05 April 2020

Table of Contents for Ticker Tape





About 331 infrastructure projects, each worth  Rs.150 cr or above, have a cost overrun of Rs.1.72 lakh cr, according to the Ministry of Statistics and Programme Implementation. The report attributes time overruns to a host of issues including delay in land acquisition, forest clearance, supply of equipment, funds constraints, the Maoist incursion, legal cases and law and order situation.


Total original cost of implementing 1,257 projects was Rs.15,76,903.56 cr, but their anticipated completion cost is likely to be Rs.17,49,274.62 cr, cost overrun of Rs.1,72,371.06 cr (10.93 per cent of the original). Expenditure incurred on these projects till July is Rs.6,80,016.96 cr, 38.87 per cent of the total anticipated cost. The 1,257 projects in question include, 331 that reported cost overrun and 274 time escalation. Of the total, only 2 projects have reported completion and 10 new projects have been initiated, 11 projects are ahead of schedule, 304 are on schedule, and 274 are delayed, 331 projects have cost overruns and 92 projects show time and cost overrun with respect to original implementation schedules. For 668 projects, original/anticipated commissioning dates were not reported by the authorities concerned. The report says out of 274 delayed projects, 47 have overall delay in the range of 1 to 12 months, 59 have delay of 13 to 24 months, 101 delayed in range of 25 to 60 months, and 67 have delay of 61 months and above. Of the 1,257 projects, 372 are mega projects worth Rs 1,000 cr and above.


Total original cost of implementation of these 372 projects was Rs.12,17,096.27 cr and their anticipated completion cost is likely to be Rs.13,60,528.92 cr, which reflects overall cost overruns of Rs.1,43,432.65 cr (11.78 per cent of the original cost). Till July, expenditure incurred on these mega projects was Rs.5,70,750.91 cr, 41.95 per cent of the anticipated project costs. Out of 372 mega projects, 130 have cost overruns, but number of such projects decreased to 103 when cost overrun is calculated on basis of revised cost.





After hanging fire years on end due to multiple hiccups, the Navi Mumbai international airport project is finally lined up on the runway to takeoff! Last month the Maharashtra Cabinet gave formal approval to Mumbai International Airport Pvt. Ltd. (MIAL) of the GVK Group for the construction of the proposed international airport. MIAL is a joint venture between the GVK Group and Airports Authority of India. The Greenfield project would be spread over 1,160 hectares and it would be built on PPP basis and is expected to be completed by December 2019. The project attracted four bidders but MIAL won the final bid based on security considerations and agreeing to share 12.5 per cent of the total project revenue to CIDCO. Union Ministry of Civil Aviation had finalised the Navi Mumbai site in July 2007, but it took three years for environmental clearances from Union Ministry of Forest and Environment in November 2010, where after the project was plagued with land acquisition problems. Mumbai Metropolitan Region (MMR) is projected to have a traffic of 100 Million Passenger Per Annum (MPPA), by 2034, and passenger traffic is set to cross 45 MPPA by fiscal 2018. Mumbai airport has already handled 42 million passengers in fiscal 2016. The new airport at Navi Mumbai will take care of the additional traffic.






POWERGRID has successfully completed and charged 220 kV S/c  Leh - Khalsti Line section of 220 KV S/c Alusteng (Srinagar) - Leh Transmission line, along with 220/66 kV GIS sub-stations at Leh and Khalsti on 31st Oct'17. This is the first time in India that any 220kV voltage level substation is built at such a high altitude of over 11500 ft. This is a prestigious project of GoI for extending Grid connectivity to difficult geographical areas of Leh- Ladhakh Region in Jammu & Kashmir. Implementation of Srinagar-Leh Transmission System has been entrusted to Power Grid Corporation of India Limited (POWERGRID).  Commissioning of these elements will facilitate delivery of power from the Nimmo Bazgo (3x15MW) Hydro-electric power stations in Leh/Ladhakh Region, with reliability.  Balance sections of this project, namely Khalsti-Kargil-Drass-Alusteng(Srinagar) section is under progress, which upon completion, will facilitate power distribution to Ladakh region directly from Northern Grid, in all seasons, with reliability.






