PINC recommends `Buy` on Ashoka Buildcon

October 24, 2011

PINC Research has recommended `Buy` on Ashoka Buildcon with a price target of Rs 363 as against the current market price (CMP) of Rs 240 in its report dated Oct 14, 2011. The broking house gave the following rationale:

What`s the theme:

Ashoka Buildcon (ABL), with an experience of ten years in BOT road projects, currently has 23 projects in its portfolio, with 16 projects being operational. The company is among the few BOT developers that has seen a complete life cycle of a project and has handed over four BOT assets back to the government. ABL also has a strong in-house EPC arm, which executes in-house and third-party contracts.

What will move the stock:

1) Post the IPO, ABL is aiming for the next league with an aggressive but calculated bidding strategy. In FY11, the company won projects of more than Rs 30 billion. We expect it to maintain a market share of 3.5% in NHAI bidding in FY12-13. 2) No dilution likely in the medium term; ABL would require equity of Rs 8 billion in the next three years, which is likely to be met from internal accruals and securitization of the existing projects.

Where are we stacked versus consensus:

Our FY12 and FY13 earnings estimates are Rs 21.6 and Rs 25.7, 12.1% and 15.3% lower than consensus estimates respectively. We expect top-line growth of 12.5% and 19% to Rs 20.1 billion and Rs 23.3 billion in FY12 and FY13 vs. consensus forecasts of 46.8% and 21.5% to Rs 19.1 billion and Rs 23.2 billion, respectively. We value BOT (on a DCF basis) at FY12E and FY13E equity multiples of 1.6x and 1.1x, respectively. Our SOTP-based target price is Rs 363, where BOT is valued at Rs 208 and EPC at Rs 155 (9x FY12E earnings). The stock offers an upside potential of 51% at our SOTP-based target price of Rs 363 vs. consensus target of Rs 344.

What will challenge our target price:

1) Lower IRR owing to further increase in interest rates; 2) Lower traffic growth; 3) Slowdown in execution of current orders; and 4) Adverse impact on tolling charges from any changes in government policy.

Source: www.myiris.com

Written by ITW Editor · Filed Under Ashoka Buldicon, Projects

Mr. S. CHAKRAVARTY, Secretary – ATTSII

October 20, 2011

Mr. S. Chakravarty

Mr. S. Chakravarty, formerly General Manager, RITES Limited has taken over as the Secretary, ATTSII after his retirement. He brings with him a good 33+ years of rich experience in Telecom and associated fields. Of this, he has spent almost eleven years working for the ITS industry in India on behalf of RITES, in addition to many other prestigious projects including Delhi Metro, Ennore Coal Port Project and Hyderabad Metro, to name a few.

Mr. Chakravarty has several firsts to his credit including the planning and implementation of the first-ever HTMS (Highway Traffic Management System) in India on the Kotputli-Amer section of NH8 during 1999-2001 for NHAI. He has also provided consultancy to NHAI for planning, design and tender documentation for a good number of HTMS / Tolling / WIM (Weigh-in-motion) systems in various parts of India. He was also instrumental in creating the basic tender specifications for the ITS project of Delhi Police prior to the Commonwealth Games in Delhi in 2010.

Prior to RITES he had useful stints in the erstwhile Overseas Communications Service (now called Videsh Sanchar Nigam Limited) and Bharat Electronics Limited where also he has several firsts under his belt. His rich experience in technology as well as having been a key player in major infrastructure projects in India makes him a fit candidate to function as Secretary, ATTSII.

Covered By

Editor

Indian Tollways

Written by ITW Editor · Filed Under Press Release

2011 ITS World Congress Conference Day 3

October 19, 2011

As dark clouds gather over Florida with the threat of an incoming tropical storm, nothing could have been more different inside the convention centre as exhibitors continue to be delighted by the excellent visitor and delegate numbers at this year’s ITS World Congress. Many expressed the show was their best ever and their enthusiasm was universal.

New product introductions continue apace and below are just selection of the highlights being shown off to transportation professionals from all over the world.

I hope you will find this information useful.

