nl infrastructure july 25 - july 31 2015

© Gyan Research and Analytics Pvt. Ltd., 2015 1

Policy News ❑ Haryana government approves Kundli-‐Manesar stretch The Haryana government has approved the construction of 83.32 km six-‐laned Kundli-‐Manesar section of the 136-‐km long Kundli-‐Manesar-‐Palwal Expressway Project spanning five districts. The estimated cost of the project is INR 1,680 crore. The project is likely to involve an annuity period of 17 years, including a construction period of 2.5 years. The expected date of completion is August 2018.

❑ NEC and Andhra Pradesh government to collaborate on Smart Cities NEC Corporation and AP Technology Services Limited (APTS), a wholly owned company of the Andhra Pradesh government, signed a Memorandum of Understanding (MoU) to collaborate in information technology for smart city initiatives in the state. NEC will work with APTS in designing and implementing the Safe City Project at Tirupati. Making cities more secure and safer for its citizens through technological innovations will be the core focus of the project.

❑ Union Government to award road projects worth INR 1.26 lakh crore in FY2016 The Union Government has set a target to award 273 road projects, covering 12,900 km and worth INR 1.26 lakh crore, during the current fiscal. The National Highways Authority of India (NHAI) will spend about INR 72,000 crore and the National Highways Development Project (NHDP) has an outlay of INR 24,000 crore.

❑ Delhi government to set up multi-‐modal authority The Delhi government plans to constitute the United Multi-‐modal Transport Authority (UMTA) with an aim to improve public transport system in the national capital. It would involve the installation of CCTV cameras with in-‐built Global Positioning System and WiFi in buses to ensure women's safety.

❑ Andhra Pradesh to create 'equipment bank' in infrastructure push The Andhra Pradesh government has decided to create 'an equipment bank' designed to supply equipment for all civil works. SREI Infra will support and provide finances to the state, while AP’s infrastructure, irrigation, agriculture and Roads and Buildings departments will work with SREI. The ‘equipment bank’ will help the state to save time instead of searching for players every time equipment is needed.

❑ Centre tracking 315 stalled projects worth INR 13.3 lakh crore The Centre's Project Monitoring Group is supervising as many as 315 stalled projects, entailing investments of INR 13.33 lakh crore, for speedy resolution of bottlenecks. Nearly 285 projects, worth INR 12.27 lakh crore, are still under consideration, while 30 projects worth INR 1.06 lakh crore are yet to be considered by the sub-‐groups.

Infrastructure NewsJuly 25, 2015 – July 31, 2015

© Gyan Research and Analytics Pvt. Ltd., 2015

Industry News ❑ Price of land for highways up six-‐fold since 2011 The new land acquisition law has increased the cost of buying land for highway projects by almost six times in four years. The initial price per hectare rose to INR 3 crore during the current financial year from INR 56 lakh in 2011-‐12. The acquisition value is estimated to be more than double this year as compared to the average cost of INR 1.35 crore a hectare during the last financial year. Consequently, the overall cost of constructing one kilometer of a four-‐lane highway has grown to nearly INR 16 crore from INR 11-‐12 crore two years ago.

❑ Drop in Mumbai’s housing market Mumbai’s total housing market registered a 47 percent drop in new launches although housing sales of 28,446 units and launches of 18,887 units were made in the first half of 2015. Further, not a single premium segment residential project (priced at more than INR 5 crore) has been launched in Mumbai so far. The high-‐ticket size in premium markets has impacted the overall Mumbai market.

Investment News ❑ IRB Infrastructure Developers arm ties up INR 1,400 crore fund for NHAI project Kaithal Tollway, a wholly-‐owned subsidiary of IRB Infrastructure Developers, has tied up INR 1,400 crore funds to execute a project awarded by NHAI. IDBI Bank, India Infrastructure Finance Company, IDFC, Indian Overseas Bank, Union Bank of India, Bank of Baroda, Canara Bank and Bank of Maharashtra are the eight lenders involved in financing the project.

❑ Tender for Mopa International Airport to be finalized by December 2015 The tender for the Greenfield airport at Mopa in Goa is likely to be finalized by December 2015. The infrastructure at Dabolim airport will be reviewed after a false ceiling recently collapsed in the newly built terminal. Financial threshold comprises a minimum net worth of Rs 1,000 crore.

❑ PNC Infratech led groups lowest bidders for road projects worth INR 1,507 crore Two joint ventures (JV) led by PNC Infratech have been declared as the lowest bidders for two NHAI projects worth INR 1,506.84 crore. The projects involve rehabilitation, augmentation and four laning of Koilwar-‐Bhojpur and Bhojpur-‐Buxar sections of NH-‐84 in Bihar, under NHDP Phase III. PNC's share in the JV is 55 percent for Koilwar-‐Bhojpur package and 70 percent for the Bhojpur-‐Buxar package.

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Weekly Snapshot

Indian Roads Statistics till December 31, 2014 (km)

National Highways 96,214

State Highways 1,47,800

Other Roads 44,55,000

Total 46,99,014

Total Roads Projects Awarded (km)

2013-‐14 3,621

2014-‐15 7,980

Source: Ministry of Road Transport and Highways


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