Four-laning of Hyderabad-Vijayawada road from December
April 7, 2008
VIJAYAWADA: The long-awaited Rs 1460 crore four-laning of Hyderabad-Vijayawada Road will commence in December. The National Highway Authority of India (NHAI) will finalise the tenders by June.
Currently, the four-laning has been completed between Vijayawada and Nandigama (50 km) and Hyderabad and Malkapuram (40 km). The 181 km stretch between Malkapuram and Nandigama will now be four-laned.
NHAI Vijayawada-Hyderabad section project director P Srinivasa Rao said the work will be completed in two years time. The NHAI, the State Government and the contractors will enter into a state-support agreement before commencing the works, he added.
VIJAYAWADA-MACHILIPATNAM ROAD: Srinivasa Rao said the the Vijayawada-Machilipatnam Road will also be widened to 200 feet. This would be done for 150 km. The tenders would be finalised in June and the works would begin from December.
The widening is estimated to cost Rs 493 crore. The widening has become necessary in view of the heavy vehicular movement on the road and the future needs that may arise after the establishment of the new port.
The project director met superintendent engineer of Irrigation T Shivaji recently to discuss the widening as some irrigation canals pass along the road.
Source: newindpress.com
20-year delay for Shillong bypass
April 5, 2008
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| P.R. Kyndiah: Hopeful |
Shillong, April 4: Union tribal affairs minister P.R. Kyndiah and officials of the National Highways Authority of India (NHAI) visited Ri Bhoi district today, concerned over the delay in the construction of the Shillong bypass.
The construction of the bypass has been delayed for more than 20 years because of problems in land acquisition and hurdles imposed by red tape.
Kyndiah said the delay in completing the bypass has caused hardship to the people of the state and the rest of the Northeast, as traffic congestion has become the order of the day.
Once the bypass is constructed, the trucks plying through Shillong will be diverted through the bypass to reduce traffic snarls.
He said the land acquisition process was nearly complete and the proposal is now pending with the Union ministries of shipping, road transport and highways.
The cost of the project is Rs 220.35 crore and the length of the proposed bypass is 47.06km, starting from National Highway 40 at Barapani in Ri Bhoi district and ending at National Highway 44 at Mawryngkneng in East Khasi Hills district.
Truck movement along the National Highway 44, which passes through Shillong, is at present banned for 12 hours.
Kyndiah said once the Union transport ministry sanctions the project, the proposal will be sent to the Union finance ministry for approval.
The tender for the project will be called after the clearance and the NHAI will execute the project.
“I am taking up the matter with both the ministries so that the work can start at the earliest,” Kyndiah said, adding that the Union ministry of environment and forests has also cleared the project.
The NHAI will construct one major bridge and eight minor ones to complete the bypass.
The general manager of NHAI, D. Gogoi, accompanied Kyndiah on the tour.
He said Rs 19 crore has been released as land compensation in East Khasi Hills and Rs 5 crore will be released for the landowners in Ri Bhoi district soon.
Source: www.telegraphindia.com
DR. KARUNANIDHI TO INAUGURATE FOUR NHAI PROJECTS IN CHENNAI
April 4, 2008
DR. KARUNANIDHI TO INAUGURATE FOUR NHAI PROJECTS IN CHENNAI. ALSO TO LAY FOUNDATION STONE FOR FOOT OVER BRIDGE AT CHROMEPET
The Chief Minister of Tamil Nadu Dr. Kalaignar M., Karunanidhi will inaugurate four projects completed at a total cost of Rs. 80 crore by the National Highways Authority of India (NHAI) on Wednesday the 9th April 2008. He will also lay the foundation stone for Foot-over Bridge at Chromepet on the same day.
The function for the inaugural ceremony would be presided over by the Union Minister of Shipping, Road Transport and Highways Thiru T. R. Baalu and the Minister for Local Administration, Government of Tamil Nadu Thiru M.K Stalin would be the Chief Guest. The Guests of honour of the function would be Thiru M.P. Swaminathan, Minister for Highways, Government of Tamil Nadu and Thiru T.M. Anbarasan, Minister for Labour, Government of Tamil Nadu.
The Irumbuliyur Underpass has been built at a cost of Rs. four crore, four-laning of Chennai Bypass Phase-I up to Porur has been completed by NHAI at a cost of Rs. 70 crore, the pedestrian subway at Tirisulam has cost Rs. five crore and the Bus Shelter at Chromepet built under the MPLAD Scheme has cost Rs. 82 lakhs. The completion of the Irumbuliyur Underpass will facilitate right turn for the Tambaram Traffic to access Chennai Bypass and thereby quicker connectivity to the Golden Quadrilateral Corridor.
