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Front Page | May 2014

The golden era begins!

India Inc is in no mood to grant a honeymoon period for the Narendra Modi-led government. It wants the Nayi Sarkar to hit the ground running. Indeed, it is an uphill task for the Modi government in all areas... from environment & single window clearance, award of new projects, fresh bidding norms, etc. Industry stalwarts, through PROJECTS INFO's NAYI SARKAR initiative have suggested some major reforms which can be considered by the new government.  


During the UPA - 2 rule, the GDP fell from 9.5% to 4.5% leading to a loss in livelihood for 1.5 crore Indians, wealth has eroded by fall in market capitalisation, rupee has been devalued by almost 25%, inflation has eaten into the purchasing power of the middle class, the stalling of projects has led to the pile up of corporate debt & a looming NPA shadow is causing a chill among banks. It has been crystal clear for over two years that India needs development. The previous government brought in fire fighters in the form of P. Chidambaram but it was too little and too late. Fortunately for the country the electorate was united in its verdict and has bought into the man who showcased the -Gujarat model- of development, the man who restored Gujarat into a leading state in the country after it had been hit by communal riots and by an earthquake: Narendra Modi.


The trouble shooter Development is the only mantra for India. The mandate handed out to Narendra Modi, PM designate of BJP, conveys the urgency with which he needs to act and restore the economic health of the country. The task is tough but his hands are not tied. He can act decisively and needs no external support to carry out his decisions. Given his vision, keen understanding of administrative machinery, of state - centre equations, of his solution based approach, clarity of thought, it is expected to see the unlocking of our logjams and then see the evolution of scalable systems & processes which are outcome based. It is likely to see a tectonic shift in productivity & performance benchmarks in the government. This is likely to pave the way for a golden era in Public Private Partnership. PPP is one way our infrastructure dreams would be fulfilled and the other is by attracting foreign direct investment in infrastructure. FDI in infrastructure requires us to move up the rankings in the -Ease of doing business- charts. It requires single-window clearances and it requires government honouring its commitments and laying down a policy for the long term.


Infra zooms
  In the last couple of weeks, the CNX Infra Index, an indicator of the infrastructure industry´s downfall and rise, has been touching the sky. From January 2014, till date, the CNX Infra Index has zoomed from 2506.60 to 3068.45, up by 18 per cent, indicating confidence on the NDA´s comeback and especially on the Narendra Modi-led National Democratic Front.


Although investor sentiments are back to normal, and individual stock prices of listed infrastructure companies are gaining momentum, experts are of the opinion that if the new government wants to retain this momentum, it should speed up the reform process.


Industrial output contracted 0.5 per cent in March. Furthermore, inflation has remained elevated at 8.6 per cent in April. Manufacturing growth and inflation will be the two toughest challenges for the new government. Voter impatience is likely to be the highest for the new government to deliver on them, as the electorate looks forward to the new dispensation following up on its promise of jobs and granting relief from price rise, especially petrol and diesel.


During the year, many rating agencies have held a negative outlook on the infrastructure sector, citing policy-based issues. But the new government´s (expected) prime focus on the infrastructure sector may change the perception of the rating agencies in the near future. From better railway linkage and promise of a bullet train network to industrial corridors and National Optical-Fibre Network, the new government is looking at a timeframe of a decade to enhance infrastructure in the country.


The first opportunity for the new government to set India in motion and signal its intention through some concrete steps will come in a few weeks when the new Finance Minister will present the full-fledged budget in July. Though nothing constructive has been done in the interim budget, the UPA -2 regime, has actually left very little room and fiscal space to the incumbent government. The time has come for a new beginning. The new government should provide a hefty sum of money (say, in the range of 15-20 per cent of the total budget) towards infrastructure development. The money that is spent on welfare should be used to promote new jobs and skill development. This may cause pain for many, but there is no choice.


