. Over the long-term, growth will be aided by the company’s diversification.
North East and eastern India are considered to be underdeveloped. Investments are required towards construction of roads, ports, power and other infrastructure facilities. The Centre has already indicated that it intends to spend Rs 50,000 crore towards construction of roads and another Rs 2,000 crore for rail connectivity in the North-East over the next five years.
Tantia, which generates about 96 per cent of its revenue from the eastern and north eastern region by undertaking roads and railway projects, will be the key beneficiary.
To further capitalise on this, the company is foraying into other segments of infrastructure and BOT projects. Its relatively smaller size and limited presence is reflecting in the lower valuation it enjoys vis-à-vis its peers, which should hopefully correct as the market gains confidence in the company. What is currently playing in its favour are opportunities and relatively less competition in the North East.
Considering the industry outlook and healthy order book to be executed over the next 30 months, the company may maintain revenue growth of over 50 per cent in the next two years.
In a recent development, Gayatri Projects signed an MoU with DLF to jointly undertake construction of road projects on BOT basis. The new entity will leverage the capabilities of the two companies and, is expected to develop projects worth over Rs 1,000 crore every year. The tie-up with DLF is also expected to provide Gayatri Projects an entry into the real estate business; it would be developing properties along with DLF. Gayatri Projects is a focused player in the construction of roads and irrigation segment, which account for about 98 per cent of its order book. The company is now venturing into urban infrastructure and the water treatment segments, which will not only help diversify revenue streams but also improve margins; these are already high at over 15 per cent compared with the industry average. That’s because, the company owns nearly 100 per cent of the project related equipments.
Apart from constructing infrastructure, like other companies, the company is looking at capitalising on the growing opportunities in the BOT segment. It currently has five BOT road projects, which have already achieved financial closure. Of this, revenue from three projects is expected to start flowing from March 2010. Analysts value the BOT projects at Rs 120-170 per share, based on the discounted cash flow method. The BOT projects will provide a sustainable or steady cash flow in the long run and help in improving its profitability on the back of higher margins.
Given the high opportunities in the infrastructure sector and diversification into other geographies and segments, the cash contract (non-BOT) business will continue to grow at a robust rate, over the longer term. For the next two years though, earnings will grow on a sustainable basis, backed by the strong order book of Rs 3,400 crore (almost 4.5 times its FY08 estimated revenue) executable over the next 30 months. At current price levels, the stock is trading at a relatively lower valuation, compared with its peers and, is capable of delivering good returns.
Bigger the better
Bigger companies score heavily on size, services portfolio, strong execution capabilities and have a proven track record, all of which provide great comfort and hence justify premium valuations.
IVRCL Infrastructures & Projects
The increasing allocation towards water-related projects augurs well for IVRCL, which generates 57 per cent of its revenue from it. Besides, IVRCL is also present in other growing segments such as roads, building & structures and power. Its order book of Rs 11,000 crore provides strong revenue visibility. Analyst value the company at Rs 550-650 per share on a sum-of-parts valuation of its different businesses and investments in subsidiaries like Hindustan Dorr Oliver and IVR Prime.
Hindustan Construction Company
A dominant player in transport segment, Hindustan Construction is now focusing more on profitable segments such as water and power. Of its order book of Rs 9,050 crore, power projects accounts for 44 per cent and water projects 22 per cent. This diversification will not only help it grow faster but also improve margins. Long-term growth will be aided by improving revenue mix, strong order book and its real estate business (12,500 acre Lavasa project, valued at Rs 60-100 per share. On a sum-of-parts basis, analysts value its share between Rs 210-260.
Nagarjuna Construction has been growing at 58 per cent annually over the last four years and is expected to grow at about 40-45 per cent during FY08-10. The growth will be driven by robust order book coupled with expansion of volumes and margins, led by diversification into segments like metal, oil & gas and real estate development. Nagarjuna is investing in BOT projects; has five road projects, two hydro power and two sea port projects. Its businesses are valued at Rs 315-395 per share.
After acquiring Singapore-based Sembawang in FY07, Punj Lloyd tapped the growing global energy market with extended services portfolio. In the domestic market, it has forayed into onshore drilling, real estate and ship building business with 25.1 per cent stake in Pipavav Shipyard. Its consolidated order book of Rs 18,500 crore, provides reasonable comfort. Going forward, net profit is expected to grow faster on the back of turnaround of Sembawang; consolidated operating margins are expected to improve to 10 per cent by FY09 (8 per cent in FY07).
