20 cos bid for longest expressway in India
December 6, 2007
The planned expressway will dwarf the 95km-long, six-laned, access controlled expressway connecting India’s financial capital Mumbai with Pune
Mumbai: Twenty firms have submitted initial bids for building India’s longest and biggest expressway project yet—a Rs40,000 crore, eight-laned, access controlled expressway linking Ballia in eastern Uttar Pradesh (UP) with Greater Noida—located on the border of the Capital, New Delhi.
The 1047 km-long road project dubbed Ganga Expressway will, when operational, cut travel time between the backward eastern part of Uttar Pradesh and the more prosperous western part of the state, by 16 hours from the current 24 hours.
For a traveller, it would take just about eight hours to zip from the holy city of Varanasi to New Delhi when the project is completed.
The planned expressway will dwarf the 95km-long, six-laned, access controlled expressway connecting India’s financial capital Mumbai with Pune and the under construction and controversy-ridden 111km-long expressway linking Bangalore with the garden city of Mysore.
The firms that have applied for pre-qualification include Larsen & Toubro Ltd, Reliance Energy Ltd, DLF Ltd, IL&FS Ltd, Gammon Infrastructure Projects Ltd with Australia’s biggest investment bank Macquarie, GMR Group, the Omaxe Ltd-GVK Group-Nagarjuna Construction Co. Ltd consortium, the Bajaj Hindusthan Ltd-Apollo Group-D S Constructions Ltd consortium, Jaiprakash Associates Ltd, Canadian firm SNC Lavalin with Progressive Constructions Ltd, Unitech Ltd, Punj Lloyd Ltd, Oman’s Gulfar Engineering & Contracting Llc., Zoom Developers Pvt. Ltd, Australia’s Leighton Group with Oriental Construction Co. Ltd, and PLUS Expressways Berhad, a subsidiary of Malaysia’s UEM Group, according to an official with the UP government overseeing the bidding process who did not wish to be named.
UP has taken inspiration for building the Ganga Expressway from legendary Afghan leader Sher Shah Suri, who built the Grand Trunk Road connecting Delhi with Kabul in the 16th century after temporarily displacing Humayun from the Mughal throne.
Suri’s road ran alongside the right bank of the Ganga; the new expressway will be built on the left bank of the river.
The eight-laned expressway will be constructed on an embankment to be built by the state’s irrigation department for controlling floods on the left bank of the Ganga.
The proposed expressway will start at Ballia-Gazipur and pass through Varanasi, Mirzapur, Sant Ravidas Nagar, Allahabad, Pratapgarh, Rae Bareli, Unnao, Hardoi, Farrukhabad, Fatehgarh, Shahjahanpur, Badaun, Bulandshahr, Gautam Buddhanagar and terminate at Greater Noida.
The expressway project will make available around 5,000 acres of land for real estate development including residential and industrial units. This will make the project economically viable for the developers.
The work on the expressway project will begin next year.
Source: livemint.com
Noida - a Paradise for Abode & Personnel
November 12, 2007
New Okhla Industrial Development Authority (Noida) is known to be the largest industrial town of Asia, but now it has undergone a paradigm shift in the last few years. The real estate in Noida is hitting the sky, which is due to a large migration of people from Delhi who are being bullish to make it their home. As a part of Uttar Pradesh, Noida cannot remain untouched by the problems prevailing in the state. Despite all, the individuals who have shifted their base to Noida witness to live a splendid life. And today with one more reason for all the real estate players in Noida is none other than the proposed second international airport at Greater Noida. The development is likely to give a push to prices of residential and commercial property projects in twin cities of Noida and Greater Noida.
Noida certainly benefits from the relative proximity to Delhi. Excellent network of roads, 100 per cent power back up make up for a good idea to stay here. Also, Noida is attracting large interests from young well to do professionals who are making the highest income tax paying district in UP. Even many prominent names in both domestic and international hospitality sector are to initiate exclusive five-star hotel projects in Greater Noida. The list includes Unitech, Carlson, ITC, Bharat Hotels, and NRI hotelier Sant Chatwal. To be located in the close proximity to the proposed international airport, these commercial establishments will enjoy an added advantage.
According to Mr. M L Sehjpal, Director of Pearls Infrastructure Projects Limited, “Noida has developed into the land of opportunities. Property demand has sky rocketed here. Housing opportunities are in great demand as are commercial spaces. Moreover, the demand for residential property in Noida and Greater Noida is likely to shoot up in very near future, feels industry watchers. In the wake of better infrastructure facilities, Greater Noida already gains preference over Gurgaon. A direct metro link with Delhi and the Expressway will further improve accessibility of Noida.”