The Chromepet Foot-over Bridge for which the foundation stone will be laid on Wednesday to facilitate the commuters in crossing NH-45 to access the railway station on the other side and vice versa which provides rail connectivity to southern part of Tamil Nadu, would cost Rs. 2.40 crore.
Thiru T.R. Baalu has expressed the hope that with the completion of these four projects, the people living in and around these areas would be greatly benefited.
Source: pib.nic.in
Update on NHAI expressways projects
April 3, 2008
It is reported that, with access controlled expressways attracting massive investments, ministry of road transport & highways has decided to conduct the feasibility study for more such expressways and construction companies eyeing the access controlled expressway projects of National Highways Authority of India are likely to get investment opportunities for at least 4 such projects spread over 495 kilometer over the next few months. They are1) 70 kilometer Chandikhol Jagatpur Bhubaneswar – INR 761 crore2) 47 kilometer long Delhi Hapur – INR 474 crore3) 198 kilometer long Vijayawada Elluru Rajamundri – INR 1,602 crore4) 180 kilometer long Delhi Agra highway – INR 1,918 croreThe feasibility reports for these projects are already completed and the work is likely to be awarded in about 6 months. These projects are for widening the current 4 lane highways into 6 lanes and operating them for certain durations. Companies would have to bid competitively for these projects on a revenue sharing basis. Thus companies would have to bid on the extent of toll revenue that they are ready to share with the Government if they are allowed to operate the roads. Since these highways are already 4 lane stretches, the road operators can start toll collection even during the project construction phase from an appointed date, mutually decided by NHAI and the road operator. The toll revenues will be routed to an escrow account.Recently, NHAI has awarded 4 such mega projects of 882 kilometer length, which are likely to cost an estimated INR 10,912 crore. From the NHAI perspective, these projects have emerged as money spinners, with companies willing to foot the entire construction cost and part with 2% to 48.06% of their revenues in the initial leg of the project. At the end of the concession period, which is about 12 to 15 years duration, the winning firms have agreed to part with 12% to 59% share of toll revenues.The feasibility reports for another 10 projects of similar nature are under preparation. They are1) 315 kilometer long Kishangarh Udaipur stretch – INR 2,205 crore2) 235 kilometer long Udaipur Ahmedabad – INR 1,645 crore3) 190 kilometer long Varanasi Aurangabad – INR 1,330 crore4) 184 kilometer long Nellore Chilkaluripet – INR 1,288 crore5) 148 kilometer long Krishnagiri Walajapet – INR 1,036 crore6) 145 kilometer long Pune Satara – INR 1,015 crore7) 85 kilometer long Ludhiana Chandigarh – INR 595 crore8) 80 kilometer long Belgaum Dharwad – INR 560 crore9) 56 kilometer long Samakhiali Gandhidham – INR 392 crore10) 55 kilometer long Indore Dewas – INR 385 croreThe ministry has also decided to conduct the feasibility study for 4 such expressways between Delhi and Meerut, Chennai and Bangalore, Vadodara and Mumbai and Dhanbad and Kolkata. Source: http://steelguru.com
NHAI goes in for a board shake-up
April 3, 2008
The ministry of shipping, road transport and highways has been under severe criticism for NHAI’s inability to meet the deadlines for developing road projects in the country.
New Delhi: Ahead of plans to give out some 10,000km in road projects over the next year, the ruling United Progressive Alliance, or UPA, is replacing at least half of the six-member board of the National Highways Authority of India, or NHAI, the country’s apex road regulator.
The radical revamp of the board, the first of its kind, comes at a time when the ministry of shipping, road transport and highways, which works closely with NHAI, has been under severe criticism for its inability to meet the deadlines for developing road projects in the country.
The revamp comes at a time when the ministry of shipping, road transport and highways has been under criticism for its inability to meet the deadlines for developing road projects in the country
NHAI oversees the National Highway Development Programme (NHDP), under which, almost 33,097km of highways were to be four-laned. Barely 50% of the projects have been awarded so far. As of February this year, work on only 7,942km of highways have been completed; of this, work on around 5,500km was completed during the tenure of the National Democratic Alliance government, which preceded UPA.
