Project Monitor November by ERIL Publications

01] Front Page.qxp

9/15/2014

3:36 PM

Page 1

Vol.14 No.10

September 16-30, 2014 `100

Pages 20

Smart cities taking shape WWW.SMARTCITY.AE

A city is considered smart when investments in human and social capital and traditional (transport) and modern (ICT) communication infrastructure fuel sustainable economic growth and a high quality of life, with a wise management of natural resources, through partici-

An artist's impression of SmartCity Kochi, the first Asian outpost of the SmartCity global network of business townships. DEBDEEP CHAKRABORTY

he Ministry of Urban Development has initiated the process of framing a policy for development of smart cities in the country. The policy on smart cities would soon be unveiled after deliberations with all stakeholders, Urban Development Secretary Shankar Aggarwal said at the National Real Estate Summit

2014 held in New Delhi recently. The summit was organised by the PHD Chamber of Commerce and Industry. The policy on smart cities is being prepared with the objective of giving shape to Prime Minister Narendra Modi’s vision of building 100 smart cities. In the Union Budget 2014-15, a sum of `7,060 crore had been allocated for implementation of the dream project.

Sail and dine in Mumbai A BUSINESS CORRESPONDENT umbai Port Trust has invited Expression of Interest for licensing out selected anchorages and landing points for operation of a floating hotel as well as floating restaurants within the port limits of Mumbai Harbour For the floating hotel, the port trust has earmarked C-2 (Charlie-2) anchorage and landing points at Ferry Wharf-2, in south-central Mumbai, from where guests and materials will be transported to the ship and back. Similarly, Girgaum Chowpatty (Beach), Gateway of India and Ferry Wharf have been selected for setting up floating restaurants. The landing and boarding points for these locations are being finalised. The EOI has been invited to gauge the market potential, technical capabilities, and technical and financial viability of the projects. Mumbai Port Trust has stated that it will not bear any cost or expenses incurred by the firms in connection with the preparation or delivery of documents, including cost and expenses related to site visit. The floating hotel, or ship, may be operational for eight months in a year i.e. fair weather season. During monsoon, an anchorage off ferry wharf would be allowed as a shelter. Land for operating the floating hotel will be allotted for a period of 11 months. The license may be extended for five more terms of 11 months each with 4 per cent increase at the time of each extension by mutual consent and at the discretion of Mumbai Port Trust. Each renewal will be a fresh license. The vessel will be anchored at a designated anchorage in Mumbai Harbour and will not be permitted to cruise within the port limits, without specific approval for reasons of safe navigation etc.

Page 20: Sassoon Docks to be rebuilt after 139 years

patory governance. Elaborating on the strategy being adopted by the government to realise the Prime Minister’s vision of building smart cities, Aggarwal said builders and developers of smart cities would be adequately rewarded with incentives and tax sops.

Around 90 percent of the investment needed to set up smart cities is expected to flow in from the private sector. “The Prime Minister has already asked the Urban Development Ministry to make all

PAGE 17

02-03] News.qxp

9/15/2014

3:36 PM

Page 2

NEWS

Projectmonitor, Mumbai, September 16-30, 2014

WWW.COCHINSHIPYARD.COM

Technip to build gas complex for BPCL A BUSINESS CORRESPONDENT

Smooth sailing for Cochin Shipyard DEBDEEP CHAKRABORTY

he shipping industry may still be reeling under the impact of the global economic downturn but Cochin Shipyard Ltd is sailing full steam ahead with its thrust on building high quality vessels. India’s largest greenfield shipyard last month launched the tenth of the 20 fast patrol vessels that it is engaged in building for the Indian Coast Guard. The `1,500 crore-contract for construction of the 20 FPVs for the Coast Guard was signed by CSL in October 2010. So far, CSL has delivered seven FPVs. The seventh of the series of 20 FPVs was delivered in July this year. These vessels, with capable speed of 33 knots, will provide support to the Indian Coast

Guard in anti-smuggling, antipiracy, fisheries protection and monitoring operations. The superstructure of the fast patrol vessels is made of aluminum. To ensure high quality of the vessels, CSL undertook considerable innovation in the welding and fabrication techniques. The FPV is a small vessel in terms of size compared to the large vessels that CSL usually builds. Measuring 50m in length, it is propelled by water jets powered by three main engines, each of capacity 2,720 KW, and built to dual classification requirements of ABS and IRS. Apart from the 20 FPVs, CSL is constructing the country’s first indigenous aircraft carrier, one offshore support vessel for Norwegian owner and one buoy tender vessel for the Directorate

General of Lighthouses and Lightships under the Ministry of Shipping. In 2013-14, CSL delivered five FPVs to the Indian Coast Guard and two high-end platform supply vessels to Norwegian owners. The sixth FPV to the Coast Guard was delivered in May this year. In the last six years, the shipyard has delivered 30 highend offshore support vessels to the industry. In the last decade, the company exported 40 ships to clients located in West Europe, USA and Saudi Arabia. Cochin Shipyard Ltd, a Government of India enterprise, is engaged in shipbuilding, ship repair and marine engineering training. The company has capacity to build ships up to 1,10,000 DWT and repair ships up to 1,25,000 DWT.

low in his footsteps, that is, to remain single which, according to him, will solve all his problems.

knowing the amount he spent on renovating the toilets of Yojana Bhavan, the government is wary of making use of the services of the Deputy Chairman of PC as he may finish off the entire budgeted amount within a few months of commencement of the programme. Alternatively, there is also a proposal to ask him to look after some of the perennially sick PSUs as he has to his credit of coming out with ‘zero loss to exchequer theory’ when CAG had alleged `1.76 lakh crore loss in 2G scam. Montek may have some tricks up his sleeve to prove that the sick PSUs are in reality not bleeding red. Some people also suggest that he should be sent to some worst drought affected areas of the country where he can lead others by example by living on a bare `28 per day which, in his

What next, Montek?

Dowry loo? A 23-year old woman split with her husband in Chhattisgarh's Raigarh district and walked out of her in-laws’ home after they failed to build a toilet at home. The helpless husband has reportedly approached the PM for help to make him one of the first beneficiaries of his sanitation programme to save his marriage. But Modi has reportedly advised the husband to fol-

With the decommissioning of the Planning Commission, there is a big question mark over the future role of its Deputy Chairman, Montek Singh Ahluwalia. Though there is an option to make him the Governor of Manipur and send him to the northeast, the government is not thinking on those lines. Some people in the government are of the opinion that the present government should make most of his knowledge and experience to further its agenda. “Yes, he can be a part of the government’s sanitation programme. He has good knowledge of spending on toilets,” somebody in the government supported the view. But

echnip, a world leader in project management, engineering and construction, will provide project management as well as engineering, procurement and construction management services for a new industrial gas complex for Bharat Petroleum Corporation Limited - Kochi Refinery in Kerala. The contract, awarded by Air Products, will be managed by Technip's operating centre in Delhi, as well as Technip in the Netherlands. The project is expected to be completed by February 2016. Samik Mukherjee, Managing Director and Country Head, Technip India, said: “This project will lead to further growth in India of the BOO business model to supply industrial gases to the refineries based on longterm gas supply agreement. We are very proud to work closely with our global alliance partner, Air Products, to deliver a worldclass facility to supply industrial gases for BPCL Kochi Refinery.” Being built on a build-ownoperate basis, the industrial gas complex of Air Products is designed to cater to the requirement of industrial gases (hydrogen, nitrogen and oxygen) of BPCL-KR for its integrated refinery expansion project, which will increase its crude refining capacity from 9.5 million tpa to 15.5 million tpa (190,000 bpd to 310,000 bpd) and produce clean transportation fuels to meet Euro IV & V specifications. The BOO project of Air Products includes two trains of hydrogen production unit (based on steam methane reforming), of 8.2 tph capacity (approximately 91,000 Nm3/hr); an air separation unit to produce nitrogen and oxygen; steam generation and export to BPCL's

opinion, was the amount that was enough to live a comfortable life in rural India. In any case, there is near unanimity in the ruling alliance that the veteran IMF-returned economist should not be allowed to sit idle after leaving the Planning Commission. If he does, who knows, he too may use the idle time to ink his memoirs which is the last thing this government expects him to do at this juncture.

Bullets and bullet trains Japan has promised India technology to run Bullet trains which was made public when our Prime Minister visited that country recently. Not to be left behind its rival, China too has offered India Bullet train technology. And our other ‘friendly’ neighbour to the northwest too wants to give India a helping

Samik Mukherjee, MD & Country Head, Technip in India manufacturing process; a gas turbine to produce power for the Air Products facility; and other utilities. The plant will feature the latest technology to maximise energy efficiency and minimise emissions, and will include optimal heat integration, which in turn lowers feedstock consumption during production. "This is the first project to be built in India through the global hydrogen alliance between Technip and Air Products. It will further enhance our two decades-old relationship," Nello Uccelletti, President and COO, Onshore/Offshore, Technip, said. See related story on page 7

PM OPINION POLL “Do you think the proposed new advisory body replacing the Planning Commission will help to channelise the government’s development spending in a better way?”

Yes:

66%

No: 17% Can't Say: 17% Log on to www.projectsmonitor.com to respond to our opinion polls.

hand in this regard. But considering its poor financial and political condition, it has restricted itself to sending just bullets from across the border and its army is regularly firing them at our Jawans on the border!

Imran’s confession Cricketer-turned-politician Imran Khan, who is leading his Tehreek-eInsaaf party in anti-government protests in Pakistan, has said that he will marry once his dream of ‘Naya Pakistan’ is fulfilled. In other words, the yesteryears heartthrob is politely indicating that he doesn’t want to marry again. (Disclaimer: News spoofs appearing on PM Spoofs are works of fiction. Readers are advised not to confuse these with real incidents.)

02-03] News.qxp

9/15/2014

3:36 PM

Page 3

NEWS

Projectmonitor, Mumbai, September 16-30, 2014

PM NEWS BUREAU

OTO, one of the world's leading producers of sanitary ware, has inaugurated its newly-equipped manufacturing plant at Halol in Gujarat. The facility covers approximately 45 acres. It is equipped with the latest in manufacturing technology and equipment. It will manufacture products for both India and overseas markets. The project is a part of TOTO India’s plans to establish itself as the number one manufacturer of sanitary ware in the country. It will also enable the company to further strengthen its sales network throughout India and supply products to other markets, including the Middle East and Europe. Gujarat Chief Minister Anandiben Patel, who

TOTO’s highest investment in India

inaugurated the plant, said that TOTO’s sanitary ware production plant was one more example of Gujarat being the most preferred destination for investment. “A

business friendly environment and strong fundamentals like uninterrupted power, worldclass roads, adequate water, and negligible labour strife and security,

Cabinet gives a push to Pakal Dul project PM NEWS BUREAU

he Union Cabinet chaired by Prime Minister Narendra Modi recently approved key aspects of NHPC’s 1,000MW Pakal Dul hydropower project in Jammu & Kashmir. These include: Investment for construction of the hydro project at an estimated cost of `8,112 crore, including interest during construction and financing charges of `501 crore. The approval also includes subordinate debt of `2,500 crore on the conditions and waivers of the Jammu & Kashmir government in a scheduled completion period of 66 months. Infusion of equity up to `1,605 crore by NHPC in Chenab Valley Power Projects Pvt. Ltd for construction of the 4x250 MW hydro project. The joint venture partners will arrange equity through their internal resources. Approval for initial investment in 660-MW Kiru and 560-MW Kwar hydropower projects. Ex-post facto approval for formation and incorporation of Chenab Valley Power Projects Pvt. Ltd, a joint venture between NHPC (49 per cent), Jammu and Kashmir State Development Corporation (49 per cent) and PTC (2 per cent). The J&K government has sanctioned exemption from work contract tax/entry tax and waiver of free power and water user charges for a period of 10 years from the completion of the project. The

state government will purchase 49 per cent of power from the project while the remaining power will be allocated to the constituent states in the northern region, excluding Himachal Pradesh (which has refused to purchase power due to lower requirement). The project Pakal Dul hydropower project is expected to reduce power shortage in the Northern Region, partly utilise the storage provisions of the Indus Water Treaty, and boost socioeconomic development in remote areas of J&K. The Cabinet also approved financial support to the National Export Insurance Account for overseas project exports by increasing the authorised corpus of the NEIA Trust to `4,000 crore with risk underwriting capacity up to 20 times of the actual corpus. This will increase the capacity of the NEIA Trust to underwrite more large-size projects in difficult countries with reasonably significant Indian content. Project exports would give sustained export earning income of greater lifecycle durability and help create jobs for foreign exchange earnings. The budgetary support of `956 crore to NEIA will be augmented further. NEIA was set up in 2006 as a public trust by the Ministry of Commerce and Industry to promote project exports from India. NEIA also supports project exports with long credit periods for repayment and which are beyond the underwriting capacity of ECGC.

which are the defining aspect of Gujarat’s development, have attracted Japanese companies to the state,” she noted. The TOTO plant has been built with an invest-

ment of Yen 6 billion (approximately `350 crore), the highest investment by the Japanese company in South Asia. The plant currently employees 500 people

and is designed to produce 500,000 sanitary ware units a year with a possibility of further expansion. As part of its corporate vision, TOTO, a Japanese company, has earmarked the ‘overseas housing equipment business’ as a core growth driver under the TOTO V-Plan 2017, its long-term management plan covering the period leading up to its centenary (announced in 2009, revised in May 2014). Having positioned India as a key new market, the company started construction of its first production facility in the country in 2012. Earlier, TOTO announced that it had delivered public equipment, such as toilets, faucets and fittings, for the expansion project at Chhatrapati Shivaji International Airport in Mumbai.