Source: Jitendra Kumar Gupta : business-standard.com
February 16, 2008
South India�s much-touted road to the future may be finally here. Industry in Bangalore is pushing for the completion of the expressway between the city and Mysore.
After 13 years, work is speeding up on the road connecting Bangalore and Mysore, popularly known as the Bangalore Mysore infrastructure corridor or BMIC. The road will cut the driving time from the three and half hours to just 90 minutes.
The BMIC is still mired in controversy over land acquisition but all that may change soon. We hear from sources that the governor of Karnataka is taking a special interest in the project and the sudden activity on the project is partly due to pressure from the industry. Sources say the governor is speeding up land acquisition and clearances from forest, revenue and other departments. And though nice officials declined to comment on camera, they say they are glad that industry is finally taking a stand.
“I think it’s the single most important project for Bangalore. It will not only provide more employment but also improve the quality of life of the people of Bangalore. ” says Mohandas Pai, director-HR, Infosys.
“If you want private players to develop roads, the government has to address these land issues very seriously.” Adds Kiran Mazumdar Shaw, CMD, Biocon.
The Nandi infrastructure corridor enterprise had envisaged a four-phase project that included a 111-km super expressway to Mysore with 5 satellite towns on the way, a 41 km peripheral ring road on the outskirts of Bangalore and a 9.5 km connecting road to the expressway.
Today only two stretches of the peripheral ring road are open and the company is not collecting toll, as the link is not complete. But despite losses of over Rs 10 crore a month, officials are glad there’s been some progress.
January 28, 2008
Kapsch Metro JV has commissioned the Delhi Gurgaon Expressway with 3 Toll Plazas with a total of 59 toll lanes. The largest toll plaza has a total of 32 + 4 reversible toll lanes.
The Project has a total of 24 ETC with some of them mixed type with cash and smart card facility ; the remaining being cash and smart Card type.
All lanes are equipped with Automatic vehicle classification systems . All the three plazas are interconnected through a WAN.
The First Kapsch Toll System In India Finalized: Toll System For One Of The Most Frequented Highways Is Up And Running.
Since End of January 2008 runs the operation of the first road toll project of Kapsch TrafficCom AG in India with no problems. Within a joint venture structure – the Kapsch Metro Joint Venture – Kapsch TrafficCom alongside the Indian Metro Road Systems Ltd. fitted one section of the National Highway No. 8 with a modern manual/electronic toll system. This highway covers the route from Delhi to Gurgaon and is one of the most frequented roads in the region. The central toll plaza with altogether 32 toll lanes is one of the largest toll stations in all of Asia.
Since January 2008, the road from Delhi to Gurgaon features a modern manual/electronic toll system based on microwave technology (CEN 278). Completion of this toll system marks the successful finalization of the first road toll project of Kapsch TrafficCom in India. The principal, licensee DS Constructions Ltd., decided to award the contract to the Kapsch Metro Joint Venture in September 2006.
“For us, the selection of KapschMetro JV as a technology partner was an important step in the management of the traffic volumes on the project. The technology selected is stable, secure and has processed over 3 million transactions to date with no problems. The installation of the equipment was done in difficult circumstances with live traffic of over 130,000 per day travelling through the lanes during the installation period. The equipment implementation of the Delhi-Gurgaon toll project is a success story, Kapsch Metro JV delivered the project on schedule and to our complete satisfaction“, explains Allan Le Roux, Chief Operations Officer- Tolling of DS Constructions Ltd.
“Kapsch has already performed successful projects in India in the past, contracting GSM-R work for Indian Railroads, the Indian national railway system. With this commission, we were able to enter the Indian toll system market within an extremely short time, owing our success largely to our staff’s wealth of know-how and to the many years of experience we have in the Asian area. For me, the route that has now been completed is just the beginning of numerous further business ventures in Asia“, says Erwin Toplak, Board Member of Kapsch TrafficCom AG.
The Toll Road project is constructed on a 20 year BOT basis and has a length of 27 km long and rates among the most heavily trafficked projects in the region and provides important connectivity to the Indira Gandhi International Airport of New Delhi and the “New Millennium City” Gurgaon which boasts as having one of the worlds biggest shopping malls! The three toll plazas on the project have a total of 56 toll lanes. The main toll plaza located on the Delhi Haryana Border has 32 toll lanes. Motorists are able to use cash or use a Smart Card in at all lanes except the 4 dedicated non stop lanes with exclusive payment via microwave TAGs.