NHDP, launched in 1996, was seen as a flagship programme for successive governments, especially since an estimated 60% of freight is still transported by road in the country. There are 66,000km of national highways in India.
Neither the minister, T.R. Baalu, nor the concerned officials, NHAI chairman N. Gokulram and road transport secretary Brahm Dutt, could be immediately reached for comment on Thursday evening. As a result, it is still not clear as to why the government has sought such an overhaul in the NHAI board. The changes have been effected over the past 15 days.
Mint has independently confirmed from various government officials who do not wish to be identified that three out of the six members on NHAI’s board were asked to return to positions at the ministry in the last fortnight. According to officers at NHAI who do not wish to be identified, one of the members C. Kandasamy has already been named a chief engineer at the ministry of shipping and road transport.
A.V. Sinha and Nirmaljeet Singh, too, are being forced to “come back” to their parent ministry. “In one case, the ministry said it would promote a junior officer thereby forcing an NHAI member—on deputation with NHAI—to seek repatriation (back to the ministry),” an officer at the regulator who did not wish to be identified added.
While Sinha could not be reached for comment, Nirmaljeet Singh and Kandasamy declined comment. “I am not with NHAI any more. And for any information pertaining to board members, please contact the chairman,” Kandasamy said.
The shake-up in NHAI’s board comes at a time when the regulator has been accused of not only failing to meet deadlines, but also misgovernance.
“In fact, one of the members was threatened with suspension because some projects in Tamil Nadu got delayed,” said the officer at NHAI.
Highway builders say working with NHAI is difficult primarily because officers refuse to make decisions. “You can say one contractor is bad or may be two contractors are bad, but how can all contractors be bad at the same time? It is the authority (NHAI) that refuses to make decisions for three years sometimes. We are tired of working for them,” said an executive with a highway builder who did not wish to be named. “Why is it, that the same contractors perform on time when it comes to work by the Delhi Metro Corporation?” the executive asked.
Contractors also claim that the authority is unwilling to release money for changes in the scope of work for fear of being investigated by the vigilance department. Mint had earlier reported that almost three in ten NHAI contracts end up in some form of arbitration or the other.
None of the contractors or highway builders contacted by Mint would speak on record, saying it could affect their chances of winning contracts from NHAI in the future.
Meanwhile, the NHAI officials said the board was being revamped because it did not agree with certain proposals made by the Planning Commission on guidelines for drafting tenders for upcoming projects.
“The fact is that the minister has been unhappy with the way the NHAI has functioned in the last year and so these changes are being contemplated,” said a senior government official, who did not wish to be identified.
NHAI has also been named in a court case filed by the National Highway Builders Federation, a trade body representing highway contractors, who claimed that recent pre-qualification criteria used by NHAI favour large bidders. The case is expected to be heard by the Delhi High Court on Friday.
One analyst said it was not fair to accuse only the board, saying that other organizations, such as the Planning Commission, were equally to blame for not ironing out policy issues related to work on NHDP. “The paranoia of the government (over being blamed for non-completion of highways in an election year) could be a factor,” said this analyst who did not wish to be identified.
Source: www.livemint.com
NHAI projects Rs 28,000 cr expenditure
March 25, 2008
The National Highways Authority of India (NHAI) has projected an expenditure of Rs 28,000 crore for 2008-09 to complete its ongoing projects and the new projects announced under the National Highways Development Project (NHDP). To meet this projected expenditure, the authority is in advanced stages of talks with the Asian Development Bank (ADB) for a loan of Rs 400 crore. This is in addition to the Rs 1,900 crore it is expecting from multilateral institutions through the central government’s budgetary allocation. Rs 14,000 crore is expected to be contributed by the private sector through public-private partnerships (PPPs) while Rs 7,000 crore is projected to come from fuel surcharge. Besides, the NHAI is planning to refloat the 54 EC tax-free capital gains bond for 2008-09 with a ceiling of Rs 3,700 crore. NHAI officials say the new 54 EC tax-free bonds will be launched once the Finance Act is passed in Parliament. In the current financial year, the NHAI has managed to mop up more than Rs 200 crore through the 54 EC bonds. Officials expect it to mop up nearly Rs 300 crore by the end of the current financial year. Didar Singh, member (finance committee), NHAI, said: “We are quite comfortable with our financial position to meet all the requirements of the various projects under implementation.” Some ongoing projects that are expected to be completed in 2008-09 include the 56.25-km Garhmukteshwar-Muradabad expressway, the 32-km Chennai bypass, the 15-km Chennai-Ennore expressway and the 14.35-km Jawaharlal Nehru Port (phase-II) project. In 2005, the Committee on Infrastructure had prepared a comprehensive plan envisaging a mammoth investment of Rs 2,20,000 crore under the NHDP on concessions or contracts to be awarded by 2012. According to the plan, projects under second, third and fifth phases of the NHDP are expected to be completed by December 2012, while concessions or contracts for fourth, sixth and seventh phases would be awarded by December 2012 and work completed by December 2015. Source: http://www.business-standard.com