04-05] PM Interview + Transport.qxp

4 PM

9/15/2014

3:37 PM

Page 4

INTERVIEW

Projectmonitor, Mumbai, September 16-30, 2014

‘We see a lot of EPC contracts in coming months’ — Rikiin Bbarot, Joint Managing Director, Atlanta Ltd

What are your expectations from the new government with regard to infrastructure projects? We have to give the new government some time. The government is very bullish as it has come with a clear majority. This government wants to do infrastructure projects. A lot of growth is also going to happen in infrastructure. Therefore, infrastructure will be the centre of attraction and flavor of the season.

How much time do you think it will take for the

infrastructure sector to come good? It will probably happen around the second or third quarter of next year.

Which infrastructure segments are expected to witness maximum focus in the years ahead? I believe, BOT, OMT and EPC contracts will witness maximum focus. In terms of sectors, highways will witness growth. I don't know about power sector because everyone knows that coal supplies have been an issue.

Atlanta Ltd is a leading infrastructure and real estate company with experience in roads, highways and bridges, railways, airports, surface mining, and other urban infrastructure projects. The company also has three decades of experience in EPC contracts across India. Rikiin Bbarot, in an email interaction with Sandeep Menezes, talks about growth prospects in infrastructure sector, which will be the “centre of attraction.”

Therefore, till the time the government comes up with a policy for coal supply, we cannot say much. But in the highways sector, there is going to be growth because the demand is too much and government is gearing up to meet that demand.

WWW.ATLANTAINFRA.CO.IN

The government wants private companies to contribute half of the planned $1 trillion infrastructure investment target. Yes, to some extent, but the government needs to come up with some good reforms; external

Mumbra Bypass commercial borrowings, for instance. Besides, BOT is not the only way for the government to implement infrastructure projects.

Right of Way has been a major hurdle for infrastructure segments such as water supply and sewerage, highways, and power transmission. There have always been issues regarding Right of Way, but I think the new government will be working on them with some out-of-the-box policies to speed up the whole thing.

According to you, what are the primary reasons for time and cost overrun in project execution? One of the reasons for time and cost overrun during project implementation is the availability of land. At some places, there are issues of aggregates or mining. Some states have clearly declared no mining in their states. Clearance from different government departments is another issue.

Dajej Road

The availability of trained manpower is an issue faced by all EPC players. What is the extent of skilled manpower shortage in this sector? Skilled manpower is an issue but unskilled manpower is available in plenty across India. But yes, in the near future there will be a paradigm shift happening across the nation.

What is Atlanta's future strategy in India? Currently, we are focusing on infrastructure, OMT and EPC contracts. This is where our competence lies and where we plan to grow.

Which are the main infrastructure segments contributing to Atlanta's current revenue mix? Going forward, do you see any major shift? We don't see any major revenue shift. We have been the first BOT concessionaires in India and our core competencies have been in that. We see a lot of EPC contracts coming up. We don't see a major shift rather than EPC, BOT or OMT contracts.

04-05] PM Interview + Transport.qxp

9/15/2014

3:37 PM

Page 5

TRANSPORT & LOGISTICS

Projectmonitor, Mumbai, September 16-30, 2014

MMRDA plans new road projects A BUSINESS CORRESPONDENT

he Mumbai Metropolitan Region Development Authority, which is engaged in long-term planning, financing and implementing strategic infrastructure projects, is undertaking a slew of new projects in and around Greater Mumbai. MMRDA recently invited tenders to widen and strengthen NH-4 and SH-40 at various key spots such as Sheel Phata, Palaspe Phata, Takka Colony, Kalamboli Junction and Khanda Colony on the outskirts of the city. A four-lane flyover will also be constructed on SH-40 at L&T Junction under the project. “We have invited tenders for widening and strengthening of NH-4 in two phases. The first phase is between Takka Colony and Palaspe Phata; while the second phase is between Kalamboli Junction and Khanda Colony. MMRDA will spend `54 crore for the 3.6-km long six-lane road,” Drilip Kawathkar, Joint Project Director (PR), MMRDA, said. The existing road is without a divider and creates bottlenecks at various stretches. MMRDA has already constructed a flyover near Panvel ST Depot, which has reduced traffic congestion on this stretch. “The new project, which is to be completed in a year’s time, will further reduce the traffic snarls and save precious fuel and time for the commuters,” Kawathkar added. The authority has also invited tenders to construct the proposed four-lane flyover at L&T Junction on Sheel PhataMahape Road on SH-40. The 450-metre flyover will have two lanes each for up and down traffic. MMRDA will also widen and strengthen the 6.9-km six-lane stretch of Sheel Phata-Mahape Road. This project is estimated to cost `56 crore and is scheduled to be completed in 18 months.

Seven roads in Oshiwara MMRDA is constructing seven roads along with other infrastructure in Oshiwara adjoining the western suburb of Andheri. Under this project, the authority will develop roads, storm water drainage, sewage disposal system and construct new water connections. “Western Railway is constructing a railway station, Oshiwara, between Jogeshwari and Goregaon. Once it becomes operational, this region will become a new residential and commercial hub. As SPA for the region, MMRDA is committed to develop infrastructure in this region before the station begins operations,” Kawathkar stated. In all, MMRDA will construct seven roads totalling 3,520 meters along with sewage systems, roadside drains, water

mains and culverts. MMRDA has set aside `62 crore for the work, out of which work for `37 crore has already started. Apart from these two projects, MMRDA has completed the tendering process for constructing a 1,266-metre long creek bridge between Mankoli and Motagaon on Ulhas creek. The construction of this six-lane bridge is expected to start soon

and will be completed within three years. The bridge will connect NH-3 with the KalyanDombivali Municipal Corporation area and also provide vital connectivity between NH-3 and Kalyan bypass. The estimated cost of this project is `245 crore. MMRDA is also planning to build a railway ticket counter and a bus stop near the VitawaThane skywalk with escalators

for senior citizens. The groundbreaking ceremony for the skywalk was held recently. “The state government will ensure timely completion of the proposed skywalk and we will provide any additional finance for the project, if required,” Maharashtra’s Minister of State for Urban Development Uday Samant said. However, with the proposed

rupees 23.25-crore skywalk the commuters will reach the station – without risking their life n’ limb – within only five minutes. Once completed, the skywalk will benefit more than 25,000 commuters daily. The construction of the `23.25crore skywalk will begin after securing necessary permissions from the Forest Department, CRZ, Central Railway etc.

06-07] Power + Oil & Gas.qxp

9/15/2014

4:36 PM

Page 6

POWER

Projectmonitor, Mumbai, September 16-30, 2014

An illustrative picture of a distribution system in Delhi.

DERC introduces net metering scheme DEBDEEP CHAKRABORTY

ith a view to create an environment conducive for promotion of renewable energy technologies and also seek active participation of consumers in the distribution of power generated from renewable energy sources in the capital, the Delhi Electricity Regulatory Commission recently announced net metering regulations for renewable energy. Under the DERC (Net Metering for Renewable Energy) Regulations, 2014, a consumer will

be able to install a renewable energy system in his premises for connectivity with the power supply system of the distribution company in the area. The capacity of the renewable energy system to be installed is subject to feasibility of interconnection with the grid, available capacity of the service line connection to the premises and sanctioned load of the premises. The capacity of the renewable energy system cannot be less than one kW peak. The distribution licensee will allow connectivity to the renewable energy system provided the

The Board of NTPC has approved `10,000 crore of capex for executing two thermal power plants. An investment of `9,189 crore has been sanctioned for NTPC’s Tanda STPP in Uttar Pradesh, while an appraised, current estimated cost of `1,382 crore has been approved for Rammam HEP in West Bengal. Also, NTPC recently signed an agreement with Andhra Pradesh government for setting up a 1,000-MW mega solar power unit at Ananthapur. NTPC aims to set up 3,000 MW of solar power projects over the next 3-3.5 years. Ashoka Buildcon has received the Letter of Award for a power distribution project from Maharashtra State Electricity Distribution Company Ltd. The scope of the `102.61-crore turnkey contract includes supply, test, transport, construction, erection, testing and commissioning of sub-transmission lines, power transformers, new substation, augmentation of existing substation, 11kV, 22kV & 33kV lines distribution, and transformer centres of varying capacities, including a two-year guarantee (defects liability) period. This work falls under the Infrastructure Plan, Part- II, Phase-D, in Buldhana, Khamgaon and Malkapur division of Amravati zone in Maharashtra. The Andhra Pradesh government has allotted 1,200 acres of land to NTPC for its proposed 4,000-MW coal-based power project in Vizag. The power utility will use the land, located close to NTPC’s Simhadri power plant, on a long lease basis of 33 years to set up the power project in Pudimadaka village, Atchuthapuram Mandal, Visakhapatnam, with a total investment of `20,000 crore. The utility is expected to complete the project by March 2019. On completion, it will be the biggest single location power project in Andhra Pradesh. Simhapuri Energy Ltd, a subsidiary owned by Madhucon Group, has invited prequalification bids for the 2x660 MW, phase-III, Thamminapatnam thermal power plant in SPSR Nellore district of Andhra Pradesh. Prequalification has been invited for BTG and BOP for expansion of the supercritical thermal power project situated in Thamminapatnam village near Krishnapatnam Port in SPSR Nellore district, on a single turnkey EPC contract basis.

available capacity of the particular distribution transformer for connectivity is not less than the limit set by DERC. The grid interactive renewable energy system may be with or without battery back-up. Where battery back-up is opted for, the inverter needs to have separate back-up wiring to prevent the flow of power from the battery/decentralised generation into the grid in absence of grid supply along with a manual isolation switch. The consumer’s premises will have two meters – renewable energy meter for measuring the energy generated from renew-

able energy source and net meter for measuring the energy drawn from the grid and exported to the grid. The net metering scheme will allow the consumer to inject any surplus energy into the grid and earn energy credits. The forwarded energy credits can be subsequently drawn back within the financial year. At the end of the financial year, the unadjusted net energy credits will be paid for by the distribution licensee to the consumer at rates notified by the DERC. No deemed generation charges are payable to the consumer. The renewable ener-

gy system under net metering arrangement will be exempt from wheeling, banking, cross subsidy and other charges for a period of five years, unless extended thereafter. The net metering scheme offers several benefits to both the participating consumer and distribution licensee. In terms of benefits to the consumer, a subsidy at the rate of 30 per cent of the capital cost is presently being provided by the Ministry of New and Renewable Energy. Also, since the renewable energy system installed under the scheme will be gridconnected, the cost of storage battery can be avoided. The energy generated from such renewable energy sources will not attract Power Purchase Cost Adjustment Charges and remain insulated from some of the escalation factors. The utilities will benefit from the net metering scheme through reduction in distribution losses. Besides, onsite generation reduces dependence on the grid during grid failure and helps in the islanding scheme. The quantum of electricity generated under the net metering scheme will qualify towards compliance of Renewable Purchase Obligation for the distribution licensee provided the renewable energy generator is not an obligated entity. The net metering scheme is expected to provide the capital a sustainable energy source with no input fuel costs involved. Though the DERC net metering regulations cover power generated from all renewable energy sources, only solar power generation is feasible in Delhi.

