01] PT cover January 2015.qxp
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02 IFC] Acrex India 2014.qxp
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03] DNS Automotive advt.qxp
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THEY SAID "The Government has removed consent clause and social impact assessment for five purposes of land purchases, including for affordable housing. This is a positive move which while allowing for more affordable homes will also speed up infrastructure development. The compensations have been kept intact and time bound acquisition has been ensured. Taking the ordinance route shows the Government's intent and we welcome it." - Mohit Goel, CEO, Omaxe Ltd.
"We welcome the Government's move to amend the Land Acquisition Act as it will be easier to purchase land for defence, rural roads, electrification, affordable housing, industrial corridors and infrastructure projects. The step will remove roadblocks and will help developers to get faster approvals for the projects and acquisitions. Also with the amendments farmers will get better deal for their land as the new rules will apply even to land acquired under 13 other acts like railway act, national highway act, housing or commercial act, etc, the provisions will now be uniform on the compensation aspect." - Mr. Prashant Solomon, MD, Chintels India and Member- Governing Council, CREDAI NCR
Government's move to amend the Land Acquisition Bill is a positive one. Introduction of the other acts of land acquisition will make it easier for developers to acquire land and approvals for projects and make the process of doing so more transparent. The Bill will also benefit farmers and affected families as well. Proposed amendments will prove to be beneficial for real estate sector as it will accelerate the entire process and will give further push to infrastructure growth in the country, while adding credibility to the entire process. - Mr. Anubhav Jain, Director, Group Silverglades
"We are delighted to announce the commissioning of our wind project at Girijashankarwadi. Wind energy is an important part of our renewable energy portfolio and we aim to add 150-200 MW annually. We are committed to reducing our carbon footprint through the generation of 20- 25 % of our total capacity through clean and renewable energy sources. We would like to thank the Government of Maharashtra, the local community and authorities and all our stakeholders for the support extended in setting up this wind power project at Girijashankarwadi". - Anil Sardana, Managing Director, Tata Power
4 PROJECTS TODAY JANUARY 2015
January 2015 Editor Advisor (Editorial) Sub-Editor
: Shashikant Hegde : Dr M S Kapadia : Ronnie Foulds
RESEARCH Associate Vice President
: Mallika Jain
DESIGN & PRODUCTION Art Director
: Satish Kamath
Graphic Designers
: Madhukar Ingavale, Nitin Parkar, Rajendra Vichare
SALES & MARKETING Sr Vice President
: Sanjeev Kumar Singh
Subscription
: Rosebin Mukadam
Head - Circulation
: Raju Chendavankar
DISCLAIMER This magazine is for information purposes only. All rights reserved. All copyright in this magazine and related works is solely and exclusively owned by Economic Research India Pvt. Ltd. While due care has been taken during the compilation to ensure that the information is accurate to the best of Economic Research India Pvt. Ltd.' knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Economic Research India Pvt. Ltd. neither recommends nor endorse any specific products or services that may have been mentioned in this magazine and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this document. Economic Research India Pvt. Ltd. shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this magazine. “Regarding advertisements 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". Printed and published by Shashikant Hegde on behalf of Economic Research India Pvt.Ltd., published from Sterling House, 5/7 Sorabji Santuk Lane, Opp.Dr.Cawasji Hormasji Lane, Marine Lines (E), Mumbai - 400 002 and printed at Satyam Print House, A-2/112 A, 144 & 146, 1st Floor, Shah & Nahar Industrial Estate, Dhanraj Mill Compound, Lower Parel, Mumbai - 400 013. Editor : Shashikant Hegde.
ProjectsToday (Division of Economic Research India Pvt. Ltd.) Sterling House, 5/7, Sorabji Santuk Lane, Off Dr. Cawasji Hormasji Lane, Marine Lines (E), Mumbai - 400 002, Tel: (022) 6101 1755 Fax: (022) 67121813, E-mail: editorial@projectstoday.com Website: www.projectstoday.com
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CONTENTS
Fresh Investment In December 2014, 610 new projects worth `74,415 crore were announced. Read to know more.
Special Report With the installed power generation capacity planned to increase to 388 GW by 2022, transmission sector will need to do quite a lot of catching up. Read on to know more about the sector.
20
Indian Investment Abroad A brief view on outward FDI reported during the month.
Orders and Contracts Major orders and contracts bagged by Indian and foreign companies during the month.
FDI An insight into the foreign inflows and slew of policy announcements during December 2014.
The month of December 2014, saw 2,384 project tenders being floated. Read to know more.
15 18
14 Sectoral overview
Tender Review
12
16
A brief overview on project developments, that took place during December 2014, in the Manufacturing, Energy, Transportation, Construction and Social Sectors.
24
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ECONOMY REVIEW
Economy slows, Project Investment stagnates during Q2 I ndian economy slowed to 5.3 per cent during Q2 from 5.7 per cent during Q1, even as the feat was marginally better than 5.2 per cent in Q2 of 2013-14. But, more worryingly, manufacturing, the powerhouse of the economy till recently, stagnated at year-ago level, dashing the hopes of a likely rebound due to 3.5 per cent increase during Q1 (against average erosion in earlier four quarters). Obviously, considering strong growth in electricity, which fuels manufacturing, the vast production facility suffers from demand side blocks like lack of export support, terribly lacking projects investment demand as also several structural problems. Agriculture, forestry and fishing was up 3.2 per cent during Q2. Apart from production of kharif crops, the growth in the sector reflects estimated production of fruits and vegetables, other crops, livestock products, forestry and fisheries. Services quickened to 7.1 per cent from 6.8 per cent in the preceding quarter and 6.3 per cent during Q2 of 2013-14. Trade, hotels, transport & communication which gets business from farm and industry sectors expanded 3.8 per cent (3.6 per cent a year ago).
Project Investment Goss fixed capital formation remained stagnant at year-ago level, continuing the dismal show of earlier five quarters (barring a sporadic seven per cent spurt during Q1). Whereas more start-ups are announced, actual project execution has obviously not taken off, notwithstanding investment-friendly policy initiatives of Modi government on taking stalled projects off ground and easing policy-related hurdles in several sectors. The investment rate as measured by GFCF to GDP at market prices fell to 28.3 per cent in Q2, from 28.6 per cent in the preceding quarter, 29.9 per cent during this quarter a year ago, and recent years' peak of 33 per cent during the fiscal 2007-08. The ebb of 27.2 per cent in the investment was reached during Q3 of 2013-14. Despite a double-digits gush in September, capital goods production index declined over Q2, against double-digits expansion during the first quarter. Interestingly, the rot in project investment is more in terms of investment in plant & machinery and less in infrastructure and real estate investment, as real income from construction appears to be getting back its breadth. The income in construction industry increased 4.6 per cent during Q2, against 4.8 per cent in Q1 and near-stagnation in the last two quarters of the preceding fiscal. Whereas alloy, non-alloy steel production speeded from 1.8 per cent in Q1 to 3.2 per cent in Q2; cement production was up by robust 10 per cent average over these quarters. 6 PROJECTS TODAY JANUARY 2015
Consumption
Private final consumption expenditure increased by 5.8 per cent. Government final consumption expenditure was up 10.1 per cent.
Trends over H1 Evening out quarter-to-quarter variations, the economy and also the investment segment seem to be on the mend. Thus, real GDP at factor cost expanded 5.5 per cent during H1, reversing the decline to 4.6 per cent in H2 from 4.9 per cent in H1 of the fiscal 2013-14. The improvement was widely spread on a y-o-y basis; barring farm sector and finance sector which recorded lower growth than that a year ago. Project investment fared better with GFCF increasing 3.4 per cent during H1, against decline in H2 and stagnation during H1 of the fiscal 2013-14. Construction income rose 4.7 per cent, against 2.7 per cent in H1 and 0.6 per cent in H2 of the preceding fiscal. Private final consumption expenditure increased by 5.7 per cent, against 4.2 per cent in H1 and around 5.5 per cent in H2 of 2013-14. Government final consumption expenditure was up 9.4 per cent (6.5 per cent). GDP at market prices was assessed at `57.7 trillion.
Economy performance (Y-o-Y % growth) Construction 2011-12
GFCF Manufacturing
GDP
10.8
12.3
7.4
6.7
Q1
8.9
22.9
12.4
7.6
Q2
11.9
11.7
7.8
7
Q3
12.2
5.4
5.3
6.5
Q4
10.2
10.2
4.7
5.8
1.1
0.8
1.1
4.5
Q1
2.8
-4.1
-1.1
4.5
Q2
-1.9
-0.6
0
4.6
Q3
1
4.4
2.5
4.4
2012-13
Q4
2.4
3.3
3
4.4
2013-14
1.6
-0.1
-0.7
4.7
Q1
1.1
-2.8
-1.2
4.7
Q2
4.4
3.1
1.3
5.2
Q3
0.6
0.2
-1.5
4.6
Q4
0.7
-0.9
-1.4
4.6
Q1
4.8
7
3.5
5.7
Q2
4.6
0
0.1
5.3
2014-15
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IIP
GDP at 2004-05 prices during H1 `billion 1. agriculture,forestry & fishing 2. mining & quarrying 3. manufacturing 4. electricity, gas & water supply
% increase
2013-14
2014-15
2013-14
2014-15
3,359
3,478
4.5
3.5
500
510
-2
2
4,166
4,239
0.1
1.8
544
595
5.8
9.5
5. construction
2,053
2,149
2.7
4.7
6. trade,hotels,transport & communication
7,252
7,490
2.6
3.3
7. financing,insurance,realestate & business services
5,783
6,360
12.5
10
8. community,social & personal services
3,617
3,956
6.8
9.4
27,272
28,777
4.9
5.5
Agriculture, forestry & fishing
3,359
3,478
Industry
7,261
7,493
Services
16,651
17,806
GDP at factor cost By Major Sectors
Monetary Policy On the basis of an assessment of the current and evolving macroeconomic situation, RBI has kept its policy rates unchanged in its fifth bi-monthly monetary policy announced on 2 December. Thus, policy repo rate under LAF remains at eight per cent; CRR four per cent, reveres repo rate seven per cent and MSF rate and the bank rate nine per cent. It would continue to provide liquidity up to 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity up to 0.75 per cent of NDTL for 7-day and 14-day term periods through auctions, and continue with daily one-day term repos and reverse repos to smooth liquidity. A change in the monetary policy stance at the current juncture is premature, says the apex bank, but comforts, if the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year. The main near-term uncertainty is the durability of a likely post-November upturn in prices. Thus, there could be some firming up of cereals, oilseeds and pulses prices in view of north-east monsoon's deficient performance so far and the expected shortfall in Kharif production. As for medium term outlook, the risks to the January 2016 target of six per cent appear evenly balanced under the current policy stance. RBI has revised downward its forecast for CPI inflation to six per cent for March 2015.
Agriculture As per Rabi Crops data released by Directorate of Economics and Statistics, Ministry of Agriculture, total area coverage as on today under Rabi crops has been assessed at 470.74 lakh hectares against 503.66 lakh hectare. Wheat's sowing area is at 241.91 (251.32) lakh hectare, coarse cereals 46.22 lakh hectares (50.62 lakh hectares), and pulses 111.13 lakh hectares (124.78 lakh hectares).
According to CSO data, factory output declined 4.2 per cent and manufacturing a steeper 7.6 per cent during October, However, mining increased 5.2 per cent and electricity 13.3 per cent. In use-based classification, intermediate goods index declined 3.1 per cent, capital goods 2.3 per cent and consumer non-durables 4.3 per cent. Consumer durables, somewhat akin to capital goods dropped 35.2 per cent. Basic goods expanded 5.1 per cent.
Taking the cumulative April-October period of 2014-15, the factory output fared better even as the feat was 1.1 3.2 relatively subdued with total output 6.8 6.9 index showing 1.9 per cent (0.1 per cent) increase. Mining index increased 2.4 per cent (decline of 2.6 per cent), manufacturing 0.7 per cent (decline of 0.1 per cent) and electricity 10.7 per cent (increase of 5.3 per cent) 4.5
3.5
In manufacturing, 16 out of 22 major industries (at 2-digit NIC levels) declined y-o-y during October, and 10 over AprilOctober. The steepest decline of 70 per cent during the month was recorded in radio, TV and communication equipment; cumulatively the erosion was placed at 53 per cent. Electrical machinery recorded 10 per cent increase during October and 22 per cent over April-October. In use-based classification, basic goods index increased 7.6 per cent during the first seven months of the ongoing fiscal', against 1.1 per cent increase during the corresponding period of 201314. Capital goods increased 4.8 per cent (decline of 0.2 per cent); intermediate goods increased 1.6 per cent (2.7 per cent) and consumer durables one per cent (6.8 per cent). However, consumer durables went deeper in red with a decline of 16 per cent (11.3 per cent). We may however note in this context that the IIP data for October this year could be a statistical blip to some extent as the month had fewer working days due to Diwali; unlike this month in 2013, when the festivities had taken place in November.
Infra industries The eight core industries, which apart from their bearing on industry performance constitute 38 per cent of broader IIP, slowed to 4.3 per cent during April-October, marginally improving upon 4.2 per cent in the similar period a year ago. The growth rate in power generation was placed at 10.5 per cent (5.1 per cent). Cement posted 8.1 per cent (four per cent) increase, coal 8.5 per cent (1.3 per cent); and alloy, non-alloy steel 2.3 per cent (11.9 per cent). Crude oil, natural gas, refinery throughput and fertilizer declined cumulatively. PROJECTS TODAY JANUARY 2015 7
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ECONOMY REVIEW Seaborne cargo at major Ports during April-November 2014 000' tonne
% increase
Kolkata Dock System
9,045
10.56
Haldia Dock Complex
19,115
-0.78
Total: Kolkata
28,160
2.6
Paradip
47,308
6.47
Visakhapatnam
38,938
3.62
Kamarajar (Ennore)
19,896
16.02
Chennai
35,462
4.29
V.O. Chidambaranar (earlier Tuticorin)
20,836
10.33
Cochin
14,589
1.81
New Mangalore
24,383
-5.19
9,044
22.17
Mumbai
40,647
6.35
JNPT
42,739
5.72
Kandla
62,584
5.15
384,586
5.33
Mormugao
Total
Classification by Cargo POL
125,245
1.36
10,970
-29.2
5,556
16.8
Raw fertilizer
5,839
24.39
Thermal Coal
55,826
17.52
Coking Coal
20,995
-4.6
Containers
79,767
5.87
Other cargo
80,388
12.05
384,586
5.33
Iron ore Finished Fertilser
Total
Among the cargoes, barring iron ore that went down 60 per cent and coking coal that declined 15 per cent, other commodities showed y-o-y expansion during November. These two commodities are also showing cumulative decline over April-November Finished fertilizers shot up 92 per cent, thermal coal 58 per cent and POL 12 per cent pushing the cumulative growth for the commodities into positive zone. Taking April-November period of the ongoing fiscal 2014-15, seaborne traffic at the ports increased 5.3 per cent annually, against 1.4 per cent in this period a year ago. Only two ports, Haldia Dock Complex and New Mangalore recorded decline in volumes. The decline in freight at Haldia was widespread, barring general industrial cargo, while that at New Mangalore was concentrated in POL and iron ore. Among the eleven ports recording positive growth, three ports enjoyed double-digits growth in business: Mormugao recorded 22 per cent increase on the strength of other industrial cargo, iron ore and thermal coal. Kamarajar (Ennore) recorded 16 per cent increase due to better thermal coal and POL. Kolkata and V.O.Chidambaranar recorded 10.3/10.6 per cent increase. Among the cargoes, raw/finished fertilizer volume increased 20 per cent, other industrial cargo 12 per cent and thermal coal 18 per cent, even as iron ore showed 29 per cent drop adversely affecting performance of Paradip, Visakhapatnam and New Mangalore. Coking coal declined five per cent during April-November.
Railways The total earning of Indian Railways on originating basis amounted to `100,622 crore during April-November, registering an increase of 12.6 per cent (13.3 per cent). The goods earning increased by 11.6 per cent (10.4 per cent) to `67,130 crore. Passenger earning increased by 16.3 per cent (20.1 per cent) to `28,510 crore. The revenue earning from other coaching amounted to `2,570 crore (`2,515 crore).
Bank credit Port Traffic The seaborne traffic at the country's 13 major ports increased 10.4 per cent in November, against 7.4 per cent in October, 11 per cent in September and a decline in November 2013. The improvement was across the ports, barring New Mangalore which had to endure 15 per cent drop in business volume during the month and 5 per cent during April-November due to reduced POL and iron ore loading. Seven ports enjoyed double-digits business growth: Mormugao recorded 33 per cent growth and Kandla 30 per cent. Mormugao which was reeling under reducing business volume till recently due to vanishing iron ore business recorded 22 per cent increase during AprilNovember also due to enhanced thermal coal and general industrial cargo and return of iron ore loading. The 30 per cent increase in business volume at Kandla during November on the back of increased POL, finished fertilizer and thermal coal, was after around nine per cent increase during the preceding two months. However, because of subdued volumes in H1, the cumulative increase was contained at five per cent. 8 PROJECTS TODAY JANUARY 2015
Total bank credit was up 11.3 per cent annually by 28 November, much slower than 13.9 per cent in the comparable period a year ago. The growth in bank credit during the first eight months of the ongoing fiscal worked out to 4.8 per cent (7.3 per cent). Deposits were up by 11.7 per cent (15.6 per cent). The growth rate in SLR investment was 9.6 per cent (12.7 per cent). Credit to deposit ratio worked out to 75.56 per cent (75.77 per cent). Total gross non-food credit of scheduled commercial banks increased 3.7 per cent by 31 October in the current fiscal, which is around a half of 6.6 per cent increase in the first seven months of 2013-14, according to data compiled by RBI from select scheduled commercial banks, which account for about 95 per cent of the total non-food credit deployed by all scheduled commercial banks. The growth rate in bank credit to industries fell from 5.7 per cent to only 0.7 per cent and to services from 8.3 per cent to 1.5 per cent. However, the growth rate in personal loans increased from 8.1 per cent to 8.8 per cent and in agriculture credit the speeded pace from five per cent to 11.2
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per cent. Bank credit to infrastructure sectors increased 5.7 per cent (8.1 per cent). Broad money (M3) growth on y-o-y basis slowed to 11 per cent by 28 November 2014, from 14.9 per cent in the corresponding period a year ago.
Interest rates Weighted call money rates in call money market ranged 6.318.64 per cent in during December (till 23 December), against 5.70-8.17 per cent in November, 5.86-8.57 per cent in October, and 6.30-8.82 per cent in December 2013.
Weighted Call Money Rates (%):2014 January
6.11-8.69
February
6.70-8.98
March
6.73-9.71
April
6.38-8.80
May
6.53-9.13
June
6.89-8.75
July
6.25-8.79
August
5.25-8.59
September
6.15-8.57
October
5.86-8.75
November
5.70-8.17
December
6.31-.8.64
The cut-off rates on 91 days Tbills and 182 days T-bills worked out to around 8.13 per cent and 8.38 per cent respectively in their auctions on 17 December. The implicit discount rates on commercial papers floated in the second fortnight of November ranged 8.05-12.48 per cent, against 8.13-11.76 per cent in the first fortnight. The 10-year GoI securities were traded at 7.85 per cent average YTM in the secondary market during the week ended 12 December. Base rates of major banks ranged 10-10.25 per cent by 12 December 2014, same as those a year ago. Deposit rates of more than one year maturity were at 8-9.05 per cent (same).
RBI's reference rate was `62.44 per US$ and `77.38 per Euro on 12 December. Rupee depreciated 0.5 per cent on a y-o-y basis against USD, but appreciated 9.4 per cent against Euro. InterBank Forward Premium of US Dollar (per cent per annum) was 8.07 per cent for one month and 7.21 per cent for six months.
Central government finance With tax and other non-debt receipt not picking up the pace and October showing in fact lower y-o-y realization, Modi government was apparently back to cutting down on expenditure during October to stick to fiscal deficit containment, after loosening purse strings during AugustSeptember. Total government disbursement declined 11 per cent, revenue, non-debt capital receipts six per cent and fiscal deficit 19 per cent during the month. Total revenue receipt formed 40 per cent of annual BE expectation and capital receipt only eight per cent. Total disbursement till October accounted for 54 per cent of the annual BE expenditure, against 38 per cent share by non-debt capital and revenue receipt. Fiscal deficit formed 90 per cent of BE, much higher than 84 per cent in the comparable period in 2013-14.
Gross tax receipt declined marginally during October, after remaining in the positive growth phase in the preceding three months. Cumulative growth was placed at 5.9 per cent, lower than 9.3 per cent in the first seven months of the fiscal 2013-14. Reflecting subdued domestic industry, excise duty stagnated at year ago level. Corporate tax grew at a muted three per cent; customs duty increased 7.1 per cent with bulk of increase taking place during August-October period. Personal income tax increased 9.2 per cent and Service tax 12 per cent during AprilOctober. Cumulative growth in non-tax receipt was 11.7 per cent, which was helped largely by bumper profit transfer by RBI in August. Barring a spurt in May, non-debt capital receipt has been running lower during the current fiscal, with the source showing 22 per cent decline till October. Non-plan expenditure declined 2.1 per cent in October, bringing down cumulative growth to 6.3 per cent. Non-plan capex, mainly Defence capital outlay, declined a steeper 16.3 per cent. Plan expenditure dropped 35.2 per cent in October, which took the cumulative disbursement into a negative zone. Plan account revenue account disbursement declined 2.8 per cent, whereas capex was up 9.8 per cent cumulatively.