Over the course of the current year, logical solutions to most complex issues facing infrastructure sub-sectors have been identified, and a few proposals are already under implementation. Issues like restructuring of large loss-making state electricity boards (SEBs), a new land acquisition law and a late attempt to rehabilitate stuck projects have seen some success. Certain successful moves have also taken place, like the signing of fuel supply agreement for under-construction or operating coal-based projects. Among other big-ticket order opportunities back home, developments on ultra mega power projects, dedicated freight corridor, metro projects and even nuclear projects will be keenly watched.


As the financial viability of most infrastructure projects is under threat, and capital becomes too costly, there is a huge demand for cheap foreign capital to meet the mismatch between the cost of capital and return on capital. This factor will lead to many domestic companies being compelled to sell out once the projects reach certain maturity.


The dark side
  The private sector at large needs balance sheet repair and a dose of equity infusion. If the status quo prevails, quite a few listed infrastructure asset owners may have to contend with severe cash flow challenges. Local fuel shortages (particularly gas) and SEB balance sheet repair are time-consuming issues to resolve. Capacity utilisation levels of cement, metal, and hydro-¡carbon plants need to pick up to trigger fresh capex.


Task ahead
  The Planning Commission´s ambitious 12th Plan (FY13-17) infrastructure capex target of $1 trillion factors in average GDP growth of 8.2 per cent over five years and warrants a reality adjustment. With average GDP growth of 5 per cent in the first three years of the current plan and assuming acceleration to 7 per cent over FY16 and FY17, experts estimate 33 per cent slippage from the original target.


Implied CAGR of infrastructure spending in the 12th Plan in the above scenario is 9.3 per cent. A policy push seen to lift this growth trajectory should be favorable for industrial ordering activity. In the last few years, infrastructure projects across sectors have suffered significant delays and the government has struggled to award new projects in sectors like highways as private developers have stayed away. In this connection, Deepak Parekh, Chairman, HDFC, will present a blueprint to finance the country´s ambitious plan to build new infrastructure. It looks like the report by the high-level panel led by Parekh is likely to be one of the first major action plans to come up for consideration in the new government´s 100 days.


It is also expected that the new government will consider more projects for restructuring in FY 15, particularly given the sponsor´s diminishing ability to support distressed projects. The weakening credit quality of sponsors coupled with constraints on raising fresh equity mean that meeting even contractual obligations, such as injecting large residual equity to help complete projects, funding overruns and bridging delays in receipt of grants, could prove a challenge.


Top priorities to be considered by the new government:

  After the recent sharp rally, road company valuations are back to their three-year averages-factoring the prospects of a relatively early revival in orders post elections with minimum policy fixes. Higher traffic growth expectations and rational bidding may drive further re-rating in the sector. Industry players expect amicable termination of several projects post elections to provide a healthy tender pipeline of over 5,000 km with the NHAI. Private sector funding constraints imply competition may remain low for sometime, benefiting the larger companies. However, the pace of new project awards by the NHAI has faltered again over the last two years, mostly due to administrative and decision-making slowdown. Working within the existing policy framework and restarting ordering is likely to be a relatively easy task for the new government through canceling and re-tendering of stuck projects. The roads sector may also receive priority in order to revive the investment cycle within the given budgetary constraints.


  The incoming Power Minister has his task cut out, to say the least. The Indian power sector is in crying need for a major overhaul. And there are a few issues that need the immediate attention of the new Power Minister: Ensure adequate fuel supply linkages, enhance downstream efficiencies (in transmission & distribution), ensure local power equipment players get a boost, setting up of more UMPPs, break up Coal India´s monopoly, a package to revive discoms, and rationalisation of electricity pricing across various regions so that trading in electricity gets a fillip.


  Railways should be corporatised and the Indian Railways Corporation (IRC) has to be created. A truly independent Indian Rail Regulatory Authority (IRRA) needs to be established to distance the IRC from the government. The IRC should be governed by a reconstituted Indian Railways Executive Board (IREB). Railways would then be institutionally ready to implement futuristic projects and upgrade operations.


Infra finance
  On infra finance, the challenge would be to create an enabling environment for rapid ramp-up of infra debt funds to address the issue of non-availability of longterm funding and the clear constraints of the commercial banking system.


  To clear logjams, an energetic infrastructure ministry should be created by reshaping the ministry of programme implementation.


