TRANSPORT 5 | ENGINEERING 7 | CONSTRUCTION NEWS 9 | EDITORIAL 10 | TENDERS 14 | FEATURE 16Rs. 40/- 21 - 27 September | 2009 | Vol. 4 No. 8 India’s First & Only Infrastructure Weekly www.projectsinfo.in SHASHIDHAR NANJUNDAIAH WB and land woes Snapshots Land is increasingly becoming a major issue in Bengal's infrastructure projects On Sept 7, the government pulled the plug on the IT and BPO township in Rajarhat Infosys will go slow on that project now Scenic Vedic Village in Kolkata. Mumbai T he West Bengal government, which had announced that its ambitious Vedic Village IT and BPO township was scrapped, announced last Friday that it was, in fact, in a position to offer 45 acre (instead of the initial offer of 90 acre) of alternative land at Rajarhat on Kolkata’s outskirts, where the Vedic Village is situated, to each of the IT giants— Infosys Technologies an Wipro Technologies—who are the key vendors in the project. Although Wipro has in principle agreed to go ahead with establishing itself in the state, Infy is not so sure and has said it will “review” it. Sources say that it will tread carefully especially in the shadow of a global recession. Infosys and Wipro had initially expected to hire about 5,000 employees for their Vedic Village projects. But the state’s IT department informed Infosys and Wipro on September 7 about its inability to provide 90 acre each to them at the proposed IT township. Only in March this year, the West Bengal government looked serious about reviving infrastructure projects and infrastructure projects can see the light of day in a way that the taxpayers’ money doesn’t grow multi-fold. Inside S pecial Report pg 2 Bengal government had failed to provide requisite 900-acre land to Tata Metaliks for a steel plant. It has come as a blessing for Karnataka, whom Tata Metaliks has approached for the plant. West Bengal (along with Jharkhand) has been a bastion of the iron and steel industry due to the abundance of coal and ore availability in the Chhota Nagpur plateau. Karnataka has similar resources in the Malnad hills and near Bellary. The West Bengal government is being cautious after the political and law and order problems it faced at Singur. Experts say state governments need to work out a quick, permanent and workable solution on the issue of land compensation, so that forward-looking Logistics town Bhiwandi, north of Mumbai, has a new member to its large presence of warehouses: an 85,000 sq ft. centre. surging ahead to capitalise on its well-known intellectual capital. But clearly, one of the major bottlenecks is land. Last year, the government had paid at the controversially low rate of Rs 14 lakh per acre to facilitate the doomed Tata Nano factory at Singur. This year, it paid nearly Rs 3 crore per acre in compensation for land in Dankuni, about 20 km northeast of Kolkata. Although the government had not shown much optimism at that time that it would be in a position to offer any alternative land, Infy later went on record to reiterate that it would not be actually moving out of Bengal but would go slow on investing there. Even as far back as 2005, the I nteraction pg 11 Vijay Naidu, Head-Sales, Portable Equipments, Xtech Equipment Pvt Ltd elucidates on his company’s growth F eature pg 16 An update on wind power, which is beginning to figure in national energy plans, income and employment. Jhajjar power project raises Rs 3900 crore C LP India has signed agreements with a consortium of 15 banks for their 1,320 MW (2x660 MW) power project in Jhajjar, Haryana. The project has received sanctions worth Rs 3900 crore in the form of loans. The power project is to be completed in two phases, out of these, the first unit would be commissioned by December 2011 and the second unit by May 2012. The loan for the project was granted by major banks led by IDBI Bank and other banks and financial institutions such as Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Infrastructure Development and Finance Corporation (IDFC), India Infrastructure Finance Company (UK) Ltd (IIFCL), Bank of India, United Bank of India, Allahabad Bank, Dena Bank, Bank of Baroda, State Bank of Patiala, State Bank of Travancore, State Bank of Mysore, Oriental Bank of Commerce, and PTC India Financial Services. Rajiv Mishra, Managing Director, CLP India said, “Our ability to conclude financing arrangements page 20 IOC plans Rs 60k cr projects tate-run Indian Oil Corporation (IOC) has plans to implement energy projects amounting to Rs 60,000 crore. With investments of over Rs 20,000 crore in three world-scale plants and more projects on the anvil, petrochemicals are expected to be a major driver for IOC’s future growth. The investment is part of the corporation’s efforts at augmenting production capacities and upgrading technologies S to meet the increasing energy demands of the country. The current outlay includes a grassroots refinery at Paradip, Orissa. For 2009-10, IOC has planned a capital outlay of Rs 15,000 crore. Apart from this, they have also entered into an agreement with Nuclear Power Corporation of India (NPCIL) for forging a joint venture company for building nuclear power plants in the country. IOC plans to invest about Rs 1,000 crore in this venture. 