18 February 2020

Table of Contents for Ticker Tapes





Infrastructure

FUNDS CRUNCH SKID HIGHWAY PROJECTS

EPC contractors in the road sector are finding it difficult to raise working capital, which has impacted adversely on six to seven projects of the National Highways & Infrastructure Development Corporation Ltd (NHIDCL). The projects affected are part of about Rs 35,000 crore ongoing highway projects by NHIDCL. Of the ongoing 75 projects, here are six to seven such projects where contractors are unable to arrange 10-15 per cent of the working capital, creating hurdles for the projects, sources say. The Corporation has already issued notices to non- performing contractors for revival of such projects. According to the project execution clause, in case of failure to respond to notices already served, necessary punitive action might follow since working capital requirement is entirely the onus of the contractors and the corporation cannot fund this. NHIDCL awards projects to bidders only after 90 per cent of land acquisition formalities are accomplished and only if the contractor can generate working capital.

 

 

 

MTHL UP FOR GRABS, 17 BIDDERS

The Mumbai Metropolitan Region Development Authority (MMRDA) has received 17 bids from contractors, out of the 31 that were shortlisted for the three packages of the 22-km Mumbai Trans Harbour Link (MTHL) project.

The six contractors for package 1 running from Sewri up to 10.38 km are; two consortiums comprising Afcons-Fluor Corporation-Shapoorji Pallonji (SPCPL), and ITD Cementation-Simplex- ITDPCL-SMCCL, four joint bids by Tata Projects and Daewoo Engineering & Construction, HCC and SK Engineering & Construction, and IL&FS Engineering and Ranjit Buildcon, and L&T with Japan-based IHI. The same contractors have also bid for Package 2 that runs from the 10.38-km mark up to 18.18 km.

Five contractors have bid for the third package from 10.38-km mark right up to the landing site at Chirle village in Navi Mumbai. They are; Afcons-Fluor-SPCPL consortium, ITD Cementation- Thakur Infraprojects-JM Mhatre consortium, and J Kumar Infraprojects, L&T and NCC have all bid singly.

The 22-km long MTHL will provide direct access to the proposed Navi Mumbai International Airport from the Mumbai mainland, and also provide a convenient gateway to the Mumbai-Pune expressway.

 

 

 

AAIB TO FUND GUJARAT ROAD PROJECTS

The Asian Infrastructure Investment Bank (AIIB) has sanctioned a $ 329 million to finance projects for Gujarat Rural Roads Project, according to the Finance Ministry. The objective of the project is to improve the rural road connectivity and accessibility (by providing all weather road connectivity) to 1,060 villages in all the 33 districts in Gujarat state benefiting about 8 million people. The project will also benefit the service providers such as public transport operators, educational institutions, hospitals, local markets and traders.

 

 

 

JAPAN TO FUND NORTH-EAST INFRA

India and Japan will jointly develop infrastructure in the north-east region. India plans to spend Rs45,000 crore for the development in the region bordering China, Bhutan, Bangladesh and Myanmar. The north-eastern region accounts for 3 per cent of India’s population and 8 per cent of area, but its hilly topography needs a lot of investment in infrastructure. Due to its strategic location, India is keen to involve countries like Singapore, Thailand, South Korea, and besides Japan to invest in skill development in the region. India is currently engaged in a tense military standoff with China in Doklam region of Bhutan.

 

 

 

LAUNCHING CHENNAI METRO PHASE II

In a bid to boost the state’s infrastructure, the Tamil Nadu government has decided to launch Phase II of the Chennai Metro Rail project, involving a cost of Rs.88,897 crore. This will extend the Metro rail line by another 108 km. The government is seeking financial help of the German government-owned development bank KfW. A detailed project report has been prepared for the three Metro rail corridors under the new phase. The state government has given the policy clearance and the project is now awaiting the Centre’s clearance. The project is scheduled to be completed by March 2018. Chennai’s Metro rail project comprises Phase I of 45 km, on the 21-km elevated stretch from Koyambedu to St Thomas Mount, and from Little Mount to Chennai Airport. The 9-km extension corridor I from Washermenpet to Thiruvotriyur/Wimco Nagar is under implementation at a cost of Rs.3,770 crore. Chennai Metro has been planned in a manner that it integrates with other forms of public transport, including buses and suburban trains.




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