Foreign trade India's export increased 5.9 per cent in November, reversing five per cent decline in October that had occurred after earlier six months of positive growth. Cumulative growth in export for April-November period was assessed at six per cent. Engineering goods export increased 31 per cent, against nine per cent decline in the preceding month, and gems & jewellery export 44 per cent (two per cent decline). Petroleum product export declined 14 per cent, after a nominal y-o-y decline during the preceding month. Import rebounded with 25 per cent increase, against a slowdown to four per cent in the preceding month (from 26 per cent increase during September). Gold import was up 571 per cent, after 280 per cent increase in October, 450 per cent in September and 175 per cent in August. Petroleum crude and product import dropped 10 per cent. Machinery import increased by 20 per cent. Cumulatively, import was 6.3 per cent more. Trade deficit was placed at $101 billion ($97 billion).
BoP India's current account deficit (CAD) shot up to $10.1 billion (2.1 per cent of GDP) in Q2 of 2014-15 from, $7.8 billion (1.7 per cent of GDP) in the preceding quarter and $5.2 billion (1.2 per cent of GDP) in Q2 a year ago. The rapid worsening in CAD reflects escalating merchandise trade deficit, which could not be brought down due to muted growth in services that also got neutralized by steadily increasing outgo of profit, dividend and interest payment, and more or less stagnant workers' remittances. The country, nevertheless, managed to close its overall external transactions with a sizeable addition of $6.9 billion to its forex reserves, thanks to bountiful portfolio investment by picky FIIs. The preceding quarter had seen a much larger addition to reserves of $11.2 billion, but Q2 in 2013-14 had seen $10.4 billion drawdown (due to exceptional circumstances then in external account). PROJECTS TODAY JANUARY 2015 9
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ECONOMY REVIEW Trends in H1
In merchandise trade, POL import was worth $41.9 billion and gold import $7.6 billion, together accounting for over two-fifths of total import bill. Import of these two commodities increased 10 per cent, against eight per cent increase in total import. Export growth was muted at around five per cent. Trade deficit increased 15 per cent over Q2, against sharp reduction during the preceding quarter.
Helped by a sharp improvement during Q1, the first half of the ongoing fiscal recorded a lower CAD of $17.9 billion, against $26.9 billion in H1 of 2013-14. With a relatively better growth in merchandise exports and marginal rise in merchandise imports, the trade deficit narrowed to $73.2 billion, from $83.8 billion in H1 of 2013-14. Lower trade deficit coupled with a marginal rise in net service receipts moderated the CAD to $17.9 billion (1.9 per cent of GDP) from $26.9 billion (3.1 per cent of GDP) a year ago.
In a worrisome development, the net support from services has been slowing; this support increased by a subdued three per cent during Q2; in fact net yield from this source has been ranging between $17-19 billion in recent quarters. Telecommunications, computer, and information services, mirroring the face of Modern India in the global commerce, increased only 2.4 per cent to $17.03 billion. Net income from tourism was marginally lower due to sharper increase in outgo on account of rising foreign jaunts by Indians. Professional and management consulting services netted $1.2 billion. Secondary income, mainly workers' remittances, etc have stagnated at around $16 billion in recent quarters, whereas repatriation of dividend and profits increased by nine per cent to $6.9 billion.
Lower CAD and the rise in flows under financial account, particularly portfolio investment that recorded inflow of $22.2 billion, against $6.8 billion outflow, resulted in an accretion of $18.1 billion to the country's forex reserves, against drawdown of $10.7 billion in comparatively an abnormal H1 of 2013-14. Among the other capital receipts, FDI was $16.2 billion ($14.6 billion), NRI deposits $6.5 billion ($13.7 billion) and ECB $3.4 billion ($2.5 billion). Foreign investment abroad by India Inc was placed at $580 million ($602 million).
Project cost index
In capital flows that funded CAD, portfolio investment brought in $9.8 billion, against $6.6 billion decline in Q2 of 2013-14. Investment in debt securities yielded $10.7 billion, against $5.7 billion drop in this quarter a year ago due to US QE concerns. FDI netted $8 billion (6.9 billion). NRI deposits amounted to $4.1 billion ($8.3 billion). External commercial borrowing broadly remained at $1.3-1.4 billion. Q2 in 2013-14 had seen negative capital flow in addition to CAD, which had led to a sharp decline of $10 billion in forex reserves on BoP account.
Project cost, as measured by consolidated ERIL Index of Cost of Project Inputs eased nominally in November. Final estimates of WPI of project investment-related material inputs (available till September) have ruled higher than those provisionally assessed earlier. Project cost escalation on y-o-y basis worked out to 1.3 per cent during the month, against 1.2 per cent in the similar period a year ago. WPI-based inflation for all commodities fell to zero per cent during the month, after over five years of positive growth. The combined WPI for manufactured products increased two per cent, even as the prices of primary articles and power & fuel Major Items in BoP:H1 (US$ billion) declined by one per cent and five per cent 2014-15 2013-14 respectively.
Goods
-73.20
-83.80
36.10
35.20
-13.60
-11.20
32.80
32.80
-17.90
-26.90
Capital and Financial Account (including forex reserves)
17.90
27.00
Foreign Direct Investment
16.20
14.60
Portfolio Investment
22.20
-6.80
Banking Capital
-0.50
11.50
Of which: NRI Deposits
6.50
13.70
Short term credit
0.10
0.60
External Assistance
0.60
0.10
External Commercial Borrowings
3.40
2.50
-5.90
-6.20
-18.10
10.70
Services Primary Income Secondary Income Current Account
Other items in capital account Increase in reserves on BoP basis
Note: Increase in reserves reflect their investment and hence capital outflow; reverse would be reflected in decline in reserves.
10 PROJECTS TODAY JANUARY 2015
Inflation The wholesale price index (WPI)-based annual inflation dropped to 0 per cent in November, after over five years of positive growth. The build-up over April-November period was also only 0.7 per cent. WPI of primary articles increased 5.4 per cent, and manufactured products 0.8 per cent, even as the price index of fuel power declined seven per cent. Consumer Price Index for industrial worker ran 5 per cent higher in October. The inflation based on CPI (base year 2010=100) for rural areas, urban areas and combined (all India) worked out to 4.1 per cent for rural areas, 4.7 per cent for urban areas and 4.4 per cent combined for ruralurban areas. All-India CPI inflation was 5.5 per cent in the preceding month and 11.2 per cent in this month a year ago.
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POLICY DEVELOPMENTS
RBI restructures refinancing scheme n December 2014, the Reserve Bank of India (RBI) extended its flexible refinancing and repayment option for long-term infrastructure projects to existing ones, where the total exposure of lenders is more than `500 crore. The option will also be available for projects that have already been classified as bad debt. Until now, flexible structuring of project loans, with the option of periodic refinancing, was available only to new loans i.e. for projects sanctioned after 15 July, 2014.
I
The Lok Sabha, in the December session, passed a bill providing for the re-auctioning of coal blocks. The re-auction became necessary following the de-allocation of 204 coal blocks by the Supreme Court in September 2014. The bill seeks to replace the Coal Mines (Special Provisions) Ordinance, 2014. To facilitate the promoters of SEZs to attract more investments, the Centre has decided to open up the use of social infrastructure such as schools, hotels and shopping arcades for outsiders not operating within the zones. The revenue
department in the finance ministry has given the green signal to the commerce ministry to lift the bar on outsiders using SEZs non-processing areas.
State Policy The Maharashtra government has decided to increase floor space index (FSI) for industry and other activities and has also cut down the number of permissions required to proceed with construction projects. The state has also instructed the Greater Municipal Corporation of Mumbai to clear all building proposals within 60 days of receipt of such proposals. Andhra Pradesh unveiled a Land Pooling Policy to build a new state capital near Vijayawada-Guntur region. Under the policy, the state will secure about 30,000 acre of land in order to construct a riverfront capital city on the southern side of the Krishna river. (to read the various policy changes initiated in the FDI sector, please see page no.14) PROJECTS TODAY JANUARY 2015 11
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FRESH INVESTMENT
24 mega projects announced n December 2014, 610 new projects worth `74,415 crore were announced. Of these, 470 projects worth `44,564 crore were greenfield projects; 111 were plant modernisation projects; and 29 were capacity expansion projects. Further, of the 610 projects, the promoters of 268 projects have not firmed up the costs of their projects. Most of these projects were in the Real Estate sector.
I
Of the 24 mega projects (projex of `500 crore or more) announced in December 2014, four were in the Manufacturing sector. Neelachal Ispat Nigam intends to expand its steel capacity from 1.1 million tpa to 2.5 million tpa with an investment of `12,000 crore at Kalinganagar, in Jajpur district of Odisha. The project will also include a blast furnace, a seven mtr coke oven battery, a 60 MW coal-based power unit and a steel melting shop. The Karnataka-based SLR Metalliks announced its plans to set up a `600 crore steel ingots unit with a capacity of 3.2 lakh tpa at Narayanadevanakere village, Halli taluka, in Ballari district of the state.
The Automobiles major, Honda Cars India, plans to set up a `1,350 crore passenger cars manufacturing unit (Phase-I) in Gujarat. Among the major sectors, Services & Utilities (Infrastructure) topped the investment chart with 494 projects worth `42,531 crore and accounted for 57 per cent of the total investment announced in December 2014. Gujarat Integrated Maritime Complex, a subsidiary of IL&FS Maritime Infrastructure Co intends to develop `12,316 crore shipyard-cum-captive jetties with LNG terminal at Nana Layja,
Fresh Investment by Ownership - Dec 2014
Fresh Investment by Sector - Dec 2014 Projects
`Crore
Share (%)
Manufacturing
80
22,697
30.50
Mining
10
95
0.13
Electricity
14
7,703
10.35
494
42,532
57.15
12
1,388
1.87
610
74,415
100.00
Sectors
In the Chemicals sector, Matix Fertilisers & Chemicals is setting up a urea unit (Phase-II) with a capacity of 1.3 million tpa at Panagarh, in Bardhaman district of West Bengal, with an investment of `5,000 crore. The company plans to use coal bed methane (CBM) gas as feedstock which will be sourced from Essar Oil's Raniganj block.
Ownership Government Central Govt State Govt
Services & Utilities Irrigation All Sectors
12 PROJECTS TODAY JANUARY 2015
Private Sector Private (Indian) Private (Foreign) Grand Total
Projects
`Crore
Share (%)
352
38,689
51.99
77
26,602
35.75
275
12,087
16.24
258
35,726
48.01
237
31,659
42.54
21
4,067
5.47
610
74,415
100.00
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Mandvi taluka, in Kachchh district of Gujarat. The project, to be spread over 336 ha of land, will include 17 million tpa coal jetties, three general cargo berths and an LNG terminal with a capacity of five million tpa. This was the largest project announced in December 2014. Under the railway station modernization programme announced in the Railway budget, the Surat Municipal Corporation has taken up a Rs 3,000 crore modernization project of Surat station in Gujarat. The project will be executed through the PPP route. NHAI announced seven mega projects in December 2014. A `2,236 crore Amravati-Chikli section (Package-I) from 166.00 km to 360.00 km; a `1,888 crore Chikli-Fagne section (Package-II) from 360.00 km to 510.00 km and a `1,909 crore Fagne-Maharashtra / Gujarat Border section of NH-6 (Package-III) from 510.00 km to 650.79 km in Maharashtra A `724 crore Ner Chowk-Pandoh section from 190.00 km to 215.00 km (Package-I); a `690 crore Ner Chowk-Kullu stretch [Pandoh-Bata section (Tunnel)] from 215.00 km to 227.95 km (Package-II); a `575 crore Ner Chowk-Kullu stretch [Rehukaldhar-Aut Section (Tunnel)] from 230.60 km to 235.22 km (Package-IV) and a `556 crore Nerchowk-Kullu stretch [Aut-Takoli section (Tunnel)] from 235.22 km to 242.00 km (Package-V) of NH-21 in Himachal Pradesh. In Maharashtra, the JNPT Port Road Co announced three mega road projects to be developed through the EPC route: A `570 crore Karalphata interchange from 3.60 km to 6.00 km of NH-4B and from 5.30 km to 6.40 km of SH-54 (NH-348A) and connectivity to proposed 4th Terminal of JNPT Phase-II, (Package-I) A `651 crore Gavanphata interchange from 14.80 km to 15.80 km of NH-4B, from 13.20 km to 14.85 km of SH-54 and from 5.40 km to 6.20 km of Amra Marg (NH-348A) and NH-4B from 6.00 km to 14.80 km and from 15.80 km to 21.20 km of JNPT Phase-II (Package-II) A `547 crore SH-54 (NH-348A) from 6.40 km to 13.20 km and NH-348A (Amra Marg) from 0.00 km to 5.40 km of JNPT Phase-II, (Package-III) In Karnataka, the Bangalore Development Authority plans to construct a steel flyover from Chalukya Circle-Hebbal in length of 6.9 km in Bengaluru, under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), with an investment of `1,200 crore. In the Construction sector, Lotus Greens Developers intends to construct a township at Sector 150, Greater Noida, in Gautam Budh Nagar district of Uttar Pradesh with an investment of `2,500 crore. The project will spread over 300 acre of land, comprising residential as well as recreational facilities, including a nine-hole golf course. An equally ambitious residential complex was announced by Ashiana Landcraft Realty in Gurgaon. The company plans to set up a `650 crore residential complex 'The Center Court', at Sector-88A, Dwarka Expressway, in Gurgaon district of Haryana.
Fresh Investment by Top Ten States - Dec 2014 States
Projects
`Crore
Share (%)
Gujarat
81
18,451
24.79
Odisha
33
12,406
16.67
Maharashtra
110
9,981
13.41
Tamil Nadu
29
8,741
11.75
West Bengal
30
5,195
6.98
Uttar Pradesh
58
3,950
5.31
8
3,348
4.50
Karnataka
35
2,556
3.43
Kerala
13
1,894
2.55
Bihar
56
1,365
1.83
610
74,415
100.00
Himachal Pradesh
All India
In the Health care segment, two large projects were announced. KEF Holdings is constructing a Premium Medical Healthcare Providers (PMPH) Hospital with a capacity of 500 beds in Kozhikode district of Kerala with an investment of `550 crore. All India Institute of Medical Sciences (AIIMS) plans to develop an institute with an investment of `850 crore in Kerala. The project will comprise a 1,000-bed facility with ICUs, trauma care units, alternative medicine besides intake of about 100 students for MBBS. In the education sector, the newspaper giant, Bennett Coleman & Co has drawn up plans to set up a `600 crore multi-faculty Bennett university at Noida, in Gautam Budh Nagar district of Uttar Pradesh. Fourteen new projects and 58 new power distribution lines helped the Electricity sector in attracting fresh projex of `9,868 crore. Ku Thermal Power plans to set up a 1,320 MW (2 x 660 MW) coal-based power unit with an investment of `6,600 crore at Ottapidaram and Sillanattam villages in Tuticorin district of Tamil Nadu. The largest transmission line project of the month was announced by Tamil Nadu Transmission Corporation. The company intends to set up a `1,593 crore inter-state power transmission system for evacuation of renewable power in Tamil Nadu. The project scope comprises establishment of a 400 kV grid substation at Thannampatty; augmentation of various 230 kV grid substations; and associated transmission systems. Among the states, Gujarat topped the investment chart with 81 projects worth `18,450 crore and accounted for 24 per cent of the total fresh investment emanated in December 2014; and Maharashtra attracted the highest number of new projects - 110 projects entailing a total investment of `9,980 crore. PROJECTS TODAY JANUARY 2015 13
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FOREIGN DIRECT INVESTMENT
Slew of policy announcements I minimum floor area has been reduced to 20,000 sq mtr from the earlier 50,000 sq mtr. The minimum capital requirement has been brought down to $5 million from $10 million
n the month of December 2014, the government announced a number of policies to attract increased FDI into the country.
The government approved 100 per cent FDI under automatic route in medical devices sector. Accordingly, foreign investors will not have to seek permission of the Foreign Investment Promotion Board (FIPB) to acquire an existing company or set up a new manufacturing unit in the sector. Medical devices include any instrument, apparatus, appliance, implant, material or other article, whether used alone or in combination, including the software intended by its manufacturer to be used specially for human beings or animals for one or more of the specific purposes The government notified the revised rules for FDI in construction. Under these rules, the three year lock-in period for repatriation of investment has been removed. The
14 PROJECTS TODAY JANUARY 2015
The government has also decided not to allow foreign investment in B2C e-commerce for the time being as it will affect Indian companies in this space
The government has approved promulgation of an ordinance to hike FDI cap in the insurance sector to 49 per cent from 26 per cent. The 49 per cent cap will include both FDI and foreign portfolio investments
In the month of December 2014, HDFC Bank obtained clearance from FIPB for expanding its equity base upto `10,000 crore. The bank had sought fresh FIPB clearance for expanding its equity. In November 2014, FIPB had cleared a proposal of HDFC Bank to hike foreign holding in the bank to 74 per cent.
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INDIAN INVESTMENT ABROAD
GMR secures funds for Cebu Airport n November 2014, 440 JVs or wholly owned subsidiaries were formed by Indian companies in foreign lands, entailing a total equity investment of $1,342.27 million. During the same month in 2013, 407 JVs were formed but the total investment was significantly higher at $3,189.21 million. Similarly, in the preceding month, October 2014, 361 overseas JVs were formed with a total equity outflow of $2,675.28 million.
I
Countries such as Singapore, United States, United Arab Emirates and Mauritius managed to draw maximum investment from Indian companies. Manufacturing, business services and restaurants and hotels were the preferred sectors of Indian companies. GMR-Megawide Cebu Airport Corporation (GMCAC), a 40:60 joint venture between GMR Infrastructure and Manila-based Megawide Construction Corporation, has signed a financing document for its Mactan Cebu International Airport, located in Cebu. The loan will fund 70 per cent of the total project cost of 33 billion Philippine pesos (around $750 million). A consortium of six banks will provide the loan, where Philippines-based BDO Capital & Investment Corporation will act as the lead arranger to the transaction. GMR's total equity contribution to GMCAC is around $90 million, of which GMR has already invested $48 million. As per the Concession Agreement, GMCAC will have to undertake construction, development, renovation, expansion and operation of the Mactan Cebu International Airport for a period of 25 years. In the international competitive bidding process, the MGR-Megawide consortium emerged as the highest bidder after offering a bid premium of 14.4 billion Philippine pesos ($305 million). ONGC Videsh, an overseas investment arm of ONGC, has won an offshore oil and gas block in New Zealand. OVL is the first Indian company to win a gas block in this country. OVL's gas block is located in Taranaki Basin, where several commercially successful oil and gas fields are located. The New Zealand
government has granted OVL a 12 year permit for exploration. OVL was one of the successful bidders to the 15 oil and gas exploration licences put out for bidding by the New Zealand's energy ministry. Adani Mining, an Adani Group company, has signed a memorandum of understanding (MoU) with POSCO E&C, a subsidiary of the South Korean steel giant. The pact has been inked for construction of a new strategic Terminal Zero (T0) at the Abbot Point port. The new T0 will be constructed near Bowentown, Queensland, with a capacity of 40 tonne per annum, with a scope for further expansion to 70 tonne per annum in its second phase. Adani plans to generate 10,000 jobs in Queensland by providing opportunities for small and medium sized enterprises. Jindal Steel & Power (JSPL) envisions taking up an underground expansion plan at one its two coking coal mines in Australia. Wollongong Coal (WCL), the step down subsidiary of JSPL, will undertake the expansion. The New South Wales Government has asked an empowered committee to give permission by March next year. WCL plans expansion of the mine to three million tonne a year from the present capacity of one million tonne. Societe Generale, one of the lenders to GVK Group's $10 billion investment in Australia mines, has pulled out of the project. The pullout is the result of the crossfire between the government, which is backing the project and the landowners and environmental groups who are against it. The environmentalists have approached the court expressing concerns over the damage the mining project would cause to the Great Barrier Reef. Another reason for the pullout is the falling coal prices. In 2014, the price of Australian coal fell more than 25 per cent. GVK acquired Alpha, Kevin's Corner, and Alpha West coal mine assets for $1.3 billion in 2011, from Hancock Prospecting and had plans to invest a total of $10 billion in the company. PROJECTS TODAY JANUARY 2015 15
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PROJECT TENDER REVIEW
NHAI seeks developers for four/six laning of Highways T he month of December 2014, saw 2,384 project tenders worth `43,929 crore being issued. Among these tenders, 1,725 tenders worth `19,361 crore were by State Government; 643 tenders worth `24,491 crore from Central Government; and the balance 16 were issued by private companies.
