An analysis by CRISIL on the pace of road construction

October 26, 2016

Pace constructionInfo source : Lok Sabha and Rajya Sabha

Annual highway construction

  Year                    Distance

2011-12                 2207 km

2012-13                 2481 km

2013-14                 1628 km

2014-15                 1576 km

2015-16                 2196 km

2016-17P              3040 km

2017-18P              4242 km

 

Pace of execution improves 

 

                      8 months post awarding          12 months post awarding          18 months           30 months

2012-13                        2%                                           3%                                     3%                     41%

 

2013-14                        9%                                          18%                                   39%

 

2014-15                        5%                                          24%

 

 

Road projects : Full speed ahead

The speed of execution of projects awarded by the National Highways Authority of India (NHAI) improved 40% from an average 4.3 km per day in fiscal 2015 to 6 km in fiscal 2016. The material improvement in the pace of execution can be attributed to policy reforms by NHAI and facilitations by the government which are also reducing delays. The pace of execution is now expected to nearly double to over 11 km by fiscal 2018, propelled partly by execution of engineering, procurement, construction (EPC) projects awarded in the past three fiscals, according to research firm CRISIL.

However, even in the case of build, operate, transfer (BOT) and stuck projects, there has been some positive movement. For example, 15 NHAI projects were completed in the first four months of the current fiscal of which seven were BOT toll projects and four were awarded prior to 2009. CRISIL also analysed disaggregated data on execution for all projects awarded by NHAI during fiscals 2013, 2014 and 2015 at eight, 12, 18, and 30 months after awarding. Here too, the prognosis is encouraging with close to 25% execution taking place 12 months after projects were awarded in fiscal 2015.

The pace of execution of BOT projects awarded in fiscal 2013 has also ramped up to around 40%, 30 months since.

The key policy reforms initiated include easing of the clearances process, ensuring 80% land acquisition before the award of project, premium rescheduling, allowing developers to fully exit operational road projects, and introduction of the hybrid annuity model. Given that these reforms are largely aimed at reducing risk, CRISIL believes that private participation is set to pick up. Nonetheless, while the situation appears to be improving, there are still several BOT projects awarded between fiscals 2010 and 2012 that continue to be delayed, and are consequently viewed as high-risk projects.

3i completes Rs 200 cr deal in Supreme’s BOT road projects

July 10, 2012

Supreme Infrastructure today said it has completed the Rs 200-croe deal with 3i India Infrastructure Fund for a minority stake in its portfolio of road BOT companies.

“3i India Infrastructure Fund has completed its Rs 200 crore investment for a minority stake in a portfolio of our road BOT companies,” Supreme Infrastructure said in a statement. The transaction was signed and announced on January 30 and Ernst & Young was appointed as the financial advisor to the deal for this fund raise, it said.
Supreme Infra is focused on roads, bridges, power, water, railways and civil construction and infrastructure.

The company’s current order book stands at Rs 5,800 crore of which unexecuted order book is Rs 3,900 crore.

SOURCE: http://ibnlive.in.com

Supreme Infrastructure secures 2 new Road BOT projects

December 12, 2011

Supreme Infrastructure India Limited has added Two Road projects on BOT basis and a project in building vertical.

Jaipur Ring Road – This project is for the development of the outer ring road in Jaipur city. The project has been bagged by Supreme Infrastructure India Ltd. (SIIL) and its JV partner Constructora Spain S.A. (Sanjose ). The cost of the project is estimated at Rs. 1,045 crore and will be a 60:40 JV between Sanjose and Supreme Infrastructure India Ltd. (SIIL). The project is awarded by Jaipur Development Authority (JDA). The EPC work will be executed jointly by Supreme and Sanjose in equal proportion. This project will be housed in the SPV, Sanjose Supreme Tollways Development Private Limited.

Patiala Malerkotla Road – Supreme Infrastructure India Ltd. has taken over a partially completed project from the original concessioner. The project is in the State of Punjab and necessary approvals from Punjab Infrastructure Development Board has been taken by the Company in this respect. The project cost is estimated at Rs. 93 crore and is expected to get completed in 4 months. This project is housed in the SPV Supreme Infra Projects Private Limited. The entire equity of this SPV is held by Supreme Infrastructure BOT Private Limited, a 100% subsidiary of Supreme Infrastructure India Limited. The EPC work will be executed by Supreme Infrastructure India Ltd.

The company also received a work order for ESIC Hospital – Phase 2, Mumbai Work for the construction of 2nd Phase of ESIC Hospital, Mumbai has been awarded to the Company. The 2nd phase of the Hospital is in addition to the 1st Phase of the Hospital which is already under execution by the Company. Order size is Rs. 110 Crore and is expected to be executed by December – 2013.

The stock was trading at Rs.183, up by Rs.2.85 or 177%. The stock hit an intraday high of Rs.188.95 and low of Rs.177.

The total traded quantity was 10912 compared to 2 week average of 6825.

Source:http://www.equitybulls.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