Land acquisition
  Land bank corporations should be set up at the central level and mirror-imaged at the state level. They should acquire large tracts of unused, unusable or waste land and develop them ex-ante for industrial, commercial, social and institutional purposes.


  Volatile domestic iron ore supply is forcing Indian steel companies to pay higher prices or import this key raw material thereby exposing them to global iron ore price volatility. Flat products supply will exceed demand, leading to an overcapacity situation. This coupled with the muted demand growth will put significant pressure on margins. Customers are maturing and increasingly demanding value-added products and services.


Existing supply chains are stretched in order to cope with the wide range of customers and product specifications-original equipment manufacturers (OEM) at one end, to the rural retail markets at the other-which impact service levels.


In the race to maintain market share, incumbents have taken on greenfield and brownfield expansion plans at a pace and scale unprecedented in the past.


Skill gaps and other challenges have led to cost and time overruns on these projects, putting further stress on the already stretched balance sheets. Investments in management processes, systems and people capabilities have not kept pace with the investments in assets and the changing marketplace. This is increasingly becoming a bottleneck for growth.


Major challenges for the new government
  Goods and Services Tax (GST): India's most ambitious indirect tax reform would replace existing state and central levies with a uniform tax, boosting revenue collection while cutting business transaction costs. GST, which could boost India's economy by up to two percentage points, has so far faced resistance from various states, including those governed by the BJP who fear a loss of their fiscal powers. The BJP aims to address state concerns and implement GST in an "appropriate timeframe".


Central bank policies: A Reserve Bank of India panel in January proposed key changes including targeting consumer price inflation and forming a committee responsible for monetary policy, so that this is not handled by the RBI Governor alone. This would require changes to the RBI Act. The BJP top brass has not spoken widely on the issue, but it will likely be a tough sell for RBI Governor Raghuram Rajan. He has the backing of some global agencies like the International Monetary Fund. The new government may also look to eventually separate the debt management function from the RBI, on the grounds that debt management sometimes conflicts with the central bank's monetary policy stance.


Privatisation: The new government is likely to focus on selling its holdings in state-run firms that could raise much-needed revenues to trim India's ballooning fiscal deficit and boost economic growth. The rising stock market helped New Delhi raise more than $3 billion (Rs 18,000 crore at 60 rupees per dollar) via stake sales in the fiscal year to March 31 - but that was only a third of the government's original target. The outgoing government announced plans to raise Rs 56,900 crore through asset sales in 2014-15. This could help achieve a lower fiscal deficit target of 4.1 per cent of GDP. These estimates may be revised by the next government.


Subsidies: The new government needs to examine how it subsidises basic commodities if it is to contain the fiscal deficit and avoid a ratings downgrade. Subsidies cost an estimated 2.2 per cent of India's GDP in 2013-14. The BJP in its manifesto said it will seek greater fiscal discipline without compromising on the availability of funds for development.


Labour: The BJP wants to reform labour laws to boost job-intensive manufacturing and create as many as 1 crore jobs a year for young Indians entering the workforce. Changing the law would be politically tricky, though, and Modi may seek to encourage competition between the states to boost job creation.


Banking: The new government will need to help state-run lenders battling rising bad loans caused by the slowing economy, rising interest rates and project delays. Stressed loans in India-either bad or restructured-total Rs 6 lakh crore, or about 10 per cent of all loans. Fitch Ratings expects that ratio to reach 14 per cent by March 2015. Rising bad loans threaten to choke the gradual recovery in Asia's third-largest economy, according to the OECD. The interim budget in February set aside Rs 11,200 crore to help the sector meet key capital ratios, but analysts say more money is needed.


Gas pricing: In January, India notified the new gas pricing formula that could double the prices of locally produced gas from April 1, but the poll regulator stopped the government from raising the prices until the elections are over. Reliance Industries and its partners BP and Niko Resources last week issued a notice of arbitration to the government seeking implementation of higher gas prices. The BJP-led government may review the formula on the lines suggested by a senior party leader last year and announce the date of implementation of new prices.