Regards,

Andrew Barriball
Publisher, ITS International

	Machine vision for ITS applications Allied Vision Technologies (AVT) is showcasing the Prosilica GT, a brand-new range of digital industrial cameras specifically designed for outdoor applications such as ITS. These compact cameras are able to operate in extreme environments and varying light conditions.

	Esri promotes online experiences Esri, which develops geographic information systems (GIS) solutions that function as an integral component in nearly every type of organisation, is pointing out the capabilities of ArcGIS.com, one of its newest online experiences.

	New electronic CVO data recorder Continental Corporation is proposing an Electronic OnBoard Recorder (EOBR) to the US market which will allow commercial vehicle drivers to conform to pending legislation which requires that Hours of Service (HoS) and other information be stored electronically rather than in paper logs.

	Point Grey’s dash of animal magic Point Grey’s Zebra 2, being shown here for the first time at a traffic show, acts as both an IP camera and as an imaging camera. It can therefore be used in a classic surveillance sense, being plugged into a back-end DVR system , or for image processing applications such as license plate reading.

	EarthCam delivers updated software EarthCam announced an update to its Traffic Management Software, offering users both live video and an integrated graphical interface of traffic entering a live work zone.

	OSI Laserscan puts price in sharp focus OSI Laserscan’s T100 and T200 are third-generation laser scanning products designed specifically for traffic applications. High repetition rates allow all realistic road speeds to be monitored and an expandable beam width – up to 4 metres – allows full-width coverage of a single lane.

	Moxa expands ITS sector presence Recognising that the typical traffic management centre has robust video integration needs, high-end ethernet developer Moxa has entered the ITS industry after years of serving the industrial market.

	EDI launches new ADU Eberle Design (EDI) has announced “immediate availability” of its new Auxiliary Display Unit (ADU). The CMU ADU is a rack-mounted display module that provides an LED four-colour by 32 channel full intersection display. This is combined with a SmartMonitor interface to a CMU-212 cabinet monitor unit (CMU).

	New opportunities with iControl iControl, the next-generation traffic sensor from TMT, helps transportation agencies enhance safety, reduce congestion and manage mobility of intersections and on freeways using digital tracking radar technology.

	Clary broadens its horizons Some seven decades after its foundation, uninterruptible power supply specialist Clary Corporation is broadening its interests beyond its traditional North American market.

	Impath surveillance systems on display “It’s important that transportation agencies are able to both view and record video surveillance and then disseminate the video to interested parties—whether it’s a control centre, local authorities or a public website,” said Leo Gaessler, vp of marketing and sales for Impath Networks.

	MDL unveils latest scanner A newly-developed laser-based system capable of a variety of traffic data functions is being unveiled by Measurement Devices Limited (MDL)

	Intelight pushes X2 ATC controller Intelight is using the World Congress as the platform from which to launch its X2 Advanced Transportation Controller (ATC). The company claims the X2 is the most advanced of its type, with touchscreen-activated features.

	Beat the Traffic widens access Beat the Traffic, a traffic information application with nearly 4 million page views per month, announced at ITS World Congress that it is launching its API to selected partners, allowing third-party developers to access the company’s traffic flow and incident data.

	Arada launches comprehensive telematics system Arada Systems, specialists in advanced Wi-Fi solutions at the right price, is launching a comprehensive telematics 802.11p DSRC/WAVE system at this year’s ITS World Congress. The solution includes on-board units (OBUs), road-side units (RSUs), battery-operated DSRC tolling tags, high-power 600mW embedded cards with full diversity, as well as the world’s first SD, USB and 802.11n based DSRC cards operating at 5.9GHz.

	Navigating a way to Garmin Garmin International is showcasing a breadth of intuitive user interfaces and technologies for aviation, marine and automotive navigation and infotainment systems that are said to be proven designs that help reduce driver distraction and increase operator efficiency.

	Intelligent NETworks from Delcan Delcan’s Intelligent NETworks advanced transportation management system (ATMS) is sweeping the industry with 25 installations in the last four years, including eight statewide deployments in the United States.