EXPANSION OF NH-9 IN ANDHRA PRADESH
March 19, 2008
Four-laning of National Highway (NH)-9 in Andhra Pradesh is being taken up in a phased manner. Hyderabad-Machillipatnam section of this NH is being taken up for four-laning by National Highways Authority of India (NHAI) on Build, Operate and Transfer(BOT) basis under National Highway Development Project(NHDP) Phase-III. Four-laning in a length of 31 km from Hyderabad to Sangareddy is in progress on BOT basis. These works are targeted for completion by December, 2011. Consultancy services for examining the viability of 4/6 laning of Sangareddy-Zaheerabad section of this NH on Design, Build, Finance and Operate(DBFO) pattern is under progress. Further action in this regard will depend upon the outcome of the said study. 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
NHAI likely to issue contracts for 10,000km of highways soon
March 16, 2008
These contracts will be a part of phase III and phase V of the government’s highway project New Delhi: The United Progressive Alliance government wants to award, in the next few months, contracts to build up to 10,000km of national highways, equal to almost 70% the 14,500km of national highways on which similar contracts have been issued since 2000.Long Road Ahead (Graphic)The decision to award the contracts, worth at least Rs70,000 crore, comes with the general election likely to be held either late this year or early in 2009, although an official at the agency that regulates the highways sector in India claimed that this was because procedural issues related to the contracts had now been “ironed out”.The official at the National Highways Authority of India, or NHAI, added that since 2000, when the country’s National Highways Development Programme or NHDP was launched, the regulator had awarded contracts for the construction of 14,500km of highways worth around Rs80,000 crore and that work on 8,500km had been completed.The contracts that will be issued are part of phase III and phase V of NHDP and involve upgrading existing national highways into four-lane and six-lane ones. Five of the seven phases of NHDP involve upgrading existing highways.The stretches will first be offered to private companies to be developed under the ‘build-operate-transfer’ model where the companies will build the highways, operate them and collect toll for a certain period of time, and transfer them to the government at the end of a certain period of time called the concession period. In case this fails to draw bids, the projects will be offered on the ‘engineering-procurement-construction’ method, where private companies build the roads for a stipulated fee but will not have any stake in the project.“Detailed project reports are being created for these stretches and they are expected to be awarded in the next few months,” said a senior government official, who did not wish to be identified. “There was a lull in award of projects because the policy was being ironed out. But now that things are falling into place, you will see more and more projects on offer,” the official added.For almost a year, NHAI has gone slow in awarding projects.“Till now we were waiting for ironing out procedural issues such as preparation of the new model concession agreement and setting up a two-stage bidding process. Those matters have been taken care of now. And now the only serious impediment in the way of awarding these contracts is clearing of the toll policy,” said an NHAI official.The toll policy is to be cleared by the law ministry and this could take a couple of months, the official added.Analysts however said that while the agency was capable of awarding 8,000km of construction a year, exactly how much would get done depends on a number of factors including a legal challenge to the government’s bid process.The National Highways Builders Federation, an industry body, filed a suit in January against guidelines issued by the finance ministry and ratified by the Prime Minister’s committee on infrastructure that favour bidders who have executed large projects. The norms, reported by Mint on 28 December, cap the number of bidders at six, with some individual exceptions.“There are three factors that could affect the process (of awarding contracts),” said Kuljit Singh, a partner with the transaction advisory services practice of audit and consulting firm Ernst and Young Pvt. Ltd.“Technical detailed project reports usually take a while to prepare. Also, things generally slow down a little in an election year. Also, depending on what the court finds (in the case where the National Highways Builders Federation has challenged NHAI’s bidding norms), the process could be affected,” he added.Source: http://www.livemint.com
Mega six-lane projects in offing
March 10, 2008
With access-controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for more such expressways.
