NHAI awards 5 road projects contracts
February 24, 2008
It is reported that National Highway Authority of India has awarded 5 road projects worth INR 109.12 billion to private companies.
1. Larsen & Toubro, a highway widening project in southern India for INR 4.19 billion rupees
2. A JV company between Soma Enterprise and Isolux Corsan JV has won a road project in northern India for INR 27.5 billion
3. A JV company between IRB Infrastructure Developers and Deutsche Bank got the contract to widen a highway in western India for INR 16.94 billion
Mr Bhram Dutt secretary at transport ministry said that the projects are part of India’s INR 2.42 trillion national highway development programs.
India is seeking active private participation to build roads, airports and power plants as the government is unable to raise the funds needed to finance them on its own.
Source: steelguru.com
L&T, IRB among 5 to bag Rs 11k cr road projects
February 23, 2008
NEW DELHI: L &T-ECC, Emirates Trading Agency-KMC Construction, IRB Infrastructure Developers-Deutsche Bank, IJM Corporation-IDFC Ltd and Isolux Corsan Concessions-Soma Enterprise have bagged five national highway projects worth Rs 10,912 crore.
The projects, part of the fifth phase of National Highway Development Project (NHDP), are the first one to be under the new model concession agreement.
Secretary (road transport and highways) Brahm Dutt said this at a media briefing on Friday.
Under NHDP V, a total of 6,500 km of existing four-laned national highway have to be widened to six lane through build operate and transfer basis.
Two projects aggregating to 148 km had earlier been awarded based on the old concession agreement.
In the earlier awarded two projects, grants used to be the bidding criteria and NHAI got an upfront negative grant of Rs 975 crore.
Under the new MCA, the concept of grant has been changed to revenue share model.
On the Delhi-Jaipur section of national highway eight, the wining consortium of Emirates Trading Agency and KMC Construction has quoted 48.06% as the revenue share for NHAI.
IRB Infrastructure in tie-up with Deutsche Bank quoted 38% for Surat-Dahisar section on national highway 8. For Chennai-Tada on NH 5 and Panipat-Jalandhar on NH 1, L&T-ECC have quoted 17.07% and Isolux Corsan, have quoted 20.14% as revenue share that the government will get out of tolling revenue.
“All the revenue share will start right from the appointed date within 180 days of signing of the agreement.
In only one case, where the traffic is low, the share of revenue will start at 2% after nearly four and half years,” said Dutt. Isolux Corsan-Soma Enterprise quoted the 2% revenue share for the Panipat-Jalandhar section.
As the existing highways are already under tolling by NHAI, toll collection by the private entrepreneurs will be integrated with the existing tolling infrastructure though there will not be any increase the tolling rates.
The five consortia will be required to furnish an additional performance security, the toll will be credited to an escrow sub-account, drawal from which is linked to the achievement of project milestones.
Source: dnaindia.com
Foreign cos take to highways
February 22, 2008
New Delhi, Feb 22 Indian road construction projects seem to have caught the fancy of large foreign players in a big way. Out of five successful bidders for projects to widen four lane highways to six lanes which were announced today, foreign companies have equity stake in four of them.
Four international companies, namely, Dubai-based Emirates Trading Agency, Deutsche Bank, IJM Corporation, Berhad (Malaysia) and Isolux Corsan group of companies from Spain have teamed up with Indian companies and have equity stake ranging from 10 to 51 per cent, the Secretary, Road Transport and Highways, Mr Brahm Dutt, said here today.
These are the first tranche of projects bid under the new model concession agreement (MCA) that works on a revenue-share basis .
Earlier, road development projects were awarded to companies which offered upfront money to the Government to operate the six-lane highways. Now, the Government would receive part of the revenues generated through toll collections during the agreement period.
In the projects announced today, 882 km of four-lane national highways would be converted to six lanes at a total cost of Rs 10,912 crore.