The roadways sector was in the forefront in issuing tenders. In all, 574 project tenders worth `26,090 crore were floated in December 2014. Though, in terms of number, Public Works Department, Odisha, was the highest tender issuer with 93 tenders, NHAI's 72 tenders together accounted for more than half of the total tender value offered in the roadways sector. Some of the major tenders issued by NHAI were:
Four laning of Amravati-Chikli section (Package-I) of NH-6 from km 166.000 to km 360.000 on BOT (Toll) basis on DBFOT pattern, under NHDP Phase-IV. The contract value was `2,235.92 crore
Four/six laning of Chikli-Fange section (Package-II) of NH6 from km 360.000 to km 510.000 (design length 150.000 km) to be executed as BOT (Toll) basis on DBFOT pattern, under NHDP Phase-IV. The contract value was `1,888.08 crore
Four/six laning of Fagne-Maharashtra/Gujarat Border section (Package-III) of NH-6 from km 510.000 to km 650.794 (design length 140.794 km) to be executed as BOT
Top Ten Sectors in Project Tendering Tenders
`Crore
Share (%)
Roadways
574
26,090
24.08
Community Services
496
2,314
20.81
Water Supply
265
1,012
11.12
Power Distribution
217
3,964
9.10
Irrigation
184
1,452
7.72
Railways
110
3,093
4.61
Transport Services
64
114
2.68
Coal/Lignite Based Power
63
255
2.64
Hospitals
58
1,736
2.43
Industrial & Software Parks
54
540
2.27
Sectors
Top Ten Sectors
2,085
40,571
87.46
All Sectors
2,384
43,929
100.00
16 PROJECTS TODAY JANUARY 2015
(Toll) basis on DBFOT pattern, under NHDP Phase-IV. The contract value was `1,909.14 crore Four laning of Cuttack-Angul section of NH-42 from km 0.000 to km 112.000 in Odisha, on BOT (Toll) basis under NHDP-IVB. The contract value was `1,377.09 crore Six laning of Kharar-Ludhiana section of NH-95 and 21 starting from Kharar km 10.185 (design chainage) to Samrala Chowk Ludhiana km 86.199 (design chainage) of NH-95 (total length 76.014 km) in Punjab on BOT (Toll) basis. The contract value was `1,281.95 crore
In the community services sector, 496 tenders worth `2,314 crore were notified. The most notable tenders in this sector were issued by Indian Institute of Management, Rohtak. On 23 December 2014, the institute invited bids for civil, E&M works for academic and residential building and external development works for the construction of Phase-1A of permanent campus building at Sunaria Village, in Rohtak district of Haryana. In the water supply sector, the largest tender was invited by Tirunelveli City Municipal Corporation for improvements to water supply system in Tirunelveli City. The contract value was `183.82 crore. In all, 265 project tenders worth `1,012 crore were issued in this sector. The thermal power sector saw a fall in tendering activities in December 2014. Among the tenders floated, a notable one was by Assam Power Generation Corporation. The corporation on 19 December 2014, invited bids for design and engineering, manufacture, supply, erection, testing and commissioning of a 70 MW gas-based power project at Lakwa Thermal Power Station, Mybella, in Sibsagar district of Assam. In the power distribution sector 217 project tenders worth `3,964 crore were floated. North Bihar Power Distribution Company (NBPDCL) reinvited bids for composite work of supply & erection of 33/11 kV PSS, augmentation of power transformers & distribution transformers, new & R&M of 33 kV lines, new 11 kV lines, R&M of LT lines (partly AB cable), new & R&M of LT lines (AB cable), new & R&M of DSS etc, on turnkey basis for strengthening, improvement & augmentation of distribution system under BRGF scheme Phase-II (Part-C) & balance work of Phase-I scheme in Muzaffarpur, Vaishali, Sitamarhi & Shivhar district of Bihar. The contract value was `307.18 crore. Earlier, NBPDCL had issued a tender for the same project on 8 August 2014, and failed to get the expected response.
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Major private project tenders:
Orissa State Co-operative Milk Producers Federation for design, construction, fabrication, supply, erection, testing & commissioning of effluent treatment plant (30,000 LPD at Angul Dairy), (30,000 LPD at Salapada Dairy) and (75,000 LPD at Sambalpur Dairy) in Odisha on turnkey basis
Top Ten States in Project Tendering Tenders
`Crore
Share (%)
Uttar Pradesh
300
2,587
12.58
Bihar
257
5,358
10.78
States
Odisha
247
2,622
10.36
Shushrusha Citizens Co-operative Hospital for constructing its proposed hospital building at Vikhroli in Mumbai. The proposal is to construct the superstructure of the hospital building of six floors with approximate built-up area of 83,000 sq ft
Rajasthan
194
2,147
8.14
Maharashtra
168
9,385
7.05
Karnataka
136
744
5.70
Chhattisgarh
122
1,309
5.12
Gujarat Gas Company for PE pipeline replacement, reinforcement shifting and associated civil works in Surat & Bharuch districts of Gujarat
West Bengal
121
1,039
5.08
Tamil Nadu
107
930
4.49
90
530
3.78
Top Ten States
1,742
26,651
73.07
Grand Total
2,384
43,929
100.00
Gujarat
Major EoIs invited:
West Bengal State Electricity Transmission Company (WBSETCL) for construction of a corporate office building (green building) of G+6 floors for WBSETCL at Plot No AH3 within Action Area-I, New Town in Kolkata district of West Bengal Mangalore SEZ (MSEZL) for establishing a hazardous waste treatment/landfill facility for MSEZL in Karnakata
Major Consultancy Tenders:
High Speed Rail Corporation of India invited bids for appointment of consultant for conducting pre-feasibility studies for diamond quadrilateral network of high speed rail corridors in New Delhi-Mumbai (Package-I), MumbaiChennai (Package-II) and New Delhi-Kolkata (Package-III)
Project Tenders By Ownership Tenders
`Crore
Share (%)
2,368
43,853
99.33
643
24,491
26.97
1,725
19,361
72.36
16
77
0.67
Private (Foreign)
3
0
0.13
Private (Indian)
13
77
0.55
2,384
43,929
100.00
Ownership Government Central Government State Government Private Sector
Grand Total
Gujarat State Electricity Corporation invited bids for providing consultancy services for carrying out the feasibility study and preparation of detailed project report (DPR) for setting up of 2x800 MW super critical coal-based power plant at Dhuvaran, in Anand district of Gujarat
NTPC invited bids for consultancy package for pre-award and post-award detailed engineering activities for Pudimadaka Super Thermal Power Project (4x1000 MW) in Visakhapatnam district of Andhra Pradesh
Power Department, Meghalaya, invited Expression of Interest (EoI) for appointment of project management consultant (PMC) for setting up a thermal power project of 2x60 MW installed capacity in Garo Hills district of Meghalaya
Delhi Mumbai Industrial Corridor Development Corporation invited bids for selection of project management consultant for the Delhi-Mumbai industrial corridor (DMIC) project
V O Chidambaranar Port Trust invited bids for preparation of rapid techno-economic feasibility report for development
of Colachel Port in Kanniyakumari district of Tamil Nadu
Kamarajar Port invited Expression of Interest for empanellment of consultant for preparation of technoeconomic feasibility report for development of Puducherry old and new port on DBFOT basis, through PPP mode for tourism, leisure and cargo handling
Other Developments The last date for submission of bids for four/six laning of Raipur-Bilaspur section from km 0.000 to 127.650 of NH-30 / NH-130 (Old NH-200) in the state of Chhattisgarh was extended upto 8 January, 2015. On 18 December 2014, PWD, Odisha, cancelled its tender issued on 23 August 2014, for improvement to ChhatabarBalighai road (ODR) from 0.0 to 8.317 km in Bhadrak district of Odisha, under NABARD assistance. Lack of participation forced tender issuing authorities to extend the last date of submission of 393 project tenders and cancellation of around five tenders during December 2014. PROJECTS TODAY JANUARY 2015 17
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ORDERS & CONTRACTS
IVRCL bags largest project order of December 2014 uring the month of December 2014, a total of 175 contracts with an order value totalling `18,359.95 crore were awarded, as per the data compiled by ProjectsToday. These orders (domestic and overseas) were bagged by 108 companies across various sectors. Further, of the 175 finalised contracts, 20 were bagged by Indian companies to execute job work overseas.
D
The irrigation and water division of Hyderabad-based infrastructure company, IVRCL, bagged the largest contract of December 2014. The `1,022.58 crore contract was finalised by Karnataka Neeravari Nigam (KNNL) for TubchiBabaleshwar lift head works under the lift irrigation scheme. The scope of work involves survey, investigation, design, 18 PROJECTS TODAY JANUARY 2015
supply, installation, testing and commissioning of head works including all structures, pipeline, and motors with pumps and electro-mechanical works along with operation and maintenance requirements for five years. TubchiBabaleshwar Lift Irrigation Scheme aims at providing water from the Krishna river for the development of drought-prone areas of Jamakhandi, Athani and Nijapur talukas in north Karnataka. Larsen & Toubro (L&T) bagged an offshore contract worth `894 crore from Oil & Natural Gas Corporation (ONGC) for additional development of the Vasai East project. The contract is for total engineering, procurement, construction and installation of two wellhead platforms, subsea pipelines and
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modification of existing facilities in Heera-Panna-Bassein block of Mumbai offshore. The project -- part of ONGC's strategy to improve the recovery factor of Vasai East field, where production started in 2008 -- is scheduled to be completed by April 2016. Technip secured the third largest contract worth `800 crore from Oil and Natural Gas Corporation (ONGC) to build a six million standard cu mtr per day onshore terminal at Odalarevu in Andhra Pradesh as part of the Integrated Development of Vashishta (VA) and S1 fields, located 30 km to 35 km off the Amalapuram coast in the KG Basin. The scope of work of this contract includes basic design, detailed engineering, procurement, fabrication, inspection and testing, installation, and commissioning of the onshore terminal facilities, which will be integrated into the existing terminal. Fifty three fresh contracts worth `7,516.86 crore were awarded in the power distribution sector in December 2014. Power Grid Corporation of India (PGCIL) owned 33 of the 53 contracts finalised in the month. The largest domestic contract in this sector worth `547.39 crore was bagged by New Northeast Electric Group for supply of High Voltage Switchgear for substation package S1 of 765/400 kV at Vemagiri substation and extension of 765 kV Srikakulam GIS substation, under system strengthening in Southern Region for import of power from Eastern Region in Andhra Pradesh.
Sector-wise Contracts Awarded in December 2014 Industry
Orders
`Crore Share (%)
Airways (Aviation Infrastructure)
3
3,543
19.30
Alcohols & Derivatives
3
12
0.06
Articles of Iron & Steel
1
0
0.00
Cement
1
0
0.00
15
1,117
6.08
Commercial Complexes
1
0
0.00
Computer Software
2
0
0.00
Crude Oil/POL Pipeline
1
132
0.72
Diversified
1
11
0.06
Heavy/Light Commercial Vehicles
1
0
0.00
Hospitals
1
92
0.50
Hydel Based Power
2
304
1.66
Irrigation
2
1,063
5.79
LPG Storage & Distribution
4
17
0.09
Other Community Services
8
470
2.56
Other Storage & Distribution
5
118
0.64
Petroleum Oil & Gases
4
1,704
9.28
Coal/Lignite Based Power
The Coal/Lignite-based Power sector saw finalisation of 15 new contracts worth `1,116.66 crore. The largest contract in the sector worth `351.00 crore was awarded to Thermax to build and commission a captive power project for one of their clients' cement plants in Africa. Thermax has not disclosed the name of the awarder. The scope of work includes system design, manufacture, supply and supervision of erection and commissioning of the plant.
Petroleum Products [Refinery]
11
6
0.03
Power Distribution
53
7,517
40.94
Railway Wagon & Equipment
1
0
0.00
Railways
7
124
0.68
Real Estate
3
3
0.01
Roadways
17
544
2.96
The Delhi Development Authority (DDA) has decided to develop the "East Delhi Hub" on 30 ha DDA land in Karkardooma (East Delhi) -- the first Transit Oriented Development (TOD) project on smart city principles. On 31 December 2014, DDA issued a letter of intent (LoI) to National Buildings Construction Corporation (NBCC) for joint development.
Shopping Plazas
5
32
0.17
Solar based Power
2
700
3.81
Tourism & Recreation
4
4
0.02
Two-Three Wheelers
1
0
0.00
Water & Sewerage Pipeline & Distribution
9
461
2.51
Water, Sewage & Effluent Treatment
1
175
0.95
Wind Based Power
5
0
0.00
Wires & Cables [Optic fibre]
1
213
1.16
175
18,360
100.00
Overseas Contracts Jyoti Structures bagged the largest overseas contract worth `650 crore for laying of 400 kV transmission line in Kuwait. The second largest contract in this category was bagged by Maytas Infra Saudi Arabia worth `488.62 crore from Saudi Bin Ladin Group for the construction of Abraj Kudai Project-P1360, Makkah, in the Kingdom of Saudi Arabia. The scope of work involves supply, delivery, installation, supervision, as built, and handing over of structural and reinforcement concrete works for two towers-2A & 3A (230 mtr in height). In the month of December 2014, Indian companies bagged 20 overseas contracts worth `5,515.89 crore in Airways (Aviation
Total
Infrastructure), Power Distribution, Community Services, Coal/Lignite-based Power, Water Sewage & Effluent Treatment, Other Storage & Distribution, Tourism & Recreation, Windbased Power, Petroleum Oil & Gases and Computer Software sectors from countries like Oman, UAE, Kuwait, Saudi Arabia, Philippines, Turkey, Nepal, UK, Belgium, New Zealand, Algeria and Nigeria. PROJECTS TODAY JANUARY 2015 19
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POWER TRANSMISSION
PGCIL needs private partners
20 PROJECTS TODAY JANUARY 2015
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he year 2014 marked a major landmark in the history of Power Transmission in India. After prolonged efforts, the southern grid was integrated with the national grid, leading to creation of a country-wide seamless power transmission network.
T
India at 220 kV and above stood at 3,06,021 ckt km. The transmission line mostly constitutes 220 kV and 400 kV lines. In recent years, the 765 kV line segment has grown over time, constituting 16,292 ckt km. As of July 2014, the inter-regional transmission capacity stood at 44,850 MW.
Unlike power generation, power transmission and distribution received less attention from the government till recent years. The increasing power generation capacity and the inability of the government to meet the requirements of power-deficient regions compelled the power ministry to establish a national grid by building high power inter-state transmission capacity using the latest technology.
During the 12th plan, an inter-regional transmission capacity of 37,800 MW has been planned. Transmission line additions of about 1,00,000 ckt km, HVDC terminal capacity of 13,000 MW; and AC transformation capacity of 2,70,000 MVA has been planned. During the 11th plan, approximately 69,926 ckt mtr of transmission line; 1,50,362 MVA capacity of alternating current (AC) substations; and 1,750 MW capacity of high-voltage, direct current (HVDC) substations were added to the existing transmission systems.
National Grid The establishment of the National Grid with the integration of regional grids was conceptualised in the early nineties. It became necessary to transfer power from surplus regions to deficit regions; utilise maximum resources from diversified regions; and ensure reliable, economical and quality power. The task of building a national grid of 65,550 MW of interregional transfer capacity between the five grids of India (north, south, east, west and north east) was entrusted to PowerGrid Corporation of India.
Such ambitious targets will need huge investment, which PGCIL alone cannot meet. Hence, efforts are on to rope in the private sector in building some of the high powered inter-state transmission lines.
Major Policy Changes In 2006, the ministry of power decided to involve private sector participation in setting up interstate and inter-regional transmission lines. The developers were proposed to be selected through tariff-based competitive bidding mechanism on BOOM basis. In order to facilitate this shift from the cost plus to the tariff-based regime and to have greater participation of the private sector, the ministry has evolved a Standard Bidding Document which has been used by some intra-state transmission projects. At the same time, a Viability Gap Funding (VGF) model has been evolved for intra-state transmission projects for which a Model Transmission
While the Northern, Eastern, Western and North Eastern regions have been synchronized and operate as a single grid, the Southern region was synchronized in August 2014 with the National Grid fulfilling the task of creation of One NationOne Grid.
Transmission Capacity & Targets As of November 2014, the total transmission line length across
Growth of Transmission Sector Since 6th Plan Transmission System Type AC Transmission lines
Voltage Unit (KV) level
Ach. At the Ach. At the Ach. At the end of 8th end of 6th end of 7th Plan (as on Plan Plan 31.3.1997)
Ach. At the Ach. as on Ach. as on Target end of 9th 31.03.2007 31.03.2012 Ach. as on 31.03.2017 Plan (as on (End of (End of 31.10.2014 (End of 31.3.2002) 10th Plan) 11th Plan) 12th Plan)
765 ckm
0
0
0
1,160
2,184
5,250
14,846
32,250
400 ckm
6,029
19,824
36,142
49,378
75,722
106,819
132,039
144,819
220 ckm
46,005
59,631
79,600
96,993
114,629
135,980
146,734
170,980
Total ckm
52,034
79,455
115,742
147,531
192,535
248,049
293,619
348,049
HVDC
ckm
0
0
1,634
4,738
5,872
9,432
9,432
16,872
Total (AC+HVDC)
ckm
52,034
79,455
117,376
152,269
198,407
257,481
303,051
364,921
765 MVA
0
0
0
0
0
25,000
103,500
174,000
400 MVA
9,330
21,580
40,865
60,380
92,942
151,027
186,722
196,027
AC Substations Transformation Capacity
HVDC
220 MVA
37,291
53,742
84,177
116,363
156,497
223,774
262,183
299,774
Total AC MVA
46,621
75,322
125,042
176,743
249,439
399,801
552,405
669,801
0
0
0
5,200
8,200
9,750
13,500
22,500
46,621
75,322
125,042
181,943
257,639
409,551
565,905
692,301
44,850 27,750 (31.07.14)
65,550
MW
AC+HVDC Inter-regional transmission Capacity
MW
14,050
* Inter-regional transmission Capacity at the end of 12th Plan excludes 600 MW of 132 / 110 kV lines operated in radial mode time to time
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POWER TRANSMISSION Agreement (MTA) was developed by the Planning Commission. Further, the Ministry of Power initiated a scheme for development of Independent Transmission Projects (ITPs) through private sector participation for evacuation of power from the Generating Stations; Transmission of power from pooling stations to other grid stations up to load centres; and system strengthening in India under tariff-based competitive bidding route under Section-63 of the Electricity Act, 2003. For the development of ITPs, PFC Consulting (PFCCL) and REC Transmission Projects Company (RECTPL) have been appointed as 'Bid Process Coordinator' by the Ministry of Power, Govt of India. The entire investment in the projects is to be made by the developers and no funds of the government are involved in the development of these projects.
Private sector in Power Transmission Though the Power Grid Corporation of India is in the forefront of enhancing transmission capacity, PGCIL alone cannot meet the target of 65,000 MW of transmission capacity by 2017. Hence, to supplement its efforts, the Union Power Ministry decided to involve the private sector in setting up interstate and interregional transmission lines. Private players were allowed to participate in the transmission projects either as joint venture partner of Power Grid Corporation of India, under the PPP mode, or through Independent Private Transmission Company (IPTC) route.
It was also proposed to select developers using the tariff-based competitive bidding mechanism to encourage competition between private sector aspirants. Two Central PSUs - Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) - were appointed as nodal agencies. The Tala Transmission Project, implemented by Powerlinks Transmission, became the first project to be set up under the PPP route. As of October 2014, 13 inter-regional transmission projects have been awarded by the Ministry of Power to private sector players. The Power Ministry envisages the development of 28,000 MW of inter-regional transmission capacity in the country over the next three years, which will enhance the total capacity to more than 66,000 MW by 2017. In September 2014, the Ministry of Power invited bids for nine new transmission projects with an aggregate cost of `12,500 crore. The projects will be developed through the tariff-based competitive bidding process. The nine projects will benefit states such as Haryana, Chhattisgarh, Uttar Pradesh, Madhya Pradesh, Maharashtra and others by setting up high capacity 765 kV lines carrying upto 2,100 MW each from the construction of new 765/400 kV substations.
Major Private Players Sterlite Grid
Inter-Regional Transmission Projects Scheme
Developer
East-North Interconnection Company
Sterlite Grid
Talcher II Transmission Company
Reliance Power
North Karanpura Transmission
Reliance Power
Raichur Solapur Transmission Company
BS-Patel-Simplex Engineering
Jabalpur Transmission Company
Sterlite Grid
Bhopal Dhule Transmission Company
Sterlite Grid
Nagapattinam-Madhugiri Transmission Company
Power Grid Corporation of India
Vemagiri Transmission System
Power Grid Corporation of India
Kudigi Transmission
L&T Infrastructure Development Projects
Vizag Transmission
Power Grid Corporation of India
RAPP Transmission Company
Sterlite Grid
Patran Transmission Company
Techno Electric Engineering
Darbhanga-Motihari Transmission Company
Essel Infraprojects
Purulia & Kharagpur Transmission Company (ERSS VII) Sterlite Grid NRSS XXXI (B)
Essel Infraprojects
NRSS XXIX
Sterlite Grid
Unchahar Transmission Ltd.