Rays Power Experts to set up 50 MW solar park in Andhra PM NEWS BUREAU

nRays Power Experts, one of India's leading innovative solar solutions companies and an emerging solar power EPC and consulting entity, has the construction of Independent Solar Power Parks in Andhra Pradesh, a news release said. The 50-MW Solar Park will be installed at Anant Nagar, Andhra Pradesh, over the next six months. This includes the complete infrastructure designing of the project, its technical and engineering ground work, and installation process and commissioning of the project. The company has already invested `20 crore of the `300crore, the overall project cost. The global solar power development and EPC company is completely debt free where all capital is raised from company's internal accruals and is fully equity based. Rays Power Experts will be funding the solar park project from its own inter-

nal accruals. The company is currently recording an overall turnover of `400 crore and aims to raise it to a `1,000 crore, by the end of the fiscal. Speaking on the initiative, Rahul Gupta, Director, Rays Power Experts, commented, "Independent Solar Power Parks are a brand new vertical we are entering into and this project marks the first step towards this direction. We aim to complete this project by January 2015 and then gradually move on to estab-

lish similar solar parks in other parts of the country. We are geared to make use of innovative technology and skilled field manpower to execute the project on time and deliver the best to our customers." Rays Experts is expanding its business portfolio and venturing into new verticals like solar rooftop models and similar offerings. It is one of the largest solar power EPC portfolios in the country with a total order book of 110 MW solar EPC projects.

06-07] Power + Oil & Gas.qxp

9/15/2014

4:36 PM

Page 7

OIL & GAS

Projectmonitor, Mumbai, September 16-30, 2014

Bihar to get major share of Energy Highway PM NEWS BUREAU

AIL (India) Ltd and Government of Bihar have stepped up efforts to roll out city gas distribution projects in Bihar. This was the outcome of the first meeting of the joint coordination group of the Bihar government and GAIL held in Patna recently. The city gas distribution network would be laid in Patna during phase-I of the JagdishpurPhulpur-Haldia project. Priority would be given to the cities of Gaya, Mujaffarpur and Bhagalpur. The CGD network will be taken up in other cities in a phased manner based on

ONGC plans to invest `5,219 crore towards Daman gas fields in the Arabian Sea by July 2016. The project will augment production of natural gas and condensate in its Tapti Daman block. The project is situated about 90-100 km from Daman coast. In addition, the project includes development of C-24 field and monetisation of B-12 marginal fields (B-12-11, B-12-13 & B-12-15). Production will start by July 2016 and is expected to peak at 8.35 mscmd of gas and 9,286 barrel of condensate each day. The project envisions the installation of several wellhead platforms, one riser platform with associated pipelines and drilling of 28 wells. it is due to be completed by pre-monsoon 2019. BPCL intends to invest `35,000 crore in the next three years. The company plans to increase its refining capacity by a third, through expansion and upgradation of existing refineries, and also invest in overseas exploration projects. Refinery expansion and upgradation will account for 50 per cent of the planned investment, which includes up to `16,000 crore for expansion of Kochi refinery, Kerala, from 9.5 million tpa to 15.5 million tpa. This will be accompanied by a 2-million tpa expansion of Bina refinery, Madhya Pradesh. The company plans to increase its overall capacity from 27.5 million tpa to 35.5 million tpa. Mangalore Refinery and Petrochemicals Ltd, a subsidiary of ONGC, has successfully commissioned a petrochemical fluidised catalytic cracking unit at its plant in Mangalore, Karnataka, which was commissioned last month as part of MRPL's phase-III expansion. The unit will augment LPG, light distillates and production of propylene, which is a feed for the polypropylene unit. With a design capacity of 2.2 million tpa, the PFCC unit is the second such unit in India.

demand assessment and techno-economic feasibility in those cities. In addition to transport and household sector, the pipeline will supply natural gas to several industries in the region like fertiliser, power, steel, and other large, medium and small industries. The city gas distribution network would touch 40 per cent of Bihar's population. This new development comes close on the heels of the Energy Highway project for Eastern India, the 2,050-km Jagdishpur-Phulpur-Haldia natural gas pipeline, recently announced by Prime Minister Narendra Modi. Approximate-

WWW.GAIL.NIC.IN

ly 620 km of this pipeline will pass through Bihar. GAIL (India) Ltd recently announced that work would

soon commence on the natural gas pipeline which will carry efficient and environmentfriendly fuel to West Bengal,

Bihar, Jharkhand and Uttar Pradesh. The estimated investment in the natural gas pipeline project is `10,000 crore. Phase-I of the pipeline will have a capacity of 16 mmscmd which would be augmented to 32 mmscmd in phase-II. The pipeline will benefit millions of people in the four states and lead to setting up of city gas networks in 17 major cities of the region, namely Varanasi, Allahabad, Patna, Gaya, Chhapra, Siwan, Gopalganj, Mujaffarpur, Bettiah, Bhagalpur, Bokaro, Dhanbad, Ranchi, Jamshedpur, Asansol, Durgapur and Kolkata.

08-09] Special Report + Ports Special.qxp

8 SPECIAL

9/15/2014

3:40 PM

Page 8

REPORT

Projectmonitor, Mumbai, September 16-30, 2014

ILLUSTRATION ONLY

KEY POINTS

SOLAR ENERGY SECTOR

Growth dependent on domestic lending DEBDEEP CHAKRABORTY

he Indian solar industry, which has grown more than hundredfold in four years to reach over 2.6 GW of installed capacity in 2014, will not be able to continue on its trajectory of growth unless domestic lenders step in and play a larger role, according to a recent report by the Council on Energy, Environment and Water and the Natural Resources Defense Council. The report titled ‘Reenergising India’s Solar Energy Market Through Financing’ said that obtaining financing for solar projects and the high cost of capital posed major challenges to scaling solar in India. In order to bring down the cost of capital and ensure the level of invest-

NATIONAL SOLAR MISSION DURING 12TH PLAN Application Segment

Targets Under 12th Plan Period

Achievement During 12th Plan Period

10,000 MW

1,816.51 MW

1,000 MW

119 MW

6.18 million sq. m

2.47 million sq. m

Grid solar power (large plants, rooftop and distribution grid plants) Off-grid solar applications Solar thermal collectors (SWHs, solar cooking/cooling, industrial process heat applications etc.) ment required to build 20 GW of solar power by 2022, the report stressed the need for continued innovation in policy and introduction of financial mechanisms. During phase-I of the Jawaharlal Nehru National Solar Mission, multilateral financing and self-financing accounted for majority of the financing since domestic banks were reluctant to lend because of higher levels of

perceived risks associated with solar. Even after phase-I, despite the increased familiarity and experience gained, many domestic banks continue to perceive significant risks in solar investment, partly due to information gaps and a continued lack of successful track record. The report pointed out that the burden on domestic banks would increase as international financing was expected to decline.

Lending to bring down cost of solar projects he Minister of State for Power, Coal and New and Renewable Energy (Independent Charge), Piyush Goyal, has said that the renewable energy ministry has been impressing upon banks and financial institutions to provide low-cost and long-term finance for solar power projects to bring down the cost of solar power generation. A refinance scheme was introduced under the National Clean Energy Fund in 2013-14 wherein NCEF funds are provided to IREDA at zero interest rate for lending to banks at an interest rate of 2 per cent, for refinancing up to 30 per cent of the loan given by them for renewable energy projects, at an interest rate of not more than 5 per cent. This scheme covers all renewable energy sectors, including solar. An amount of `100 crore has been

released to IREDA for this purpose till date. The minister said that solar power generation projects for feeding power to the grid were set up mostly in private sector with largely private investment. The central government facilitates the same through fiscal and financial incentives such as accelerated depreciation, concessional/nil customs and excise duties, preferential tariffs and generation-based incentives. No state-wise allocation of funds is made for such projects as the Ministry of New and renewable Energy does not have a scheme to provide funds for large solar projects developed by state government and UT administrations. A new provision for ultra mega solar power projects has been included in this year’s budget. The scheme is, however, still under preparation.

Evaluating the various mechanisms used for supporting the solar sector, both in India as well as globally, the report said that weak compliance of Renewable Purchase Obligations had resulted in failure to create demand for solar energy in the country, adding the issue needed to be addressed through stricter enforcement. The report also discussed some of the financial mechanisms that were expected to become more viable once the Indian solar industry matured. It said that green bonds and Infrastructure Debt Funds could act as conduit for debt to flow into solar projects under more favorable terms. So far, such funds have not been used for the renewable energy sector in India. Giving the example of Brazilian Development Bank, the report suggested that green banks could be a source of lowcost, long-term financing for renewable energy projects. It added though that further assessment was needed to understand the viability of such an initiative in the Indian context. The report emphasised that stronger policies and mechanisms for financing solar energy were needed in order to achieve JNNSM’s cumulative target of

The National Solar Mission is being implemented to promote solar power generation as well as direct thermal energy applications on a large-scale, with a long-term goal of adding 20,000 MW of grid-connected solar power by 2022. This is to be achieved in three phases — phaseI up to 2012-13, phase-II from 2013 to 2017, and phase-III from 2017 to 2022. An enabling policy and regulatory environment is being created through measures like solar-specific RPOs under National Tariff Policy {0.25 per cent in phase-I (2013) to increase to 3 per cent by 2022}, state-specific solar policies and RPO targets, and REC mechanism. Efforts are being made to ensure compliance by discoms and obligated entities. Fiscal and financial incentives in the form of accelerated depreciation, concessional/nil customs and excise duties, preferential tariffs and generation-based incentives are being provided to improve the viability of solar power generation units. The Ministry of New and Renewable Energy is laying emphasis on publicity and awareness campaigns regarding the use of renewable energy in general and solar energy systems and devices in particular.

10,000 MW at the end of the second phase in 2017. To meet the target of installing 20,000 MW grid-connected solar capacity by 2022, the solar energy market has to be scaled eightfold in less than nine years. The report gave a number of recommendations with a view to guide policy makers and other stakeholders in dealing with the financing challenges that plague the industry’s growth. The key measures suggested in the report for overcoming the financial barriers faced by the sector call for deployment of viability gap funding within first year, establishment of a contractual link between Solar Energy Corporation of India and National Clean Energy Fund and carving out a clear role for SECI moving forward in the Mission, priority sector lending provisions for solar power, introduction of IDFs for investment in solar power and establishment of a green bank as well as a system of green bonds. The report sought an information sharing platform for lending institutions and increase in transparency for solar market information. On the policy front, it said the central government needed to consider adopting the innovative and successful programs of states. It also highlighted the importance of enforcing RPO mandates and timely implementation of solar policies. The CEEW is an independent non-profit policy research institution engaged in promoting dialogue and common understanding on energy, environment and water issues. NRDC is an international non-profit environmental organisation.

08-09] Special Report + Ports Special.qxp

9/15/2014

3:40 PM

Page 9

PORTS SPECIAL

Projectmonitor, Mumbai, September 16-30, 2014

34 port terminals under construction in PPP mode PM NEWS BUREAU

he Government of India invested around `21,000 crore in 30 projects signalling a capacity addition of around 217 million tonnes in 2013-14 even as it has announced several new portrelated projects during the current year. Apart from the projects, the government unveiled several new policies with regard to tariff structure, security clearances and environment approvals. The ports sector has become the best example for PPP mode of development, especially after tariff reforms. With these initiatives, the capacity at the 13 major ports increased from 575 million tonnes in 2009 to 800 million tonnes until early 2014. During the last four years, the government cleared 88 new projects with an investment of around `42,953 crore, leading to additional capacity of 558 million tpa. Work on many of these projects is underway. Today, some 36 PPP terminals are in operation in major ports and another 34 are under construction.