Union Cabinet recently approved mega highway plan to develop about 83,000 km of roads at an investment of Rs.6.9 lakh cr in next 5 years. This in addition to approval of Phase 1 Bharatmala project comprising approximately 40,000 km of roads at an investment of Rs.3.5 lakh cr by 2022. This will generate at least 32 cr man-days across India by 2022. Plans are also afoot to improve speed of traffic movement on key corridors by providing uniform four-lane roads. Due to narrow road width and congestion, a truck in India average only 250-300 km daily in comparison to 700-800 km in developed countries. According to government estimates, construction of 10,000 km of highways may generate four cr man-days annually.





Under pressure to show results for Clean Ganga mission, Centre is resorting to bacterial bioremediation techniques to cut down the time lag in commissioning of sewage treatment plants (STP), which typically take 2-3 years to come up, large-scale application of bioremediation using 'sewage-eating microbes' quickens the process of improvement in the quality of river water, though only to an extent. National Mission for Clean Ganga (NMCG) recently approved two more pilot projects - one each in Patna, Allahabad - and planned to scale it up further by identifying 54 drains across four states - Uttar Pradesh (30), West Bengal (20), Bihar (3) and Jharkhand (1) - where bioremediation techniques can be used to prevent polluted water from flowing directly into the Ganga. Bioremediation is less costly with shorter commissioning time of 6-8 months. To be implemented as part of CSR activities, NMCG has received several proposals related to in-situ bioremediation for drains.  Drains identified for bioremediation include Golaghat, Ranighat, Budhiyaghat drains in Kanpur; Sasurkhaderi, Mavaiya, in Allahabad; Nagwa, Rajghat in Varanasi; and Saklichand, Ramkrishna Mullick Ghat, Telkal Ghat among others.






Maharashtra government has approved two more metro projects with an aggregate value of Rs.15,088 cr, for the 5th and 6th metro lines. The Mumbai Metropolitan Region Development Authority (MMRDA), had proposed a 24 km Thane-Bhiwandi-Kalyan Metro-5 corridor and 14.5 km Swami Samarth Nagar-Jogeshwari-Kanjurmarg-Vikhroli Metro-6.  The Rs.8,416 cr Metro-5 will be completely elevated with 17 stations. The six coach train will have daily ridership of around 2,29,000 by 2021, increasing to 3,34,000 by 2031. Stations include Kalyan APMC, Kalyan Station, Sahajanand Chowk, Durgadi Fort, Kon Gaon, Gove Gaon MIDC, Rajnouli Village, Temghar, Gopal Nagar, Bhiwandi, Dhamankar Naka, Anjur Phata, Purna, Kalher, Kasheli, Balkumbh Naka, and Kapurbawdi.


The Rs.6,672 cr Swami Samarth Nagar- Jogeshwari-Kanjurmarg-Vikhroli corridor will have 13 stations; Swami Samarth Nagar, Adarsh Nagar, Momin Nagar, JVLR, Shyam Nagar, Maha Kali Caves, SEEPZ Village, Saki Vihar Road, Ram Baug, Powai Lake, IIT Powai, Kanjurmarg (W) and Vikhroli. The six coach train will commute daily passengers around 6,50,000 by 2021, increasing to 769,000 by 2031.






Recently announced Bharatmala project will decongest cities, connect ports and economic corridors, and will put 250 more districts on four-lane highway map, connecting a total of 550 districts. The Highway Ministry will be seeking more funds from Finance Ministry to ensure faster completion. For every Rs.1 lakh cr to be used, the Highway Ministry will expect a budgetary support of about Rs.25,000 cr. Gross budgetary support for Bharatmala and existing schemes between 2017-18 and 2021-22 is estimated at Rs.2,37,024 cr from Central Road Fund, Rs.59,973 cr as budgetary support, and Rs.34,000 cr is expected from monetisation of toll-operate-transfer projects. All projects constructed through EPC mode will be monetised and will be bid out for 15 years. Bharatmala route alignments were identified as per a commodity-wise survey of freight movement across 600 districts.