Kapsch TrafficCom AG is a global provider of innovative road traffic telematic systems, products, and services. Kapsch TrafficCom develops and supplies electronic toll collection systems, in particular multi-lane free-flow (MLFF) systems, and is also able to act as the technical and commercial manager for operating these systems. Further, Kapsch TrafficCom offers traffic management solutions (with the focus on road safety and traffic control), electronic access control systems, and parking space management. Kapsch TrafficCom has established itself among the global market leaders for ETC systems with more than 140 installed toll systems in 30 countries in Europe, Australia, Latin America, the Asian/Pacific Area, and South Africa, which altogether feature more than eleven million transponders and about 11’000 fitted lanes. Kapsch TrafficCom is headquartered in Vienna, Austria, and has subsidiaries and representative offices in 18 countries.
Vienna on 27th March, 2008
For further information, please contact:
Public Relations & Sponsoring
Phone: +43 (0) 50 811 2705
1120 Vienna, Wagenseilgasse 1
November 21, 2007
It plans to participate in the modernization of the 35 airports in the country, apart from the overseas projects
New Delhi: Cochin International Airport Ltd (Cial), the company that built the new international airport at Kochi, India’s first to be built by a private sector firm, is looking to build airports in India and in other countries in an effort to tap growing demand for airline infrastructure in many parts of the world.
Cial plans to participate in the modernization programme of 35 non-metro airports in the country and also wants to build airports in Sri Lanka, Ghana, Angola and Papua New Guinea, according to S. Bharat, managing director, Cial.
Cial was promoted by the Kerala government, financial institutions, airport service providers, non-resident Keralites and a group of entrepreneurs.
The single largest shareholder in the company is the state government with 35% of the paid-up capital.
Bharat added that Cial is in talks with an international finance company and a technical partner to promote a new company that will handle these projects.
Cial’s overseas plans come at a time when international airport operators such as Singapore’s Changi Airport International (CAI), Airport Company South Africa Ltd, Fraport AG and other leading players from Mexico, Turkey, Paris and Germany are looking to partner with Indian companies to bid for airport projects in the country. Singapore’s CAI had floated a joint venture company with Tata Realty & Infrastructure Ltd, a subsidiary of the Tata group for the airport modernization projects in India.
If it wins any of the projects to build airports outside the country, Cial will be following in the footsteps of Bangalore-based GMR Infrastructure Ltd, the lead partner in the consortium that runs Delhi International Airport, which will be developing Sabiha Gokeen International Airport (SGIA) at Istanbul, Turkey. GMR’S partners in this project are Malaysia Airports Holdings Berhard and Limak Insaat Sanavi San Ve Tic A S Turkey.
Bharat confirmed Cial’s overseas aspirations.
“The government of Sri Lanka has invited us to study the possibilities of building an airport there. We have got offers from Ghana, Angola and Papua New Guinea. Cial’s team will shortly visit those countries,” he said.
Cial plans to take up overseas airport projects on a build-operate-transfer (BOT) or build-own-operate (BOO) basis. Under the BOT model, the developer constructs and manages a project for a specified time before handing it over to the government; in the BOO model, the developer continues to operate the project with a local partner.
“The funding of these airport projects would be done by a special purpose company formed under Cial,” Bharat said.
He declined to name the international partners citing confidentiality agreements.
“We are also looking at bidding for the ongoing airport projects within India as we can make airports at lower cost,” Bharat added. The Cochin airport was built at a cost of Rs315 crore including the cost of land.
A government committee on infrastructure, headed by Prime Minister Manmohan Singh, has estimated that India will need to spend more than Rs40,000 crore in developing airports between 2006-07 and 2013-14. Of this, an estimated Rs31,100 crore is expected to come from public-private partnerships.
The ministry of civil aviation has decided to modernize and upgrade 35 non-metro airports across India.
Besides, the government is also planning to build greenfield airports at Navi Mumbai (Maharashtra), Kannur (Kerala), Hassan and Gulbarga (Karnataka), Ludhiana (Punjab), Greater Noida (NCR), Paykong (Sikkim), Cheithu (Nagaland) and Chakan (near Pune, Maharashtra).
“At a time when current airport modernization programmes envisage spending at least Rs5,000 crore for a single project, Cial had built a world class product on a very modest budget. Cial can cash in on its expertise in the upcoming non-metro airport projects,” said a Mumbai-based aviation analyst, who does not want to be identified because he is not authorized to speak to the media.