2|Special Report Projects Info | 21 - 27 September | 2009 SK Group opens large logistics centre Interiors of the new warehouse. S K Group, a pharmaceutical manufacturing and distribution company, have completed work on their latest offering – a logistics project in Bhiwandi, north of Mumbai. The warehouse is spread over 85,000 sq ft. Out of the total area it has an air-conditioned cool room storage area of 50,000 sq ft, an ambient store area of 30,000 sq ft and a cold room storage area of 5,000 sq ft. The centre offers the following services: • Warehousing Trading Stock: Receipt – Storing – Picking / Packing, Shipping, Delivery • Promotional Material Handling: Receipt – Storing – Re Packaging, Direct Dispatching to field force/ C&F • Clinical Trials Material Handling: Receipt – Storage – Dispatch – Record Keeping • Importer Services: Letter of Credit – Custom Clearance – Storage – Payment/ Credit Management The structure is a pre-engineered building, the roof cladding and the side cladding of the structure is a combination of colour coated galvanised metal alloy known as galvalum. The height of the plinth ranges from 0.75 m to 1.2 m and is designed for handling light, medium and heavy commercial vehicles. The dock is fitted with high-density rubber fenders to protect the platform from damage. The main features of the project include a four-tier storage arrangement and modern material handling systems and technology. The systems are SAP enabled IT systems. The warehouse is insulated with polynum and EPS material. There is double-level electricity backup to ensure 100 per cent full time temperature control and maintenance of goods. Battery-operated stands on stackers are used for quick put away and pick from storage racks. The key features of the centre include a four-tier storage arrangement, which is a new level in Indian Pharma Warehousing, a completely insulated warehouse with specifically imported polynum material, modern material-handling systems and technology, and SAP-enabled IT management system, and double-level electricity backup to ensure 100 per cent full time temperature control and maintenance of goods. The temperature controlled 4-tier warehouse. Cold storage area of the warehouse. A view of the warehouse. SK Group's warehouse is the latest addition to Bhiwandi's existing logistics cluster. 21 - 27 September | 2009 | Projects Info Finance |3 ahindra & Mahindra (M&M) and Hindustan Motors have separately tied up with Punjab National Bank for vehicle finance. Following the tie-up, M&M said PNB will be a preferred financier for Mahindra vehicles . “A low rate of interest is just one of the benefits of opting from the PNB as a preferred financier. The bank’s network of 4,685 branches will also help us further strengthen our presence in India’s hinterland,” said Arun Malhotra, Senior VicePresident (Sales and Customer Care) Automotive Sector, M&M. Under the terms of the MoU, customers can avail loans of up to 90 per cent of any commercial vehicle’s on-road price with a tenure of five years at a rate of one per cent Below Prime Lending Rate (BPLR), the Ingersoll to invest $100 mn in India I ngersoll Rand plc is planning to invest about $100 million in its Indian operations during the next three years and expects to source products and services of an equal amount. “We want to double the size of the company in three years,” said Herbert L Henkel, Chairman and Chief Executive Officer, Ingersoll Rand. He said the diversified industrial group wants to more than double its sales to about $500 million in three years in India. The company’s security solutions for both individual homes as well as business establishments could lead to huge savings in electrical costs as well as ensure better security. The current size of the security solutions market in India is about $1 billion, Henkel said. Venkatesh Valluri, M&M, HM tie up with PNB M company said. For passenger vehicles, loans will be available at a rate of 10.5 per cent (for up to three years) and 11 per cent (for more than three years). The extent of the loan will be up to 90 per cent of the vehicle’s on-road price for a tenure of seven years, it added. Hindustan Motors Ltd has signed a three-year MoU with PNB to provide financing for its new mini truck HM – Shifeng Winner. Under the MoU, PNB would provide easy and attractive finance schemes for three years to customers purchasing Winner. According to Rattan Singh, Chief General Manager, Sales & Marketing (Vehicles), the mini truck is the first light commercial vehicle in the country with a CNG with BSIV version and a powerful four cylinder 1,800 cc engine. Ingersoll Rand wants to more than double its sales to about $500 million. President, Ingersoll Rand International (India), said the company was in talks with the government on providing secu- rity solutions for the unique identification number project headed by former Infosys cochairman Nandan Nilekani. GIL acquires BP wind power I ndependent power producer Green Infra Ltd (GIL) has acquired the wind power assets of energy major BP Energy India Pvt Ltd in India. The move now makes GIL, the country’s largest IPP in the green energy space with 124 mw. Although the size of