The private firms would not only foot the entire construction cost, but also share a part of total revenue earned with the Government during the 12-15 year period.
Since the traffic on highways is expected to surge over time, the extent of revenue share will go up over the project life.
At the initial end of projects, National Highways Authority of India (NHAI) would mop up revenue share ranging from two per cent to 48.06 per cent. At the end of the concession period, NHAI would take a share of 12 per cent to 59 per cent.
More such mega-projects are lined up for the next financial year. “We expect to invite bids for widening about 2000-2500 kilometres of four lane highways in the next financial year,” said Mr AV Sinha, Member-NHAI.
In the previous bidding method for two such projects, NHAI received an upfront negative grant of Rs 975 crore from L&T Toubro, and Ideal Road Builders.
Source: thehindubusinessline.com
Market stays in red
November 21, 2007
At 13:07pm (IST),the BSE 30-share Sensex lost 324 points to 19,956 and NSE Nifty was down 99 points at 5,681.
Markets continue to stay in negative territory in the afternoon trades as selling pressure prolongs. The IT stocks are witnessing fresh buying momentum as the IT bellwether; Infosys, TCS and Satyam Computer are trading in green. IT index is the only gainer up (0.3%).
All the other key sectoral indices continue to be in red, the BSE Bankex index (down 3.5%), BSE Power index (down 3.3%) and BSE Capital Good index (down 3%).
At 1:07 pm (IST), the BSE 30-share Sensex lost 324 points to 19,956 and NSE Nifty was down 99 points at 5,681.
GSPL has gained 1% to Rs77 after reports stated that the company would invest Rs2500cr on new pipeline it also would add 850km of gas Pipeline in next year. The scrip has touched an intra-day high of Rs79 and a low of Rs73 and has recorded volumes of over 10,00,000 shares on NSE.
Fortis Financial has surged by over 5.5% to Rs105 after the company announced that it purchased 76% stake of UK’s Capital Market Solution. The scrip has touched an intra-day high of Rs109 and a low of Rs102 and has recorded volumes of over 14,000 shares on NSE.
Tata Steel is down 3% to Rs832. Reports stated that the company is launching a mega rights issue of Rs100bn to repay the bridge loans raised for funding the acquisition of Corus for US$12.9bn. The scrip has touched an intra-day high of Rs878 and a low of Rs831 and has recorded volumes of over 7,00,000 shares on NSE.
L&T has slipped 3% to Rs4205. The company yesterday signed a MoU with Raytheon Company, US, to develop defence technology for the Indian military forces. The scrip has touched an intra-day high of Rs4335 and a low of Rs4145 and has recorded volumes of over 3,00,000 shares on NSE.
Mytas Infrastructure has dropped by over 5% to Rs920. The company yesterday said a consortium the company, NCC Infrastructure Holdings and VIE India Project development and Holdings bagged the BOT contract to develop and operate airports at Gulbarga and Shimgo in Karnataka The scrip has touched an intra-day high of Rs1010 and a low of Rs905 and has recorded volumes of over 1,00,000 shares on NSE.
Strides Arcolab is trading flat at Rs291 the company yesterday announced that it would be selling 50% stake in Strides Latina to Aspen, South Africa, for US$152mn. The scrip has touched an intra-day high of Rs324 and a low of Rs290 and has recorded volumes of over 35,000 shares on NSE.
Ansal Housing is down over 3.8% to Rs179. The company declared that they have planned to raise Rs353.6mn in warrants sale. The scrip has touched an intra-day high of Rs188 and a low of Rs175 and has recorded volumes of over 19,000 shares on NSE.
HPCL has lost over 5% to Rs285. Reports stated that the company planned to spend US$4.5bn on exploration, gas marketing and petrochemicals by 2012. The scrip has touched an intra-day high of Rs304 and a low of Rs284 and has recorded volumes of over 8,00,000 shares on NSE.
Source: indiainfoline.com