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Front Page | September 2014

Rs 3 lakh cr projects unleashed

Rs 35,000 crore worth projects set aside for sub-contracting.
  The green hurdle is a thing of the past now. The current government, with development as its focused agenda in mind, has cleared as many as 50 projects worth more than Rs 3 lakh crore in a span of just three months (July-September). The previous government could not keep up this pace.  


The projects that are cleared include: the 7.5 mtpa Bina (extension) opencast project coal mine project, a captive power plant of ONGC, expansion facility at Nirma Chemical Complex, augmentation of hydrocarbon production by 50 per cent to 300,000 barrels per day for Cairn, proposal for exploratory drilling (two wells) in Purnea Basin, West Bengal onshore block, multi-product SEZ of Adani Ports and SEZ, second stage of expansion of Bengaluru International Airport, long-pending Pedder Road flyover bridge, development of Barge Handling facility at Chennai Port, term of reference for sector-specific SEZ in Andhra Pradesh, a 1,320 MW super critical coal based thermal power plant by Dwarkesh Energy Ltd, an expansion of power generation capacity from 600 MW to 1,200 MW by Jhabua Power Ltd and a 1,200 MW coal-based thermal power plant by Welspun Energy SPV.


All these projects were announced between 2007 and 2012, but were lying in limbo for a long time. With environment clearance (EC), these projects can see the light of day.


It is expected that with the commencement of these projects, there will be a substantial amount of sub-contracting work. Implementing agencies, which are undertaking these projects, said that around 15 per cent of the total project cost has been set aside for sub-contracting work. This means, with projects worth Rs 3 lakh crore on the block, sub-contractors can expect contracts worth Rs 35,000 crore.


Looking back
 The earlier government also cleared some major projects earlier that includes Central Coalfields Ltd´s 1.90 mtpa mining project in Jharkhand and Bhakra underground mining project; Rs 5,000 crore international container transshipment terminal project by Vizhinjam International Seaport Ltd in Kerala; and the Tamil Nadu Electricity Board´s (TNEB) 1,320 MW thermal power plant at Ennore SEZ, which was revised down from 1,600 MW. In addition, MoEF also cleared the Rs 3,594 crore Teesta stage-IV hydroelectric project and 2,800 MW atomic power project at Gorakhpur, Haryana, which will be constructed by Nuclear Power Corporation of India. This atomic power project will see an investment of Rs 23,000 crore.


Other projects that received a green nod include a Rs 6,000 crore (800 MW) project of NHPC in Arunachal Pradesh, expansion of a coal beneficiation plant by Global Coal and Mining in Odisha by 2 mt annually, a Rs 467 crore Kapurdi Lignite Mine Project in Rajasthan, and a Rs 5,000 crore liquefied natural gas LNG terminal (5 mt capacity with expansion capabilities of up to 10 mt) at Ennore in Tamil Nadu.


An official from TNEB said that the entity has floated bids for the 1,320 MW Ugandi thermal power project. ôThe Tamil Nadu Generation and Distribution Corporation (Tangedco), will carry out the project on engineering, procurement and construction (EPC) basis, and will finance the debt component of the project, which would come to approximately 75 per cent of the total project cost,´ he says. However, TNEB officials are still evaluating the technical bids and are expected to award the project in the month of September.


Another important project which saw some activity was Vizhinjam International Seaport Ltd´s international deepwater multipurpose seaport. The project received five requests for qualification (RFQs) from Gammon, Adani, Essar Projects, Hyundai-Concast consortium and SREI-OHL consortium.


PMG in action, again
 Apart from MoEF, the Project Monitoring Group led by the Prime Minister has also pushed projects such as the new airport terminal at Mumbai airport and Delhi´s Aerocity project, both worth Rs 12,000 crore, Sterlite Energys 2,400 MW power project (Rs 12,000 crore) and Adanis Mundra thermal power plant (Rs 9,977 crore). PMG has also resolved issues related to the Rs 7,000 crore project of Utkal Alumina refinery of Hindalco in Odisha and Rs 4,255 crore Lumding-Silchar (482 km) gauge conversion project of Indian Railways, which is aimed at providing seamless connectivity to lower Assam and Tripura, and Mizoram and Manipur with rest of India.

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