the deal has not been disclosed, IDFC Private Equity has disbursed Rs 200 crore of the Rs 360 crore it has committed to the deal, which is a combination of debt and he Karnataka Government has sought a loan ofa $700 million from the World Bank for three new projects. The Chief Minister BS Yeddyurappa who held a meeting with the World Bank Caountry Director, Roberto Zagha, and his team, said the new projects lined up for bank funds are Karnataka State Highway Improvement Project II, Karnataka Watershed Development Project II and Karnataka Rural Water Supply and Sanitation Karnataka seeks $700 mn loan from WB T Project II. The state government has also urged the World Bank to release a pending loan amount of $475 million for early implementation of six ongoing projects in the state, besides discussing various proposals submitted to the bank. Yeddyurappa said that the bank had sanctioned a loan of $857 million for six state projects. “Out of this amount, $475 million is yet to be released. “The six projects for which the World Bank’s loan is pending are Karnataka Municipal Reforms ($216 million), Karnataka Urban Water Sector Improvement ($39.5 million), Karnataka Community Based Tank Management ($137.8 million), Karnataka Rural Water Supply and Sanitation ($136.6 million), Karnataka Health System Development and Reform (KHSDR-II) ($141.8 million) and Karnataka Panchayats Strengthening Project ($120 million). equity. Axis Bank will provide working capital to the firm. BP Energy has two capacities are located in Maharashtra (40 mw) and Karnataka (60 mw), while Green Infra has a 25 mw capacity in Tamil Nadu. In the next three years, the company aims at adding 300 mw to its capacity and to start work on 300 to 500 mw projects. The generation verticals will also include small hydro, biomass, energy efficiency and solar power. Comm to assess local bodies K erala Cabinet decided to constitute the Fourth Finance Commission with eminent economist Prof Oommen as its chairman to evaluate the financial position of local bodies in the state on September 16. Principal Secretary (Local Self- S pension and private equity firms say they are excited about financing India’s $80 billion programme to build roads and expressways, according to Minister for Road Transport and Highways Kamal Nath. The US funds’ level of interest signals money will flow in as guidelines are set, with overseas investors likely to provide $10 billion over the next three years, Nath said. Buyout firms may US Pension Funds may invest in India roads U finance road building, while pension funds would probably invest in the post-construction period. “The projects are not only viable, but profitable,” Nath said. US investors “are now not looking at real estate, not looking at equities; they’re looking at infrastructure.” India will need $1.7 trillion to build infrastructure over the next decade to boost economic growth, according to a recent Goldman Sachs Group Government) SM Vijayanand and Finance Secretary (Expenditure) Ishita Roy will be the members. The commission will review the finances of the local bodies in the state and recommend measures to improve their financial position. report. Foreign and Indian private companies are expected to contribute $45 billion of the total $80 billion projected investment for the roads and highways programme over five years, according to Nath. The Indian government is studying the feasibility of setting up “mega projects”, which would involve individual bids of at least $1 billion, to attract big companies with the best technology, Nath said. hree Shubham Logistics Ltd (SSLL) has signed a MoU with Axis Bank to work together in the area of warehouse-based receipt financing. The agreement is aimed at bringing the two institutions together, with the bank extending finance against warehoused commodities and inventories, and under the collateral management structures of SSLL, providing end-to-end Shree Shubham signs MoU with Axis Bank S solutions to all the commodity stake holders in the agricultural and non-agricultural segment with a pan India presence. SSLL, managing a complete commodity value chain at its own Agri Logistics Parks (ALPs) at more than 10 locations in Rajasthan and Gujarat and expanding its footprint by setting up 17 ALPs in next one to two years in Madhya Pradesh and Maharashtra, has plans to develop 41 ALPs across the country in the near future. Aditya Bafna, Executive Director, Shree Shubham Logistics Ltd, said, “We will jointly work to provide liquidity to farmers against their produce and thereby enable them to time their sale for best returns. We see warehouse receipt financing as a great opportunity and we will be an aggressive player in this business.” he World Bank has agreed to lend $3 billion (approximately Rs 14,400 crore) loan to India for developing national highways. The bank assistance will be utilised for converting 6,372 km of one-lane highways to two-lane, out of the total of 19,702 km of single lane high- WB to lend for road projects T ways in the country. Kamal Nath, Minister of Road Transport and Highways, said that the bank will be willing to fund the viability gap funding and also fund 50 per cent of annuity projects. Nath also announced the construction of 18,000 km of expressways in the country. The total project costs for 2009-2010 is estimated at $20 billion (approximately 96,000 crore). Both debt equity and pension funds are being invited to participate in this programme. The share of private sector investment in this is likely to be about $12 billion (approximately Rs 57,600 crore). 