SA’s Intertoll barred from NH projects
March 27, 2008
NEW DELHI: After Chinese, Malaysian and Korean firms, the National Highways Authority of India (NHAI) has blacklisted South Africa’s infrastructure firm Intertoll for undertaking road sector projects in the country. Intertoll-led joint venture Intertoll-ICS-Cessons O&M, which had bagged the contract to operate and manage Gurgaon-Jaipur stretch (206 km), has been barred from carrying out any highway project in the country for the next 10 years. “The company has failed to comply with the obligation. It was also found that there was leakage in toll collection. After shooting off showcause notices five times to the firm we have now barred them for the next 10 years for undertaking any project directly or indirectly,” a government official told ET. Last year, the government had put nine firms including Lanco Construction and Essar group in the non-performers’ list. Foreign contractors in the list included Korea’s You-One Engineering Construction, Saudi Arabia’s Sticco, China Coal Construction Group Corporation and Moscow-based Centrodostroy. Four Malaysian companies — UEM Builders, Dolomite Industries, Pati SDN Bhd, and Bhumihighway — were also in the list of non-performers. All highway contractors were blacklisted on account of delay in completing highway projects and poor performance. The dispute between joint venture partners also lead to delay in the projects.“Before we bar any contract we give multiple chances to perform. In case of Intertoll we gave them three years’ time to comply with the contractual obligation,” the official said. Intertoll got the Rs 169-crore contract through competitive bidding to operate, manage and collect toll on the Gurgaon-Jaipur highway for eight years. Foreign infrastructure companies are, however, betting big on the country’s road sector. Recently, these firms won three highway projects out of five offered by NHAI under national highways development project (NHDP)-V. All the three companies — Emirate Trading Agency, Isolux Corsan Group and IJM Corp — which bagged various projects roped in an Indian firm. Source: http://economictimes.indiatimes.com
Plan to upgrade 19 State highways to NHs pending with Centre
March 18, 2008
Hyderabad, March 18:The proposal to convert 19 State highways into National Highways for a length of 4,832.7 km is pending with the Ministry of State Road Transport and Highways (MoSRTH).“We are waiting for their approval,” Roads and Buildings Minister T Jeevan Reddy informed A Uma Madhava Reddy (TDP) and others during the Question Hour in the Assembly on Monday.The minister said that seven roads for periodical renewal works of the length of 68.84 km at a cost of Rs 16.85 crore have been taken up and completed with the funds provided by MoSRTH. Extensive repair works to the badly damaged National Highways have also been taken up to ensure free flow of traffic.The widening of Hyderabad-Vijayawada section of National Highway-9 was being taken up by National Highways Authority of India on BOT basis and the prequalification bids have been invited, the minister said.To another question by P Rajanna Dora, the minister said that Kottaki bridge across Votti Gadda river in Vizianagaram district was in bad shape and a new bridge would be constructed at a cost of Rs 5 crore.Agriculture Minister N Raghuveera Reddy informed K Ramulu (Janata Party) that Chief Minister Y S Rajasekhara Reddy would write a letter to Prime Minister seeking Padma awards to best farmers. He said that awards to the best farmers would be given at mandal levels by the State Government. Source: http://www.siasat.com
GPIL announces IPO of 1.65 crore equity shares
March 7, 2008
CHENNAI: With an aim to fund some of its major projects in India, Gammon Infrastructure Projects Limited (GPIL) on Friday announced an initial public offering of 1.65 crore equity shares of par value Rs 10 each for a cash price to be determined through a 100 per cent book-building process (Issue). The price band has been fixed between Rs 167 and Rs 200 pewr equity share. Pervez Umrigar, Managing Director, GPIL, told reporters here today that the Issue’s proceeds would be utilised in the design, construction and maintenance of projects including the four-laning of the 99.5 km of Vadape-Gonde section between Mumbai and Nasik on NH-3, being developed and maintained by the special purpose vehicle (SPV), the Mumbai Nasik Expressway Limted (MNEL). ”We currently have 14 infrastructure projects, including the Vishakaptanam port project in Andhra Pradesh and Mattanchery bridge project in Kerala among others in the operation phase, with respective special purpose vehicles (SPVs) in place to develop and maintain them,” Umrigar said. The Rangit-II hydroelectric power project on River Nimbi in Sikkim, and the MNEL among others were in the development phase, he added. According to a company release, the Issue comprises a net issue of 1.49 crore equity shares to the public (Net Issue) and a reservation of 16.55 lakh equity shares for employees. While at least 60 percent of the Net Issue will be allocated on a proporationate basis to Qualified Institutional Buyers (QIB), at least 10 percent of the same would be available for non-institutional bidders and 30 percent of the Net Issue for retail investors on proportionate basis. The issue opens on March 10 and closes on March 13, 2008. Source: http://economictimes.indiatimes.com