Power Grid Corporation of India
NRSS XXXI (A)
Power Grid Corporation of India
22 PROJECTS TODAY JANUARY 2015
Sterlite Grid, a fully owned subsidiary of Sterlite Technologies, is a successful player in implementing inter-regional transmission projects. Sterlite has been awarded six ultra mega power transmission projects. It has a portfolio consisting of over 5,000 ckt mtr of EHV lines and three substations. The first project that it secured was the EastNorth Interconnection project in March 2010. In this, the first line connecting Purnea and Biharsharif was commissioned in September 2013. The second line, about 225 km long, connecting Bongaigaon in Assam to Siliguri in West Bengal, was commissioned in November 2014, fully commissioning the East-North Interconnection Company. Reliance Power In early 2010, ADAG secured two mega transmission schemes - Talcher-II and North Karanpura Transmission Projects. North Karanpura is worth around `2,700 crore and Talcher-II is worth `1,400 crore. The 1,045 km long North Karanpura transmission line will serve Madhya Pradesh, Chhattisgarh, Uttar Pradesh and Haryana. The
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Transmission Network Length (Km)
`Crore
Raigarh, Chhattisgarh to Pugalur, Tamil Nadu HVDC line
2,505
26,820
Inter-regional AC link for import to Southern region
1,166
8,570
Strengthening transmission system beyond Vemagiri
1,111
7,032
Ajmer-Suratgarh-Moga
534
4,440
Jharsuguda (Sundargarh) to Raipur
380
2,596
North East Region System Strengthening Scheme-II
550
1,652
Strengthening transmission between India-Bhutan
550
2,240
Projects
Evacuation system in Odisha for 1320 MW Source: CEA
Talcher-II, which is 592 km long will cater to Orissa and Andhra Pradesh. Essel Infraprojects In May 2014, Essel Infraprojects was awarded transmission works under NRSS-XXXI(B) with the respected transmission line works of 400 kV Kurukshetra-Malerkota D/c line and Malerkota-Amritsar D/c line. In December 2013, Essel Infraprojects was awarded transmission works under Eastern Region System Strengthening Scheme-VI, to be implemented by Darbhanga Motihari Transmission Company, an SPV promoted by Essel Infraprojects. Techno Electric & Engineering Company In November 2013, Techno Electric bagged a concession from PFC Consulting for building a transmission network at Patran, Punjab. The concession has been awarded on BOOM basis and an SPV called Patran Transmission Company has been floated for the project. The 400 kV transmission system comprises LILO of both circuits of Patiala-Kaithal 400 kV double circuit triple snow bird line at Patran (five km) and 400/200 kV substation with 14 bays at Patran, Punjab.
Back to PGC The drastic fall in private participation in the recent years, forced the power ministry to hand over some of the major as well as critical transmissions to PGCIL, even though its order book is overflowing. The ministry has invoked a provision in the relevant Central Electricity Regulatory Commission (CERC) rules to give eight new transmission projects, with an estimated cost of `36,000 crore, to PGCIL. In September, the Ministry of Power had announced that over `53,000 crore of transmission projects, the largest bunch at a time in the country's history, would be awarded on tariff-based competitive bidding. The empowered committee on
50
transmission, comprising the ministry, the Central Electricity Authority and PGCIL that met in November, had recommended that barring one project with an estimated cost of `9,500 crore, all others could be awarded under the bidding route. Accordingly, in November 2014, the government awarded a critical power transmission corridor project, Raigarh, Chhattisgarh to Pugalur, Tamil Nadu HVDC line (2,505 km) under nomination basis to Power Grid Corporation of India.
Later, the ministry awarded eight more projects (see table) to PGCIL on a nomination basis. The rationale behind the ministry's decision is that private investments may not be forthcoming right now and completion of such projects in time is critical to ensure adequate power evacuation capacity. 152
Prognosis With the installed power generation capacity planned to increase to 388 GW by 2022, the transmission sector will need to do quite a lot of catching up As per the 12th Five Year Plan, the investment required in the power transmission sector is about USD 35 billion , out of which, about USD 19 billion is planned to come from Power Grid Corporation of India. The remaining USD 16 billion would have to be secured from private players. Power transmission projects are capital intensive projects with an average gestation period of 60 months. Further, hurdles in securing right of way, obtaining environment clearances, opposition from project-affected people are some of the common problems faced by project developers. Under such circumstances, the government must ensure that all pre-project formalities are completed before a project is put out for bidding.
Evolution of National Grid 1. Grid management on regional basis started in sixties. 2. Initially, state grids were inter-connected to form the regional grid and India was demarcated into five regions, namely, Northern, Eastern, Western, North Eastern and Southern region. 3. In October 1991, North Eastern and Eastern grids were connected. 4. In March 2003, WR and ER-NER were interconnected. 5. In August 2006, North and East grids were interconnected. Thereby four regional grids - Northern, Eastern, Western and North Eastern grids were synchronously connected forming a central grid operating at one frequency. 6. On 31st December 2013, Southern Region was connected to Central Grid in Synchronous mode with the commissioning of 765 kV Raichur-Solapur Transmission line thereby achieving 'ONE NATION'-'ONE GRID'-'ONE FREQUENCY'. www.powergridindia.com
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MANUFACTURING UPDATE
FOOD PRODUCTS Project Developments Anil Nutrients, a speciality feeds and feeds supplement manufacturer, plans to invest `700 crore over the next three years. The investment will be mainly for expanding its production capacity and will be taken up in a phased manner. The company is going to raise funds by way of internal accruals, debt and equity. Anil Nutrients intends to pump in `135 crore in the next six months as part of the first phase of expansion. It will set up a new state-of-the-art manufacturing facility at Savli, near Vadodara, in Gujarat. Post expansion, the company hopes to achieve a topline of `1,500 crore in the next five years. Presently, the company's topline is `200 crore and it expects it to rise by `500 crore by 2016-17 after the first phase of expansion. BNR Foods is planning to set up a fruit processing unit at Abhanpur, in Raipur district of Chhattisgarh. The unit will have a capacity of 12,000 tonne per annum and will spread over 65 acre of land. The project will be set with an investment of `120 crore. Amitabh Agarwal & Co is the consultant for the project. Land acquisition is presently underway. The contractor and machinery supplier are yet to be finalised. BNR Foods is awaiting environmental clearance for the project. Work on the fruit processing unit is expected to commence by March 2015. Enrich Agro Food Products is setting up an aerated drinks unit at Sector-31B in Rohtak district of Haryana. The unit, with a capacity of 88,00,000 crates per year will be set up with an investment of `173.14 crore. Around 70 per cent of the project cost will be funded through bank loan and the remaining 30 per cent from internal accruals. The aerated drinks unit will be spread over 13 acre of land. ITC will invest `1,000 crore in the dairy and juice business. It plans to go on-stream in the January-March quarter. The company will invest in the short term in manufacturing capacity, marketing, brand building and distribution expenses. ITC has already invested over `250 crore in dairy and juice businesses. Earlier this year, it acquired Bengaluru-based B Natural juice brand for around `50-60 crore. This brand is now being modernised in terms of both, formulation and packaging. Lulu Group, a Abu Dhabi based retail chain, plans to invest `2,500 crore in Telangana in the next one year. The Group plans to invest in three projects in Telangana - a fruit and vegetable processing unit, an integrated meat processing unit and a modern shopping mall in Hyderabad. A team from the Group will visit Hyderabad in 24 PROJECTS TODAY JANUARY 2015
the first half of next month with detailed project reports and seek the government's assistance in identifying suitable land for the projects along with help in obtaining various approvals. The possibility of developing a Smart City in Hyderabad, as part of a 'Information Technology Investment Region' (ITIR) is also being proposed.
Project Completion JVL Agro Industries's Rohtas rice mill was inaugurated today by Bihar Chief Minister Jeetan Ram Manjhi. The JVL rice mill unit is located at Jorawarpur in Rohtas district of Bihar and has a capcity of 60,000 tpa. JVL Agro has also announced plans to set up a food park at Dehri, in Rohtas district. The food park project will come up over an area of 80 acre, with an investment of `150 crore.
BASIC CHEMICALS Project Developments
BASF plans to set up a new innovation campus at its Navi Mumbai facility, with an investment of `380 crore. This will enable the company to expand its R&D presence in the Asia-Pacific region. The investment will be made by the wholly owned Indian subsidiary of BASF SE, Germany; namely, BASF Chemicals India. The new innovation campus is projected to be operational by 2017 and will be BASF's second largest facility after the one in Shanghai. BASF's new facility will employ around 300 scientists investigating areas like crop protection, process development and polymer research. The company will also set up specialised R&D facilities in the areas of electronic materials, battery materials, mining, catalysis, water treatment, polymers and materials. Coal India (CIL) has received in-principle approval for two joint ventures from the board of directors. One JV will be with PSU major GAIL and the other with Rashtriya Chemicals and Fertilisers (RCF). The JVs are a step towards the revival process of the `8,000 crore FCIL's Talcher urea plant in Odisha, with a production capacity of 1.2 million tpa. For the revival of this urea plant, a consortium of RCF, GAIL, CIL and Fertiliser Corporation of India (FCIL) has agreed to invest `8,000 crore. The government of India will add six to seven fertilizer manufacturing facilities to the country's existing capacity. This will be implemented through a mixture of new units and revival of closed sites over the next five years. The proposed units will give a boost to the domestic production. To meet the domestic demand of soil nutrients, India imports urea, phosphatic and potassic (P&K)
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fertilizers like DAP and MOP. The revival of fertilizer plants will be in both, public and private sectors. Presently, around eight units of state-owned Fertilizer Corp of India (FCIL) and Hindustan Fertilizers and Chemicals (HFCL) are closed. The Fertilizers Ministry is keen on reviving the five closed plants of FCIL and HFCL.
setting up their greenfield projects with an employment potential for 70,000 persons in the proposed city.
Matix Fertilizers plans to invest `5,000 crore in Phase-II of the Panagarh urea project. Phase-I of the company's greenfield fertilizer complex at Panagarh, in West Bengal, is ready to be commissioned. The plant has a capacity of 1.3 million tpa, and about `6,000 crore has been invested in it. The company has applied for Phase-II of the plant under the new urea investment policy. It will have the same capacity, i.e. 1.3 million tpa and will require an investment of about `5,000 crore. Matix Fertilizers is planning to use coal bed methane (CBM) gas as feedstock which will be sourced from Essar Oil's Raniganj block. For this, a dedicated pipeline of 30 km has already been set up. The company has also installed a captive power plant with a capacity of 54 MW.
Madhav Tex Spin is setting up a cotton yarn unit with a capacity of 20,000 spindles at Gondal, in Rajkot district of Gujarat. The project will spread over 18 acre of land. Madhav Tex is setting up the unit with an investment of `80 crore. The machinery supplier is yet to be finalised. Around 20 per cent of the project work has been completed.
DRUGS & PHARMA Project Developments
Biocon is planning to set up a unit in Visakhapatnam, Andhra Pradesh. The manufacturing facility will come up in the next six months. Biocon is also rolling out 50 centres in Odisha and 100 centres in Rajasthan on a pilot basis. AP is prepared to help set up 100-200 pilot centres in the state. Sri Krishna Pharmaceuticals plans to set up an active pharmaceutical ingredients unit at MIDC, Chincholi, Mohol taluka, in Solapur district of Maharashtra. The `125 crore unit will have a capacity of 2,545 tonne per month. The project will spread over 1,01,250 sq mtr of land and will also include an acetic acid unit with a capacity of 1,550 tonne per month. The land has been acquired. The civil contractor and machinery supplier are yet to be finalised. Tata Chemicals will invest `150 crore in its greenfield prebiotic plant at Sriperumbudur, in Tamil Nadu. Phase-I of the plant involves setting up a 1,000 tonne per annum prebiotic plant in Sriperumbudur, near Chennai. Out of this, a 300 tonne per annum Fructo-oligosacchride (FOS) plant has already gone on-stream. The expected investment at the scale of 1,000 tonne per annum is about `50 crore. Tata Chemicals plans to expand this unit to 5,000 tonne per annum over a period of three to five years with a further investment of around `100 crore. The Telangana government has proposed to set up India's largest integrated pharma city spread over 11,000 acres near Hyderabad. The pharma city will include affluent treatment plants and a township for employees and is expected to attract investment of `30,000 crore in phases. A team of top executives of Hyderabadheadquartered pharmaceutical firms including Dr Reddy's, Aurobindo Pharma, Hetero Drugs and Virchow Labs accompanied Chief Minister K Chandrasekhar Rao on Wednesday for an aerial survey of the proposed location at Mucherla, about 70 km from Hyderabad. Several existing drug makers have evinced interest in
TEXTILES
Project Developments
Saurer Textile Solutions plans to set up a cotton textiles unit at Karjan village, in Vadodara district of Gujarat. The project will spread over 22 acre of land and Shah & Talati has been appointed as the consultant. The unit will have a capacity of five lakh spindles and will be set up with an investment of `140 crore. Around 35 per cent of the project cost will be funded through bank loan and the remaining 65 per cent from internal accruals. Land has been acquired and work on the project is expected to commence by March 2015. Shrirajlaxmi Denim's denim fabrics unit in Surat district of Gujarat is likely to be completed in February 2015. Civil work on the project has been completed. The fabric unit will have a capacity of 1.95 crore metres per year and is being set up with an investment of `181 crore. Sintex Industries announced that it would set up a textile processing plant near Pipavav port, in Gujarat, by 2017-18. It will require an investment of `5,500 crore to set up this project. The company will focus on knitting, spinning and weaving of textile in this plant. The Pipavav plant work will be completed in a phasewise manner. This is Sintex Industries 10th plant in the country. In the state of Gujarat, it already has one plant located in Kalol town near Gandhinagar.
RUBBER & RUBBER PRODUCTS Project Developments
CEAT Tyres is setting up a new plant in Butibori, Nagpur. It will invest `400 crore in Phase-I of what will be a three-phase investment. The Chief Minister of Maharashtra laid the foundation stone for the plant which is projected to begin operation by April 2016. This plant is spread across 60 acre of land and will have a capacity of 12 lakh tyres a month. The company plans to double its production capacity with this plant in a span of two years. From the total investment of `400 crore, over `120 crore will come as equity from QIP receipts and the remaining from a bank loan. MRF has planned on a three year expansion programme, with an investment of `4,000 crore. The capital will be utilised to ramp up capacities across its factories. Out of the total `4,000 crore investment, a major proportion of the capex is planned for its PROJECTS TODAY JANUARY 2015 25
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MANUFACTURING UPDATE Tiruchi factory. The plant accounts for 25 per cent of the company's overall production capacity, which is estimated to be around 15,000 tonne a day or 1.2 lakh tyres each day. This is the second major investment plan announced by MRF in last four years. It took up a `3,000 crore capacity expansion that included establishment of the Tiruchi plant in 2010.
tonne in some time. For a capacity of 20 million tonne, JSW will require 35 million tonne of iron ore each year from Vijaynagar alone. As a result, the company will invest in the slurry pipeline linking the Vijaynagar plant to JSW's Jaigarh port. This is bound to help smoother iron ore transportation and savings of around `2,000 crore a year on freight costs.
Uno Minda has signed a joint venture (JV) agreement with Japan's Toyoda Gosei Co to manufacture and sell rubber hoses in India. As per the agreement, the partners will set up a JV firm with an investment of `85.3 crore, in a phased manner. The JV will be known as Minda TG Rubber and will have an equity share of 51 per cent with Uno Minda; 44 per cent with Toyoda Gosei Co; and five per cent with Toyota Tsusho Corporation. Minda TG Rubber will initially set up a manufacturing plant at Bawal, Haryana, and will start production in the third quarter of the fiscal year 2015.
National Mineral Development Corporation (NMDC) is set to open and develop new iron ore mines in Chhattisgarh and Karnataka next year. The move is expected to boost steel production. As part of its expansion plan, the state-owned miner will open a mine each in Bailadila sector in Chhattisgarh and in the Bellary-Hospet region of Karnataka in 2015. The mine to be opened in the Bailadila sector in Chhattisgarh is in the Deposit-11 B iron ore project while the one in Karnataka is part of the Kumaraswami iron ore mines. By developing new mining facilities and expansion of existing infrastructure, NMDC plans to boost its iron ore output in the next five years from about 30 million tpa to 50 million tpa. The company's output was 10 million tonne in 2013-14.
NON-METALLIC MINERAL PRODUCTS Project Developments
Rajasthan Industrial and Investment Corporation (RIICO) is planning to set up a "Ceramic and Glass Industrial Zone" at Ghiloth, near Neemrana. Spread over an area of 750 acre, this zone will have gas availability through dedicated supply by GAIL. Special incentives are being offered to the ceramic and glass sector by way of investment subsidies. A transparent mechanism for offering customised packages to large industries was also announced in the Rajasthan Investment Promotion Scheme (RIPS-2014).After identifying the ceramic and glass sector as a thrust sector in RIPS2014, RIICO is organising an investors' meet and business to government interaction (B2G) on ceramics, glass and allied work, wherein it shall launch its ceramic and glass industrial zone. Ultratech, a part of Aditya Birla Group, will acquire two plants from Jaiprakash Associates (JAL) in Madhya Pradesh, for a value of `5,400 crore. The company has received approval from the board for the acquisition of JAL's Bela unit which has 2.1 million tpa clinker and 2.6 million tpa cement grinding capacity. The other unit at Sidhi has 3.1 million tpa clinker and 2.3 million tpa cement grinding capacity. The total power generation of both the units is 180 MW. With this acquisition, Ultratech's cement capacity in India is expected to increase to around 65 million tpa from around 60 million tpa. With the other projects underway, it will go up to around 71 million tpa by 2016.
METALLURGY
Project Developments JSW Steel has outlined a major expansion plan which includes doubling capacity of its Vijaynagar plant in Ballari district of Karnataka. It plans in increasing the capacity to 20 million tonne by 2022. The company will also be investing `2,000 crore in a 500 km pipeline to transport iron ore one from its private port to the plant. Vijaynagar plant expansion will be completed in phases and the capacity would be raised to 12 million 26 PROJECTS TODAY JANUARY 2015
SAIL seeks approval from the Union environment ministry for setting up a two million tpa greenfield iron ore pellet plant at Jharkhand. The state-run steel maker will invest `2,388 crore. It has proposed to set up this plant within the premises of its existing integrated project at Bokaro, in the state. Also, SAIL will set up a 0.768 million tonne top charged coke oven battery unit at the same location. The iron ore required for these additional facilities will be sourced from SAIL's mines at Bolani, in Orissa and Kiriburu and Meghataburu deposits in Jharkhand. Limestone will be sourced from quarries of Kuteshwar in Madhya Pradesh and Bhawanathpur in Jharkhand and dolomite from Tulsidamar quarries also in Jharkhand. SAIL is preparing a feasibility report for setting up an integrated steel plant in Khammam district of Telangana. According to the 13th schedule of the Andhra Pradesh Reorganisation Act, 2014, the company is required to examine the feasibility of establishing a steel plant within six months from the appointed day (2 June, 2014). SAIL's `70,000 crore modernisation and expansion programme would be raising its capacity to over 24 million tpa by the next fiscal. Also, post 2016, it will embark on another expansion plan for augmenting the capacity further to 50 million tpa by 2025. This will require an investment of `1.5 lakh crore. Virgin Metallics has completed 20 per cent work of its iron ore mining project in Andhra Pradesh. The project is rescheduled for completion by December 2016. The iron ore mine has a capacity of one million tpa and is located at Sarfarajapuram village, Veldurthi, in Kurnool district of Andhra Pradesh. Kinc Mineral Technologies, Gujarat, is the civil contractor, machinery supplier and consultant for the project. Virgin Metallics is implementing the project with an investment of `380 crore, on turnkey basis.
Project Impediment JSW Steel has put its Salboni steel and power project on hold due to uncertainty over raw material linkages. The 10 million tpa integrated steel plant at Salboni in Midnapore district of West
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Bengal is being promoted by JSW Bengal Steel, a subsidiary of JSW Steel. JSW Bengal presently does not have either coal or ironore linkages for the Salboni project. However, they will bid for the three coal mines, if put on auction, which were offered by the West Bengal government agencies for the steel project. The steel plant is proposed to be implemented in phases, with an investment of `35,000 crore. JSW has already invested `700 crore in the project
MACHINERY & ELECTRONICS Project Development
Pitti Laminations, commenced commercial production at its manufacturing unit in Pune, Maharashtra. The unit is located at plot no. PAP-K-11, MIDC, Near Village Khalumbre, at Chakan. The company is shifting a part of its capacity from Hyderabad to the new plant at Pune. Pitti Laminations is a manufacturer of electrical laminations for application in industrial motors, traction motors, pumps, train lighting generators, aeronautics etc.