4|Transport Projects Info | 21 - 27 September | 2009 World Bank aid for AP roads A ndhra Pradesh Roads and Buildings Minister G Aruna Kumari said that the state would undertake road sector projects with an outlay of Rs 2,980 crore, including a World Bank loan of Rs 1,600 crore and the state government’s share of Rs 1,380 crore. The project comprises widening and development of seven roads at a cost of Rs 1,302 crore and long term performance based road contracts worth Rs 1,230 crore. Rs 458 crore will be provided under the five-year road maintenance, institutional strengthening and road safety policy. The proposal for converting five state highways, Hyderabad-Nandyal, Guntur-Kodur, AdilabadVodarevu, Sironcha-Renigunta and Kakinada-Suryapet, into national highways was pending with the Planning Commission. The state government would save Rs 400 crore annually if these roads were converted into national highways. Land acquisition is complete for four-laning the Rs. 1,470 crore Hyderabad-Vijayawada national highway, and work will start in December this year. ROADWAYS 144 km rural roads a day in FY09 A ccording to a government report, 144 km of rural roads were built every day last year (2008-09) and the target this year (ending March 2010) is to increase this to 151 km per day. This is in stark contrast to the pace of construction of the national highways, which had slowed down to about four km a day. Union Road Transport and Highways Minister Kamal Nath wants to scale this up to 20 km a day. A typical rural road is built for low volume of traffic and therefore easier to construct. It could cost anywhere from Rs 15 lakh to Rs 40 lakh a km, whereas national highways cost Rs 6-10 crore per km. These rural roads are being constructed under the Pradhan Mantri Gram Sadak Yojana (PMGSY), which aims at linking all habitations with a population of 500 or above (250 or above in some priority states) with all-weather roads. “Various measures have been taken to expedite the construction of rural roads and bring it to the current level. The bid documents are standardised. There is an objective formula to decide the depth and the strength of the road to be built. Timelines for completion of road construction are also fixed at the outer limit of 21 months,” the report added. EGoM set to speed up highway projects T o fast-track highway development projects, the government has decided to form an empowered group of ministers (EGoM). The proposed EGoM will help resolve issues related to bidding process. The progress of road sector projects is very slow due to various policy bottlenecks. Of the proposed 60 highway projects to be awarded in 2008-09, nodal agency National Highway Development Authority (NHAI) could award only eight, spending only about 30 per cent of its total he Ministry of Rural Development has released a grant of Rs 4 billion to Mizoram for construction of rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY), a 100 per cent centrally sponsored scheme to provide road connectivity in the rural areas of the country. This is the second instalment of Phase V of grants in aid to the Mizoram Rural Roads Development Agency. Rs 4 bn for Mizoram roads T MRRDA is the state level autonomous agency responsible for implementation of works under the Pradhan Mantri Gram Sadak Yojana (PMGSY) in the state. This scheme envisages connectivity through good and all weather roads to all habitations with a population of 500 persons and above in the rural areas, and above 250 persons and above in the hill states, tribal and desert areas. expenditure budget of nearly Rs 32,000 crore. Members of the proposed EGoM is likely to include Planning Commission deputy chairman Montek Singh Ahluwalia and finance minister Pranab Mukherjee and road transport minister Kamal Nath. India needs $70 bn for road projects I ndia needs investments of US $70 billion in the next three to four years to meet a target of building 7,000 km (4,350 miles) of roads each year. According to reports, private companies are expected to invest about $45 billion of the money. The government is considering the feasibility of taking up several mega road projects of 500 km in length, which have a total project cost of more than $1 billion each. Earlier in September, Road Transport and Highways Minister Kamal Nath took a ‘roadshow’ to Britain to attract British investment into India, and said that India will build more roads than any other country over the next two years. PORTS/SHIPPING Tripura gets Bangla port access angladesh government has given access to Ashuganj port in Brahmanbaria district of Bangladesh to north-east India to boost connectivity. The agreement on providing access to Ashuganj port was reached in New Delhi during the recent visit of Bangladesh Foreign Minister, Dipu Moni. Ashuganj port is a mere 30 km from