JNPT projects The largest project in the Indian ports sector is the fourth container terminal at JNPT at Sheva, Navi Mumbai, which was awarded to PSA Investments Pvt. Ltd of Singapore. It will have a quay length of 2,000 metres and an annual capacity of 4.8 million TEUs. The estimated cost of project, to be developed on DBFOT basis, is `7,915 crore. The project is expected to more than double the container handling capacity of JN Port. Last month, Prime Minister Narendra Modi laid the foundation of a port-based multi-product special economic zone at JNPT. The SEZ is to be developed on 277 hectares of land with a total public and private investment of around `4,000 crore. The project will be constructed on EPC basis within three years. Modi also laid the foundation of a `1,927-crore port connectivity highway project at JNPT and allotment of land to the projectaffected persons under the 12.5 per cent scheme of the Maharashtra government implemented by the City and Industrial Development Corporation of Maharashtra Ltd. The connectivity project is to be completed by December 2017. On September 10, the Cabinet Committee on Economic Affairs approved the development of an additional liquid bulk terminal, also at JNPT, at an estimated cost of `2,496 crore. The project will be taken up in PPP mode on DBFOT basis. Meanwhile, the government has announced new land policy guidelines for the major ports in

order to bring in transparency and accountability in leasing of port land. The government is also laying renewed thrust on coastal shipping, including between the ports of Bangladesh and the eastern ports of India, inland waterways, and Indian Maritime University under which

PAGE 13

CONTRACTS AWARDED IN PORTS SECTOR FROM FEBRUARY-JUNE 2014 Port Entity

Project Awardee

Kamarajar Port Ltd Visakhapatnam Port Trust Jawaharlal Nehru Port Trust Kamarajar Port Ltd Gammon Infrastructure Projects Ltd Indian Coast Guard Kamarajar Port Ltd Visakhapatnam Port Trust Jawaharlal Nehru Port Trust Chennai Port Trust Mercator Ltd Kolkata Port Trust Total Source: www.projectstoday.com

Fichtner Consulting Engineers (I) Pvt. Ltd DP World PSA International Pvt. Ltd Adani Ports & Special Economic Zone Ltd International Seaport Dredging Pvt Ltd Pipavav Defence & Offshore Engineering Co. Ltd Chettinad Builders Pvt. Ltd Dredging Corporation of India Ltd CMC Ltd. Logos Constructions Pvt. Ltd Western India Shipyard Ltd Mackintosh Burn Ltd

Value (`` Crore) N.A. N.A. 8.000 1.270 268 221 150 32 29 15 10 8 10,003

Location Chennai, Tamil Nadu Visakhapatnam, Andhra Pradesh Raigarh, Maharashtra Tiruvallur, Tamil Nadu Mumbai, Maharashtra N.A. Tiruvallur, Tamil Nadu Visakhapatnam, Andhra Pradesh Raigarh, Maharashtra Chennai, Tamil Nadu N.A. Hooghly, West Bengal

10-11] Ports Special.qxp

9/15/2014

3:43 PM

Page 10

PORTS SPECIAL

Projectmonitor, Mumbai, September 16-30, 2014

‘True meaning of PPP in port projects is yet to sink in’ — S.S. Kulkarni, Secretary General, Indian Private Ports & Terminals Association

There were reports recently about the new government looking at ‘corporatising’ India's major ports to infuse professionalism in their operation and management? BOT operators are facing several operational issues at the port level. The true meaning of PPP has yet not percolated to the lower echelons of port trusts. What is required are faster responses and accountability from the various departments in the ports. Trivial matters end up in costly arbitrations. It is hoped that with corporatisation decision-making would be quicker and put an end to “passing the buck” game.

TOP 20 ONGOING PORT PROJECTS IN INDIA Promoter V.O. Chidambaranar Port Trust Dhamra Port Co. Ltd PSA International Pvt. Ltd Cochin Port Trust Government of Odisha Tamralipta Port Ltd Kandla Port Trust Vizhinjam International Seaport Ltd DP World Visakhapatnam Port Trust Krishnapatnam Port Co. Ltd Tadadi Port Ltd Chennai Port Trust Dholera Port Ltd Dighi Port Ltd Maharashtra Maritime Board Bengal Port Ltd Pondicherry Port Ltd Gujarat Maritime Board Gopalpur Port Co. Ltd Total Source: www.projectstoday.com

However, it was seen that the non-major (private) ports during the same period not only bucked the trend but showed decent upward movement. One could therefore surmise

Industry in bad shape. However, problems are well known and understood by the ministry in terms of the tariff regulation, especially under the 2005 guidelines. Inter-ministerial committee under the Chairmanship of Member – Infrastructure, Planning Commission, was set up to examine migration of 2005 GL terminal operators to the 2013 GL. Unfortunately, the committee has not been able to complete its task. Moving all operators under the 2005 GL to the 2013 GL is needed. Therefore, the Ministry of Shipping needs to decide on the way ahead. Performance determined pricing as per 2013 Guidelines need to be introduced for all operators with immediate effect. Process for moving to market determined pricing regime should be introduced within the next one-two years by amending the Major Port Trust Act. TAMP should be a performance regulator.

Port connectivity

Port performance suffers due to insufficient hinterland connectivity.

by offering faster turnarounds. With the port costs being less than 5 per cent of the total endto-end logistics expense, ports reaching the goods to its destination fastest will always be pre-

Minimum six laning of connecting roads to ports and completion of DFC should be taken up on priority basis.

Connectivity between ports through inland waterways must be developed to reduce congestion on road and rail. This will also generate

ferred even at a slightly higher price.

What were the effects of deregulation of tariff on new projects in major ports last year?

and impede faster clearance and movement of goods – operators are willing to invest in technology for reducing processes related delays and need customs to accept international practices. Due to changing shipping economies, 16-18 metre draught essential at all major ports. Government should declare all port approach channels as national seaways and fund the dredging programme for which a port infrastructure cess could be collected. ILLUSTRATION ONLY/WIKIMEDIA COMMONS

that traffic diversion was taking place from the major ports to the non-major ports. These private ports with better connectivity, flexible tariffs and modern equipments quickly attracted the trade

IPPTA’s wish-list for government

Tariff regulation

new guidelines a dozen-odd projects have been announced. The response to these projects has been encouraging. Private investors who were shying away from port projects seem to be showing renewed interest in the development of Indian ports. However, the old projects, under the earlier guidelines of 2005 and 2008, continue to suffer from the flaws in the respective guidelines. Migration of these terminals to the new guidelines is the need of the hour. Only then can some semblance be restored in the port sector. Only total tariff deregulation can bring about a level playing field and a healthy growth in the sector.

ILLUSTRATION ONLY

The 13 major ports owned by the Government of India are wilting under competition from new private ports which, in the last five years, have been growing at three to five times. In spite of the global meltdown of 2008, the Indian economy was doing well till about 2010, thereafter which the after effects started feeling. Traffic handling at major ports remained either stagnant or showed a negative growth for the past four years.

Indian Private Ports & Terminals Association is the premier association of private port and terminal operators of container and bulk terminals in India. Members of IPPTA, who are existing private operators, cumulatively represent an investment of over `6,500 crore in the port sector. S.S. Kulkarni, in an email interaction with Sandeep Menezes, provides an extensive overview of Indian ports sector.

employment and an environment friendly measure. Transaction processes due to security, customs, etc., take lots of time

Policy framework for PPP projects

Current MCA is one sided – it should be made equitable to both PPP partners. There is no relationship between risk and reward. Should not be cast in stone – views of bidders should be considered during the bidding stage and changes should be allowed since each port project has unique challenges. Flexibility is needed in the system. A 30-year period is a long time and changes do occur which can have a material impact on the agree-

Project Outer Harbour (Tuticorin) Project Dhamra Port Project ( Phase-II) Expansion IV Container & Marine Chemical Terminal Project Outer Harbour (Kochi) Project Port (Puri) Project - Phase-I Deep Sea Port (Rasulpur) Project Mega Container Terminal (Tuna-Tekra) Project Vizhinjam Port Project - Phase-I ICTT Vallarpadam - Phase-II Port (Duggarajupatnam) Project Krishnapatnam Port Project Tadadi Port Project Multi cargo terminal (Chennai) Project Dholera Port Project Dighi Port Project Jaigad Port Project Kulpi Port Project Pondicherry Port Project Nargol Port Project - Phase-I Gopalpur Port Project

However, the status of deregulation for existing projects still needs to be resolved. What is your view? In July 2013, the Ministry of Shipping announced a new set of

ments and fulfillment of responsibilities. A review mechanism should be allowed in the signed Concession Agreement for accommodating changes due to the changing economic, commercial and other factors that happen during the entire span of the agreement. A review mechanism is a demand across all PPP sectors.

Coordination amongst various ministries There

is a lack of coordination between various government agencies during both the construction period as well as operations due to which immense delays take place. An interface is required between various central and state agencies like forest department, CBEC and railways to ensure smooth functioning of the port projects. Such coordination will ensure that matters relating to connectivity, (under state government purview) and processes (like customs and excise) can be speedily addressed and solutions found.

Cost (`` Crore) 11,635 10,000 8,200 8,000 6,500 6,000 5,992 5,187 4,633 4,500 4,000 3,800 3,686 3,000 2,750 2,500 2,400 2,300 2,000 2,000 99,083

Location Tuticorin, Tamil Nadu Bhadrak, Odisha Nhava Sheva, Raigad, Maharashtra Kochi, Kerala Astarang, Puri, Odisha Rasulpur, Midnapore, West Bengal Tuna-Tekra, Kutch, Gujarat Vizhinjam, Thiruvananthapuram, Kerala Vallarpadam, Ernakulam, Kerala Duggarajupatnam, Nellore, Andhra Pradesh Krishnapatnam, Nellore, Andhra Pradesh Tadri, Uttara Kannada, Karnataka Chennai, Tamil Nadu Dholera, Ahmedabad, Gujarat Dighi, Raigad, Maharashtra Jaigad, Ratnagiri, Maharashtra Kulpi, South 24 Parganas, West Bengal Puducherry Nargol, Valsad, Gujarat Gopalpur, Ganjam, Odisha

tariff guidelines which were to be applicable for new BOT projects. These guidelines introduced partial tariff deregulation in the sense that the operator, depending upon the performance

achieved, has a freedom to fix his tariff within +15 per cent of the reference tariff fixed by TAMP. Though a small one, this was a step in the right direction. Since the notification of the

In 2013-14, the government earmarked $3.32 billion to 30 projects within the ports sector, more than triple the amount in the previous year. Besides funds, what more is needed on the policy front? Right policies in terms of tariff setting, land allotment (additional storage space) and streamlining of operational issues are badly required. The other important aspect is the port connectivity, both landside as well as seaside. Once these are taken care of, the current all-India port capacity is more than sufficient to take care of the traffic requirement. Taking care of the needs of the present ports and terminals is more important than to simply augment port capacity.

Foreign investors have set up cargo terminals at major ports, but they, too, are weighed down by an unstable policy regime, mainly on pricing of port services. Do you have any suggestions to improve the scenario? As IPPTA, we have always been stating the importance of a stable tariff policy which offers reason-

able rate of return to the investor. Unfortunately, the last 15 years have been too long a learning period for the government’s port PPP programme. Timely corrective action is necessary. It’s yet not too late. Some of the ‘doable’ suggestions given by various bodies and recommendations of various government committees need to be implemented and thus prevent the drying up of foreign investment in the sector.

Most of the non-major ports boast of deeper drafts ranging from 18 to 20 metres while major ports are mostly less than 18 metres. Dredging has been a neglected issue, rightly so, because of the enormous costs involved. But deeper drafts are a ‘necessary evil’ if larger ships which help achieve economies of scale has to be deployed. Major ports have to find a way for funding of their dredging programmes. It could be either in the form budgetary support from the government or PPP in dredging ventures. Shipyards also need to undertake R&D work to evolve large capacity ships which could move on lesser drafts.

How successful has Indian Private Ports & Terminals Association been in taking up issues with the government? As mentioned earlier, the past decade has been a learning phase for both the government as well as Indian Private Ports & Terminals Association. Backed by the rich experience of its members who are global port operators many suggestions were offered by IPPTA to make the PPP programme in the port sector a success. Some of these were, indeed, considered by the government.

10-11] Ports Special.qxp

9/15/2014

3:43 PM

Page 10

PORTS SPECIAL

Projectmonitor, Mumbai, September 16-30, 2014

‘True meaning of PPP in port projects is yet to sink in’ — S.S. Kulkarni, Secretary General, Indian Private Ports & Terminals Association

However, it was seen that the non-major (private) ports during the same period not only bucked the trend but showed decent upward movement. One could therefore surmise

Port connectivity

Port performance suffers due to insufficient hinterland connectivity.

by offering faster turnarounds. With the port costs being less than 5 per cent of the total endto-end logistics expense, ports reaching the goods to its destination fastest will always be pre-

Minimum six laning of connecting roads to ports and completion of DFC should be taken up on priority basis.

Connectivity between ports through inland waterways must be developed to reduce congestion on road and rail. This will also generate

ferred even at a slightly higher price.