AUTOMOBILES Project Developments
The maintenance, repair and overhaul (MRO) facility in Nagpur, built by Boeing Co is to be operational by April-June 2015. This facility will be operated by Air India. The taxiway from the main runway to the MRO is presently under construction and is expected to be completed within a few months. The MRO facility is spread across 50 acre of land and can accommodate upto three wide-bodied aircraft at a time. It is projected to enhance revenues of Air India's MRO unit - Air India Engineering Services (AIESL) which has been hived into a separate company in 2013. AIESL is expected to generate as much as `800 crore to `1,000 crore from the facility, within three years after the unit begins operation. Daimler India Commercial Vehicles (DICV), the 100 per cent wholly-owned subsidiary of Daimler AG, today crossed the milestone of the 20,000th locally produced trucks from its Oragadam plant in Tamil Nadu. The milestone was achieved only two and a half years after the start of production of the first BharatBenz heavy duty truck at the plant. About half of these 20,000 trucks have been manufactured in 2014. The Daimler plant in Oragadam produces trucks and engines of the three brands BharatBenz, FUSO and Mercedes-Benz.After trucks, BharatBenz and Mercedes-Benz buses will soon roll off the new bus manufacturing plant which is constructed within the existing premises of DICV's Oragadam plant. DSK Motorwheels plans to set up a plant near Pune with an investment of `400 crore. The company, owned by the DSK Group, will manufacture recently unveiled superbikes of Italian brand Benelli and Korean brand Hyosung, at the plant. The unit will be set up very close to DSK's current plant in Pune and will manufacture 1,20,000 units per shift. The plant will be ready for production in the next two years. Their existing Pune unit, where the company presently assembles Hyosung bikes, has a single shift capacity of
about 3,000 bikes a year. DSK Motorwheels recently signed a manufacturing and sales agreement with Benelli, which marked its entry into Asia with its India foray. Ford India has begun trial runs at its Sanand facility, which is likely to be commissioned in early 2015. The upcoming integrated manufacturing facility is expected to be operational by the end of 2014, with first product coming off-line in 2015. With the Sanand facility, Ford India will double its installed manufacturing capacity to 610,000 engines and 440,000 vehicles. The company already has a facility at Chennai. The Sanand plant will have an initial annual production capacity of 240,000 cars and 270,000 engines, and is coming up with an investment of `5,000 crore. The Gujarat government has given MEGA project status to Honda's car plant after its first scooter manufacturing plant in the state. The Japanese car maker has proposed to invest `1,350 crore for its car plant in the first phase. High level committees of Secretaries for appraisal of the MEGA projects have given the green signal to Honda Motor's proposal. Honda is the fourth auto company after Tata Nano, Ford Motors and Suzuki Motors, to get the MEGA project status under the 2009 Industrial Policy. The company has already announced its plan to start a `1,100 crore scooter manufacturing plant in Gujarat. During the upcoming Vibrant Gujarat Global Investor Summit in mid-January, Honda Motors and the Gujarat government will sign an MOU and State Support Agreement (SSA) for the car plant. Isuzu Motors India will invest `3,000 crore by 2016 in India. It plans to scale up its production to 1,20,000 units per annum in the country. The automaker opened its first showroom on 7 December 2014, and is looking to open 60 outlets across India by the end of 2015-16. Also, it launched its sports utility vehicle MU-17 and pick up trucks D-Max in the Rajasthan market. The Isuzu Motors India plant in Sri City, in Andhra Pradesh, is expected to generate 2,000 to 3,000 jobs. It hopes to achieve 100 per cent localization within three years of commencing production in 2016. Lumax Industries is planning to invest `300 crore and to double its turnover to `2,500 crore in the next five years. The proposed investment would be in greenfield, brownfield and capacity expansion and will be funded through internal accruals. As part of its greenfield expansion, Lumax plans to set up its ninth plant at Sanand in Gujarat and invest around `40 crore for infrastructure development. The plant will be operational by FY18. In the last two years, the company has invested about `160 crore in its Bawal and Bengaluru facilities. NS Instruments India, inaugurated its production unit in Sri City. The wholly owned subsidiary of Nippon Seiki produces a range of electronic-based instrument clusters for automobiles and motorbikes. This is NS Instruments' second manufacturing plant in India; it has another unit at Manesar, Haryana. This is the eighth Japanese company to became operational in Sri City. When two other auto component makers -- Kikuwa and Kusakabe -- and the three biggies such as Isuzu, Unicharm and NHK Spring become operational, a strong ecosystem for Japanese companies will be developed in the integrated township. PROJECTS TODAY JANUARY 2015 27
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ENERGY UPDATE
OIL & GAS PIPELINES Project Developments Kerala Coastal Zone Management Authority (KCZMA) has conditionally recommended three mega Kochi projects to the Ministry of Environment and Forests (MoEF). The projects include - an oceanarium project by the Kerala government, a LPG pipeline project by Bharath Petroleum Corporation and the multi-user liquid terminal project of Cochin Port Trust (CPT) at Puthuvypeen. The authority recommended these projects on the condition that the Coastal Regulation Zone guidelines would be complied with. A sub-committee has also been constituted for overseeing the implementation of the project, especially the compliance with CRZ guidelines The Uttar Pradesh government has agreed to set up a high power panel to provide single window clearance for construction of GAIL's Jagdishpur-Haldia gas pipeline. The committee will help in
securing various statutory clearances like forest, environments, PWD, irrigation, and industries, and will also give administrative support to the pipeline construction activities. The 2,050 km natural gas pipeline will carry fuel from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. GAIL will invest `8,000 crore in the pipeline, which will extend through the Hazira-Bijaipur-Jagdishpur pipeline. The Phase-III of the Mumbai High South Redevelopment (MHSRD) scheme is under 'pre-tendering' stage. It was approved by the ONGC board on 14 November and is part of the plans to redevelop the Mumbai High South oil and gas fields. MHSRD Phase-III scheme envisages installation of three new well platforms -- RS18, RS-20 and R-21; two clamp on structures at RS-2 and RS-11; 15 segments of submarine pipelines and one segment of submarine cable and modification at 18 platforms. Phase-I and Phase-II of MHSRD scheme were completed in May 2007 and June 2014, respectively. Phase-III of Mumbai High North Redevelopment (MHNRD) scheme is also under execution.
MINERAL FUELS Project Developments Phase-I of coal blocks auction, offering 92 mines with 350 million tonne of estimated reserves, is likely to begin on 23 December. The tender documents are likely to be put on the website on 23 December. There will be a separate set of documents for each mine. The coal ministry is in the process of earmarking blocks for public and private firms and segregating them further for the power, steel, cement and captive power sectors. The coal blocks will include 42 operational mines with about 90 million tonne of reserves and 32 soon-to-be operational mines with 120 million tonne coal that could begin production in the next six to eight months. A hundred and twelve mines will be put up for auction in Phase-II, once the government allots or allocates the 92 mines. The Union Government is looking at the possibility of putting in place all clearances for the 112 mines before they are auctioned. Coal India's 27 mines having geological reserves of 1,200 million tonne are yet to commence production. The reasons for the nonproduction of mines are stated to be delays in obtaining statutory clearances, land acquisition, finalisation of contract, difficult geomining condition and development of infrastructure facilities. At present, the coal mines are at different stages of implementation, of which five in West Bengal, three in Jharkhand, seven in Chhattisgarh, four in Odisha and eight in Maharashtra. Coal India has received eight bids for consultancy services to modernise its underground mining operations. India's underground production has come down from 70 million tonne in 1975 to approximately 40 million tonne, which is merely seven per cent of the country's coal production of over 550 million tonne. CIL produces a mere 36 million tonne from its 270-odd underground mines. To reverse the trend, Coal India recently invited bids from consultants. The bidders who responded to the tender include: a consortium led by SPb-Giproshakht of Russia; KPMG in collaboration with the US-based mining consultant John T Boyd Company; PricewaterhouseCoopers (PwC) in association with Indian School of Mines (ISM) and Singareni Collieries (SCCL); Mining technology consultant, Runge Pincock Minarco of Australia; ARI, a consultant in Shale gas or oil extraction in the US; DMT, a consultant in underground mining in Germany; a consortium of miner Durham-based coal miniargreaves, in association with mining consultant Golder Associates; and state-owned Meconng group H.
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Rajasthan State Gas (RSGL), as part of its infrastructure development plans, will lay pipelines for retail gas supply in Alwar, Baran and Jhalawar districts. RSGL is a joint venture of Rajasthan State Petroleum Corporation (RSPCL) and Gas Authority of India (GAIL). It was formed after an MOU with GAIL, RSPCL and Rajasthan State Industrial Development and Investment Corporation, in October this year. The company has also laid emphasis on conducting a technical study on gas supply connectivity in Ghilot in Alwar, Baran and Jhalawar districts. RSGL is also setting up a Mega CNG station in Neemrana and a booster station in Kukus.
ELECTRICITY
Project Developments Azure Power has signed an initial agreement with the Rajasthan government on 22 December, 2014. As per this agreement, the company will develop a 1,000 MW solar power project. This project comes under the Jawaharlal Nehru National Solar Mission-Phase II (JNNSM). The scheme was launched by the central government in 2010 to generate 20,000 MW of solar power by the end of the 13th Five Year Plan in 2022. With this project, the company has become the largest private solar investor in Rajasthan with a total investment capital of over `1,300 crore. The total power generation capacity for the company under JNNSM presently is 142 MW. An indigenous three MW solar power plant will come up in Barun, situated 150 km from the Bihar capital, Patna. The plant will be developed to work in tandem with biomass to ensure uninterrupted power supply. The land for the project 'SCOPEBIG' has been allotted by the Bihar State Power Transmission Company to the consortium of organisations to develop this unit. It is being funded by the European Union under the Indo-European Renewable Energy Programme. The Bengaluru-based CSTEP (Center for Study of Science Technology and Policy) is one of the organisations involved in the design and development of the project. The Cabinet, approved setting up an inter-state power transmission system in Tamil Nadu with an investment of `1,593 crore. The power transmission project was approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister, Narendra Modi, and will be completed within three years. The Tamil Nadu project will include the establishment of a 400 kV grid substation at Thannampatty; augmentation of various 230 kV grid substations; and associated transmission systems. The cost of creating the infrastructure is proposed to be met through KfW loan (40 per cent), NCEF grant (40 per cent) and state contribution (20 per cent). Coal India (CIL) has signed a pact with Solar Energy Corporation of India (SECI) for setting up solar plants across India. The MoU was signed for the installation of 1,000 MW solar power plants in the solar parks across India, including Andhra Pradesh and Telangana to be identified by SECI. This process will be completed in a phased manner. CIL has already installed 2.2 MW solar power projects in two of its subsidiaries -- 2.00 MW in MCL (Mahanadi
PETROLEUM PRODUCTS [REFINERY] Project Developments Bharat Petroleum Corporation (BPCL) will invest `4,588 crore to diversify into petrochemicals. The refiner's board of directors has given an approval to the diversification proposal. The company plans to produce petrochemical products such as acrylic acid, oxo alcohols and acrylates, which are predominantly imported. All these chemicals will be produced at its Kochi Refinery using polymer-grade propylene that would be available after the ongoing integrated refinery expansion project is completed. The expansion is taken up with an investment of `14,225 crore. Indian Oil Corporation (IOC) will be investing `6,800 crore in capacity expansion and improving fuel quality at its Gujarat refinery unit. The company will invest `5,000 crore to increase its overall capacity to 18 million tonne from the present 13.7 million tonne. Besides, it will invest `1,800 crore to make the end product compliant with the lowsulphur Bharat Stage (BS-IV and BS-V) norms. The new capacity addition at its plant at Koyali village on the outskirts of the city will also be compliant with the latest fuel norms. The `1,800 crore fuel output quality enhancement project will be completed by April 2017; while the `5,000 crore fuel enhancement project will be completed by 2020. ONGC will spend over `16,000 crore to drill 45 wells at a block in the Krishna-Godavari basin. The company has approached the Ministry of Environment and Forests to obtain approval for preparing terms of references, as per the minutes of the meeting of the Expert Appraisal Committee. According to the proposal, the drilling will be carried out in Northern Discovery by drilling 45 wells, which include oil, gas and water injection wells. The drilling locations are more than 25 km distance away from the coast line. The Union government has given stern directions to oil PSUs such as ONGC, IOC, GAIL (India), BPCL and HPCL along with others to complete as many as 21 of their pending projects.The pending projects' total capital investment is `60,000 crore and the projects need to be completed by the end of the financial year. IOC's 15 million tpa greenfield refinery at Paradip, in Odisha, is considered to be the most important and is being set up at a cost of `34,555 crore. It is scheduled to be ready in FY16 and was to be commissioned during June-December 2014. Due to the delay, the cost has scaled up by 16 per cent. By 30 October 2014, a total of 14 major projects valued at `40,659 crore, which include eight projects in upstream oil and gas sector, have been completed. There are 21 projects worth around `60,000 crore which will be completed by 30 March, 2015.
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ENERGY UPDATE Coalfields) and 0.20 MW in Central Mine Planning & Design Institute (CMPDI), to curb carbon emissions. The Centre government is likely to allocate a coal mine with 400 million tonne capacity for a power plant in Uttar Pradesh by February 2015. `500 crore will also be sanctioned to the state within a month for upgrading the distribution network. Work on the power plant coming up near Allahabad was to begin from past many years, however a private company was not able to start it. The state government has now decided to set up the plant. The Centre has decided that the coal linkage for that plant will be transferred to state government. The Uttar Pradesh government has decided to purchase 4,000 MW additional power for which it will undertake bidding for long-term purchase. India and Russia signed two agreements which will set the groundwork for starting Unit-III and Unit-IV of the Kudankulam Nuclear Power Project. The two pacts were signed during the summit between Prime Minister, Narendra Modi and Russian President, Vladimir Putin. A supplement to the General Framework Agreement for Unit-III and Unit-IV was signed which will operationalise the GFA and Technical Commercial Offer signed in April. Besides, a contract was also signed for the implementation of Unit-III and Unit-IV of the plant with ATOMSTROYEXPORT supplying some major equipment. Also, NMDC signed an MoU with ACRON for acquiring stakes by a consortium of Indian companies in a $ two billion project of the Russian fertiliser company. The cost of the Kudankulam Nuclear Power plant Unit-III and UnitIV has shot up to `39,747 crore. Due to liability issues, the cost has become more than twice of Unit-I and Unit-II. This will lead to a rise in per unit cost of power. The high price is said to be due to the liability issue, under which the operators and suppliers have to insure the units. The approved cost of Unit-I and Unit-II is `17,270 crore, while the approved cost of Unit-III and Unit-IV is `39,747 crore. All the four reactors, with a capacity of 1,000 MW each, have been built with Russian assistance. The unit was shut down due to technical reasons and is expected to resume generating power this week. It was connected to the southern grid in October, 2013. The construction of Unit-V and Unit-VI at the Kaiga atomic power station in Karnataka will start by December, 2016. Each unit with a capacity of 700 MW, would produce an additional 1,400 MW of power. The Union Cabinet has already approved the project, whereas Nuclear Power Corporation of India has field an application for the clearance before the Environment Ministry. Kaiga Generating Station (KGS) has the necessary land for the construction of two units and there is no need of land acquisition process. Karnataka will receive 50 per cent of the power generated at the new units. Mohanaroopa Power Projects plans to set up a hydel power unit at Thonam village, Saluru mandal, in Visakhapatnam district of Andhra Pradesh. The 12 MW project will spread over 3.5 acre of land and will be set up with an investment of `120 crore. Around 70 per cent of the project cost will be funded through bank loan and 30 PROJECTS TODAY JANUARY 2015
the remaining 30 per cent from internal accruals. ECI Renewable Energy is the consultant for the power project, while Paramount Estate is the contractor (infrastructure work). The government, gave the nod for installation of solar power plants in defence and paramilitary establishments by utilising available area. For the solar power plants, the Cabinet sanctioned Rs 750 crore for the Ministry of New and Renewable Energy (MNRE) from the National Clean Energy Fund (NCEF). The Cabinet gave the green signal for setting up over 300 MW of grid-connected solar PV power projects by defence establishments and paramilitary forces in India, under the Jawaharlal Nehru National Solar Mission (JNNSM) in five years, i.e. from 2014 to 2019. It has stipulated a mandatory condition that all PV cells and modules used in the solar plants set up under this scheme will be made in India. The 101 MW gas based thermal plant at Monarchak in Sipahijala district of Tripura would start generation in January, 2015. By the first week of January, the supply of natural gas to Monarchak plant would begin. This is the second power plant to be started in Tripura after the inauguration of the second unit of the 726 MW gas based thermal power project by Prime Minister Narendra Modi at Palatana on 1 December, 2014. The North East Electric Power Corporation (NEEPCO) has completed the entire commissioning work of the Monarchak power project. The power generated from this unit will be utilised in Tripura. Unit-I of the the Kudgi Super Thermal Power plant of NTPC will begin functioning from May 2015. The total production capacity of the five unit power plant is 4,000 MW. Three units will start generating 2,400 MW of power by 17 May 2017, of which 1,200 MW will be given to Karnataka. Another 50 per cent of the remaining 1,600 MW will also be given to the state which comes up to a total of 2,000 MW of power to meet its growing demand. The authorities want to complete the project on time to ensure the state and central grids get electricity. Also, the government has already spent around `6,000 crore out of the total `15,166 crore granted for this project. NTPC has signed `3,000 crore term loan agreements with HDFC Bank and Syndicate Bank, to part finance its capital expenditure. The state-run power generator company has signed a term loan agreement with HDFC Bank for `2,000 crore and another with Syndicate Bank for `1,000 crore. These loans have a "door-todoor" tenure of 15 years. The tenure implies the total period, including moratorium, within which the amount borrowed has to be repaid. The company has already started work on the expansion of its Ramagundam power plant to 2x800 MW in Telangana. Presently, the capacity of the thermal power station is 2,600 MW. The hot run of Unit-II of the Kundankulam Nuclear Power Plant is expected to begin next week. Unit-I has been maintaining its full 1,000 MWe capacity and a nod from Nuclear Power Corporation of India (NPCIL) is awaited for it to begin formal commercial production. It has so far generated 300 crore units, of which half was given to the Tamil Nadu power grid. The 1,000 MW capacity Unit-I of the Indo-Russian joint venture began power generation
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on 22 October, 2013. Preliminary work on the construction of Unit-III will begin in March 2015. Concrete will first be poured at the beginning of 2016 and work on the unit will be over in 72 months. ONGC Tripura Power Company (OTPC) Unit-II is likely to begin commercial production in January 2015. The 363 MW Unit-II, which recently started synchronised production, has been trying to reach optimum output level through fine tuning of all the operational metrics. It will start the full test run soon. Work on the 650 km transmission line, which will connect the OTPC project with the North-Eastern grid at Bongaigaon in Assam is also on its last lap. Only 13 km of line is required to be erected for grid connection. With the completion of this transmission line, the `10,000 crore project could be connected to the grid in the first week of January. The Unit-II of Palatana power project in Udaipur, Tripura was inaugurated by Prime Minister Narendra Modi. The Unit-II has a capacity of 363 MW. The `4,000 Palatana gas-based power project, with 726.6 MW (2 x 363.3 MW) capacity, is being developed by ONGC Tripura Power Power Company. Unit-I of the project was synchronized in October 2012. Palatan power project would be generating power to Tripura and other states of the North east region. In addition, it will be contributing to the national grid too. The huge potential of natural gas reserves in North east will be utilised along with the water resources to harvest larger energy requirements. Power Finance Corporation (PFC) has decided to extend a `1,112 crore loan to the Andhra Pradesh power sector. From the total `1,112 crore, `1,000 crore is for bridging the fund requirement for the power sector, post the division of the state. The remaining Rs 112 crore is for setting up 4,000 solar pump sets. The State Energy Conservation Mission made the announcement on 18 December 2014 about the extension of loan by PFC. In addition, PFC has agreed to fund the construction of 3,378 toilets in Andhra Pradesh schools. This project comes under the Swachh Bharat Swachh Vidyalaya Abhiyan through Sarva Shiksha Abhiyan. The government has awarded a critical power transmission corridor project, connecting states to western India, to Power Grid Corporation (PGCIL) through nomination, shunning private sector investment through an auction. The decision was based on requests by the southern states that the central government should award the high voltage direct current transmission line to PGCIL. The line will connect Raigarh in Chhattisgarh and Pugalur in Tamil Nadu and will have a capacity of 6,000 MW covering 2,000 km. The Ministry of Power had put up eight transmission contracts with a total investment of `53,000 crore for rate-based global competitive bidding in September. Later, it decided to allot the largest project of `26,820 crore to the state-owned transmission company and central transmission utility. Rajasthan Chief Minister, Vasundhara Raje, signed an MoU with a private firm for a 1,000 MW solar power plant and laid the foundation stone for a slew of other projects. The power plant will be set up with an investment of `7,000 crore over 725 acre of land
at Hardhani and Nandia Kalan in Jodhpur's Baori. It will supply electricity to 1,00,000 households and create an estimated 1,500 jobs. The project is expected to be completed by April next year. The foundation stone for a mega water project in Tiwari tehsil of Jodhpur was also laid by the Chief Minister. The project will be constructed at an estimated cost of `396.63 crore. The PanchlaGhewra-Chirai project will address the drinking water needs of 59 villages and 892 hamlets. Welspun Renewables Energy has secured `630 crore for its 126 MW wind power project in Rajasthan. The debt funding for the plant at Pratapgarh district is from a consortium of financial institutions. The project is expected to be completed by June 2015. The renewable energy company will sell the power generated from this plant to Rajasthan's electricity distribution company for a price of `5.93 a kWhr. Welspun Renewables Energy will buy GE's 1.6 MW machine for 64 MW and Gamesa's 2.0 MW machines for 62 MW for this project. The Pratapgarh project will be constructed by Welspun Energy Rajasthan. It will generate an estimated 290 million units of clean energy, once it gets commissioned.