	Gardasoft technology illuminates the future As licence plate recognition systems evolve to meet increasingly detailed and high-definition needs through automatic tolling, red light violations and other ITS applications, illumination technology needs to evolve with those requirements.

	RWIS market heats up with Lufft’s NIRS31 Lufft USA’s suite of road weather information systems, other weather sensors and RWIS third-party integration capabilities are on show at this year’s ITS World Congress. The star of the company’s exhibit is the fast-selling NIRS31 non-invasive pavement condition sensor.

	IBM makes a splash in ITS IBM is known for solving complex problems, so it’s no surprise that Big Blue has made a giant splash in the ITS industry since working with Stockholm to better manage the flow of people and goods throughout the city. Since then, IBM has worked with Brisbane, Busan, Singapore and London—the last of which was the largest congestion pricing system in the world.

	ACS technology speeds up New Jersey Transit payment Building on a successful first-of-its-kind programme, NJ TRANSIT riders can now simply wave or tap their credit or debit cards on twice as many bus routes, including buses travelling to different zones in the system.

	Sensys shows its vulnerable side The increasing need to cater for vulnerable road users’ safety has inspired Sensys Networks to make its first departure from magnetic-based sensor technology.

Written by ITW Editor · Filed Under Expo & Events, International

2011 ITS World Congress Conference Day 2

October 19, 2011

The opening Day of the 18th ITS World Congress was a resounding success with many thousands of visitors and delegates from all corners of the world flooding the aisles of the exhibition halls and attending a host of sessions. Here, in the second of ITS International’s e-newsletters direct from the venue, is a selection of the many new products that are being debuted at this year’s mega event.

I hope you find them useful.

Regards,

Andrew Barriball
Publisher, ITS International

And the winners are…

Last night, the top innovators in the ITS industry were recognised in the 2011 Best of ITS Awards. “This is the leading awards programme in the country on transportation innovation and each of the winners are truly propelling transportation innovation forward,” said Scott Belcher, ITS America’s president and CEO

	Peek is keeping traffic issues under control Peek Traffic Corporation, which with US Traffic Corporation was awarded a procurement contract by the New York City Department of Transportation earlier this year, is highlighting its new ATC-3000 advanced traffic controller.

	Sony cameras make their mark A relative newcomer to the ITS World Congress, Sony is showcasing its line of industrial cameras from its high-definition block cameras to its latest GigE camera series.

	Telegra’s ‘one-stop shop’ message Telegra is at the World Congress to promote itself as a one-stop shop for traffic management systems for monitoring, maintaining and controlling dynamic transit activities for a variety of applications, including highways, toll roads, bridges, tunnels, airports, seaports, rail, public facilities and military bases.

	Image Sensing Systems first Image Sensing Systems (ISS) is unveiling a first here in Orlando – the company’s hugely successful RTMS G4 radar detector is now available with an IP camera option to provide the user with visual setup confirmation, data capture and verification over a TCP/IP connection.

	IRD weighs in with traffic and tolling solutions IRD (International Road Dynamics), which has built its reputation on integrating weigh-in-motion (WIM) systems with complementary products, is presenting WIMPlus solutions on its booth here at the ITS World Congress.

	Vaisala unveils RoadDSS software Road weather technology begins with the sensors on the road and ends with the software displaying the information, and just like the distance between the sensor and the software so too are the providers.

	Telvent showcase includes SmartMobility ICM With the president of Telvent Transportation North America, Patrick McGowan, serving as the chairman of the 18th ITS World Congress and the company’s CEO, Ignacio Gonzalez-Dominguez giving a keynote address during the opening ceremony, Telvent has a strong presence at this year’s conference.

	iPerform measures and manages Iteris has introduced the iPerform information management solution that utilises all available data resources to provide effective performance analysis and prediction. The software can fuse information from a full spectrum of sources including roadway sensors as well as weather and other traffic related data. Moreover, Iteris says it provides this valuable information for not only freeways, but for arterials and multi-modal forms of transportation as well.