Agartala, the capital of Tripura. The access to Ashuganj port removes a deficiency that the industry of the region faces, lack of proper connectivity with the mainland, which deprives it of market linkages. “This is a very positive development for the North-East,” said ML Debnath, President, Tripura Chamber of Commerce and Industry (TCCI). The state government also hopes to come up with an export promotion park. Access to the port materialises will enhance economic activity for the state as the transportation bottlenecks to export products B would diminish. According to Debnath, products like rubber and bamboo, and the food processing industry are expected to reap the maximum benefits from this port of entry. He added that some Bangladeshbased companies were “keen” to invest in Tripura. One such investment proposal in the food processing sector had already been finalised. Movement of heavy and “over dimensional consignments” (ODC) for big projects has always been a problem in the north-east due to its hilly terrains. Access to Ashuganj port would mean a faster and reliable mode of communication with mainland India to import raw materials, machineries and export finished goods. In another gesture, India agreed to provide at least 100 mw to Bangladesh on a priority basis. For this purpose, India will undertake a feasibility study on power grid inter-connectivity for transmission lines from India to Bangladesh. Min for shipyard divestment T he Shipping Ministry has supported the Department of Economic Affairs’ move to divest government equity in state-run Cochin Shipyard, the largest shipping and ship repair yard in India. About 20 public private partnership schemes would be signed this year for port projects, while the Ministry is also working on a better taxation regime for Shipping companies to boost maritime trade. Cochin Shipyard, which attained Category 1 miniratna status in July 2008, posted 70 per cent increase in net profit at Rs 160 crore for 2008-09 financial year and declared a dividend of Rs 19.66 crore for 2008-09. Profit levels of the yard had resulted in an increase in net worth from Rs 429.42 crore in 2007-08 to Rs 566.49 crore in 2008-09. 21 - 27 September | 2009 | Projects Info IR land acquisition by Oct T he Indian Railways (IR) is planning to complete land acquisition by October 2009 for constructing about 60 km out of the total 95 km of railway line between the present Dallia-Rajhara iron ore mines and the proposed Raoghat iron mines to be developed in Chhattisgarh to meet the increased iron ore requirement of SAIL’s Bhilai Steel Plant. The SPV between SAIL, the IR and the Chhattisgarh Government, formed to execute the Raoghat iron ore mines project, has entrusted Rail Vikas Nigam Ltd (RVNL) with the implementation of the railway project to be complete with construction of tracks over a stretch of 95 km, stations and the merry-go-round system. The South East Central Railway (SECR) has been given the responsibility of acquiring the land for handing over to RVNL. SECR has reportedly nearly completed land acquisition belonging to the state government, including some belonging to SAIL, and has handed it over to RVNL. The land so acquired will help RVNL construct about 18 km of railway track. On the other hand, the process of acquisition of revenue land, sufficient for construction of another 40-42 km of railway track, according to railway sources, is in final stage and, most probably, will be over by October. A 35 km long railway line is expected to pass through forests, of which 25 km through 259 hectare of reserve forest and another 10 km through 83 hectare of revenue forest. SECR has been unable to receive clearances by the environment and various statutory authorities. The cost of constructing railway lines and creating other rail-related facilities for Raoghat iron ore mines project is expected to cost more than Rs 650 crore. The targeted date of completion of the project is December 2012. Alstom plans coach facility in Sri City A Transport |5 R A I L W AY S AIRPORTS lstom is planning to set up a metro rail coach factory at the upcoming industrial township, Sri City, 40 km north of Chennai, within the borders of Andhra Pradesh. Investment details have been kept under wraps. As several cities such as Chennai, Hyderabad and Bangalore are building metro rail systems for intra-city public transportation, there is a growing business for Metro rail coaches. After Bombardier, whose €33 million plant has become operational, Alstom will be the second major foreign investment in the metro rail coach building area when it works out its plans. Meanwhile, it is learnt that a German company is investing in a railway wheel plant in the Sri City SEZ, although officials are tight-lipped about the name of the company or the investments. BFG International Pvt Ltd of Bahrain, which makes fibre reinforced polyester and composite mouldings, is currently building a facility in the SEZ, to make inner linings for coaches. Chhattisgarh invites EoIs for air connectivity prop aircrafts. The department plans to begin operations by October. “The state government will underwrite seats per flight if schedule routes are unviable,” a senior official in the