Indeed, the golden era in India´s economic development has begun. This era will restore our GDP, our national pride and will make our dream of becoming a super power a reality.


Highlights of the new government manifesto:

  The manifesto suggests it wants to strengthen and upgrade the Indian Railways to serve passengers as well as the country's economy. One of the prominent steps in this direction is the launch of the Diamond Quadrilateral project of High Speed Train network (bullet train). Others include; tourist rails, railways modernisation, research and development for indigenous railways, special focus on developing skilled human resources. The manifesto also says that an agri-rail network will be established. The network will have train wagons designed to cater to the specific needs of perishable agricultural products like milk and vegetables as well as lightweight wagons for salt movement.


  A public transport system, meant to reduce dependence on personal vehicles, has been proposed. ´This will reduce cost, time to travel as well as ecological cost,´ the manifesto says. Launch of an integrated public transport project which will include roadways, railways and waterways; development of waterways for passenger and cargo transport and development of a national logistics network for faster movement of goods have also been proposed.


National Highway construction projects will be expedited, especially Border and Coastal highways, says the manifesto. It also promises that remote states like those in the Northeast and Jammu & Kashmir will be connected with the rest of India through highways and rail lines.


"Public Private Partnership would be encouraged to tap into private sector resources as well as expertise. An institutional framework would be established for the same; regulators would be given greater autonomy as well as accountability," the manifesto says.


Next-generation infrastructure
  A National Optical-Fibre Network up to the village level is among the promises made by the party. It also wants to create Wi-Fi zones in public areas; harness advanced satellite technology and expertise for development and set up Gas Grids to make gas available to households and industry.


  Dr. GVK Reddy - Founder Chairman & Managing Director - GVKPIL
  The election results reaffirm the country´s faith in democracy. The people´s confidence and mandate for stability has ensured that there will be economical and political stability in times to come. We are confident that with a strong mandate, the new government will do well and will implement economic policies that benefit the country´s people and its industry. This will create an environment conducive for growth and ensure prosperity of the nation, thereby fulfilling its enormous potential.


G Sathiamoorthy, Country Manager & Managing Director, Black & Veatch India
  It is essential for bidding norms for infrastructure projects in India to be made transparent so as to infuse confidence and create a level playing field for not just domestic players, but also for foreign players who can play a major role in building India´s critical human infrastructure. All said and done, a pro-industry approach balanced with sustainability concerns should be the primary focus of the new government to drive infrastructure growth.


Arun Chandran, Project Director - L&T Hyderabad Metro Rail, Parsons Brinckerhoff
  The new government should focus on developing innovation and creativity within the country by introducing good education reforms that start with improving the quality of teachers at various levels. The government has to take some strong steps to modernise its defence and make the country a strong global player. India should improve the interest in the investment cycle and revive the manufacturing sector. This will help develop a counterpart to the services industry that needs to grow amidst competition from other countries.


Rajesh Nath, Managing Director, VDMA India Office
  It is necessary that the new government gives impetus to infrastructure development which would have a ripple effect on the economy. The objectives of National Manufacturing Policy need to be pursued so that hurdles like land acquisition for cluster development, financing at moderate interest rates, etc, can be surmounted.


Dr OP Jha, Executive Director, Jindal Steel and Power
  The government has put forth its initiative to come up with infrastructure projects, but still a lot more effort is needed, especially with regards to clear-cut policy. Also, getting approvals and other clearances, land acquisition, etc., are the major challenges that the steel industry currently faces. Thus, we expect the new government to resolve such issues and then boost the infrastructure segment, which will then have a rising demand for steel consumption.


Construction Equipment
  Vipin Sondhi, Managing Director & CEO, JCB India Ltd

  Implementing the Goods and Service Tax (GST) will give the necessary boost to country´s economy by breaking tax barriers between states and integrating India through a uniform tax rate. It will help avoid multiple layers of taxation that currently exist in India. This will boost investor confidence. Immediate identification and execution of top 50 infrastructure projects should be of prime importance for the government. The government should work towards creating employment in the manufacturing sector to ensure equitable growth.