	Siemens shows iwatch application Siemens has launched a new mobile application called iwatch based on its Sitraffic Concert traffic management solution, giving service engineers ubiquitous access to real-time traffic information on their iPads while in the field.

	NEC delivers innovation for onboard information NEC is displaying a new concept in onboard information terminals at the World Congress. The display unit has multiple functions, including navigation, traffic information services, scheduling for vehicles on pick-up and delivery duties and real time data transfer from a smartphone.

	Q-Free targets tolling first Q-Free is claiming a first for a major system solution being unveiled here in Orlando this week. The company is launching its first video based single gantry multi-lane free flow system – a fully automated system that takes front and rear pictures and tracks the vehicle through the tolling zone.

	TSS highlights Aimsun Online TSS-Transport Simulation Systems is highlighting Aimsun Online, its pioneering, real-time decision support system (DSS) for traffic forecasting and management. This software system slots right into the traffic control centre and continuously processes live field data, simulating the movement of every single vehicle inside a road network of any size, from a single highway corridor to a major world city or even a whole region.

	CS America debut CS Communication & Systèmes has announced a name change for its Intrans Group business, a specialist in the design, supply and maintenance of high performance toll systems established in the US since 1979, to CS America.

	MG Squared goes back to the future MG Squared is back on Orlando – returning to the site and event where its innovative lowering device was first introduced to the world. It was 15 years ago at the 1996 ITS World Congress here in Orlando that MG Squared displayed the first lowering device specifically designed for traffic management cameras.

	Econolite keeps Anaheim moving The world-renowned Disneyland theme park in Anaheim, California attracts some 15 million visitors a year. This poses a demanding challenge for efficient traffic management on the surrounding roadways, which are subject to wide and often unpredictable swings in the volume of traffic and the directional flow.

	Sensys solves sensor puzzle Sensys Networks has completely revamped the topology of its universal solution for freeway, arterial and intersection management. A new Access Point Controller Card (APCC) has brought the processing portion of its in-road sensor system down from an above-ground location and into the traffic controller cabinet

	LeddarTech lands Morphodetection order When LeddarTech first planned to use the ITS World Congress to launch its latest innovation, the Leddar side-tec, the company didn’t know it would also be able to announce an order for around 300 of the devices from Morpho, a Safran Group subsidiary.

	Case announces new teaming Case Systems, a leading provider of wireless communication and data management technology, has announced here at the ITS World Congress that it has teamed with TrafficCast International to develop the Bluetooth Call Box (BCBX) system, enhancing public safety and mobility on the nation’s congested roadways.

	Lane-in-a-Box idea for tolling requirements ITS World Congresses are where breakthrough products often grab the imagination and this is certainly going to be the case if you visit booth 1507. You will get the first glimpse of Lane-in-a-Box, a completely new approach to the provision of roadside tolling, monitoring or management.

	Efkon’s tiny but powerful solution Visitors to the Efkon booth will have an opportunity of getting their hands on the company’s latest development – or should that be hand? Because the company’s Image to Information (I-to-I) Reader, an innovative product which builds on established technology, is tiny and weighs in at a mere 1.0kg.

	Parsons Brinkerhoff has influential Congress role Parsons Brinkerhoff’s participation at this World Congress is a fairly accurate reflection of how the company operates in the real world. PB recently celebrated 125 years of service;

Source: http://campaign.route2email.com

Written by ITW Editor · Filed Under Expo & Events, International

2011 ITS World Congress Conference Day 1

October 19, 2011

As this year’s ITS World Congress opens the doors for business, there are a host of exciting new products being introduced that have the very real potential to change the shape of surface transportation. Among them is Transcore that is using the event to premier ROVR, a GPS device with GSM communications that allows infrastructure-less tolling and includes an optional driver safety monitoring feature to reduce accidents, improve fuel economy, and decrease greenhouse gasses. Iteris has also unveiled the latest addition to its Vantage vehicle detection solutions family, the Vantage Vector, which combines video detection with radar sensor technology.

To read more about these exciting developments, and much more besides, ITS International, media partner for the event, will be sending you daily e-newsletters direct from the show. I hope you find them useful.