Project Completion BHEL has commissioned the last Unit-VI of the 6x68.67 MW Rampur Hydro Electric Project (HEP) in Himachal Pradesh. With this, it has commissioned the 412 MW hydro power plant of SJVN. The greenfield project will be capable of generating approximately 1,770 GWh in a ninety percent hydrological dependable year once all the units are operating. The scope of work for BHEL in this project included supply, erection and commissioning of six numbers Francis turbines operating at a head of 119 mtr with matching synchronous generators of 200 rpm, SCADA, main inlet valves, GIS and more. Tata Power, announced the commissioning of the remaining eight MW of the 32 MW wind farm at Girijashankarwadi, in Satara district of Maharashtra. Tata Power developed this project through its 100 per cent subsidiary, Tata Power Renewable Energy (TPREL). The wind farm is expected to generate approximately 62 million units (MUs) per year, which will be procured by Tata PowerDistribution towards fulfillment of its Renewable Purchase Obligations (RPO). TPREL also has 300 MW of wind capacity under development and construction in Maharashtra, Gujarat and Rajasthan. Thermal Powertech Corporation India (TPCIL), synchronised its first 660 MW unit with the Andhra Pradesh grid yesterday. The unit is part of a 1,320 MW coal-fired power plant being developed by TPCIL at Krishnapatnam, in Nellore district of Andhra Pradesh. Commercial operation of the unit is expected in the beginning of January 2015, and full completion of the plant in mid 2015. TPCIL is a joint venture between Gayatri Energy Ventures and Singaporebased Sembcorp Utilities. Sembcorp holds 65 per cent equity while Gayatri Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the remaining 35 per cent.
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TRANSPORTATION UPDATE
ROADWAYS Project Developments The foundation stone for the MudholMaharashtra border road was laid by Karnataka Chief Minister, Siddaramaiah, on 21 December, 2014. The project envisages upgradation of State Highway-18, connecting MudholMahalingapura-Kabbur-Chikkodi-Nippani-Maharashtra border in Bagalkot and Belgaum districts. The 107.94 km road project will be developed with loan assistance from World Bank. Ashoka Buildcon-GVR Infra Projects (Consortium) received the Letter of Award (LoA) for developing the project on design, build, finance, operate, maintain and transfer (DBFOMT) basis, in February 2014. EPC firm, Atlanta, is eyeing around `2,000 crore road contracts and expects to achieve over `700 crore revenue by 2015-16. The company will be cautiously bidding for the projects which may be either on engineering, procurement and construction (EPC) model or build-operate-transfer (BOT) basis. Atlanta expects that `50,000 crore worth road projects will be tendered by the government on both these models. Out of these, they may bid for at least `5,000 crore worth projects and expect to bag contracts of around `2,000 crore. As of November 2014, the EPC order book of the company was around `2,350 crore, which includes the projects bagged by its subsidiary, Atlanta Infra Assets, under the BOT/ DBFOT model. Work on the Peripheral Ring Road (PRR) project is likely to commence in December next year. Japanese International Cooperation Agency (JICA) will fund the PPR project. Recently, the JICA team arrived after the project received the necessary environment clearance. Bangalore Development Authority (BDA) has given in-principal approval to this project. In addition, it has also informed the JICA team about the rehabilitation package and land acquisition details. Earlier, JICA had objected to the funding as BDA had not obtained clearance from the Environmental Impact Assessment Authority, Karnataka. The Brihanmumbai Municipal Corporation (BMC) has decided to construct a new flyover in Goregaon (west) at the junction of Veer Savarkar Bridge and SV Road. The cement concrete flyover will be built at an estimated cost of `26.37 crore. The proposal to build a flyover in Goregaon (west) will be placed before the civic standing committee meeting for approval.Out of the five bidders that showed interest in the project, RK Madhani and Company emerged as the winner with the lowest bid. Technogem Consultants has been appointed by the civic bridges department as a technical consultant to prepare plans, design, and work on the estimates and drafts for the project. 32 PROJECTS TODAY JANUARY 2015
The Centre government approved several major road projects for Punjab, including four laning of Patiala-Bathinda highway, to be completed at a cost of `5,261 crore. The four laning of PatialaBathinda road will be carried out in three phases: from Patiala bypass to Sangrur bypass in the first phase; start of Sangrur bypass to boundary of Barnala city; and from this point to Bathinda city. The cost of this project will be `1,238 crore and it will cover a total stretch of 128 km on the National Highways-64. The PatialaBathinda highway project will be done on engineering, procurement and construction (EPC) mode.Road Transport and Highways Minister, Nitin Gadkari, gave approval to lay the foundation of four laning of four major roads to be constructed at a cost of `1,693 crore. The Road Transport and Highways Ministry will carry out the four laning of 94 km of Sangrur-Khanouri highway upto the Haryana border. The proposed inter-state bus terminus (ISBT) in Gaula Paar, Haldwani, got its first real push. The initial budget of `20 crore was approved. This approval comes six years after it was announced and it is touted to be the largest in north India. It has been decided that `86 lakh will be paid out of this as compensation for afforestation on the 20 acre land earmarked for the terminus. The foundation stone of the ISBT will most likely be before 31 January 2015, by CM Harish Rawat. A Mumbai-based consultant architect has been hired to lay out plans of the buildings. This ISBT will be equipped with many passenger facilities such as a mini shopping mall, restaurant, guest house for passengers, parking area and WiFi zone. Also, it will have a petrol pump, separate parking space for private taxis and buses, along with a police check-post for passengers' safety. Work on the 35.6 km coastal road project in Mumbai will start soon as all the possible hurdles have been removed. The Centre has agreed to amend its 2011 Ministry of Environment and Forest notification in the next two months, permitting reclamation of land for the road's construction. This coastal road will run parallel to the current stretch going from Nariman Point to Kandivli. Basically, it will start from Manora Guest House opposite Mantralaya and extend through a tunnel between the NCPA and Air India building. For this road project, the Maharashtra government will acquire about eight km of sea coast land. It will have elevated stretches along with 18 exit and entry points. The state government has estimated an investment of `7,000 crore for this project. The Brihanmumbai Municipal Corporation has collected `3,500 crore as premium recovered from fungible FSI and the remaining funding will be contributed by the state and central government. The elevated road project between Bandra-Kurla Complex (BKC) and the Eastern Express Highway is expected to get delayed. The
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Mumbai Metropolitan Region Development Authority (MMRDA) was getting ready to start the construction of this project, but the Maharashtra Coastal Zone Management Authority (MCZMA) has recommended another level of scrutiny by the Union Ministry of Environment and Forests (MoEF). MCZMA will grant the final clearance, once the MoEF gives a green signal to this elevated road project. The `156 crore project requires construction of five pillars in the Mithi River. The project also needs to secure an environmental clearance as the alignment party falls under the Coastal Regulation Zone. The 1.6 km elevated connector will start from the G-block in BKC and terminate at the Eastern Express Highway near Somaiya Ground. Madhucon projects has inked an agreement with Tata Realty and Infrastructure to sell its Agra-Jaipur expressway project for `250 crore. This makes it the second merger and acquisition deal in the roads sector this month. As per the agreement, Madhucon Projects will sell 74 per cent stake in the project to Tata Realty and Infrastructure. However, the company did not disclose the amount involved in the transaction. The company will sell the entire 100 per cent holding in the project once it receives government approval. In build-operate-transfer (BOT), the government allows only 74 per cent stake sale. The Agra-Jaipur expressway involves strengthening and widening of a 57 km stretch on NH-11 between Bharatpur and Mahwa. The stretch is operational and has been generating toll since May 2009. NHAI awarded the project on BOT basis to Madhucon for a concession period of 25 years. The National Highways Authority of India (NHAI) has received 167 bids for the proposed `4,500 crore eastern peripheral expressway. This project could be a sign of revival of the private sector interest in road projects. The proposed 135 km long and six-lane expressway will connect Uttar Pradesh and Haryana, bypassing the national capital. But it had no takers when bids were called for in 2013, and it required to be taken up on build, operate, and transfer mode. However, NHAI is funding it in the engineering, procurement and construction (EPC) mode this time.NHAI invited requests for qualification in October 2014, and the last date for receipt of bids was 12 December, 2014. With NHAI financing, the developer will only need to undertake construction work. The Government, approved three highway projects worth `3,874 crore for widening various stretches under the National Highways Development Project (NHDP). The Cabinet Committee on Economic Affairs (CCEA) has given its approval for development of the four laning of these highways stretches in Odisha, Uttarakhand and Uttar Pradesh. The four laning of the Singhara-Binjabahal section of NH-6 in Odisha will be done under the NHDP Phase-IV. The `1077.11 crore project cost includes the cost of land acquisition, resettlement and rehabilitation and other preconstruction activities. The total length of the road will be approximately 104 km. 36 manufacturers are willing to supply cement directly to government organisations, at a contracted price that would be cheaper than the market rate. JK Cement and UltraTech are
amongst the companies which have placed bids in response to the global tender floated by Minister of State for Road, Transport and Highways (MoRTH) for cement procurement for the next one year. The Ministry had invited quotations for the rates of cement from the cement manufacturers for supply of the material, on cash and carry basis, to all central government/state government organisations including government owned organisations for undertaking national highways projects and other centrally sponsored projects. The Union Government announced that 16,771 km of roads were constructed against a target of 21,775 km under the Pradhan Mantri Gram Sadak Yojana (PMGSY) in the first seven months of this fiscal. In 2013-14, 45,316 km of roads were constructed against a target of 27,000 km. PMGSY is being implemented by the respective state and union territory governments to improve rural infrastructure through construction of all weather roads to provide connectivity to eligible habitations.
Project Completion The Union Minister of Urban Development, M Venkaiah Naidu, inaugurated the 1,090 mtr long Sarita Vihar underpass today. After a delay of four years, the underpass has been finally opened. It comprises 533 mtr open area and 557 mtr covered area, of which Railway constructed 177 mtr. The height of this underpass is 5.5 mtr and has six lanes; three each for arrival and departure. This underpass will connect Noida to Okhla reducing the commuting time from 45 to around 10 minutes between Noida, Sarita Vihar, Okhla and the city. The Delhi Development Authority (DDA) has constructed the Sarita Vihar underpass. For this project, around `245 crore has been spent. The project was scheduled to be ready in 2010, but the Congress government delayed it. As a result, the project cost has escalated. IRB Infrastructure Developers, announced that Pathankot Amritsar four-laning project has been issued a Provisional Certificate by the Competent Authority effective 27 November, 2014. Consequently, the SPV has started toll collection on this project effective from 28 November, 2014. The Pathankot Amritsar project was executed by IRB Pathankot Amritsar Toll Road, a wholly-owned SPV of IRB Infrastructure. The project involved fourlanning of Pathankot to Amritsar Section of NH - 15 from Km.6.082 to Km. 108.502 in the State of Punjab under NHDP Phase III on BOT (Toll) Basis. On 26 December 2014, IL&FS Transportation Networks started commercial operations on four laning of the Warora Chandrapur Ballarpur Bamni road project in the State of Maharashtra. The project was awarded to the consortium of Vishwaraj Infrastructure and Diva Media. The project is on toll basis with a concession period of 30 years (including three years of construction period). The company has equity stake of 35% in the project. The Patna-Bakhtiarpur highway project has been completed. The four laning of the Patna-Bakhtiyarpur section of NH-30 from 181.300 km to 231.950 km was implemented by Patna Bakhtiyarpur Tollway at Bakhtiarpur, in Patna district of Bihar, on PROJECTS TODAY JANUARY 2015 33
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TRANSPORTATION UPDATE design, build, finance, operate and transfer DBFOT (toll) basis under NHDP-III. The 50.70 km road project was implemented with an investment of `760 crore.
RAILWAYS
Project Developments Seawoods-Belapur-Uran rail corridor is finally on track, as CIDCO has received six design consultancies interested in designing the stations on the corridor. CIDCO had issued tenders in August this year. The Seawoods-Belapur-Uran railway project was proposed in 1997. It is only after 17 years that the project has seen positive development. A total of six agencies are expected to submit their designs by January 2015.The estimated cost of this project was `495 crore in 1997 but after 17 years of delay it has scaled up to `1,800 crore. Delhi Development Authority's (DDA's) planning body Unified Traffic and Transportation Infrastructure (Planning & Engineering) Centre (UTTIPEC) has approved redevelopment of Anand Vihar and Bijwasan railway stations as world class infrastructure. The body also approved the integration of 34 metro stations into a multimodal transportation system. The decision was taken at UTTIPEC's Governing Body Meeting at Raj Niwas. Indian Railway Station Development Corporation presented the proposal of redevelopment of Anand Vihar Railway Station on the Indian Railway network. India has inked a US $1,100 million IBRD Direct Lending pact with the World Bank for Phase-II of the Eastern Dedicated Freight Corridor (EDFC-II). The EDFC-II project will help increase the capacity of these freight-only lines by raising the axle load limit from 22.9 to 25 tonne and enabling speeds of upto 100 kmph. It will also help develop the institutional capacity of the Dedicated Freight Corridor Corp of India (DFCCIL) to build and maintain the dedicated freight corridor (DFC) infrastructure network. This project is in continuation of the EDFC-I project, presently being implemented by the DFCCIL with the World Bank loan of US $975 million on the Khurja-Kanpur stretch of the Eastern rail corridor (Ludhiana-DelhiKolkata), which was approved by the bank in May 2011. The Ghaziabad Development Authority (GDA) has given its approval to the enhanced cost for the extension of Delhi Metro line. The extended line is from Dilshad Garden to the New Bus Stand in Ghaziabad. On account of rise in cost of raw material and delay in launch of the extension project, the cost has increased to `2,210 crore from the earlier estimated cost of `1,770 crore. From the total enhanced cost of `440 crore, the Uttar Pradesh Government will fund `363 crore and the remaining `72 crore will be financed by the Delhi Metro Rail Corporation. The highways department, Karnataka has eight new projects which include foot overbridges and subways for Chennai, valued at around Rs 320 crore. The detailed project reports (DPRs) will be completed within a month and will be submitted to the government for approval. DPRs will have the final alignment, cost of the projects and area of land required for the projects. Based on the DPRs, the government will approve the finance and tenders will be 34 PROJECTS TODAY JANUARY 2015
floated. Among the projects awaiting government approval are a `125 crore grade separator over the Medavakkam-Mambakkam junction; a `60 crore grade separator in Kilkattalai and a `30 crore bridge in Nolambur. The Karnataka government has released `250 crore for railway projects. It is the government's share of contribution towards the projects to be implemented in the state under share-costs basis with the Indian Railways. The state government had to release a total of `540 crore for the joint railway projects during the current fiscal year. The remaining amount will be released soon. The Karnataka government has proposed to undertake 11 projects with the Railway Department under the expenditure sharing system. From the total 11 projects, the state government will bear the land acquisition cost of six projects. Mumbai Metro Rail Corporation (MMRC) has decided to commercially explore three plots owned by BEST to generate funds for the Metro-III project. The metro line will pass under these plots. MMRC has identified three plots owned by BEST at Hutatma Chowk, Mahalaxmi and Seepz (4,904 sq mtr). The two lands will be commercially exploited for the underground line. Whereas, the third plot at Colaba will be utilised for the construction of entry and exit of the station. MMRC will construct a ground +14 tower and a bus depot on the ground floor at the Seepz plot. Also, it will have an underground parking lot and a recreational space over ground. Mumbai Metro Rail Corporation (MMRC) has appointed a consortium of four companies as a general consultant for the `23,136 crore Metro-III project. MMRC, the implementing agency for the Colaba-Bandra-Seepz Metro project approved the appointment during its meeting on 6 December, 2014. The consortium, led by Hong Kong's AECOM Asia, includes other companies such as Japan's Padeco, US-based Louis Berger Group and France's Egis Rail. The scope of work of general consultant requires to assist MMRC in evaluating bids from the shortlisted companies, and reviewing and proof-checking detailed designs that the contractors devise. Prime Minister Narendra Modi announced that the centre would provide `28,000 crore for new railway projects in the Northeast. The fund will be utilised for laying a new railway line project along with 14 new railway lines. Narendra Modi made the announcement during the inauguration of Nagaland's biggest annual Hornbill festival. PM also said that the centre has granted `5,000 crore to provide 2G mobile coverage for the complete telecom development plan of the Northeast region. For regular power supply, `5,000 crore has been sanctioned for the Northeastern region power system improvement project for six states, including Nagaland. Widening of the Kopri railway overbridge (ROB) finally received the green signal from the Central Railway. Since 2006, this project had been stalled due to delays by railway authorities over granting the necessary permissions. In 2006, the Public Works Department (PWD) sanctioned the Kopri expansion project which was projected to be completed within two years. The Central Railway approval was a must as the bridge needed to cross over a railway property.
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The Gujarat government and Rail Vikas Nigam (RVNL), a 100 per cent subsidiary of the ministry of railways, will sign a Memorandum of Understanding (MoU) for the Ahmedabad Regional Rail Project. The proposed Ahmedabad regional rail system will connect periphery towns and villages with Ahmedabad through a dedicated rail network. It is another prestigious project like the Ahmedabad-Gandhinagar metro rail project which has been lingering since the last one decade. The project will cover 288 km to connect towns around Ahmedabad. RVNL and the government of Gujarat will soon launch a joint venture company through a Special Purpose Vehicle (SPV). The Surat railway station is proposed to be revamped with an investment of `3,000 crore. The railway station project will be implemented under the Public Private Partnership (PPP) model. The plan of using cutting edge technology to create new buildings has been presented to the Railway Ministry and the PMO. The railway ministry has given its approval to the Surat Municipal Corporation to take the project forward. Once the project starts it will be completed within four years. The country's largest blast furnace was blown-in at SAIL's IISCO steel plant at Burnpur, West Bengal. Named 'Kalyani,' the blast furnace no. 5 has a capacity of 4,160 cubic metres and will produce some 8,000 tonne of hot metal per day. The previous record for the country's largest furnace was held by 'Durga', which has a capacity of 4,060 cubic metres and belongs to Rourkela Steel Plant, also under SAIL. The 'Kalyani,' furnace is part of the ongoing modernization and expansion work at Bunrpur for the installation of a 2.5 million tpa steel plant. The Union Cabinet, decided to speed up transfer of land for implementation of metro rail projects. As per the decision, once a metro rail project has been approved by the Cabinet, all Ministries/Departments would give operating rights on the relevant land sought by the Metro Rail Company, immediately. The decision will help avoid time and cost overruns. The proposal is to restrict ministries, departments or PSUs of the central government from asking for land in exchange for land required for the implementation of such projects. The concerned Ministry will be compensated in monetary terms for the transferred land based on the rates as per prevailing guideline values.
AIRWAYS
Project Developments Airports Authority of India (AAI) is planning to set up a new domestic and international cargo complex at the Pune airport. An area measuring 2,213 sq mtr has been provided for construction of the air cargo terminal, with a threshold area of 1,000 sq mtr each. AAI is in the process of preparing the relevant drawings/layout plan for the proposed air cargo complex facility at Pune airport. AAI has also undertaken a preliminary feasibility study of the proposed site for the upcoming greenfield airport at Khed (Pune). The government of Maharashtra has given inprinciple approval for the site at Khed.
The Navi Mumbai airport will be in operation by 2019. The Chief Minister of Maharashtra made this announcement. The project has received the necessary environment clearances, which include clearance from the CRZ and ministry of forest. The defence ministry too has given its nod and the necessary land has been acquired. Construction of the first phase of the airport is expected to be completed by 2019. It will be spread across 2,268 ha of land, with an estimated cost of `14,573 crore. This project is implemented under PPP mode. Once the first phase of work is completed in five years, the airport will cater to 10 million passengers. When it is fully completed it will cater to 60 million passengers each year.