Anand Sundaresan, Vice Chairman & Managing Director, Schwing Stetter Pvt Ltd
  The new government will try to push most of the infrastructure projects which will then benefit the construction equipment industry. Even though we don´t expect 2014 to be a fantastic year, but definitely it will be better than 2013. By 2015, the entire industry will witness a positive growth.


Ashok Dikshit, Technical Director, Aquarius Engineers Pvt Ltd
  At the moment, the market of CE is very bad and the finances are very tight. Besides, there is no export promotion for the industry. I don´t think there will be any improvements. I expect the new government to get the work in force, and there should be no policy paralysis.


  VG Kannan, Managing Director and CEO, SBI Capital Markets Ltd

  The regulatory and government agencies must further amend the concession agreements to address unforeseen situations which are beyond the control of the contractor, that too, in a time-bound and equitable manner, so that the project funding remains bankable for most of the time.


Moses Harding, Group CEO and Chief Economist, Srei Infrastructure Finance Ltd
  Remove policy paralysis and ensure decisive administration for speedy implementation. Revive infrastructure sector and put to work stuck equity/debt investments across power, road, air/sea port, and telecom projects. Development of infrastructure is critical to shift focus for scaling up manufacture and agriculture sectors.


Kapil Wadhawan, Chairman & Managing Director, Dewan Housing Finance Ltd
  The formation of a stable government at the Centre should result in faster and constructive decision-making and economic reforms. This, I hope, will benefit all industrial sectors - banks & housing finance companies in particular. However, the new government will have an uphill task of promoting growth and controlling inflation at the same time. Lower inflation will mean lower housing mortgage interest rates, thus benefitting the lower and middle income consumer segment especially.


  Vineet Agarwal, MD, TCI

  Presently, transportation and logistics companies are not eligible to go for cheaper Foreign Currency funding by way of External Commercial Borrowing. ECB borrowing should be allowed to transportation or logistic companies for the purpose of investment into commercial vehicles, ships, construction of logistics warehouses, etc. Access to ECB will help save on interest part as margins in this highly competitive & fragmented industry are already too low and under pressure.


Bollineni Seenaiah, Managing Director, BSCPL
  As on date, all the BOT projects are stalled and the scenario will be the same in future. Besides, since most of the road construction projects are delayed, the concessioners are not willing to take up these projects. Therefore, we now have expectations from the government to improvise the road construction segment by giving approvals to most of the projects. We expect the new government to understand various issues being faced by the industry and accordingly address. Overall, we expect a positive outlook for the road construction industry with few changes in policy.


M Murali, Director General, National Highways Builders Federation (NHBF)
  To attract investments (domestic and foreign) in the roads and national highways sector in India, the government should devise prominent policy initiatives to strengthen the institution building aspect by promoting the public-private partnership (PPP) on BOT basis (Toll and Annuity) or similar basis (BOO, DBFOT, etc.) for the highways projects.


Shashi Kiran Shetty, Executive Chairman, Allcargo Logistics Ltd
  India has voted for economic growth and prosperity in the hope for change. We are hopeful of policy moves like introduction of GST, fastracking of stalled projects and opening up of FDI which will give a new fillip to the logistics sector, the backbone of trade and economy. New and improved roads, rails, ports and freight corridors will make logistics and supply chain management more efficient and boost coastal shipping.

What could change the outlook of infrastructure sector:
  • Positive government intervention, supported by strong follow-through action on the ground could revive investor sentiment towards the infrastructure sector. Some steps could include:
  • Ensuring a lasting solution to the fuel supply issue at the systematic level
  • Support to ensure that the State-owned power off-takers remain credit-worthy counter parties
  • Relief from onerous revenue share requirement for toll projects
  • Facilitating transfer of ownership from weak sponsors
  • Constituting independent regulators expeditiously
  • A relook at new Land Acquisition policy

      Dinesh Patidar, Chairman and Managing Director, Shakti Pumps (I) Ltd
      We are expecting the new government to take measures to revive the small scale industries, which had slowed down in the last decade and help in creating immediate employment opportunities for the youth. Also the new government should address the issues pertaining to the exports market by creating policies which would help Indian manufacturers to compete in the international market.