Regards,

Andrew Barriball
Publisher, ITS International

Kelly Gravelle of Transcore

TransCore calls on ROVR

TransCore has unveiled ROVR, a GPS device with GSM communications that allows infrastructure-less tolling and includes an optional driver safety monitoring feature shown to dramatically reduce accidents, improve fuel economy, and decrease Greenhouse gases (GHG).

Abbas Mohaddes and Greg McKhann of Iteris

Vantage Vector first look

Just last week, Iteris announced Vantage Vector, the latest addition to its portfolio of Vantage vehicle detection solutions, so delegates here will be the first to see this important new device. It’s special because it fuses the company’s proven video detection with radar sensor technology to extend the range and richness of detection data

Michael Doyle, Panos Michalopoulos, David St Amant of Econolite

Econolite and ISS: 20-Year Partnership of Advancing ITS Capabilities

This year, 2011,marks 20 years of a successful product development partnership between Econolite and Image Sensing Systems (ISS). “As a pioneering force in transportation management technology, the Econolite-ISS partnership continues to identify and address the burgeoning need in the ITS industry for automated multitasking detection tools,”

Brian Shockley of Aldis

Smart cookies at Aldis

This morning, former US secretary of transportation Mary Peters will be joining Aldis, creator of the GridSmart solution for video vehicle detection and traffic data collection, to help launch two new generations of its system.

Kjell Amesson of Kapsch

Kapsch TrafficCom put to the test

One could truthfully say these are testing times for Kapsch TrafficCom. Outside in the Technical Showcase, delegates will get a unique opportunity to test for themselves a range of ITS applications built on a 5.9 GHz DSRC platform, while on the company’s booth the talk is about the company’s latest international success.

Richard Neumann

Swarco’s suite success story

Visit the Swarco booth and you will find a suite of the latest products and solutions for better traffic flow, adaptive traffic control, traffic data acquisition and energy-efficient, LED-based signage and lighting.

Trisha Reddan and Tarah Stowe

McCain has key to sucess

Agencies, municipalities, and other entities that manage the roads know it’s not always easy or possible to upgrade infrastructure in a single step. Instead, improvements are made in due course.

J R Richardson of Raytheon

Raytheon inside out

Raytheon is inviting delegates to experience its Infrastructure BSM Generator (IBG) demonstration out in the Safety Village. IBG directly addresses the issues of early adopter and market penetration benefits of ITS by using advanced video analytics-enabled systems to generate Basic Safety Messages (BSM) for unequipped vehicles at safety critical deployment locations

Jason Morrison ofDaktronics

Daktronics lasting connections

Daktronics is here at the ITS World Congress with LED dynamic message signs for all ITS applications with a special focus on using full-colour DMS to boost message comprehension

	Aisin integrates product lines Already an industry leader in designing navigation and automatic transition systems, AISIN AW is integrating the two product lines in its new NAVI-MATIC system and demoing the product at the ITS World Congress this week.

	Bosch systems put safety first Robert Bosch is showing multiple systems at the World Congress designed to enhance driver safety. Among them is Motorcycle ABS, whose speed sensors on both wheels instantly detect a wheel locking up under braking pressure and use a hydraulic unit to momentarily reduce the braking effort to prevent the motorcycle from skidding.

	SQLstream delivers real Insight Today, here at the World Congress, sees the official launch of SQLstream ITS Insight, the first real-time solution for reducing congestion to exploit low cost wireless GPS data as a complement to existing fixed-road sensor investment.

	Wavetronix selected for ITS Moscow project ITS Moscow loves SmartSensor HD from Wavetronix and has selected the device for a nationally important project that seeks to address some of the heaviest traffic congestion in the world. The device was tested extensively prior to being selected as the traffic detection device for ITS Moscow. Source: http://campaign.route2email.com

Written by ITW Editor · Filed Under Expo & Events, International

NHAI to seek bids for 4,000 km highways in the next fiscal year

October 18, 2011

New Delhi: The National Highways Authority of India (NHAI) will seek bids for 3,000-4,000 km of highways for operations, maintenance and tolling (OMT) contracts in the next fiscal year, said J.N. Singh, member (finance), NHAI.