Bharatmala is planned to decongest cities by building bypasses, first phase is of 24,800 km, and detailed project reports for 24,800 km are at an advanced stage, with DPR of remaining 7,000 km to be awarded soon. This will likely improve 20-25 per cent in average road and reduce supply chain costs by five-six per cent. Most of the projects will be announced before December 2018.






A total of 150 projects to purify the Ganga river will be launched by March next year aimed at containing discharge of polluted water in the river and recycling the waste water to produce bio CNG to power transport fleet. 150 projects will commence by March 2018 that are based on recycling etc.  The government is ready to offer technology free to investors who can produce methane and bio CNG from waste water which could be used to power buses and other vehicles.  Of 150 projects, 90 have been awarded, and 7 will be awarded soon, work on all 150 will begin within five months. 285 projects involve an expenditure of about Rs.1.5 lakh cr.






Inland Waterways Authority of India (IWAI) has raised Rs.660 cr through bonds, proceeds will be utilised exclusively to develop National Waterways, it said. The ‘GOI Fully Serviced Bonds,’ are in addition to budgetary support from Centre, which took a decision to help IWAI raise funds through GOI Fully Serviced Bonds in 2017-18. Both, CRISIL and CARE, rated the proposed instrument of IWAI as “AAA: STABLE. The e-bidding last month on BSE Portal with an issue size of Rs.300 cr and a Green Shoe option of  Rs.360 cr. The issue was oversubscribed and entire amount was raised in a single tranche at a coupon rate of 7.47 per cent. The Bond proceeds will be utilised exclusively for capital expenditure to develop National Waterways (NWs) under National Waterway Act. The Parliament recently allowed declaration of 106 rivers as National Waterways in addition to the existing five.






Maharashtra Metro Rail Corp. Ltd, is seeking latest tunnel-boring technology to drill through hard ground under a river bed for its 5-km underground Pune Metro route. It recently made a presentation of the Rs.11,420-cr project, which is expected to be completed by 2021. The tunnel will be drilled 30 m under the Mula Mutha riverbed, through which a section of the route will pass. Citing over 200 metro systems operating in global cities and in India, MMRC said the technologies will be used in Nagpur metro to significantly reduce construction cost and time significantly.  Over 50 per cent of 38-km Nagpur metro has been completed, which aims to meet its end -2019 deadline. Financing of the Rs.8,600-cr project has been closed, with over 50 per cent funding from Germany's KfW bank and France's AFD (French Development Agency).






Karnataka State Highways Improvement Project (KSHIP), will begin work on building three roads to create alternative access from Bengaluru to Kodagu and Hassan districts, by Republic Day. The new routes, involving widening and upgrading existing roads, are aimed at easing Mysuru and Tumakuru road traffic in the city. KSHIP is developing the roads under PPP model on hybrid annuity basis using ADB loans. The three roads are estimated to cost Rs.1,484 cr. The projects entail 75 per cent construction grant and nine years of concession period, including two years of construction and seven years of operation and maintenance. It includes building a four-lane toll road from NICE junction to Magadi on a 36.5 km stretch. KSHIP will also upgrade existing two-lane highways from Magadi to NH-75 junction (15 km) near Kunigal and, from Magadi to Somwarpet (166 km) with paved shoulders, truck lay-by, bus lay-by and rest areas. The new roads via Magadi will benefit even those visiting Kasargod district in Kerala. KSHIP has constructed over 700-km state highways last four years.






IRB Infrastructure Developers Ltd’s,  CG Tollway Pvt Ltd, an Special Purpose Vehicle (SPV) of road developer has achieved financial closure for its BOT project of six-laning of 124.87 km bypass on NH-79 between Chittorgarh and Gulabpura in Rajasthan. The project was awarded by the National Highway Authority of India (NHAI). The SPV has tied up with lender consortium led by State Bank of India, others include Bank of India, Bank of Maharashtra, Canara Bank, Indian Overseas Bank, Andhra Bank, and Aditya Birla Finance Ltd. The consortium will fund Rs.1,400 cr of total project cost of Rs.2,090 cr at an average interest cost of around 10.25 per cent per annum. IRB Infra will infuse sponsor contribution, including internal accruals of Rs.690 cr. The projects Build-Operate-Transfer (BOT) annuity model entails an annual premium payment of Rs.228 cr to NHAI, which will start after three years from appointed date. IRB’s order book stood at Rs.8,900 cr as on June 2017. Earlier this year, IRB Infrastructure emerged as the first road developer in India to launch an Infrastructure Investment Trust (InvIT).






