In order to improve the growing transport needs of India’s financial capital, the authorities are looking at various ways, sources and methods to fund infrastructure projects

The third phase of the Rs 47,000-crore Mumbai metro rail project is now proposed to be a fully underground stretch, from Colaba to Bandra and the airport. The cost has escalated to Rs 18,000 crore. Says Dilip Kawathkar, spokesperson of the Mumbai Metropolitan Region Development Authority (MMRDA): “Japan International Cooperation Agency is likely to provide 40 per cent of the funds.” He says the World Bank had also shown interest, though no formal proposal or presentation had been made to their officials.

The Rs 10,000-crore Mumbai Trans-Harbour Link (MTHL) project, to connect Sewri in Mumbai and Nhava Sheva in Raigad district, is likely to see some new incentives for prospective bidders. Metropolitan commissioner Rahul Asthana said MMRDA planned to compensate the build-operate-transfer (BOT) operator of the MTHL project in case the toll collection is lower than projected (in case of higher toll collection, the operator would have to share the benefit with MMRDA).

A long-tenure soft loan is proposed for the BOT operator; in addition, to encourage more bids (earlier tenders had to be called off due to lack of enough parties), it is proposed to compensate the second and third-lowest bidders for the costs they incurred in doing so.

Phase-II of the Mumbai Urban Transport Project is underway, to improve suburban railway services. This is being jointly implemented by MMRDA and Maharashtra State Road Development Corporation. The phase has 11 projects worth Rs 5,300 crore, with a World Bank loan for Rs 1,910 crore.

Says Sudip Mozumder, advisor, World Bank: “The Bank remains committed to support the (state) government’s efforts to reduce some of Mumbai’s infrastructure gaps.”

He noted that the funds required for Mumbai’s infrastructure were huge, but Bank funds are limited. “It is critical, therefore, that the Bank funds are deployed in projects that have a transformative role, and can help leverage more funds. The government of India, government of Maharashtra and the Bank are currently exploring such opportunities. Discussions are underway but no decision has been taken,” he said.

Says Arvind Mahajan of consultancy major KPMG: “The basic formula for financing complex infrastructure projects is a mix of government and private funds. Also, several projects are linked with each other. . The Navi Mumbai International Airport project, for example, is closely linked to MTHL. A public-private partnership (PPP) is the best method for funding, (so) the project should be structured in a way that the private sector can participate.”

Says consulting economist Sunil Bhandare, “Long-term financing of projects by the private sector needs a viable corporate debt market. This is not so in India and the major corporates are struggling to manage investment, battling with global uncertainty, inflation and high interest rates. This might dissuade financiers from investing further in such projects. What is needed is finality in scope, content and policy, so that the prospective investors are encouraged to fund the projects.”

Arun Mokashi, a transport specialist, says, “In transport infrastructure projects, unanimity is required among all the institutions. There are several instruments —PPP, BOT, viability gap funding, etc. What is needed is the will to harness this sort of a financial arrangement into the system for infrastructure projects.”

Source: http://www.business-standard.com

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