This will be in addition to the 2,900 km the authority has already put on the block since August this year. Under OMT contracts, private contractors are allowed to collect tolls on the highways they maintain. These contracts are typically for a concession period of four to nine years. Contractors share a part of the revenue with NHAI as concession fee, which grows 10% annually.

At least 80 companies have participated in bids this year, according to Ernst and Young. These include Relcon Infraprojects Ltd, IRB Infrastructure Developers Ltd, Oriental Structural Engineers Pvt. Ltd, Gayatri Projects Ltd and HDPL Infrastructure Ltd, according to the consultancy’s data.

“The highways in question are those that were laid in the 1990s on a build-operate-transfer (BOT) basis, and whose concession periods have ended,” said M. Murali, director general, National Highways Builders Federation (NHBF), an industry lobby. Under BOT financing, a private developer finances, builds the road and maintains it for a specified period in exchange for rights to levy tolls.

Murali, however, said NHAI is unlikely to seek bids for 3,000-4,000 km to private contractors. “The figure should be in the range of 2,000 km, as that is the road length that is going off concession next year.” NHAI simplified the bidding process this year by allowing companies to submit documents just once in a calender year, instead of asking them to submit these separately for each project.

Mint reported on 2 February 2009 that private developers could be allowed to maintain NHAI’s highways.

When B.C. Khanduri was highways minister (from 2000-2003), the authority had engaged ex-servicemen as toll collection agents on stretches maintained by the agency.

NHAI’s Singh said discrepancies in revenue collection had occurred over time.

By offering contracts for bids, the government will get a fixed income from private contractors, said Murali of NHBF.

“The profit or loss, as the case may be, would be borne by the contractor,” he said.

Abhaya Agarwal, executive director, Ernst and Young, said awarding maintenance contracts to private contractors is beneficial for NHAI as it typically leads to timely execution of projects.

Agarwal said the process enhances private participation in the sector, thereby increasing competitiveness as bidders either seek a lower grant or offer a higher concession fee.

Source: livemint.com

Written by ITW Editor · Filed Under Highway, NHAI

Om Metal’s ambitious infra projects strain cash flows

October 18, 2011

Rajasthan-based Om Metal Infraprojects (OMIL) is trying to move up the value chain from being a niche engineering player to an infrastructure major using real estate as a stepping stone. The hurdles it is facing in this transition process have kept the scrip out of the market’s radar for quite a long time. However, as its real estate projects gain momentum from the second half of FY12 onwards, retail investors would do well to keep this scrip in their line of vision.

OMIL controls a 55% market share in hydro-mechanical projects for dams and irrigation projects in India. This mainly involves designing, fabricating and installing floodgates and related mechanical set up for a smooth functioning. It is at present carrying an unexecuted order book of Rs 550 crore.

Source: indiatimes.com

Written by ITW Editor · Filed Under Om Metal Infraprojects

Sadbhav Engineering: Low debt, consistent growth record make the company an attractive investment option

October 18, 2011

Ahmedabad-based Sadbhav Engineering is a diversified construction company, with projects related to construction of roads and highways, irrigation and mining. It has completed over 48 projects across these sectors. A substantial portion of the company’s revenues — around 70% –comes from road projects, while the remaining comes from mining (17%) and irrigation (13%) projects.

INVESTMENT RATIONALE : Sadbhav Engineering’s ability to maintain margins consistently makes it a good investment prospect. In the last five financial years, the company has been able to maintain its operating profit margin at 11-12% and net profit margin at 4-5%. This seen in the light of the changing interest rate scenario indicates the company’s sound project execution ability. Another factor that has helped the company maintain margins is its low debt and interest expense. Even as interest rates have increased over the last year-and a-half to June 2011, the company’s interest expense as a percentage of net sales has stayed in the 1-2.5% range, while the company’s net sales have grown by 34% to Rs 612 crore in the same period. It has an order book of Rs 6,586 crore, a big chunk of which comes from build-operate-transfer (BOT) projects.