What were the effects of deregulation of tariff on new projects in major ports last year?

that traffic diversion was taking place from the major ports to the non-major ports. These private ports with better connectivity, flexible tariffs and modern equipments quickly attracted the trade

IPPTA’s wish-list for government

Tariff regulation

ILLUSTRATION ONLY

employment and an environment friendly measure. Transaction processes due to security, customs, etc., take lots of time

Policy framework for PPP projects

However, the status of deregulation for existing projects still needs to be resolved. What is your view? In July 2013, the Ministry of Shipping announced a new set of

Coordination amongst various ministries There

Cost (`` Crore) 11,635 10,000 8,200 8,000 6,500 6,000 5,992 5,187 4,633 4,500 4,000 3,800 3,686 3,000 2,750 2,500 2,400 2,300 2,000 2,000 99,083

tariff guidelines which were to be applicable for new BOT projects. These guidelines introduced partial tariff deregulation in the sense that the operator, depending upon the performance

achieved, has a freedom to fix his tariff within +15 per cent of the reference tariff fixed by TAMP. Though a small one, this was a step in the right direction. Since the notification of the

12-13] Ports Special.qxp

9/15/2014

4:53 PM

Page 12

PORTS SPECIAL

Projectmonitor, Mumbai, September 16-30, 2014

ILLUSTRATION ONLY/WIKIMEDIA COMMONS

As India prepares to embark on a nationwide infrastructure development drive, it is imperative that anti-corrosive moisture-cured urethane paint is used to ensure these structures have a long-lasting life that prevents any corrosion-related mishaps. Besides saving high and frequent repair and maintenance costs, precious lives will also be saved. A special report

here is a universal lament that India has wasted the past few years due to indecisive governance, which cost the nation a few percentage points in GDP growth, besides massive monetary loss as well as the loss of millions of jobs. But another silent menace causing similar colossal losses goes largely unreported – losses due to corrosion. The Confederation for Indian Industry estimates corrosion losses at `200,000 crore annually. The global annual cost due to corrosion is estimated to be about $2.2 trillion. Considering the mammoth costs, the World Corrosion Organisation has designated April 24 as Corrosion Awareness Day. This is meant to highlight the damage corrosion causes to the environment, its impact on people, and the waste of resources (such as water, oil and gas) that results from corroded pipelines, treatment facilities and industry equipment. Speaking at a seminar ‘Towards building corrosion-

ANTI-CORROSIVE PAINT

Safeguarding lives, saving millions

free India,’ former ONGC chairman and managing director Sudhir Vasudeva concurred that India loses more than $40 billion a year, about 4 per cent of its total economy, due to the impact of corrosion on its infrastructure and industry.

Impact of corrosion Indeed, the entire infrastructure on earth – from highways, bridges and buildings to oil and gas, chemical processing, water and wastewater systems and industrial structures – suffers immense economic and environmental impact due to the daily wear and tear from corrosion. Apart from this, corrosion causes severe damage to public and private property, threatens public safety, disrupts operations periodically, and calls for extensive repairs and replacement of affected assets. Taking cognisance of the tremendous losses, Pulse Exim & Trading Pvt. Ltd, a trading arm of SDPR Group, has been promoting an anti-corrosive paint

based upon its motto of a “corrosion-free country.” Termed MCU (moisture-cured urethane), the formulation originated in Belgium in the 1980s and was thereafter adopted worldwide. MCU is an innovative approach that uses moisturecured urethane technology to permanently stop rust and corrosion by isolating substrates from water and contaminants. Pulse Exim imports MCU from Libert Paints, Belgium, one of Europe’s leading paint manufacturers involved in inventing MCU technology for the paint industry. Today, MCU has emerged as a generic name for non-corrosive paint in the specialised paint industry. As the sole distributor for Libert Paints in India, Pulse Exim is now helping Indian industries and other manufacturers deal with the corrosion problem on a permanent basis.

Myriad benefits According to Pankaj Som Chaturvedi, CEO, SDPR Group, anti-corrosive paints can play a

Port traffic increases 1.5% in August DR. M.S. KAPADIA eaborne traffic at the country’s 13 major ports increased 1.5 per cent in August 2014, against 0.5 per cent in the previous month and a strong 7.4 per cent during this month a year ago. Nine out of 13 ports witnessed increased volume, while four others had to bear erosion in quantity. Among the ports Cochin recorded the best rate of 17.2 per cent on the back of 26 per cent increase in POL freight. Kolkata Dock recorded 12.7 per cent increase on the back of strong growth in other industrial cargo. Freight at Chennai Port declined 6.9 per cent during the month due to 32 per cent decline in POL volume, which was partly compensated by 5 per cent increase in container traffic. Among the cargoes, iron ore volume declined 34 per cent and finished/raw fertiliser 22 per cent, whereas thermal coal quantity handled at the ports went up 14 per cent during August. Kandla, Mumbai and Paradip enjoyed

buoyant thermal coal volume, whereas the decline in iron ore volume was concentrated at Visakhapatnam, Paradip and Haldia ports. Taking April-August 2014 period (estimated by us by adding April-July port traffic data to that for August) seaborne traffic at the ports increased by around 2.9 per cent, showing improvement over 1.8 per cent in the same period of 2013-14. Making a departure from the earlier practice, Indian Ports Association has not disseminated cumulative port traffic data for April-August. Mormugao recorded 23 per cent increase, Kamarajar (Ennore) 14 per cent and V.O. Chidambaranar 10 per cent, whereas Haldia Dock suffered 8 per cent decline, New Mangalore 4 per cent and Kandla and Chennai nominal declines. Among the cargoes, raw fertiliser volume increased 26 per cent, other industrial cargo 10 per cent and thermal coal 6 per cent, even as iron ore showed 14 per cent drop during April-August.

crucial role in increasing the lifespan of all industrial equipment, while protecting them from the ravages of corrosion. MCU can also be effective in preventing or plugging leakages in pipelines, which can prevent accidents of all kinds. The devastating effects that leakages can have are best illustrated by the recent explosion of a trunk pipeline of GAIL (India) Ltd in Andhra Pradesh, which led to the deaths of 15 persons and injured dozens. The application of MCU can ensure such accidents are prevented, as this is a cost-effective and permanent solution to the problem of rusting and corrosion. A unique single component polyurethane coating technology, since MCU paint doesn’t crack, chip or peel off, it can protect painted structures for more than 10-15 years. Moreover, the single component, onepack system means mixing mistakes are ruled out. Combining superior highimpact resistance and outstanding abrasion resistance with durable flexibility, MCU’s polydigital adhesion does not allow water, acids, alkalis, salt or chemicals to penetrate metal, composites and concrete, imparting a hammer-proof surface to the structure. Additionally, it has abrasion resistance and elongation of more than 70 per cent, which withstands cracks and expansion-contraction of substrate, without cracking, peeling or tearing, thereby lasting longer than any other coating.

Direct application A high-performance coating, MCU is designed for direct application on rusted, seasoned metal surfaces and concrete or surfaces with old paint layers. Being non-porous, it seals and protects all surfaces from water, chemicals, salt and other corrosive contaminants. As a rust-preventive coating, it offers superior chemical resist-

ance due to its dense, crosslinked molecular composition, making MCU acid and alkali resistant. Thanks to their specific formulations, the paint can be used in extreme climatic conditions varying from Siberian to Equatorial. Even in maritime environments, MCU can be applied with up to 98 per cent of relative humidity. When the surface is dry, it can even be applied in freezing or warm temperatures. Easy to apply, it has extremely good adhesion on rusted items, old paints and moderately prepared metal surfaces. Moreover, given its stress resistance, sudden changes in climatic conditions do not affect the quality of the paint. In India, MCU has been successfully tried in facilities of the Power Grid Corporation of India, IOCL pipeline (Panipat), HPCL and BPCL refineries, GAIL’s condensate pipeline, Essar Refinery (Jamnagar), Kanoria Chemicals (Ankleshwar), and at many other installations. MCU coatings are used worldwide in diverse sectors such as petrochemicals, power plants, marine offshore oil rigs, shipyards and vessels, railway locomotives and wagons, underground pipelines, electricity towers, storage tanks, concrete structures and flooring, architectural facades, ports, the Coast Guard, US Navy and Air Force facilities such as hangars and naval ships, Arcellor-Mittal steel plants, Bayer chemical plants, Alstom (railways), Russian Railways, cooling towers in Romania and other areas. As India prepares to embark on a nationwide infrastructure development drive, it is imperative that anti-corrosive MCU paint is used to ensure these structures have a long-lasting life that prevents any corrosionrelated mishaps. Besides saving high and frequent repair and maintenance costs, precious lives will also be saved.

12-13] Ports Special.qxp

9/15/2014

4:53 PM

Page 13

PORTS SPECIAL

Projectmonitor, Mumbai, September 16-30, 2014

Private investment for Victor Port DEBDEEP CHAKRABORTY

n line with the vision to harness ports as vehicles for economic development, the Gujarat Maritime Board proposes to make the existing port facilities at Victor Port operational through private investment. Victor Port, located approximately 4.5 km south of Victor village on NH-8 near Pipavav Port on western side of the Gulf of Khambhat and falling under the administrative control of Jafrabad Port, has been idle for many years with no throughput due to siltation. The existing facilities at Victor Port include a shore platform of 24.6m x 16.3m which can be utilised as apron wharf after renovation. The port also has a retaining wall of 133m that was built in 1976 and a wharf wall of 93m built in 1975. Both have degraded over time. In addition, there is one storage shed that can be utilised after renovation. The port has an area of 25,000 sq. m which has degraded with time and requires improvement in order to be utilised. The slope covering an area of 78.5m x 2m is currently being used by local boats. According to GMB, the port is not in workable condition at present. Given the siltation, considerable capital dredging has to be carried out in the navigational channel as well as the waterfront for necessary draft. Approximately 5 km of navigation channel needs to be dredged and earmarked. Thereafter, regular maintenance dredging will be required to maintain the channel depth. The maritime body has already invited Expression of Interest from private companies for development and operation of the existing facilities (lighter-

34 port terminals under construction PAGE 9 three new campuses have been opened, one each in Kerala, Gujarat and Puducherry. For the first time, the Ministry of Shipping commended large-scale movement of coal through National Waterway-I for NTPC's power unit at Farrakka, West Bengal. The Ministry of Shipping is also trying to resolve the longstanding dispute relating to Kanika sands transshipment zone to the satisfaction of all the concerned parties, namely Kolkata Port Trust, Paradip Port Trust, Government of Odisha and others. To promote marine tourism, the government plans to develop 15 lighthouses in phase-I of this project.

A panoramic view of Port of Pipavav in Gujarat.

age) at the port. The private company is required to make the existing port facilities operational at its own costs through strengthening of the structures as well as capital and maintenance dredging and use them on lease basis for cargo handling. GMB will not set off or provide rebate against the cost incurred on making the port facilities operational. The company has to pay the wharfage

and other port charges as per the Schedule of Port Charges. GMB presently manages 41 minor ports in the state. During the year 2013-14, non-major ports in Gujarat handled 309.94 million tonnes of cargo as compared to 287.81 million tonnes handled in the previous year. With capacity addition of 21 million tonnes in 2013-14, the stateâ&#x20AC;&#x2122;s port capacity reached 387 million tonnes.

14-15] Insight + Guest Article.qxp

9/15/2014

3:46 PM

Page 14

INSIGHT

Projectmonitor, Mumbai, September 16-30, 2014

Let’s get the projects back on track. The government is focused on that, it is not headline news... but it is something that will pay dividends in the short run and I think that is what they are doing. You will see something good is happening. We are still focused on macro stabilisation. Current account deficit, fiscal deficit, inflation, all those numbers hopefully will be better going forward. — Raghuram Rajan, RBI Governor

India needs $4.7 trillion investment for 7% growth n a projection of investment requirement in the Indian economy over the next five years (2014-15 to 2018-19) for achieving an average growth of 7 per cent per annum, the Confederation of Indian Industry has estimated the figure at `280 lakh crore ($4.7 trillion), which is nearly double the value of `139 lakh crore ($2.9 trillion) that was invested in the last five years. The CII study, titled ‘Investment Requirements in India: 2014/15 to 2018/19,’ has also estimated sectoral investment targets. Monetary, fiscal, trade and other relevant policies could be realigned to help the economy mobilise the required investment. CII projects an average growth of 6.3 per cent for the industrial sector over the next five years, up from 5.2 per cent in the previous corresponding period, for which a cumulative investment of `146 lakh crore is required. Of this, `98 lakh crore is to be invested in manufacturing alone, which is understandable from the fact that the sector needs to accelerate its growth and create mass employment to absorb the rapidly growing population of job seekers, either displaced from agriculture or the result of growing population. High growth of manufacturing is also critical for sustaining elevated growth of services sector as witnessed in the last several years. Services sector in the study is projected to grow at an average of nearly 8 per cent per annum, roughly the same as in the previous five-year period and it requires an investment of `98 lakh crore. CII expects infrastructure investment to go up from around `24 lakh crore ($500 billion) in the 11th Plan period to `64.3 lakh crore ($1,071 billion) during 2014/15-2018/19 period. The figure is comparable to the Planning Commission’s estimate of around $1.0 trillion during the 12th Plan period. Investment in infrastructure is estimated to average 7.7 per cent of GDP over the next five years, up from 7.2 per cent recorded during the 11th Plan period. The CII study suggests that around 40 per cent of the total investment in infrastructure should come from private sector, which is lower than 48 per cent prescribed by the Planning Commission for the 12th Plan period. The agriculture sector, which continues to be heavily dependent on rain for irrigation and has recorded abysmally low productivity when benchmarked against international standards, is desired to expand by an average growth of 4 per cent per annum over the next five years, requiring a total investment of `36 lakh crore.