SHIPPING INFRASTRUCTURE Project Developments
The Maharashtra Chief Minister Devendra Phadnavis today laid the foundation stone for Karanja port, near Uran in Raigad district, around 50 km from Mumbai. He also gave approval for signing of MoU for the Jaighad Port rail connectivity. The two port projects have been put on fast track mode with the focus to improve connectivity within Maharashtra. Karanja project construction work is expected to be completed within two years, but partial operations at the port will begin in a year. As part of the project, a multipurpose terminal facility is being set up along 1,000 mtr waterfront over 200 acre of inter-tidal zone, under concession agreement with the Maharashtra Maritime Board. The Jawaharlal Nehru Port Trust (JNPT) has decided to put on hold the `2,500 crore liquid cargo terminal. This decision was taken barely two months after it shortlisted five bidders in a global tender to award the project. JNPT will go for a review of the project following concerns that the demand for liquid cargo handling capacity will be much lower than the projected traffic volume. This project was designed to have a capacity of handling 15 million tonne a year. JNPT may scale down the capacity to 7.5 million tonne and will go for two berths instead of four. Jawaharlal Nehru Port Trust (JNPT) will attract investments of over `21,000 crore by 2020. A `3,000 crore ptoject to convert the existing four-lane, 45 km road connecting JNPT and the hinterland of Maharashtra into a 10-lane road is among them. Eight of the 10 lanes will be for trucks and other vehicles, while the other two will be elevated roads for mass rapid transport vehicles, meaning buses. As different sections of the road have been built by different parties -- NHAI, CIDCO and JNPT -- JNPT has decided to take charge of the entire road and fund its redevelopment. The road should be ready in three years. JNPT will also be giving the rights of 330 metres of quayside to Dubai Port Works, which already operates one of JNPT's terminals. Dubai Port Works is investing around `600 crore for this
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CONSTRUCTION & SOCIAL SERVICES
REAL ESTATE Project Developments Arihant Group is coming up with its new residential project- Arihant Viento located on Maheshtala Road (Topsia). The new project will have 45 apartments in three BHK and four BHK configurations. The three BHK apartments sizes will be ranging between 1,539 sq ft and 1,790 sq ft, while four BHK apartments will have sizes between 2,317 sq ft and 2,772 sq ft. Arihant Viento apartments will come with at a price of `5,800 per sq ft. The cost of three BHK apartments will be between `88.68 lakh and `1.03 crore and the four BHK apartments will cost between `1.37 crore and `1.69 crore. The possession of these apartments by the new owners will be completed by January, 2016. Ashiana Housing will invest `750 crore in the next three to four years to develop four new housing projects in Haryana and Rajasthan. The identified locations for the four new projects are: Jaipur, Bhiwadi, Sohna-Gurgaon and Neemrana. These new projects -- from which one will be for senior living -- will comprise 2,800 apartments. The funding will be done through internal accruals. Ashiana Housing will launch the projects in the second half of this fiscal. It will develop 780 flats in a 13 acre housing project at Sohna-Gurgaon, with a cost of about `400 crore. In Jaipur, it will invest `180 crore to develop a 14 acre housing project with 1,100 flats. Also, a senior citizen project at Bhiwadi, consisting of 650 homes at a cost of `130 crore; and at Neemrana with over 300 apartments at an expense of `60 crore. Private equity funds Clearwater Capital and SSG Capital Management are investing `450 crore in Lotus Greens'sports city township project in Noida. The company is acquiring over 300
acres in Noida's Sector 150 for around `2,500 crore and it will use the `450 crore infusion to make the first tranche of payment to Noida Authority next week for 230 acre. The Noida Authority awarded the contract to build the sports city to Lotus Greens in July. The over low-density project will offer residential as well as recreational facilities, including a nine-hole golf course. DB Hospitality- the hospitality arm of the DB Group, envisages to form a JV with Sheth Creators for developing a residential project. This project will come up on 2.2 acre of land parcel at Marine Lines in south Mumbai. According to the JV, DB will get the 55 per cent of the total area (7.5 lakh sq ft), whereas Sheth Creators will get the remaining area. Sheth Creators will have to pay an upfront refundable deposit of `200 crore to DB Hospitality. Sheth Creators would handle the execution and construction finance, while DB will look after the approvals for the project. Essel Group has proposed smart city projects in West Bengal and Uttar Pradesh. The group has made an offer to the West Bengal government about the smart city project. The state government is presently appointing a consultant to create a bid document for the project. Essel Group signed a memorandum of understanding (MoU) with the Madhya Pradesh government in October 2014 to build five smart cities in the state and promising investment of around `7,500 crore. The group would get into a definitive agreement for the project, within the next six to eight months. The project is proposed to be completed in two years from the date of signing the definitive agreement. Gianesin Canepari & Partners (GC&P) plans to invest over `600 crore in the Indian real estate. The investment will be made over the next five years. GC&P envisages setting up three residential projects in Navi Mumbai, Kerala and Indore. Each home will be in Italian style with ticket sizes ranging from `four to ten crore.
SPECIAL ECONOMIC ZONE Project Developments The management of the Gujarat International Finance Tec-City (GIFT City) has decided to launch the `7,696 crore Phase-II development of the project, post Vibrant Gujarat summit 2015. The authorities have planned to showcase the project before a global audience during the second day of summit on 12 January, 2015. The first phase of the `81,000 crore project is presently in progress. The cost of the second phase development is four times more as compared to that of Phase-I. It will involve an area of 22 million sq ft, which is more than double that of Phase-I. Also, the management intends to sell another three to four million sq ft of space within the GIFT City project. The response was quite positive for Phase-I of the project with a cost of `1,818 crore, as 12 million sq ft of land development rights have already been sold at the rate of `5,500 per sq ft.
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Presently, the company is looking to form a joint venture with land owners rather than acquire real estate. This is due to the constraint from RBI that a foreign company cannot buy land or own it. The revenue will be shared on the basis of the land value and project. Hiranandani Developers is planning, over the next few months, to revamp and relaunch two townships projects that it bought this year for around `1,000 crore. The two townships, spread across 157 acre in Chennai and 588 acre at Panvel, in Navi Mumbai, have been stalled for nearly two years. Hiranandani bought the Panvel project in October and has decided to call it Hiranandani Hills. The Chennai township was bought earlier this year in an electronic auction and will be called Hiranandani Parks. Both the upcoming projects belonged to Hirco. KEC International announced that it has completed a deal to sell 7.3 acre of land to Tata Housing- the real estate arm of the Tata Group. The price of this deal was `212.35 crore for a land situated at Thane district in Maharashtra. KEC International has executed a sale deed with 100 per cent subsidiary of Tata Housing Development Company- Ardent Properties. KEC International is leading engineering, procurement and construction firm. It has a presence in around 50 countries. The business segments consists of power transmission, power systems, telecom, water, cables and railways. Ashiana Homes and Landcraft Projects will jointly invest `650 crore on a housing project 'The Center Court' in Gurgaon. The investment will be made over the next five years to develop a 14 acre housing project consisting of 750 apartments, located on Dwarka Expressway. The JV firm Ashiana Landcraft Realty has already raised Rs 180 crore from Pirmal Group private equity firm Indiareit and financial institution India Infoline to fund this project. The project will be implemented in phases and is expected to be completed by 2019. The construction of the first phase comprising 450 has been started and the next phase would begin next year. Pushpanjali Upscale Living, an ultra luxurious project, is coming up at Teg Bahadur Road in Dalanwala, in Dehradun. The project is being implemented by Pushpanjali Realm & Infratech. The residential apartment complex is spread over 3,200 mtr of green campus and will comprise a total of 21 units in single seven-storey towers. Pushpanjali Upscale Living will include a private basement park, rooftop swimming pool, Italian marble flooring, centralised air conditioning by Daikin, UPVC Window system with video door
phone and II-tier CCTV security and surveillance at the main entrance and tower entrance. Singapore's GIC has formed a joint venture with Vatika Group to develop two residential projects. The projects, coming up in Gurgaon, are expected to be completed by the financial year 201819 and will have development potential of over 2.3 million sq ft. The projects are coming up near the two townships being developed by the Vatika Group -- Vatika Express City (120 ha) and Vatika India Next (250 ha)-- where the company is already providing extensive social infrastructure including schools, hospitals, retail malls, parks and recreational spaces. The West Bengal Cabinet, on 12 December 2014, approved development of six smart cities in the state. The six smart cities include airport city developed by the Bengal Aerotropolis (BAPL) at Andal, in Burdwan district; tannery and IT hub at Bantala, near here; Durgapur in Burdwan district; Bolpur in Birbhum district; Kalyani in Nadia district; and Siliguri in Darjeeling district. The State Cabinet has also identified these six cities by six different names. The city developed by BAPL, at Andal will be known as 'Golden City'; the City at Bantala as 'Sector-VI'; Durgapur will be known as 'Silver City'; Bolpur as 'Nobel City'; Kalyani as 'Knowledge City'; and Siliguri as 'Sunrise City'.
INDUSTRIAL & SOFTWARE PARKS Project Developments
Kerala Chief Minister, Oommen Chandy, announced, that the first building at SmartCity Kochi, in which the Kerala government has a stake, will be opened before June 2015. Work on the first building, which will have over six lakh sq ft built-up space, will be completed by the middle of March. The first phase of the project will generate around 6,000 direct jobs. The board of directors approved a `250 crore budget for constructing the first building, roads and bridges, and for water and electricity supply. Three companies have already signed agreements to move into the first building. Work on a school and two IT buildings will begin next year. Gems Education Group of Dubai will set up a school at SmartCity. Kochi Infopark has attracted investments worth `3,000 crore and has generated over `2,350 crore of software exports revenue. The park now has 4.5 million sq ft of technology workspace with state-
COMMERCIAL COMPLEX Project Development KSS plans to invest `90 crore for rolling out 180 screens in 80 locations over the next five years. The digital entertainment firm plans to expand its reach to Tier-II and Tier-III cities in Gujarat, Maharashtra, Uttarakhand, Punjab, Chhattisgarh, Uttar Pradesh and Madhya Pradesh. Each property will be developed as a 2-screen miniplex. KSS Miniplex is a division of KSS which is into setting up miniplexes through joint venture with the local partners and the proposition includes planning, set-up, screening, operations and marketing. The partnership will entail a profit sharing of 50:50. At present KSS has around 80 screens under various stages of implementation.
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CONSTRUCTION & SOCIAL SERVICES of-the-art infrastructure. The 100 acre Kochi campus is presently home to 200 plus companies, including TCS, Wipro, Cognizant and UST Global. The park, which presently employs around 24,000 IT professionals, has almost finished its Phase-I development, with the construction of IT campuses by TCS and Brigade Group nearing completion. Work on the `2,500 crore Phase-II project, spread across 160 acre, is progressing quickly and is expected to be ready by 2020. The foundation stone for the Trans-Ganga City Project was laid by Uttar Pradesh Chief Minister, Akhilesh Yadav, on 11 December, 2014. The project, propped as a modern and clean-green city, will be developed by UP State Industrial Development Corporation (UPSIDC). The project is coming up in Unnao distruct, which is ground zero of the proposed Lucknow Industrial Development Authority (LIDA). The Unnao project will span 1,156 acre near Ganga Barrage, in Kanpur City. Post development, an investment of `10,000 core is expected to flow into the mega project. The city will be equipped with international infrastructure facilities. Under the project, commercial and institutional areas will also be developed along with industrial and residential areas. A housing society comprising exhibition centre, multiplex, mega mall and multi-storeyed residential complexes has been proposed. The Odisha Industrial Infrastructure Development Corporation (IDCO) has spent `71.62 crore on Infovalley project. By the end of October 2014, the total cost of the project is `71.32 from which `41.32 crore was spent for land acquisition and `30.30 crore for infrastructure development. It will soon be in operation for the entrepreneurs. IDCO is the co-developer for this project spread across 600 acre of land consisting of includes 262 acres IT SEZ (Special Economic Zone), 215 acres ESDM park (Electronics System Design & Manufacturing), 113 acres green space and 54 acres of business park. Infovally project is estimated to generate `1,500 crore revenue in the first three years. Shanti Integrated Textile Park plans to set up a textile park at Navi Pardi, Kamrej taluka, in Surat district of Gujarat. The project will spread over 48.78 acre of land and will be implemented in three phases. The textile park will be set up with an investment of `151.09 crore, which will be funded through internal accruals. Technopak Advisors and Infrastructure Leasing & Financial Services are the two consultants for the project, while Mr Dharmesh Patel, Surat, is the civil contractor.
OTHER COMMUNITY SERVICES Project Development
Maharashtra Chief Minister, Devendra Fadnavis, laid the foundation stone (Bhoomipujan ceremony) of the administrative building of Nagpur Metro Project. The seven storeyed administrative building is being built on Nagpur Improvement Trust land. It is expected to cost around `23 crore and construction will be completed within 15 months. The building will comprise a conference hall, auditorium and office of Metro Railway Corporation.During the foundation stone ceremony, the 38 PROJECTS TODAY JANUARY 2015
Maharashtra chief minister announced that work of the Nagpur Metro Railway project would commence soon. The project will cost around `8,000-10,000 crore and is projected to be activated by 2018. It will help to resolve traffic problems in the city.
RETAIL
Project Developments Ashapura Intimates Fashion plans to enter the retail business and will invest `31 crore to set up retail outlets across Mumbai. The company plans to open 10 company-owned outlets across Mumbai and a manufacturing unit in Gujarat, over the next one year. Each retail outlet will range from 1,500 sq ft to 2,500 sq ft. Ashapura will be investing `50 lakh per store for the setup which will be financed through internal accruals. It already has a manufacturing plant in Thane. The process of acquiring 2,025 lakh sq ft land in Gujarat for setting up the plant is in progress. It will double its production capacity once it becomes operational. Barista Coffee plans to open 550 outlets of its coffee chain in the next five years. Carnation Hospitality, which owns Barista Coffee, plans to increase the number of Barista outlets to 750 in five years from its present 198. In the first three years, the company aims to open 350 outlets. Of the 550 Barista outlets, 350 will be owned and operated by the company, while the remaining will be run by franchisees. The company-owned and operated Barista Coffee shops will focus on high streets, malls and pop-up outlets and kiosks, while the franchisee-owned will be opened primarily across the Middle East and South East Asia. Fossil, the US-based watchmaker, will invest upto `40 crore to open 25 retail outlets in India by 2017. The company will sell nonwatch products such as leather bags for women and men, wallets, eye-wear and jewellery through its retail outlets in the country. Fossil, after receiving the government nod on 100 per cent FDI in single brand retail in 2013, opened its six retail outlets since March 2014. The company has stores in Mumbai, Bengaluru and Delhi. It will look at opening new stores in Pune, Hyderabad, Ahmedabad, Chandigarh, Chennai, Jaipur and Surat. Hidesign plans to open standalone stores for its shoes vertical by 2016 to tap the footwear segment. Hidesign will be entering into the footwear category with limited products in February 2015. The company will initially sell in 30 select existing stores in cities such as Mumbai, Delhi and Bengaluru. By the end of the first year, it will have full product range and by the second year, the company will look at opening individual Hidesign stores. The company is outsourcing manufacturing of shoes but will supply leather and control designs. At present, Hidesign has 76 stores in the country and plans to open another 12-14 stores next year. Hartmann opened its maiden store in India, with a boutique at the UB City Mall in Bengaluru. The new boutique in Bengaluru is designed by New-York based design firm Gensler. It will showcase the global luxury luggage maker creations including several products in the different categories. The company also announced
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its plans of opening five additional stores across major metros in India by the end of 2015. Hartmann has been manufacturing exclusive crafted luggage, travel cases and fine leather goods for over 135 years. Joyalukkas will invest `1,500 crore for its expansion plan, which includes setting up 30 jewellery stores. According to the plan, 20 stores would be set up in India and 10 overseas. The new jewellery stores will come up by the next fiscal year and will add to the company's existing 95 outlets. Joyalukkas is keen to expand its footprint in the US, Sri Lanka and Europe. Some of the new stores will be set up in Tier-II cities of India. Each store requires `50 crore of investment for the set up. Kalyan Jewellers has opened five more exclusive showrooms in Kerala. This takes their overall tally to 15 outlets in the state, which is highest by any jewellery company. The five showrooms at Attingal, Adoor, Thodupuzha, Alappuzha and Angamaly were inaugurated on 30 November, 2014. In October, 2014, Warburg Pincus invested `1,200 crore in Kalyan Jewellers. This helped the jewellery company in scaling up its presence across India and West Asia. Kalyan Jewellers has 72 showrooms spread across India and United Arab Emirates. In India, it has a strong presence across all major markets in South India, Maharashtra, Gujarat, National Capital Region (NCR) and Punjab. Spencer's Retail, an arm of RP-Sanjiv Goenka group, announced that it would open 10-15 stores focusing at hyper format over the next few years. The company plans to open nine stores this year as compared to 11 stores in FY14. To open each store will cost `three to five crore and Spencer's Retail will spend between `4060 crore a year in adding new stores. Presently, the retail arm operates 126 stores including 33 in large format in 40 cities of India. The company also launched Spencer's Mobile App on 9 December, 2014. This app will give customers a new experience in shopping at the retail chain. Walmart will open a new cash and carry store in Agra after a gap of two years. The company, which opened its last store in Bhopal towards the end of 2012 will focus on cash and carry business in India. Walmart is presently working towards procuring all relevant licences and permits to have it up and running in due course in the coming year. The company runs 20 cash and carry stores in India, under the brand 'Best Price' across nine states.
HOTELS & RESTAURANTS Project Developments
Apeejay Surrendra Park Hotels envisages to add 1,6000-2,000 rooms over the next five years. The rooms will be added to the portfolio of its new mid segment brand Zone by The Park. The group launched its first property under the new brand, a 56-room hotel in Coimbatore. The brand, Zone by The Park, will target TierII and Tier-III cities. It will consist of 80-100 room properties which Apeejay Surrendra will run on a management contract basis. Apeejay Surrendra Park Hotels will launch four properties under the
HOSPITALS Project Developments Apollo Hospitals' `400 crore medical college and hospital in West Bengal, with a capacity of 1,000 beds, will be ready by 2020. The state government has provided the 14 acre land in Batanagar in Kolkata's neighbouring South 24 Parganas district free of cost, with only a nominal lease rent to be paid. The Apollo Institute of Medical Sciences and Research is coming up on this land. This institute is proposed to be constructed in multiple stages. The first phase work of the institute, with 500 beds and 100 medical seats, is projected to be completed by 2017. CARE Hospitals Group, announced the opening of hospitals at Jabalpur, Madhya Pradesh and Visakhapatnam, Andhra Pradesh. The Group has inked an agreement with Marble City Hospital for the hospital in Jabalpur. The agreement has been signed to operate the facility as part of the CARE network on an operations and management (O&M) contract, through its Nagpur-based subsidiary Ganga CARE. The 200 beds capacity hospital marks the entry of CARE Hospitals Group into Madhya Pradesh. In the last six months, this is the third O&M contract by CARE hospitals. The Haryana government announced setting up Kalpana Chawla Medical University in Karnal district, on 13 December, 2014. The Director of Kalpana Chawla Medical College will, next month, present a concept paper on the proposed university which will come up over 100 acre of land. Construction work on the university complex is proposed to be completed in the next four to five years. At least one medical college of 200 seats, a 750-1,000 bed hospital, a dental college, and some medical institutes will be set up in the area in coordination with the Central government. So far, a sum of `143 crore has been spent on construction of the Kalpana Chawla Medical College and Hospital, which will cost `645 crore.
Project Impediment Kerala's All India Institute of Medical Sciences' (AIIMS) proposed project is moving at a snail's pace. It has been four months since the state government sent details of four shortlisted sites to the Centre for this project. The Union Health Ministry has not sent its team of experts to check the feasibility and accessibility of these locations. In July 2014, the Cabinet shortlisted four of the proposed six sites. Each of the shortlisted four sites: Thiruvananthapuram Nettukaltheri; Kottayam near Medical College; Ernakulam HMT land, Kalamassery; and Kozhikode KSIDC land at Kinaloor, have an area of over 200 acre. Of all, Ernakulam HMT land Kalamassery is the front runner to get selected. It is accessible to people living in southern and northern districts compared to Thiruvananthapuram and Kozhikode locations.