Delhi Metro will launch the Kalkaji Mandir - Botanical Garden corridor soon to reduce travel time between Noida and South Delhi. Trials and testing on the 12.64-kilometre long section, built under the Phase-III project, has been successfully completed and ready for Commissioner for Metro Rail Safety's (CMRS) mandatory inspection. This section will be the metro's first-ever corridor to use Communication Based Train Control (CBTC) signaling technology to facilitate movement of trains with a frequency of 90 to 100 seconds. Currently, for travelling to south Delhi areas, people from Noida have to change trains at the Mandi House (from Blue Line to Violet Line). In addition, since the application involves voluminous data of civil, electrical, signaling and track, DMRC may also have to supply additional information sought by CMRS.






PM Modi recently dedicated the 110km Bidar-Kalaburgi railway track in Hyderabad-Karnataka region aimed at reducing distance between Bengaluru and New Delhi by 380km and travel time by six to eight hours. The new track will provide direct rail connectivity from Bengaluru to Bidar in the State’s northern region, about 690km away from the state capital. Work on the project had begun over two decades ago in 1996, but its construction work began only in 2000 and dragged on for years due to meager fund allocation by Railway Ministry. Delays in project execution escalated its cost to a whopping Rs.1,542 cr from original estimate of Rs.370 cr. Land acquisition between the towns also delayed its completion.






Dubai-based Bin Zayed Group will invest about Rs.12,500 cr in Telangana infrastructure. An MoU was inked in Dubai between both parties. According to the Group, progress made by the State in last three years after its formation and its infrastructure prompted their investments. The group is interested in developing roads, setting up a game and animation tower in Hyderabad, in Musi river front development, Mission Bhageratha, and TS fiber grid projects. A high-level delegation will shortly visit Hyderabad for the purpose. The MoU was inked on sidelines of India-UAE Partnership Summit. The State’s new Industrial Policy has identified 14 focus areas, including pharma, life sciences, aerospace and defence, IT, textiles, etc.






A wholly-owned subsidiary of Sadbhav Infrastructure Project, Sadbhav Udaipur Highway Private Ltd, has achieved financial closure in accordance with the Concession Agreement for proposed Udaipur bypass. While the bid cost for six-laning Udaipur Bypass is Rs.891 cr, the company will raise Rs.427 cr from rupee term loan, Rs.356.40 cr from NHAI (payment during construction) and Rs.107.60 cr as its own contribution. The tenure of the rupee term loan is 16 years at 9.25 per cent per annum. Construction period is 730 days from appointed date, the operation period is 15 years from the commercial operations date





In a major airport expansion plan, GMR Hyderabad International Airport Limited(GHIAL) will utilise $75 million (close to Rs.490 cr) out of the total $350 million (Rs.2,276 cr) raised in international bond market for capital expenditure, rest of the proceeds will be used to refinance its existing debt. GHIAL announced this expenditure spread recently after broadly indicating the purpose of $350 million bonds issue. While exact capex requirement has not been specified, pending regulatory approvals for the proposed expansion plan, allocation of $75 million comes as a first move towards the expansion, which will be executed over 2-3 years. GMR would look at selling only 12 per cent stake in GHIAL if and when it decides to go for equity dilution, since it plans to retain minimum 51 per cent stake. GMR holds 63 per cent equity while the Airports Authority of India (13 per cent), Telangana Government (13 per cent) and Malaysia Airports Holdings Berhad (11 per cent) hold remaining stake in GHIAL. The 9-year old greenfield Hyderabad International Airport was built by GMR-led concessionaire at an investment of close to Rs.2,500 cr.


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