4-LANING OF DELHI-DEHRADUN NATIONAL HIGHWAY
March 5, 2008
Delhi - Dehradun National Highway has been identified for 4 laning under National Highway Development Project (NHDP) Phase III on Build, Operate & Transfer (BOT) basis. Widening to 4 lane work in Meerut-Muzaffarnagar section is in progress and delayed due to initial problem regarding tree cutting & land acquisition and is targeted to be completed by March, 2009. Widening to 4 lane work in 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. 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: http://pib.nic.in
Hit the road: Infrastructure growth is revving up
February 29, 2008
The indian infrastructure story is just waiting to unfold. It is a foregone conclusion that the need for infrastructure to facilitate economic growth in India, both immediate and long-term , is ever more pressing. The growth rates witnessed in the Indian economy today are indicative of the change to follow —infrastructure has been expanding at an accelerated pace to support the economic growth rate of 9%. India’s infrastructure development has so far been predominantly financed publicly. The urgent need of the hour is an enhanced approach that would create a balance between public and private sector roles, complemented by transparent public policies. The Government has already taken many proactive measures such as opening up a number of infrastructure sectors to private players , permitting foreign direct investment (FDI) into various sectors, introducing model concession agreements and taking up projects such as the National Maritime Development Programme and National Highway Development Project, among others. The next four to five years will witness implementation of some key infrastructure projects such as additional power generation capacity of 70,000 MW; development of 16 million hectares through irrigation works; modernisation and redevelopment of four metro and 35 non-metro airports; six-laning 6,500 km of Golden Quadrilateral and selected National Highways. Focus will be on key infrastructure sectors of highways, ports, airports, railways and power. Having been part of the Indian infrastructure history, we at GVK have always believed that the key to developing a sustainable infrastructure in India is to build for the future. India will see an investment to the tune of $500 billion in infrastructure in the next five years. Coupled with government support, this investment will fructify in the form of key infrastructure projects to strengthen India’s cities. The next four years will bring a sea change in infrastructure and as a result, in another ten years, we will see the emergence of a new India. Source: http://economictimes.indiatimes.com
Reliance Energy Ltd(REL) to hive off infrastructure projects
November 12, 2007
NEW DELHI: In a bid to separate the power and infrastructure projects, Reliance Energy Ltd. (REL) has now decided to transfer all its infrastructure projects to a separate wholly-owned subsidiary.
The REL board had already given its approval to the proposal.
The move comes hot on the heels of REL deciding to hive off its power generation business as a separate company — Reliance Power Limited (RPL).
RPL has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public cffering (IPO) of around Rs. 12,000 crore.
The decision to hive off infrastructure portfolio to a new subsidiary comes in view of the increasing portfolio of the company on this account in recent months.
REL is developing highways for the National Highways Authority of India (NHAI) under the build-own-transfer (BOT) scheme.
It is involved in five National Highway projects in Tamil Nadu, covering a length of 400 km at a cost of Rs. 3,100 crore. In addition, it is pursuing road projects, including the proposed Rs. 5,000 crore Western Freeway sea-link project connecting Worli and Nariman Point in Mumbai and the Rs. 6,000-crore Jaipur Ring Road project.
On the real estate side, the REL-led consortium had emerged as a winner for developing a business city in Hyderabad with an estimated investment of Rs. 6,500 crore. The city will be built in 77 acres, which will include a 100-storey trade tower. It has also bagged the metro rail project in Mumbai that involved the development and operation of a fully-elevated metro rail.
The total cost of the project is around Rs. 2,500 crore. It has also bid for line 2 of the Mumbai metro elevated track between Mankhurd and Charkop with an estimated investment of Rs. 6,500 crore. The company is also bidding for the Rs. 6,000 crore Mumbai trans-harbour link.
Source : The Hindu
New path or alleyway
October 12, 2006
Are contractual ‘innovations’ holding up the showpiece highway project?
It continues to be a slow trudge on the fast lane. Barely 35 per cent of the contracts for the North-South East-West corridor (NHDP-II) have been awarded. This lethargy in the awarding of contracts by National Highway Authority of India (NHAI), under the UPA, is predictably bound to lead to long delays in the construction of the highway network across the country.