    Anuj Maheshwari, Vice President, Head - Technical, RMC Division, Ultratech Cement
      The government should make the use of RMC mandatory in areas where the facilities are provided and whatever concrete is required should be from the batching plants. And there has to be a certain level of minimum quality level and quality management processes. The certification should also be mandatory, and thus the seriousness would arise. So, we need to have regulations in place by the law which should ask for stringent quality control.


      Adi Godrej, Chairman, Godrej Group

      The new government should restore ease of doing business in India, address the tax rules and provide fiscal stimuli to boost industrial production needs.


    M Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO)
     The new government will have to bring manufacturing back on track to sustain export and economy-àit has to address infrastructure bottlenecks to impart competitiveness to exports.
      Kumar Kandaswami, Senior Director, at Deloitte Touche Tohmatsu India
      I hope something is done on promoting innovation, clean energy and scale in manufacturing. While these changes take time beyond the term of the incoming government, strong, path-breaking initiatives are required to be set in motion to secure the long term future of Indian manufacturing.


      Tulsi Tanti, Chairman, Suzlon Group

      We at Suzlon remain confident that the new government will steer our nation into prosperity with good governance and development in the coming period. We believe the BJP led government will provide an environment conducive for growth and investments, with major reforms in infrastructure and renewable energy sector. This is important as India´s economic environment will act as a catalyst in reviving the global economy.


    Manoj Kumar Upadhyay, CEO, ACME Solar
      We expect the government will have policy-push in order to grow developers and customers interest in the solar energy. We believe that the new government will give the much-needed impetus to green energy and enable increase in implementation of solar power projects in JNNSM PH-II.


    Anish Rajgopal, Managing Director, Chemtrols Solar
      We expect the government to speed up its process of sanctioning projects and also give other important approvals. The government needs to additionally consider the quality of work. I would suggest that instead of going by low price, there is also some kind of a quality benchmark. we expect the government to consider the funding for solar projects as a priority, so that the banks will view this sector more aggressively.


    Vineet Mittal, Vice Chairman, Welspun Renewables Energy Pvt. Ltd
      Stable government with clear majority will boost confidence of the industry - both at home and for the global and foreign investors. This will help India regain its status in the world affairs and win back its rightful position. The surge in the market stands testament that the billions of dollars of FII investment sitting on the fence, due to cloudy policy atmosphere - will now come to India.


    Umesh Agrawal, Associate Director - Energy, Utilities & Mining, PwC
      Issues linked to clearances and permissions will require continuous coordination with the various Ministries, Departments and Regulators to resolve them. Enforcement of the new grid code, unscheduled interchange regulations and system operations is essential to avoid large scale mishaps like the July 2012 blackout.


    AK Dixit, CEO-Energy India, South Asia, Siemens Ltd
      As the world is moving from super critical technology to ultra critical, India must adopt it, as it will bring down carbon emission and power generation cost too. At this point, the new government, should emphasis on use of high quality equipment coupled with performance.


    Arvind Gujral, VP, BSES Rajdhani Power Ltd
      The government has to put in place a strict mechanism to ensure zero outage or load shedding due to no availability of power. And cost effective renewable power or RECs to ensure RPO compliance.


    Construction and real estate
      Brotin Banerjee, MD and CEO, Tata Housing
      Irrespective of the agenda, the key factors currently at play on the Indian real estate are unsold inventory, absorption and interest rates. Hence, whether it is affordable housing or improved infrastructure on the manifestos, over the long term, what will matter most to the real estate sector are a hard re-look at FDI in housing, REIT legislations and the effective implementation of the Real Estate Bill along with thrust on encouraging real estate developers to create large townships to decongest the metros.


    Anuj Puri, Chairman & Country Head, JLL India
      The new Government may look at helping on quicker land acquisition, faster approvals, easy and low cost funding availability and better infrastructure to make it a more interesting proposition for developers and investors.