Economy responds to growth impulses DR. M.S. KAPADIA

aising a toast to growth impulses set off by the Narendra Modi government, the Indian economy expanded 5.7 per cent over Q1, the best rate over past nine quarters. The economy had grown 4.6 per cent in the preceding quarter and by a similar rate in this quarter a year ago. Obviously, the economy which had gone under following governance deficit is showing signs of getting back its breadth. More importantly, the growth came even as agriculture slowed marginally to 3.8 per cent, from 4 per cent during Q1 in 2013-14. Production of coarse cereals and pulses registered growth rates of 11.2 per cent and 6.2 per cent, respectively, and rice and wheat 15 per cent and 2.6 per cent, respectively, during the Rabi season. Among commercial crops, the production of oilseeds increased by 3.0 per cent during the agricultural Rabi season of 2013-14. Manufacturing, which had declined in 2013-14 following stagnation in the previous fiscal,

ECONOMIC PERFORMANCE (Y-O-Y % GROWTH) 2011-12 Q1 Q2 Q3 Q4 2012-13 Q1 Q2 Q3 Q4 2013-14 Q1 Q2 Q3 Q4 2014-15 Q1

Construction 10.8 8.9 11.9 12.2 10.2 1.1 2.8 -1.9 1 2.4 1.6 1.1 4.4 0.6 0.7 4.8

expanded 3.5 per cent. Even trade, hotels, transport and communication, which suffered decay following reduced activity in the commodity sectors, recovered partially to 2.8 per cent, from 1.6 per cent in Q1 a year ago. The economy has apparently bottomed out and is back finding its feet.

GFCF Manufacturing 12.3 7.4 22.9 12.4 11.7 7.8 5.4 5.3 10.2 4.7 0.8 1.1 -4.1 -1.1 -0.6 0 4.4 2.5 3.3 3 -0.1 -0.7 -2.8 -1.2 3.1 1.3 0.2 -1.5 -0.9 -1.4 7.0

3.5

GDP 6.7 7.6 7.0 6.5 5.8 4.5 4.5 4.6 4.4 4.4 4.7 4.7 5.2 4.6 4.6 5.7

In a major encouraging sign of turnaround in investment, gross fixed capital formation increased 7 per cent, after a decline in 2013-14 and stagnation in the earlier fiscal. In another indicator of some revival in project investment,

PAGE 15

GDP AT 2004-05 PRICES 1.Agriculture, forestry & fishing 2. Mining & quarrying 3. Manufacturing 4. Electricity, gas & water supply 5. Construction 6. Trade, hotels, transport & communication 7. Financing, insurance, real estate & business services 8. Community, social & personal services GDP at factor cost By Major Sectors Agriculture, forestry & fishing Industry Services

` Billion 2013-14 2014-15 1,851 1,921 255 260 2,063 2,135 270 298 1,029 1,078 3,550 3,648 2,885 3,186 1,705 1,859 13,608 14,385 1,851 3,617 8,140

1,921 3,770 8,693

% Increase 2013-14 2014-15 4 3.8 -3.9 2.1 -1.2 3.5 3.8 10.2 1.1 4.8 1.6 2.8 12.9 10.4 10.6 9.1 4.7 5.7 4.0 -0.4 7.2

3.8 4.2 6.8

Readers may mail their comments to editor@projectsmonitor.com

FROM OUR ARCHIVES Editor

Harish Rao

Editorial Advisor

Dr. M.S. Kapadia

Executive Editors

Prashant C. Trikannad Venugopal Pillai

Deputy Editors

Renu Rajaram (Mumbai)

SALES & MARKETING Senior Vice President : Product Head : Manager - Sales : Assistant Manager - Sales : Coordinator :

Sanjeev Singh Abhishek Mishra Vijay Bhoir Anand Bedre Raghuvansh Pandey

CIRCULATION & SUBSCRIPTION Head - Circulation : Raju Chendavankar Support - Circulation : Anil Mungekar Subscription : Rosebin Mukadam

Sandeep Menezes (Mumbai) Debdeep Chakraborty (New Delhi) DESIGN & PRODUCTION Art Director

Satish Kamath

Graphic Designers

Nitin Parkar, Rajendra Vichare, Madhukar Ingavale

Photo Editor

Anthony Azavedo

Printed, published and Edited by Harish Rao on behalf of Economic Research India Pvt. Ltd and published at Economic Research India Pvt. Ltd, Sterling House, 5/7 Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Street, Dhobi Talao, Mumbai 400002, and printed from Print Vision, 31, Jyoti Industrial Estate, Near Makhamali Talao, Noorie Baba Darga Road, Thane (West) 400601. Editor: Harish Rao All rights reserved. No part of the contents of this newspaper may be reproduced in any form without the written permission of the Editor.

Disclaimer: Readers are recommended to make necessary enquiries before acting upon or entering into any commitment in relation to any advertisement published in this publication. Economic Research India Pvt. Ltd does not vouch for any claims made by advertisers of products and services. The Directors, Printer, Publisher and Editor of Economic Research India Pvt. Ltd shall not be held liable for any consequences, in the event such claims are not honoured by the advertisers.

January 7, 2008

Ultra mega power projects set to take off in India he year 2007 has been an important milestone in the power generation sector. The award of the first ultra mega power project set the T pace for increased competition in power project development. Also, the concept of merchant power plants has become more acceptable with stakeholders giving boost to the competition. A total of 9,050 mw of capacity was commissioned last year. This comprises 6,645 mw of thermal capacity, 2,185 mw of hydel capacity and 220 mw of nuclear capacity. Compared to the annual growth rate of about 3.1 per cent at the end of the 9th Plan and initial years of the 10th Plan, the growth in generation during 2006-07 and 2007-08 was 7.3 per cent and 6.9 per cent respectively. The plant load factor also showed a significant improvement. The Partnership in Excellence programme undertaken by NTPC Ltd has resulted in additional generation and improved PLF. Under the Rajiv Gandhi Grameen Vidyutikaran Yojana, 39,383 villages were covered in 2007 and Rs.549.72 crore released to the states under the Accelerated Power Development and Reform Programme.

14-15] Insight + Guest Article.qxp

9/15/2014

3:46 PM

Page 15

GUEST ARTICLE

Projectmonitor, Mumbai, September 16-30, 2014

t a rough estimate, India's overall housing shortage as of today stands at about 22 million homes. Within this, the shortage of affordable housing, homes with price tags in the range of `10-20 lakh, accounts for a very sizeable share. The supply of homes which people with less-thanspectacular financial resources but who still yearn to live in their own homes is still severely constrained. The affordable housing sector is clearly in need of supply amplification, which would only happen if more institutional funding were to start pouring into this segment. Until recently, most housing developments, and therefore fund houses, focused on housing for the highto mid-income segment population. This resulted in a significant gap between the demand and supply of affordable homes. However, the prolonged economic slowdown in the country caused this focus to gradually shift to where the real demand exists, namely budget homes. Today, affordable housing projects near larger cities such as Mumbai, Pune, Bangalore, Delhi etc. have benefited from institutional funding and have seen encouraging response from the buyer market. It is very encouraging to the affordable housing sector that many microfinance companies have now come forward to help buyers from the economically weaker sections to buy homes in buying such homes. Institutional funds can usually expect an internal rate of return (IRR) of approximately 25 per cent by investing in residential projects. The IRR is even higher for well-located affordable housing projects because of the larger volumes and faster absorption. Additionally, they enjoy a higher degree of certainty in terms of the viability and success of such projects if they are dealing with developers of good market repute who have land holdings in the right locations.

Challenges The primary challenge that institutional funds have been facing with India's affordable housing sector is that many of the projects in this category are undertaken by small regional

Institutional funding for affordable housing The affordable housing sector is clearly in need of supply amplification, which would only happen if more institutional funding were to start pouring into this segment, writes Sachin Agarwal, Chairman and Managing Director, Maple Shelters, which was founded in 1997 as Goyal Constructions. The company has welfare housing projects, other residential projects and commercial projects in 30-plus key locations in and around Pune Maharashtra.

developers, with whom it is understandably difficult to partner in an amicable venture. Other areas of concern to institutional funds as well as investors include the lack of speed when it comes to obtaining project approvals; the fact that many of the locations for these projects are deficient in support infrastructure; the absence of sufficient tax incentives for developers of affordable housing; and the unfriendly state of FDI processes in India. All these factors have played a role in discouraging more institutional funding into India's affordable housing sector. Considering that the profit margins in this segment are inherently thin and become attractive only when a

sizeable number of units in such projects are developed and sold, the cumulative challenges are not insignificant. Investing in affordable housing is a play on volumes, which means that it calls for large supply. Not surprisingly, many of the larger fund houses have been finding it more lucrative to invest in projects with a mix of affordable and mid-segment homes in order to capitalise on both the volume and valuebased business potential. Most developers of affordable housing continue to fund their projects from their own financial resources, bank funding as well as sale-generated revenue. Thanks to the immense demand for affordable housing

Economy responds to growth impulses PAGE 14 construction grew 4.8 per cent over Q1, after stagnation in the previous two quarters. Production index of capital goods was up 14 per cent, cement 9.5 per cent, and alloy and non-alloy steel 1.6 per cent during Q1. Investment in valuables continued to drop. Export of goods and services bounced back with double-digit growth; current account deficit containment was helped further by a decline in import of goods and services. GDP deflator, a broad indicator of inflation in goods and services, eased from 5.8 per cent to 5.4 per cent. Finance, insurance and business services slowed

from 12.9 per cent to 10.4 per cent, but remained in the double digits expansion phase. Community and personal services including public administration increased 9.1 per cent. The consumption side of the economy seems to be listless. The final consumption expenditure in the country slowed to 6.2 per cent from 6.8 per cent in Q1 a year ago. Private final consumption expenditure kept the year ago pace of 5.6 per cent, but the growth rate in government final consumption expenditure dropped from 12.9 per cent to 8.8 per cent. Revenue expenditure of the central government increased 11 per cent, half the rate a year ago. GDP at market prices was assessed at `28 trillion for the quarter, showing annual increase of 11.6 per cent at current prices.

Uttar Pradesh leads in urban housing shortage PM NEWS BUREAU he Ministry of Housing and Urban Poverty Alleviation has said that a technical group had estimated urban housing shortage of 187.80 dwelling units in urban areas of the country. He further said that 2,20,741 houses had been built in urban areas during the last three years under different programmes like Jawaharlal Nehru Urban Renewal Mission, Rajiv Awas Yojana and Affordable Housing in Partnership. Uttar Pradesh tops the list with urban housing shortage of 30 lakh units followed by Maharashtra (19 lakh units), West Bengal (13 lakh), erstwhile Andhra Pradesh (13 lakh), Tamil Nadu (12 lakh), Bihar (12 lakh), Rajasthan (11 lakh), Karnataka (10 lakh), Gujarat (9 lakh) and Jharkhand (6 lakh).

in Indian cities, project capitalisation by this combination of means has been sustainable. However, it does not support the production of budget homes the kind of numbers that are clearly required by the market. Encouragingly, the arrival of the BJP government has now changed the outlook for this segment by committing to boost affordable housing in India. This market is now potentially on the verge of a major transformation. More government incentives and boosting mechanisms for affordable housing are imminent, and these promise to make institutional funding of projects

aimed purely at the budget homes segment increasingly attractive. In 2013, around 30 per cent of the total residential launches of 1.7 lakh units in India were in the budget homes segment. In 2014, we are likely to see a massive increment in these numbers. The BJP has expressed its determination to make affordable housing one of its areas of prime focus, and we are more than likely to see evidence of this determination in its fiscal plans. If we finally see a turnaround in the affordable housing segment because of this progressive approach, it will certainly not be a day too soon.