Source: indiatimes.com

Written by ITW Editor · Filed Under Projects, Sabdhav Engineering

Ashoka Buildcon To Raise Upto $150Mn For Road Projects

October 18, 2011

Ashoka Buildcon is selling stake in it’s newly formed road development subsidiary to raise upto $150Mn.

The company has formed a holding company for eight of its road projects, which are together worth around Rs 6,000 crore. The holding company currently includes six projects of National Highways authority of India (NHAI) that the company is executing on build-own-operate basis, and two state road projects.

Ernst & Young is advising Ashoka Buildcon on the deal.

Given a typical 75:25 debt equity funding structure for highway projects, it will need Rs1500Cr as equity for the holding company.

Nashik based Ashoka Buildcon mainly constructs and operates roads and bridges on a BOT basis. It also undertakes EPC Contracts to construct distribution transformers and electricity substations.

Ashoka Buildcon On BSE

According to it’s website, it currently has a portfolio of 23 BOT road projects totalling approximately 3,498.35 kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa, of which 17 are in operation and six are under construction.

GMR Infrastructure is also planning to raise upto Rs960Cr for it’s road projects. It recently won a road project involving six-lane conversion of the existing Kishangarh-Ahmedabad highway.

Source: dealcurry.com

Written by ITW Editor · Filed Under Ashoka Buldicon, NHAI

NHAI readies blueprint on RFID cards tags to help drive through toll gates nationally

October 11, 2011

NEW DELHI: Motorists can say goodbye to excruciating queues and road rage at toll gates, save precious fuel that burns in idling engines and avoid the risk of being given soiled or fake currency notes as smart cards will replace clumsy cash payments on highways in the next couple of years.

You will be able to buy a smart card for Rs 100 at a gas station or bank, top it up with cash, and use it like a debit card on highways without even stopping the car. The card will send a radio signal to pay the toll and automatically open any toll gate from Kashmir to Kanyakumari without the trouble of paying awkward amounts like Rs 27 or any human interaction.

Fuel savings for truckers will be phenomenal. A long-haul drive from Delhi to Mumbai is interrupted by some 20 toll gates and the average time at each gate can be as much as 10 minutes. This translates to over three hours of idle run, which is enough to run the truck for another 100 km. According to an estimate, fuel worth $2-3 billion is wasted on highways and check-posts annually, a significant part of which is due to toll stops.

The National Highways Authority of India is doing its bit to jazz up highway driving. It is planning to set up complexes equipped with amusement parks, ATMs, food courts and fuel stations every 50 km. It also has a buzzing Facebook page, although some of its posts are amusing — this summer it shared tips on driving in foggy weather.

The NHAI now plans to prepare a blueprint for the implementation of Radio Frequency Identificationtechnology-based smart cards in making traffic movement across toll gates hassle free.

“A committee has been constituted under YK Sharma of National Informatics Center constituting members from NHAI and ministry. The recommendations shall be submitted to the government shortly,” said an NHAI official.

The RFID scheme is expected to be launched on a few highways before it is gradually expanded.

Apart from saving fuel, the use of tag is expected to cut pollution, decongest toll gates, bring down operating costs for concessionaires and help increase toll collection. An executive at a leading infrastructure company said some toll-collection operations are run by powerful local politicians, who do not pass on all the toll to the infrastructure firm.

The NHAI official added that the move is likely to discourage circulation of fake notes which is usually a problem during cash collection in peak hours with dim lights.

The approximate cost for setting up the infrastructure for RFID on one lane is estimated to be about Rs 10 lakhs. Government is looking at petrol pumps, post offices, banks and other potential sites where tags can be sold.

“The cost of tag starts from Rs 100 and since tags work on a common protocol, same tag will work all over India,” said Ashish Bhutani, MD of Omnia Technologies, a leading manufacturers of tags.

Source: articles.economictimes.indiatimes.com

Written by ITW Editor · Filed Under CCH, NHAI

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