We are planning to raise Rs 2.9 lakh crore from the equity market, Rs 1.06 lakh crore from private investments and Rs 2.19 lakh crore from Central Road Funds (CRF) or toll-operate-transfer (TOT) or toll road (BOT) projects.
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Ambitious Target
The initiatives that will have a direct bearing on the pace of execution include awarding projects after securing 80 per cent right of way, expediting projects stuck midway, delegating the power to grant forest clearances to regional offices, filing online for clearances to construct road over bridges (ROBs) and road under bridges (RUBs) and increasing the limit on sand mining.
GovernmentÂ’s focus on road sector yields positive results: ICRA
Effective policy measures by the Government over the last 36 months have revived the Indian road sector and supporting the execution pace. According to ICRA, these include steps like awarding projects after securing 80 per cent right of way; expediting projects stuck midway, delegating the power to grant forest clearances to regional offices, online filing for clearances to construct ROB and RUBs and increasing the limit on sand mining.
Dilip Buildcon bags Rs 700-crore EPC orders from Transport Ministry
Highway developer Dilip Buildcon has said that it has bagged two EPC road projects worth about Rs 700 crore in Maharashtra from the Road Transport and Highways Ministry.
‘Lenders’ concern – risky execution in highway concessions
Minimising of project execution risks and introduction of strong deterrents for non-performers are the only long-term solutions to ensure seamless funding for infrastructure projects, says Srishti Ahuja Taneja, Director, Transaction Advisory Services, Ernst & Young.
In the HAM of a Dilemma
Just as with PPP projects, HAM contracts too are finding financial closure to be a challenge. Banks, especially, are wary of putting their money on developers with weak financials and lack of adequate experience. Industry insiders, however, beg to differ.
Beating the clock
The road section DBL worked upon was basically one part of the full section of 150 km. The authorities floated open a tender for this 150 km stretch of road in three segments - km 0 to 43, km 43 to 93 and km 99 to 150 at the same time, out of which we received the stretch between km 43 to 93.
In this regime, roads have taken a quantum leap
The government is taking only the EPC cost as the DPR cost. They are not adding other things like interest on annuity or the interest difference when we do the financing of the project.
Hit by the HAMmer
The Hybrid Annuity Model (HAM) unveiled with great fanfare earlier this year was expected to set off the next wave of award of PPP highway projects. The intent and purpose of introducing HAM, as a hybrid of EPC and BOT (annuity) formats, was noble and deserves to be lauded: to moderate risks faced by highway developers and to provide financial support during construction.
Govt to award 10,000 km of NH for development
The major policy initiatives of MoRTH in recent past are as follows:
Exit Policy: The cabinet recently allowed private developers to exit all operational BOT projects two years from start of operations.