16-17] OC + Awards & Events.qxp

16 ORDERS

9/15/2014

3:48 PM

Page 16

& CONTRACTS

Projectmonitor, Mumbai, September 16-30, 2014

Punj Lloyd wins major order in Malaysia PUNJ LLOYD'S INDIAN AND OVERSEAS TANK AND TERMINAL PROJECTS Project

Location

Client India

J.P. Chalasani, MD and Group CEO, Punj Lloyd PM NEWS BUREAU

unj Lloyd Group, the global diversified EPC entity, has won a `3,515crore ($581 million) RAPID Tank Farm order from PRPC Refinery and Cracker Sdn Bhd, a subsidiary of Petroliam Nasional Berhad (Petronas) Group, Malaysia’s national energy company. With this win, Punj Lloyd Group’s order backlog has reached `24,679 crore. The order backlog is the value of unexecuted orders on June 30,

Bhogat storage and pumping terminal LPG import-export terminal LNG storage tank expansion LPG low temperature storage tank LNG storage tanks for receiving terminal LNG storage tanks for receiving terminal Ravva oil and gas field development

Gujarat Cairn India Ltd Ennore, Tamil Nadu IndianOil-Petronas Dahej, Gujarat Ishikawajima Harima Heavy Industries Co./Petronet LNG Jamnagar, Gujarat Reliance Industries Ltd Hazira, Gujarat Hazira LNG Pvt Ltd/Shell Dabhol, Maharashtra Skanska Cementation International Ltd Andhra Pradesh Hyundai Heavy Industries Ltd/Cairn Energy Overseas Bulk liquid products terminal Singapore Horizon Terminals Pte Ltd Port tank for Jubail export refinery, Package 9 Saudi Arabia Saudi Aramco/Satorp New fuel oil terminal Pulau Laut, Indonesia PT Shell Indonesia Onshore gas development, phase-II Abu Dhabi, UAE Abu Dhabi Gas Industries Ltd (GASCO)/Eastern Bechtel Co. Petroleum storage expansion, phase-5 Singapore PB Tankers Ltd (Tankstore) Storage tanks Fujairah, UAE Technip/Al Jaber Energy 2014, plus new orders received after that date. The tank farm is part of Petronas’ Refinery and Petrochemical Integrated Development project in Pengerang, Johor, Malaysia. Developed within a 6,242-acre site, RAPID is part of the colossal Petronas Pengerang Integrated Complex

SPML Infra Ltd, a leading infrastructure development company, has won new orders worth `1,232.30 crore from Uttar Pradesh Jal Nigam, Agra, and Sardar Sarovar Narmada Nigam Ltd, Gandhinagar. The two orders (5B & 5C) received from UP Jal Nigam worth `1,002.17 crore is for augmenting drinking water supply for Agra city that includes laying of 128 km of water pipeline, while the `230.13crore order from Sardar Sarovar Narmada Nigam Ltd is for infrastructure development for hydro generating units in Kutch, Gujarat. "Water management including transmission and distribution is our core competency and we have already laid more 4,000 km of cross-country water pipelines of various size and length in all terrains," Rishabh Sethi, Chief Operating Officer, SPML Infra Ltd, said. Bajaj Electricals Ltd has bagged four new orders worth `602.12 crore. Its engineering and project business unit has secured new orders for transmission lines in Tamil Nadu and West Bengal. The company has received orders from PGCIL and West Bengal State Electricity Transmission Company, along with rural electrification work in Bihar, from North Bihar Power Distribution Company and South Bihar Power Distribution Company, respectively. Tata Motors and Ashok Leyland Ltd have received orders for buses under the JNNURM-II scheme. Tata Motors received orders from Karnataka State Road Transport Corporation and Himachal Road Transport Corporation for supply of Tata Marcopolo built 487 and 780 buses respectively, as per the Urban Bus Specifications under JNNURM-II scheme. These orders are part of the over 2,700 orders for Tata Motors 'Urban' buses received under this schemes. Ashok Leyland received orders for around 4,000 buses from 22 state transport undertakings including Calcutta STC, Bangalore Metropolitan Transport Corporation, Andhra Pradesh SRTC, Jaipur City Transport Services Ltd and Pune Mahanagar Parivahan Mahamandal Ltd.

(PIC) development, along with associated facilities including the cogeneration plant, regasification terminal 2, air separation unit, raw water supply project, crude and product tanks, and central and shared utilities and facilities. Punj Lloyd’s scope of work in the RAPID Tank Farm project

includes project management, design, engineering, interface with other contractors and third parties, procurement, construction, inspection and testing, precommissioning and commissioning. The tank farm will be a critical project requiring expertise in the construction of different types of tanks including stor-

L&T secures `5,100 crore turnkey contract in MP A BUSINESS CORRESPONDENT

arsen & Toubro Ltd has secured a turnkey order for a 2x660 MW supercritical thermal power project at Shree Singaji TPP (stage-II) on a complete EPC basis from MP Power Generating Company Ltd, a Government of Madhya Pradesh enterprise. Valued over `5,100 crore, the project order covers design, engineering, manufacture, supply, erection and commissioning of two coal-fired thermal units of 660 MW each with supercritical parameters. The project is located near village Dongalia in Khandwa district of Madhya Pradesh. The completion schedule is 43/47 months (unit wise). The state power utility had earlier placed an EPC order on L&T for the balance-of-plant package

Shailendra Roy, Whole-time Director (Power, Minerals & Metals), L&T Ltd for two units of 600 MW each of Shree Singaji TPP (stage-I). Shailendra Roy, Whole-time Director (Power, Minerals & Metals), Larsen & Toubro Ltd, said that the first unit of Shree

Tata Power Solar to supply modules to L.N. Bangur Group A BUSINESS CORRESPONDENT

ata Power Solar has bagged an order to supply the entire module requirement for the 10-MW project to be built by Palimarwar Solar Project Pvt. Ltd in Rajasthan. The entity belongs to L.N. Bangur Group and comes under its renewable energy arm, LNB Renewable Energy (Pvt.) Ltd. The company won the DCR (domestic content requirement)

order under JNNSM phase-2, batch-1. The 45,000 modules needed for the project will be manufactured at Tata Power Solar’s state-of-theart manufacturing facility in Bengaluru. The company was jointly selected by Palimarwar Solar Projects and IBC Solar after a rigorous evaluation process. Commenting on the project, Shreeyash Bangur, Director, L.N. Bangur Group, said “We have

age tanks, LPG tanks, mounded bullets, light cracked naphtha storage, transfer pumps and additive packages. “Punj Lloyd is privileged to be part of PIC’s critical milestone requirements. Our expertise in tankage is recognised globally with our greatest advantage being our in-house engineering skill and extensive project experience of large scale tank projects,” stated J.P. Chalasani, Managing Director and Group CEO, Punj Lloyd. PIC is a part of the Johor State’s Pengerang Integrated Petroleum Complex, which is under Malaysia’s Economic Transformation Programme to establish new engines of growth for the Southeast Asian country; whilst meeting future energy requirement and strengthening Petronas’ position as a key player in the Asian chemicals market, focusing on differentiated and speciality chemicals. PIC will involve an estimated investment of $27 billion and is poised for its refinery startup by early 2019.

already commissioned our first project in Bhadla in the Rajasthan Solar Park for 5.5 MW this month. We are bullish on the solar industry and aim to play a significant role in India’s solar journey.” Tata Power Solar had recently announced a 60 per cent increase in module manufacturing capacity, and the Bengaluru facility now has 200 MW module production capacity. It is the only company in India whose

modules are rated as Tier 1 in bankability by GTM Research, a globally recognised PV market research firm. Under the domestic content requirement policy of the Ministry of New and Renewable Energy for phase-2 of JNNSM, a total of 375 MW of solar power plants have to be built using domestically produced cells and modules. The initiative is aimed at promoting manufacturing in the country.

Singaji TPP (stage-I) had recently gone commercial and was operating satisfactorily. "The awarding of the stage-II of Shree Singaji thermal power project affirms L&T's credentials in EPC execution of power plants under critical schedules," he noted. Meanwhile, L&T Hydrocarbon Engineering Ltd, a fullyowned subsidiary of Larsen & Toubro Ltd, secured new orders in the offshore and onshore segments worth `1,920 crore from domestic oil and gas majors. An offshore contract valued at `1,340 crore from ONGC includes engineering, procurement, construction and installation of five wellhead platforms at Mumbai High North field. The project, part of ONGC's strategy to redevelop phase-III of MHN field to enhance production from existing reservoirs, is scheduled to be completed by March 2016. In the onshore segment, the company won a contract valued at approximately `580 crore from a leading company engaged in hydrocarbon downstream processing. LTHE will carry out engineering, procurement and construction of a dual service cryogenic storage tank facility, suitable for liquid ethane and liquefied natural gas and engineering work for the balance of the facilities to be installed at the client's manufacturing complex.

16-17] OC + Awards & Events.qxp

9/15/2014

5:22 PM

Page 17

NEWS

Projectmonitor, Mumbai, September 16-30, 2014

Ferrochrome plant by Tata Steel in Odisha WWW.ODISHA.TATASTEELINDIA.COM

A BUSINESS CORRESPONDENT

ata Steel is setting up a 55,000-tpa ferrochrome plant at Gopalpur in Ganjam district of Odisha. The first unit will start operations by March 2015. The steel major has already got in-principle approvals from the designated authorities to set up an industrial park at the same

location. Spanning over 2,970 acres of land, the industrial park includes a multi-product SEZ over 2,570 acres and an anchor project by Tata Steel over 400 acres. Anchor investments of `800 crore proposed to be made by Tata Steel at Gopalpur Industrial Park include the ferrochrome plant, which is under construction after all statutory

Smart cities taking shape

Shankar Aggarwal, Secretary, Ministry of Urban Development

PAGE 1 possible attempts to drastically remove old and prototype procedures, replacing them with new set of reform oriented approach to develop new real estate as per guidelines of new policy under which creation of 100 smart cities would become practically possible as demanded and required by inhabitants of modern world,” said Aggarwal.

He pointed out that the smart cities would comprise smart Infrastructure such as roads, pedestrian pathways, public toilets, water and sewer networks, street lighting networks, signal systems, gas supply systems, solid waste management systems, drainage network and safety and security devices. During the Prime Minister’s recent visit to Japan, a Partner City Affiliation MoU was inked for developing Varanasi as a smart city with the cooperation and experience of Kyoto. India’s Ambassador to Japan Deepa Wadhwa and Mayor of Kyoto Daisaku Kadokawa signed the pact. Kyoto is a smart city that has successfully incorporated modern features while preserving its heritage.

clearances. The plant is expected to be commissioned by March 2015 with an employment opportunity for about 400 persons both directly and indirectly. “With Gopalpur project being a top priority for the company, we are currently setting up a 55,000-tpa ferrochrome plant. We have recently filed documents seeking environment clearance for another ferrochrome plant at the site,” said Arun Misra, Vice President Gopalpur Project, Tata Steel. Asia's first integrated private sector steel company, Tata Steel Group is among the leading steel manufacturers in the world with an annual crude steel capacity of over 26.5 million tpa. It is now the world's secondmost geographically-diversified steel producer.

TÜV SÜD summit to focus on thermal power plants A BUSINESS CORRESPONDENT ÜV SÜD, the German consultancy, testing and certification giant, has announced the India edition for this year’s ‘Safe Future Now’ series of international summits. Scheduled to take place in New Delhi on October 15, the summit will focus on ‘optimising performance of thermal power plants for a sustainable and secure future.’ The day-long summit will witness key leaders of the thermal power sector to discuss, learn and exchange experiences and insights to improve efficiency and increase availability of power. Two panel discussions at the summit will focus on: Global experiences, local challenges and regulatory environment roadmap of India's thermal power plant industry. Learning from the past and preparedness of the Indian thermal power plant industry to address the future challenges and opportunities. Presentations on the ‘efficiency of thermal power plants’ and ‘renovation and modernisation of thermal power plants’ will also be made by global experts at the summit. The event can be attended by key decision makers from regulatory bodies, public, private or jointly run power plant owners and operators, R&M service providers, and technology provider, captive power plant owners, EPC contractors, equipment manufacturers and suppliers, to name a few. TÜV SÜD has invested in Global Competency Centre for thermal power plants in India that will engage with power plant owners and assist them to fulfil all legal requirements, be at par with an internationally comparative efficiency level and reach the ambitious goals of the national programme.

Continuum Wind to expand clean energy PM NEWS BUREAU

FC, a member of the World Bank Group, will lend $50 million to two wholly-owned subsidiaries of Continuum Wind Energy (India) Pvt. Ltd to expand access to clean energy and help reduce greenhouse gas emissions. IFC also helped mobilise a loan of $100 million for the project from YES Bank. The financing will be used to construct a 170-MW wind power plant in Madhya Pradesh. The subsidiaries, D.J. Energy Pvt. Ltd and Uttar Urja Projects Energy Pvt. Ltd, will develop the project. The project will annually generate 330 GW hours of clean power to reach 300,000 people. Arvind Bansal, Chief Execu-

Arvind Bansal, CEO & Founder, Continuum Wind tive Officer and Founder, Continuum Wind, commented, “IFC’s long-tenor financing, global renewable-energy expertise and validation of our

Expand your business through P R I S M

project will go a long way in contributing to the growth of Continuum.” Serge Devieux, Regional Director for South Asia, IFC, explained how this investment fits into IFC’s goals in India. "By supporting this wind project, IFC will help expand access to clean power for many. IFC’s investment in renewable energy in India will balance the country’s energy mix, and improve its energy security,” he said. Continuum Wind, with the support of Morgan Stanley Infrastructure Partners, a global infrastructure investment fund, has achieved an aggregate operating capacity of about 150 MW, with 260 MW under construction and about 580 MW in development.