Construction companies eyeing the access controlled, six-lane expressway projects of National Highways Authority of India (NHAI) are likely to get investment opportunities for at least four such projects spread over 495 km over the next few months.They are Chandikhol-Jagatpur-Bhubaneswar (70 kilometre length, estimated cost Rs 761 crore), Delhi-Hapur (47 km, Rs 474 crore), the 198-km stretch of Vijayawada-Elluru-Rajamundri (Rs 1,602 crore) and the 180-km stretch on Delhi-Agra highway (Rs 1,918 crore). The feasibility reports for these projects are already completed and the work is likely to be awarded in about six months, said NHAI officials.Toll collection These projects are for widening the current four-lane highways into six lanes and operating them for certain durations.Companies would have to bid competitively for these projects on a revenue-sharing basis. Thus companies would have to bid on the extent of toll revenue that they are ready to share with the Government if they are allowed to operate the roads.Since these highways are already four-lane stretches, the road operators can start toll collection even during the project construction phase from an ‘appointed date’ (within six months of winning the project), mutually decided by NHAI and the road operator. The toll revenues will be routed to an escrow account.Recently, the NHAI awarded four such mega projects of 882 km length, which are likely to cost an estimated Rs 10,912 crore.From the NHAI perspective, these projects have emerged as money-spinners, with companies willing to foot the entire construction cost and part with two per cent to 48.06 per cent of their revenues in the initial leg of the project.At the end of the concession period, which is about 12 to 15 years duration, the winning firms have agreed to part with 12 per cent to 59 per cent share of toll revenues.More studies The feasibility reports for another ten projects of similar nature are under preparation. They are: Kishangarh-Udaipur stretch (315 km, Rs 2,205 crore), Udaipur-Ahmedabad (235 km, Rs 1,645 crore), Varanasi-Aurangabad (190 km, Rs 1,330 crore), Nellore-Chilkaluripet (184 km, Rs 1,288 crore), Krishnagiri-Walajapet (148 km, Rs 1,036 crore), Pune-Satara (145 km, Rs 1,015 crore), Ludhiana-Chandigarh (85 km, Rs 595 crore), Belgaum-Dharwad (80 km, Rs 560 crore), Samakhiali-Gandhidham (56 km, Rs 392 crore), Indore-Dewas (55 km, Rs 385 crore).With access controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for four such expressways between Delhi-Meerut, Chennai-Bangalore, Vadodara-Mumbai and Dhanbad-Kolkata. This was decided by the Road Ministry officials at a meeting with State Government authorities recently.Source: http://www.thehindubusinessline.com
Private sector shying away from NE road projects
March 7, 2008
NEW DELHI, March 6 – The Centre may be ready with funds for developing the road sectors in the North-East, but projects have been hit with few takers from the private sector. The lack of response from the private sector has led a Parliamentary Panel to remark that it was disappointed to note that the government initiative did not yield much result in the development of road projects in the North Eastern States.President, Prathibha Devisingh Patil, while addressing the joint session of the Parliament had mentioned about infrastructure projects in the North-East. The SARDP- NE with a funding of Rs 43,000 crore has been formulated to construct, improve and widen roads in the region. However, the government’s offer so far has not yielded the desired results from the private players, slowing down implementation of the projects. The incentives announced by the government for participation of private sector in road sector of NER would invite good response and hopes that NES would get a better road connectivity, said the Parliamentary Standing Committee on Transport, Culture and Tourism.The Centre has a number of projects in the pipeline for the region including upgradation of 588 km of various National Highways (NHs) to two-lane under Phase A of Special Accelerated Road Development Programme for North-East (SARDP-NE) through private sector participation.The Centre had way back in 2005 cleared the construction of the projects on BOT basis. Thereafter, National Highway Authority of India (NHAI) invited bids for the most trafficked corridor from Jorabat to Barapani in Meghalaya. But there was no response from the bidders.Later, the Government sanctioned the projects on BOT (Annuity) basis. Further, NHDP:III B, which includes four lanning of 1051 km on NH in NER, has been cleared last year. Currently, detailed project report is under preparation by NHAI, the Committee has been told.It was recommended that the Department undertake a proper scientific study and take the consequent measure to modify the rules and procedures, if necessary, for participation of the private sector in road projects in North-East. Meanwhile, the Ministry has proposed quality audit for SARDP-NE, with possible involvement of IITs. The monitoring of quality of works would be considered through individual experts to be engaged through National Road Congress. Further, reputed institutes such as IITs would be involved for conducting tests and materials and works being executed by the contractor.