    In Gujarat, the government has been extending a helping hand to developers who construct low-cost homes, although availability of cheap capital, lengthy approval process and affordable land availability continue to remain challenges.


    Venkatesh Gopalkrishnan, EVP & CIO,  Shapoorji Pallonji Real Estate
      Now that we have steady government , there will definitely be a spike in demand and the pricing of real estate properties. Consumers who have been holding on to their decisions would now be looking at materialising their investment options. This initial spike would be followed by a subsequent cool down period; post which we should have stability and growth for 3-4 years from end-2014 until 2017.


    Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield
      With the legislature and the executive getting back to the business of governance for the next 5 years, investments in various businesses and sectors of the economy are expected to pick up pace, all of which will generate more demand for real estate assets. A stable government will lift the sentiments of the investor community who form a dominant role which will impact housing and office sales.
     Announced low cost airport projects

    Andhra Pradesh Vijayawada, Nellore, Kurnool, Kadapa, Nizamabad, Tirupati, Anantapur & Karimnagar
    Jharkhand Dhanbad, Bokaro & Hazaribagh
    Bihar Muzaffarpur, Chapra & Sasaram
    Punjab Ludhiana, Jalandhar & Firozpur
    Uttar Pradesh Agra, Allahabad, Moradabad, Saharanpur, Meerut, Aligarh, Muzaffarnagar, Bijnor & Azamgarh
    Arunachal Pradesh Tezu, Momdila & Along
    Assam Silchar, Jorhat & Tezpur
    Madhya Pradesh Gwalior, Singrauli, Burhanpur, Khandwa, Jabalpur, Sidhi & Shahdol
    Odisha Brahmpur, Raurkela & Kendujhar
    Rajasthan Ajmer, Kota, Bhilwada & Alwar
    Maharashtra Kolhapur, Nasik, Jalgaon, Solapur & Amaravati

    Some of the high value infrastructure projects

    Airport Bhubaneswar and Imphal Rs20,000 crore
    Power Transmission and Distribution Rs 40,000 crore
    Industrial Connectivity E-DFC (Eastern-Dedicated Freight Corridor) Rs 10,000 crore
    Railways Two locomotive factory at Madhepura and Marhowra Rs 5,000 crore
    Urban infrastructure Mumbai Elevated Rail Corridor Rs 30,000 crore
    Ports West Bengal and Andhra Pradesh Rs 7,500 crore


    Status of some of the metro rail projects                                                                                                                                                                                                                                             

    LocationLength (in km)Cost (in Rs crore)Tendering processStatus
    Pune 32 18,000 Not started SPV yet to be formed
    Lucknow 38 16,000 NA NA
    Ahmedabad 76 19,000 FY14 E SPV formed
    Mumbai Phase II 39 11,500 NA In limbo
    Chandigarh 38 11,000 Not started Demarcation of Metro rail route to begin
    Bangalore Phase II 15 10,200 NA Awaiting govt clearance
    Nagpur 45 10,000 Not started Project report still under preparation
    Ludhiana 29 10,000 Not started Project report still under preparation
    Jaipur Phase II 23 9,700 Tender process on Work to start in FY14
    Hyderabad 71 12,172 L&T wins project Land acquisition delay


    Power projects cleared by Project Monitoring Group                                                                                                                                          

    Project nameCost (In Rs crore)
    Sterlite Energy U-1,2,3,4 4X600 MW 12,000
    Talwandi Sabo Power Limited 9,977
    Adani Mundra TPP Ph III, U-1,2,3 3X600 MW 9,900
    Talwandi Sabo U-1,2,3 3X660 MW 9,900
    Sipat U-1,2,3, 3X660 MW 9,900
    Bara TPS U-1,2,3 3X660 MW 9,900
    4x360 MW Uchhpinda Power Project 8,981
    Damodaran Sanjeeviah U-1,2, 2X800 MW 8,000
    Lanco Amarkantak Power Ltd 7,700
    Vallur TPP U-1,2,3 3X500 MW 7,500
    Lajkura 43.27
    Indira gandhi Aravali/Jhajjar U-1,2,3, 3X500 MW 7,500

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