18-19] News.qxp

9/15/2014

4:09 PM

Page 18

SPACE MARKETING

Projectmonitor, Mumbai, September 16-30, 2014

Gazette Notifications Ministry of Road Transport and Highways

Sarjak ships ODC for mega power project S

arjak Container Lines, one of India's leading overdimension cargo solutions providers, has demonstrated its working strengths and its strong understanding of lifting and delivering truly huge global ODC consignments, a company release said. Sarjak handled this prestigious movement on behalf of its client, Thyssenkrupp Industries India Pvt. Ltd, which manufactured this equipment at its Pune

and Hyderabad plants for its client, Alstom, which has been awarded the 1,000-MW supercritical coal-fired Tanjung Bin Power Project in Malaysia. Sarjak’s servicing, loading, transport and supervisory team, headed by senior managers, worked in close coordination with the Thyssenkrupp team to facilitate smooth movement from site of origin, to CFS, to port and then forward onto the port of discharge.

Some key facts Port of loading: JNP and Chennai, India Port of discharge: Tanjung Pelapas, Malaysia Shipper: Thyssenkrupp Industries India Pvt. Ltd Consignee: Alstom-Tanjung Bin Project The project commenced in the month of May 2013 and ended in July 2014. Sarjak handled a total of 301 containers in 2013 and 458 containers in 2014.

S.O. 2197(E): Whereas by the notification of the Government of India in the Ministry of Road Transport and Highways, Notification No.S.O. 2656(E) dated 2.9.2013, published in Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) issued under sub-section (1) of section 3A of the National Highways Act, 1956 (48 of 1956) (hereinafter referred to as the said Act), the central government declared its intention to acquire the land specified in the Schedule annexed to the said notification for building (widening/four-laning etc.), maintenance, management and operation of NH-6 on the stretch of land from km 134.400 to km 185.150 (Kharagpur to Chichira section) in Paschim Medinipur district of West Bengal. And whereas the substance of the said notification has been published in The Statesman dated 25.9.2013 and Sambad Pratidin dated 26.9.2013 under sub-section (3) of section 3A of the said Act; And whereas no objection has been received from any person by the competent authority; And whereas, in pursuance of sub-section (1) of section 3D of the said Act, the competent authority has submitted its report to the central government; Now, therefore, upon receipt of the said report of the competent authority and in exercise of the powers conferred by sub-section (1) of section 3D of the said Act, the central government hereby declares that the land specified in the said Schedule should be acquired for the aforesaid purpose; And further, in pursuance of sub-section (2) of section 3D of the said Act, the central government hereby declares that on publication of this notification in the Official Gazette, the land specified in the said Schedule shall vest absolutely in the central government, free from all encumbrances. — F. No.12014/1/WB/NHAI/PIU (KGP)/2014-15/9817 Maya Prakash, Director, New Delhi, September 1, 2014

Ministry of Railways S.O. 2210(E): In exercise of the powers conferred by clause (1) of Section 20A of the Railways Act, 1989 (24 of 1989) (hereinafter referred to as the said Act), the central government, after being satisfied that for public purpose, the land, the brief description of which has given in the Schedule annexed hereto, is required for execution, maintenance, management and operation of Special Railway Projects, Eastern Dedicated Freight Corridor, in Kaimur district of Bihar, hereby declares its intention to acquire such land; Any person interested in the said land may, within 30 days from the date of publication of this notification in the Official Gazette, raise objection to the acquisition and use of such land for the aforesaid purpose under subsection (1) of Section 20D of the said Act; Every such objection shall be made to the competent authority, namely District Land Acquisition Officer, Kaimur, Bihar, in writing and shall set out the grounds thereof, and the competent authority shall give the objector an opportunity of being heard, either in person or by legal practitioner and may, after hearing all such objections and after making such further enquiry if any, as the competent authority thinks necessary, by order, either allow or disallow the objections; Any order made by the competent authority under sub-section (2) of Section 20D of the said Act shall be final; The land plans and other details of the land covered under this notification are available, and can be inspected by the interested person at the aforesaid office of the competent authority. — F. No.2013/LML/12/7/Eastern Corridor/516 Achal Jain, Executive Director (Land & Amenities-1), New Delhi, September 2, 2014

Ministry of Petroleum and Natural Gas S.O. 2216(E): Whereas it appears to Government of India that it is necessary in public interest that for transportation of natural gas from the Sohagpur (East) and Sohagpur (West) CBM blocks of Reliance Industries Ltd, situated under Shahdol district in Madhya Pradesh, to consumers in various parts of the country, the Shahdol (Madhya Pradesh)-Jaysing NagarBeohari-Gurh-Phulpur (Uttar Pradesh) gas pipeline should be laid by Reliance Gas Pipelines Ltd; And whereas, it appears to Government of India that for the purpose of laying such pipeline, it is necessary to acquire the Right of User in land under which the said pipeline is proposed to be laid and which are described in the Schedule annexed hereto; Now, therefore, in exercise of the powers conferred by sub-section (1) of Section 3 of the Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962 (50 of 1962) (hereinafter referred to as the said Act), Government of India hereby declares its intention to acquire the Right of User therein; Any person interested in the land described in the said Schedule may, within 21 days from the date on which the copies of this notification as published in the Gazette of India under sub-section (1) of Section 3 of the said Act, are made available to the general public, object in writing to the acquisition of the Right of User therein for laying the pipeline under the land to Ramesh Mishra, S.A.S., Joint Collector, Rewa, and ex-officio Competent Authority, Shahdol-Phulpur Gas Pipeline Project, near Landmark Hotel, Allahabad-Rewa Highway (NH-7), Rewa, Madhya Pradesh 486001. — F.No. L-14014/8/2014-GP-II S.P Agarwal, Under Secretary, New Delhi, August 28, 2014

18-19] News.qxp

9/15/2014

4:09 PM

Page 19

NEWS

Projectmonitor, Mumbai, September 16-30, 2014

Iron ore plays spoilsport for steel industry DEBDEEP CHAKRABORTY

ILLUSTRATION ONLY/WWW.KHANIJA.KAR.NCODE.IN

PRODUCTION OF STEEL

espite a sharp fall in international iron ore prices due to weakening of demand from China and prospects of higher supply as a result of capacity expansions by large global mining companies, domestic iron ore prices in India show a reverse trend reflecting the continuing short supply situation in the country. International iron ore prices declined in recent months to around $90-100 per tonne from $120 per tonne in February 2014. A recently released report on the Indian steel industry by ICRA observed that domestic iron ore was expected to be in short supply for steelmakers without captive sources, at least in the near term. The ICRA report said that even though the ban on mines in Goa and Karnataka had been lifted, the shortage in supply of

Crude Steel Production (million tonnes) 2011-12 74.29 2012-13 78.42 2013-14* 81.54 April-June 2014* 20.56 Source: Joint Plant Committee * Provisional Period

DEMAND AND SUPPLY OF STEEL Total Finished Steel April-June 2014 (alloy + non-alloy) (million tonnes) * Production for sale 21.86 Imports 1.48 Exports 1.34 Real consumption 18.81 Source: Joint Plant Committee (JPC) * Provisional domestic iron ore remained. The temporary closure of iron ore mines in Odisha further aggravated the short supply situation, it added. With regard to the iron ore mines in Odisha, the report said that although the mines of Tata Steel Ltd, Odisha Mining Corporation and Steel Authority of

India Ltd, which were initially under the purview of the ban, had been allowed to operate, production was yet to resume at other merchant mines in the state which accounted for around 15-20 million tonnes of iron ore production in FY14. The report said that given the shortage in sup-

ENGINEERING LEGENDS OF INDIA

Ravindra Kumar Singh avindra Kumar Singh, known as R.K. Singh, graduated in Science from Agra University in 1962 and obtained a degree in Bachelor of Engineering (Hons.) in Civil Engineering in 1966 from University of Roorkee (Now IIT Roorkee), topping the list of successful graduates. He joined Indian Railway Service of Engineers (IRSE) in 1967. During his long and distinguished service career, he held several key positions in Indian Railways including that of General Manager, Northern Railway, and Chairman of Railway Board, a position he occupied until his retirement. He is presently Member, Public Enterprises Selection Board, Government of India. Over the years Singh’s specialisation has been the direction and planning of construction projects, gauge conversion projects and construction of major bridges for Indian Railways. He has authored several technical papers on gauge conversion, track management system, economical design of cement concrete and asphalt concrete mixes, and quality assurance programme for manufacture of rails. Singh has been the recipient of several honours and awards which include University Gold Medal and Thomason Award of the University of Roorkee, the Railway Minister’s Award in 1984 for the successful construction and completion of a high-speed railway line project in Iraq, and the Railway Territorial Army Decoration by the Prime Minister in 1995. In March 2005, he received a certificate in connection with the inscription of the Chhatrapati Shivaji Terminus (formerly Victoria Terminus) on the World Heritage List of UNESCO (left in picture). IIT Roorkee also honoured R.K. Singh with the Distinguished Alumnus Award on its Sixth Annual Convocation, on November 11, 2006. Singh has vast experience in various aspects of the railways and has travelled extensively all over the world. A man of very simple habits, R.K. Singh is considered “a brilliant civil engineer and an outstanding manager.” He was elected Chairman of the World Executive Council of International Union of Railways effective 2005.

ply of domestic iron ore and the cost disadvantages in importing iron ore, the capacity utilisation of steelmakers without captive sources was likely to get affected. It added that the price increases in the aftermath of the temporary closure of iron ore mines in Odisha were likely to adversely

affect the raw material costs of steelmakers. ICRA noted in the report that an upward revision of royalty rates on minerals, as announced by the government in August 2014, and the hike in railway freight rates, were further going to impact the cost structure of steel players. The increase in clean

energy cess on coal, which was imposed by the Union Budget, would lead to increase in costs for domestic sponge iron players, the report said. It pointed out that rising international scrap prices since March 2014 would increase raw material costs of many secondary steel producers.

20] Back Page.qxp

9/15/2014

3:51 PM

Page 20

Published on 1st and 16th of every month W.P.P. Lic No. MR / TECH / WPP-22 / SOUTH / 2014 Regd No. MH/MR/South-64/2012-14 Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001 on 1st/2nd and 16th/17th of every month

BACK PAGE

Projectmonitor, Mumbai, September 16-30, 2014

Sassoon Docks to be rebuilt after 139 years A BUSINESS CORRESPONDENT

WIKIMEDIA COMMONS

he Mumbai Port Trust is in the process of developing two significant projects in Mumbai — the redevelopment of the historic Sassoon Docks and a floating hotel and restaurants off the coast. The land for both projects belongs to the port trust. The 139-year old Sassoon Docks, located at Colaba in south Mumbai, will be rebuilt into a modern fishing dock with an aim to regaining its preeminence as the main fish loading and trading centre in south of the metropolis. India’s Minister for Road Transport and Highways and Shipping, Nitin Gadkari, recently inaugurated the redevelopment project under the aegis of Mumbai Port Trust. In his speech, the minister laid thrust on increasing exports of marine products and said that Mumbai Port Trust was backing this initiative by creating physical infrastructure for the proposed harbour. Sea-bound shipping and inland water transport for the city were also on the anvil, he added. Following the redevelopment, fishing activities will be restricted

to New Sassoon Dock area while Old Sassoon Dock will be used for outfitting fishing boats and pro-

viding services like fuel, freshwater and ice for the boats. The existing open fish auction hall at New

Sassoon Dock will be converted into a modern fish handling and auction hall. There is also a plan to

provide an ice plant and an ice crusher shed. The redevelopment project also envisages the construction of a dormitory, rest rooms, restaurant and a radio communication tower. A separate proposal envisages the setting up of a marine food park, seafood restaurant and an art gallery on Sassoon Dock premises. This project will be taken up in future. For now, Mumbai Port Trust has appointed Central Institute of Coastal Engineering for Fishery, Bengaluru, as project management consultant to prepare the detailed technical report. The redevelopment project is estimated to cost `25.50 crore. Earlier, the Mumbai Fishermen’s’ Association had submitted a memorandum to the minister demanding subsidy on diesel used in fishing vessels. They also sought subsidy on fishing implements, on the lines of subsidy extended to agricultural implements. Built in 1875 on reclaimed land, Sassoon Docks is among the oldest docks of Mumbai. It was constructed by Albert Abdul Sassoon, son of David Sassoon, the leader of the Jewish community in Mumbai.