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CONSTRUCTION & SOCIAL SERVICES new brand. The properties will be in Jaipur, Chennai, Mahabalipuram and Raipur--reaching a total of 275 rooms. Carlson Rezidor is planning to introduce two more brands Quorvus and Radisson Red - in India. The international hospitality chain envisages having around four to five Radisson Red properties in India by 2020. At present, it operates five brands in the country: Radisson Blu, Radisson, Park Plaza, Country Inns and Suites by Carlson, and Park Inn by Radisson. Carlson Rezidor aims to add 2,500-3,000 rooms over the next three years. About 27 hotels are in the pipeline and Carlson Rezidor expects to add seven to eight or even nine properties, on an average, over the next three years. Radisson Blu, its flagship hotel, will be operational by the end of 2016 or early 2017 with 275 rooms. It is spread over 8,000 sq ft and will have about 2,700 sq ft of meeting spaces along with multi-dining options, and banqueting facilities. Carlson Rezidor Hotel Group envisages adding 3,000 new rooms in India over the next three to four years. The new additions will be under its various brands across the country and will create 4,500 to 5,000 new jobs. The hospitality major has a good presence in big cities but will have 27-28 new hotels in Tier-II cities in India. Around 3,000 rooms are under construction and will be operational over the next three to four years. Presently, the Carlson Rezidor Hotel Group has 73 operational hotels across India, offering about 9,000 rooms under various categories, and employs around 15,000 people. Last week, it opened its first hotel 'Radisson Blu' in North East at Guwahati. This is the ninth property opened this year and was constructed by Dharampal Satyapal Group. Goldman Sachs has invested `255 crore as equity in Vatika Hotels. This project is a hospitality venture of realty firm, Vatika group. Vatika Hotels presently has two operational hotels in Gurgaon and Sohna, comprising about 425 rooms. Vatika Hotels owns and manages Vatika Business Centres comprising 3,000 seats, over 0.5 million sq ft area across India and plans to double its capacity over the next 36 months. The company was the first to establish Starwood's 'Westin' brand in India and presently owns Westin Gurgaon & Westin Sohna with Jaipur and Pondicherry under active planning. Hard Rock Hotel Goa, the first of its kind in India, is projected to open in March 2015. Hard Rock International will transform the present North 16 GOA Resort owned by Convention Hotels India,
into the Hard Rock Hotel Goa. The 135-room property, located in Calangute, will offer world class entertainment, stylish design, unparalleled service and Hard Rock's differentiator - music. The boutique property will feature traditional offerings, including a premium three meal restaurant, room service, open air pool and outdoor courtyard area, complemented by a poolside bar and grill. Hotel Leelaventure inked a memorandum of understanding (MoU) with Nepal-based Summit Group on 18 December, 2014. It is a collaboration to build one of the first of four hotels to be established across Nepal. The Leela Kathmandu is the first 5-star deluxe hotel and is expected to be ready in 36 months. This property will come up in the heart of Kathmandu. It will consist of guest rooms, signature restaurants, lounges, banquet facilities along with spa and fitness studio. Leela Kathmandu will be followed by a hotel in Lumbini as part of the Leela Group's plans to pave a Buddhist trail from Nepal to Bodhgaya, Nalanda, and Varanasi in India. Under this brand, a hotel is being planned at Pokhara. J W Marriott's first hotel in Kolkata would be operational by October 2015. The property will be handed over by Mani Group to J W Marriott by June 2015. The group is developing the property on arterial E M Bypass Road. After the development, it will take about three months for the hotel to start operations. The property would have 300 keys along with other facilities and is being developed at a cost of about `1,300 crore. The J W Marriott hotel in Kolkata is located next to another five star deluxe property ITC Sonar. Presently, ITC Sonar too is expanding its property. The Lemon Tree Hotel Company has announced the opening of its third property - Lemon Tree Hotel, Gachibowli, in Hyderabad. The property has 190 rooms along with a 24x7 multi-cuisine restaurant, a fitness gym and an open-air swimming pool etc. The hotel also houses a conference venue on 1,500 sq ft. With this addition, Lemon Tree Hotels' group, has its presence in 26 locations across 15 cities in India. Also, Hyderabad became the only city after Delhi to have all three Lemon Tree Hotel brands in its fold. The company operates three brands - Lemon Tree Premier, Lemon Tree, and Red Fox economy category hotels. The Lemon Tree Hotel Company will add a sizable 900 rooms inventory to the Mumbai hospitality market in the next three and half years. The first to open will be a 300-keys property in Andheri within the next two years, followed by a 600-keys Lemon Tree
WATER & WASTE MANAGEMENT Project Development Kerala chief minister, Oommen Chandy, gave his nod on 12 December 2014, to initiate measures to acquire 15 acre of land for the Kalamassery water project. The land to be acquired is presently owned by HMT, at Kalamassery. The `285 crore drinking water project was designed by Kerala Water Authority (KWA) almost two years ago but has been facing problems mainly due to lack of land to construct the plant. The project, once implemented, will provide 135 million litre per day (MLD) of water. The plant will treat water from the river Periyar. A seven km inflow pipeline will be constructed to bring water from Eloor to the proposed plant. Water will be supplied to Eloor, Kalamassery, Thrikkakara, Maradu, Chellanam, Kumbalam and Kumbalanghi municipalities and Kochi city.
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Premier project in the vicinity of Chhatrapati Shivaji International Airport. The second project will be operational by 2018. The company is also planning a commercial space of about a 1,00,000 sq ft and meeting space of approximately 60,000 sq ft. The newer projects will see more allocation of meetings space than the existing hotels. Lemon Tree Hotel Company has sketched out plan to invest around `600 crore in India. It will open 900 rooms across the country by the end of the next fiscal year. From the total 900 rooms to be added, 750 will be in five new hotels and the remaining 150 rooms will be added in Delhi. The company operates across India under its three brands- Lemon Tree Premier (scale brand), Lemon Tree Hotels (midscale segment), Red Fox Hotels (economy brand). Louvre Hotels Group will invest over about `600 crore in the Indian hospitality space over the next three years. In India, the hotel chain owns brands like Royal Tulip, Golden Tulip and Tulip Inn. The hotel chain will debut its budget brands - Campanile and Premiere Classe - next year in India. By 2017, Louvre Hotels targets 60 operational hotels in the country. Presently, the brand has more than 1,100 hotels in 47 countries. Louvre's plan to grow by acquiring assets is unlike the trend in the industry where hotel chains are mostly growing through management contracts. OYO Rooms plans to increase the number of hotels under its brand to 450 by the end of 2015, as per its expansion plans. The company presently has 65 hotels with 1,200 rooms under its brand. The company provides training, standardisation of the product and marketing of these hotels, which is the main value addition to these properties. The hotels will be owned and managed by the owners of the hotel. The investments of the company will be mainly related to marketing the brand. OYO Rooms is present in five cities in India including Delhi, Gurgaon, Mumbai, Noida and Bengaluru. SUBA Group of hotels plans to open three more hotels in the state of Gujarat. The new hotels will come up in Bhuj, Bhavnagar, and Junagadh cities. With the new addition of the hotel, SUBA Group will have totally six hotels in the state. It has already opened hotels in Dahej, Vadodara, and Ahmedabad. The new hotel in Vadodara is located close to the airport and railway station along with major corporate offices. SUBA Group of Hotels is part of the Mumbaibased MRL Group. It has seven hotels, including three in Mumbai, and one each in Ahmedabad, Vadodara, Dahej, and Dubai.
TOURISM & RECREATION
Project Developments The Brihanmumbai Municipal Corporation (BMC) has proposed to appoint a consultant for a bird park in Powai, a year after floating tenders inviting EOIs to draw up a plan for the project. Out of the four bids, BMC has selected Universal Organics as the consultant for the bird park project. The `13 lakh proposal to appoint the consultant will be placed on Wednesday before the standing
committee of the civic body for a final approval. The other bidders considered for technical and financial evaluation of the civic body include Ashfaq Ahmed Consultancy Services, Nagpur; and HKS Designer and Consultants International, Thailand, among others. Work has started on the lake redevelopment project in east Delhi. East Delhi Mayor, Meenakshi, laid the foundation stone of the project on 20 December, 2014. This is planned by the East Delhi Municipal Corporation (EDMC) as part of the `22 crore Welcome Lake redevelopment project in Shahdara. It will consist of facilities such as light and sound programmes, laser shows, amphitheatre and a meditation garden. The lake spans over 17 acre and the redevelopment work will be executed in two phases. About `22 lakh will be the estimated cost of the first phase and will involve treatment of the water. While in the second phase, the development of the park and garden will be undertaken. The environment ministry has given the green signal to the `1,900 crore Shivaji Statue project. The Maharashtra government received environmental clearances after submitting the proposal nine months back. The 309 ft tall statue will be located off the Marine Drive, along the Arabian Sea, in Mumbai. For this project, the environment ministry has given clearance, and a notification will be out soon. The proposal had been sent to the Union government in February 2014, under the Congress-NCP government's rule which had also allotted `100 crore for the project. Phase-I of the Sewagram Ashram beautification project will be approved in a week. A public ledger account (PLA) will also be opened for the project soon. During Phase-I, the compound wall, a hall, parking lot, budget hotel, and water tank are planned to be constructed. The estimated cost of this face lift is `495 crore, of which only `30 crore has been sanctioned till now. Once the secretary level committee clears the project, the finance ministry will give the administrative approval and funds will be given through Nagpur divisional commissioner. The project was delayed by over one year as a consultant was appointed in July 2014 to prepare the master plan. However, the government resolution (GR) was issued on 20 April, 2013.
IRRIGATION
Project Development The Maharashtra government has approved construction of a barrage with a full reservoir level (FRL) of 152 mtr, as requested by the Telangana government. This has given a major boost to the proposed Pranahita-Chevella project. The 152 mtr barrage is crucial to divert 22,000 cusecs of water from Pranahita river to Yellampalli project. As the FRL of Yellampalli project is 148 FRL, the barrage to be constructed to draw Pranahita water should have 152 FRL, for free flow of water. However, the Maharashtra government opposed the 152 mtr FRL initially. As of now, the state government has accepted the demand of the state, which was very important for diverting 22,000 cusecs of water from Pranahita for construction of the Pranahita-Chevella project. PROJECTS TODAY JANUARY 2015 41
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STATISTICS Projects Investment: By Industry December-13 Sector
December-14
No. of
Invst.
Share
No. of
Invst.
Projects
(``Crore)
(%)
Projects
(``Crore)
(%)
3,236
1,431,355
19.48
3348
1,641,788
19.69
Food & Agro Products
547
29,180
0.40
625
49,117
0.59
Textiles
291
11,026
0.15
318
19,383
0.23
Basic Chemicals
638
446,690
6.08
687
526,798
6.32
Fertilisers
84
85,634
1.17
80
100,844
1.21
141
8,209
0.11
186
13,021
0.16
Petrochemicals
16
90,899
1.24
16
101,872
1.22
Petroleum Products [Refinery]
68
241,996
3.29
65
286,515
3.44
Plastic & Plastic Products
131
5,725
0.08
134
10,542
0.13
Rubber & Rubber Products
37
8,512
0.12
30
10,909
0.13
Paper & Paper Products
85
12,493
0.17
83
17,366
0.21
326
129,475
1.76
335
143,838
1.72
281
126,932
1.73
286
140,841
1.69
671
630,795
8.59
628
664,712
7.97
610
487,909
6.64
577
534,152
6.40
61
142,886
1.95
51
130,560
1.57
Manufacturing
Drugs & Pharmaceuticals
Non Metallic Mineral Products Cement & Asbestos Basic Metals Iron & Steel Non Ferrous Metals Machinery
Share
242
91,388
1.24
214
106,092
1.27
Non Electrical Machinery
92
7,800
0.11
78
7,150
0.09
Electrical Machinery
87
10,624
0.14
77
9,753
0.12
Electronics
63
72,964
0.99
59
89,189
1.07
230
62,150
0.85
252
87,520
1.05
901
189,636
2.58
905
256,542
3.08
Transport Equipment Mining Mineral Fuels
591
133,577
1.82
585
198,843
2.38
Coal
301
52,835
0.72
343
94,567
1.13
Petroleum Oil & Gases
261
59,002
0.80
216
85,526
1.03
2,268
2,622,283
35.70
2381
2,784,530
33.39 32.22
Electricity & Non Conventional Energy Electricity
1,650
2,561,311
34.87
1707
2,686,840
Hydel Based Power
960
372,540
5.07
1019
414,733
4.97
Thermal Based Power
671
2,040,175
27.77
668
2,120,466
25.43
Nuclear Based Power
19
148,597
2.02
20
151,642
1.82
Non Conventional Energy
618
60,972
0.83
674
97,690
1.17
39,729
2,717,394
36.99
42019
3,238,288
38.83 0.21
Services & Utilities Hotels & Restaurants
417
16,710
0.23
415
17,251
Community Services
9,916
346,981
4.72
10717
413,057
4.95
19,274
1,784,873
24.30
20889
2,172,064
26.04
Transport Services Roadways
16,073
777,299
10.58
16979
836,354
10.03
Railways
812
575,694
7.84
884
784,992
9.41
Airways (Aviation Infrastructure)
143
74,550
1.01
158
62,912
0.75
Shipping Infrastructure
322
179,114
2.44
363
246,524
2.96
85
31,597
0.43
107
35,198
0.42
1,597
131,218
1.79
2126
189,898
2.28
46
42,854
0.58
36
62,675
0.75
Commercial Complexes
1,751
38,017
0.52
1903
46,472
0.56
Real Estate
6,981
223,397
3.04
6628
250,464
3.00
Industrial & Software Parks
925
227,020
3.09
926
233,551
2.80
Storage & Distribution
600
58,277
0.79
690
67,385
0.81
2,147
385,453
5.25
2166
418,518
5.02
48,281
7,346,120
100.00
50,819
8,339,665
100.00
Pipelines Power Distribution Communication Services
Irrigation Total
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Projects Investment: By States December-13 States
December-14
No. of
Invst.
Share
No. of
Invst.
Share
Projects
(``Crore)
(%)
Projects
(``Crore)
(%)
3,998
775,042
10.55
2,148
614,490
7.37
Arunachal Pradesh
156
157,361
2.14
177
166,938
2.00
Assam
670
92,932
1.27
699
131,696
1.58
Bihar
1,879
196,627
2.68
2,192
240,534
2.88
Chhattisgarh
1,744
426,482
5.81
1,782
455,922
5.47
Delhi
1,017
101,136
1.38
1,030
103,977
1.25
400
11,592
0.16
429
15,907
0.19
Gujarat
2,695
529,111
7.20
2,901
614,769
7.37
Haryana
1,758
141,028
1.92
1,904
173,891
2.09
States Andhra Pradesh
Goa
Himachal Pradesh
531
80,444
1.10
615
94,286
1.13
Jammu & Kashmir
418
101,886
1.39
439
115,318
1.38
Jharkhand
1,663
279,420
3.80
1,910
301,779
3.62
Karnataka
3,910
474,541
6.46
4,145
539,087
6.46
Kerala
1,394
180,259
2.45
1,382
169,427
2.03
Madhya Pradesh
3,409
501,248
6.82
3,302
548,103
6.57
Maharashtra
8,246
846,089
11.52
8,333
944,090
11.32
69
7,199
0.10
89
12,571
0.15
Manipur Meghalaya
137
12,074
0.16
126
13,656
0.16
Mizoram
63
7,437
0.10
64
7,865
0.09
Nagaland
24
3,842
0.05
31
9,799
0.12
Odisha
2,441
619,092
8.43
2,748
709,993
8.51
Punjab
1,212
89,629
1.22
1,204
77,271
0.93
Rajasthan
1,771
206,870
2.82
1,884
234,259
2.81
82
24,025
0.33
80
29,083
0.35
2,853
453,563
6.17
2,948
524,009
6.28
Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh
0
0
0.00
2,023
267,634
3.21
167
19,388
0.26
166
16,716
0.20
2,252
309,994
4.22
2,427
388,025
4.65
Uttarakhand
660
56,270
0.77
835
65,912
0.79
West Bengal
1,757
228,053
3.10
1,889
246,986
2.96
Union Territories A & N Islands
56
330
0.00
52
667
0.01
122
1,709
0.02
125
1,867
0.02
Dadra & Nagar
65
405
0.01
65
500
0.01
Daman & Diu
42
513
0.01
49
469
0.01
Lakshadweep
7
156
0.00
8
170
0.00
9,361
0.13
103
9,333
0.11
Chandigarh
Puducherry
112
Multi-State, Offshore & Unallocated Multi States
394
360,349
4.91
430
426,843
5.12
Offshore
81
35,798
0.49
55
59,697
0.72
Unallocated
26
4,866
0.07
30
6,126
0.07
48,281
7,346,120
100.00
50,819
8,339,665
100.00
All India
PROJECTS TODAY JANUARY 2015 43
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STATISTICS Index of Industrial Production: Sectoral & Use-based Oct 2014
Apr-Mar 2011-12
2013-14
Apr-Oct
Oct
2014-15
2014
Index
Apr-Mar 2012-13
Apr-Oct 2013-14
2014-15
Y-O-Y increase (%) Sectoral Indices
Mining & Quarrying
125.00
125.5
124.7
120.4
5.2
-2.3
-0.6
2.4
Manufacturing
166.40
183.2
181.9
178.4
-7.6
1.3
-0.8
0.7
Electricity
184.20
155.2
164.7
181.6
13.3
4.0
6.1
10.7
Use-based Classification Basic Goods
162.00
153.6
156.8
163.4
5.8
2.4
2.1
7.6
Capital Goods
241.50
251.6
242.6
245.8
-2.3
-0.6
-3.6
4.8
Intermediate Goods
145.90
146.7
151.3
151.6
-3.1
1.6
3.1
1.6
Consumer Goods
148.30
190.6
185.5
169.2
-18.6
2.4
-2.7
-6.3
Consumer Durables
191.70
301.2
264.4
229.0
-35.2
2.0
-12.2
-16.0
Consumer Non-durables
131.10
146.9
154.2
145.5
-4.3
2.8
5.0
1.0
General
162.40
172.2
172.1
170.5
-4.2
1.1
-0.1
1.9
Source: Central Statistical Organisation
Industrial Entrepreneur Memoranda `Crore
No. of IEMs filed Month 2011-12
2012-13
2013-14
2014-15
2011-12
2012-13
2013-14
2014-15
Apr
264
252
222
157
69,116
64,078
29,991
47,655
May
411
275
223
115
555,533
79,726
46,425
4,624
Jun
382
207
173
102
138,475
27,950
13,548
8,967
Jul
298
302
199
126
57,425
93,704
87,543
1,82,574
Aug
322
215
174
156
60,907
24,566
70,825
15,667
Sep
323
254
206
173
80,715
19,834
60,098
30,266
Oct
228
192
138
102
116,917
35,107
21,918
14,367
Nov
276
172
192
127
43,810
16,534
35,107
16,599
Dec
272
195
180
37,407
27,367
25,123
Jan
240
192
179
59,433
48,882
13,350
Feb
246
214
211
50,365
32,294
36,015
Mar
278
288
200
69,204
61,825
22,138
Apr-Mar
3,540
2,758
2,297
1,339,307
531,867
462,081
Apr-Nov
—
—
—
—
—
—
Source: SIA, Ministry of Commerce & Industry
44 PROJECTS TODAY JANUARY 2015
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ERIL Index of Cost of Project Inputs: November 2014 Wholesale Price Index: 2004-05=100 Y-o-Y Incr. (%)
Index Non-metallic mineral products Structural clay products Cement & Lime
Incr. since Mar (%)
2014/13
2013/12
2014
2013
174.9
5.7
1.5
4.4
-0.5
197.7
10.3
8.8
7.2
7.0
170.7
4.1
-2.5
4.0
-4.8
Basic metals, alloys, metal products
165.5
0.3
-0.9
-1.3
0.1
Ferrous Metals
155.9
1.0
-1.0
-1.2
-0.2
169.8
3.1
2.3
2.0
2.0
Machinery & Machine tools
134.9
1.9
2.8
1.3
2.3
Industrial Machinery
152.8
1.3
3.0
0.7
2.2
Construction Machinery
141.4
3.4
0.3
2.8
0.0
Air Conditioner & Refrigerators
120.8
3.8
2.9
1.2
2.4
Non-electrical Machinery
127.3
2.6
0.8
2.3
1.2
Electrical Machinery, Batteries
138.6
0.8
2.9
0.1
2.5
Non-Ferrous Metals
Electrical Accessories, Wires, Cables.
156.9
4.0
4.9
3.6
7.8
Transport equipment & parts
135.9
0.1
3.8
0.1
2.7
Automotives
134.8
-0.5
4.2
-0.2
2.9
Auto Parts
138.3
3.7
1.8
1.6
1.6
Composite ERIL Index for project inputs
150.8
1.3
1.2
0.3
1.4
Overall WPI
181.5
0.0
7.5
0.7
6.7
Foreign Direct Investment Inflows (in US$ in million) Equity FIPB Route/ RBI Automatic
Equity Capital
Reinveste Earnings+
Other Capital
Total FDI Flows
2000-01
2,339
61
1,350
279
1,847
2001-02
3,904
191
1,645
390
1,505
2002-03
2,574
190
1,833
438
377
2003-04
2,197
32
1,460
633
10,918
2004-05
3,250
528
1,904
369
8,686
2005-06
5,540
435
2,760
226
9,926
2006-07
15,585
896
5,828
517
3,225
2007-08
24,573
2,291
7,679
300
20,328
2008-09
31,364
702
9,030
777
(-) 15,017
2009-10 (P) (+)
25,606
1,540
8,668
1,931
29,048
2010-11 (P) (+)
21,376
874
11,939
658
29,422
2011-12 (P)
34,833
1,022
8,206
2,495
16,812
2012-13 (P)
21,825
1,059
9,880
1,534
27,582
Finacial Year (April-March)
2013-14 (P)
24,299
975
8,978
1,794
5,010
2014-15 (Apr- Oct, 2014)
17,347
537
4,938
2,684
-
Note: FDI inflows do not include Euro (GDR/ADR) Issues *Includes advances pending allocations, stock swapped, etc. Source: dipp.gov.in
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