As conglomerates, Indian corporate is scouting for commercial spaces; NOIDA is emerging as a preferred IT & ITES destination of India. Real estate developers in Noida in their bid to lure investors are coming up with state-of-the-art office spaces as per international standards. Mr. Harjeet singh Arora, MD, Best Groups, “There is an excellent potential in India and abroad as there is a lot of movement in corporate circles as India’s large, educated middle class has made its name in the field of software and IT-enabled services, thereby fuelling demand for about 40 million square feet annually in IT and ITES office space. With the sudden jump in demand for space, the real sector is witnessing a huge charn.” Best is also coming up with an IT Park in Greater Noida.
Futuristic Plan of Noida
- Plans are to set up a multipurpose SEZ (Special Economic Zone) spread on 2,500 acres of land along the Expressway envisioned to be categorically divided into industrial, residential, recreation, commercial and facilities. Within this plan, 600-1000 acres of land has been earmarked for handicrafts related SEZ. The much-awaited Noida City Center between sectors 25A and 32 is also a futuristic offspring of this plan.
- Noida authority is looking forward to set up a medical city on a spread of 50+ acre of land along the expressway to be named Arogya Dham. This medical city shall be a congregation of super-specialty hospitals with world – class facilities and matching commercial complex, attendant’s homes and plenty of open space thanks to wide roads, parks and green cover.
- The Botanic Garden of Indian Republic (BGIR) is being set up on a spread of 200 acres in sector 38A to conserve the endangered plants of the country and showcase its near extinction plan diversity.
- It is also planned to connect Delhi and NOIDA through Delhi Metro Rail Corporation phase II construction program, latest by 2009.
- NOIDA is also setting up CNG-based outlets for vehicles in collaboration with Indraprastha Gas Ltd.
Source: indiaprwire.com
NKG Infrastructure Limited files DRHP with SEBI
October 3, 2007
NKG Infrastructure Limited (the “Company”), an ISO 9001:2000 Certified Construction Company, engaged primarily in execution of infrastructure projects like Highways, Roads & Bridges, Extension and Grading of Runway at airport, errection and installation of power sub-station and construction of buildings has filed its Draft Red Herring Prospectus (“DRHP”) with the Securities & Exchange Board of India (“SEBI”) to enter the capital market with its initial public offering of equity shares. At present, it is executing 67 projects including projects in joint ventures across various states in India. The value of projects under execution is Rs. 526.87 cr.
The Company proposes to issue 63,00,000 equity shares (the “Issue”) of Rs. 10 each for cash at a price to be decided through a 100% Book-Building process constituting 44.41% of the fully diluted post issue paid-up capital of the Company. The objects of the Issue are to deploy the proceeds for funding the capital expenditure requirements, investment in joint venture & BOT projects & augmenting the working capital resources.
The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The Book Running Lead Manager (“BRLM”) to the Issue is SPA Merchant Bankers Limited.
Incorporated in 1989, the Company is engaged primarily in execution of infrastructure projects and civil construction projects. Recently the Company has diversified into installation and erection of electric substations, with project for installation / testing / commencing of external electrical works in Gomti Nagar, Lucknow. The major projects of the Company are in the state of Uttrakhand, Uttar Pradesh and Madhya Pradesh. It is also executing/executed projects in the states of Haryana, Punjab, Gujarat, Himachal Pradesh & Pondicherry. Its major clients include Public Works Department & other agencies of various state governments & development bodies like Noida Development Authority, Lucknow Development Authority, Ghaziabad Development Authority, etc. It is also executing project for Airport Authority of India in joint venture for extension and grading of runway at Pant Nagar airport. The private sector clients include construction companies like Era Construction India Ltd., Nagarjuna Construction Company Ltd. and Marg Construction Ltd.
Source: moneycontrol
Infrastructure companies — Stack up with discretion
October 14, 2006
Driven by infrastructure spending, the demand side for construction companies remains robust. The key to success will lie in their ability to ramp up resources and capitalise on order flow.
Compound Annual Growth over 3 Years (%)
Indicative OPM across segments (%)
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Infrastructure has been the new market mantra the past two years. While private equity investors showed keen interest in infrastructure/construction companies, a number of mutual funds also jumped on to this booming bandwagon, investing a chunk of their assets in the sector. An annualised revenue growth of 30-40 per cent over the past three years and an average order size of three-four times the revenues also seem to justify this newfound enthusiasm.