department said, adding that the BEML for metro cars B O government would permit its officials to travel by air within the state. Under SOPs offered for the operators, they will not have to pay the landing and parking charges. The operators will have to pay the security arrangement fee to the respec- tive district administration as per actual basis. The operator will have to establish their base at Raipur or any other place within the state along with a guarantee to the government for operating the daily flights as per published schedules. Uttarakhand to launch re-bidding for airport T he Uttarakhand State Infrastructure Development Corporation Ltd (USIDCL) will soon initiate the re-bidding process for hiring a consultant for the modernisation and expansion of the Naini-Saini airport at the hilly Pithoragarh district. The move came after USIDCL, a state government enterprise, which received a lacklustre response to the bidding process due to hiring a consultancy firm early this year. Only one bid was received and this forced the Civil Aviation Department to initiate the process all over again. Besides, the expression of interests (EoIs) were also invited for expansion and strengthening of the runway and upgrade of associated operational infrastructure and terminal facilities at the airport, which has been gathering dust for the past several decades. A couple of EoIs in this regard have been received and the officials are pursuing them. The government intends to invest Rs 45 crore for the upgrade and modernisation of the Naini-Saini airport. In order to promote atourism., the government wants the airport to be developed under public-private partnership (PPP) mode. Significantly, the Naini Saini airport hit a roadblock last year too, as the government cancelled the tender process for hiring a consultancy firm on technical grounds. So far, Rs 22-24 crore is spent for acquiring 17.8 hectare for the Pithoragarh airport, where a total of 85 people were given compensation at the rate of Rs 1,200-1,300 per nali. Under the modernisation plan, the airport is being upgraded to facilitate the landing of 70-72 ATR aircraft. The airstrip of the airport will be 1650 m long and 60 m wide. A separate terminal building will also be constructed. EML Ltd handed over the first set of indigenously-built standard gauge metro cars to the Delhi Metro Rail Corporation. BEML has received four stainless steel air-conditioned cars of the total 156-car order, worth Rs 1,140 crore for the second phase of the Delhi Metro. With this, BEML enters the global metro car makers’ club with a distinct price advantage, the Defence PSU said. The local makes are said to cost 10-20 per cent lower than the imported cars. Apart from competing for upcoming metro car bids in Tier II and III cities, BEML will bid for global projects and also top it up with spares and services for metro players. The cars are made at BEML’s Bangalore complex under licensing from South Korean major, Rotem. BEML is also working on metro trains in the six-car formation. BEML has bagged the Rs 1,672-crore order to supply 150 cars for the Bangalore Metro, trials for which will be delivered by October 2010. It further expects an order of 60 cars for phase three of the Delhi metro. Min denies land seizures T he railway ministry, headed by Mamata Banerjee, does not plan to seize private land for new projects, and would also review past land seizures, mostly from farmers. The ministry needs land to proceed with a $5.8 billion project to connect Indian regions. Banerjee has opposed government efforts to enact laws on land acquisition. The move blocks industrialisation efforts of the Congress party-led government, denying reforms like easier land acquisition and privatisation of state-run firms. ith the signing of an agreement for the formation of a joint venture company (JVC), titled Chandigarh International Airport Private Limited, on September 17, Mohali near Chandigarh will get an international airport. The partners in the project will include the Airports Authority of International airport JV for Chandigarh W India (AAI), Greater Mohali Area Development Authority (GMADA) and Haryana Urban Development Authority (HUDA). AAI Chairman VP Aggrawal, GMADA Chief Administrator VP Singh and HUDA Chief Administrator TC Gupta inked the JV Agreement. According to Punjab Civil Aviation Secretary Vishwajeet Khanna, apart from housing international and domestic terminals, the airport will also include a cargo hub. This will provide a huge economic boost to the northern region. The project will come up on a 300-acre land at Jheourheri village in Mohali and is expected to be ready in two years. irports Authority of India (AAI) is expected to complete work on the new integrated terminal building of Madurai airport in Tamil Nadu, by March 2010. So far, AAI has completed work on construction of the main terminal building and an additional electricity sub-station. Electrical equipment such as transformers and die- Madurai terminal to be ready by March 2010 A sel generator sets had been put in place. Currently, roofing and car parking works is on. AAI has placed orders for baggage carousels and other systems. The new integrated terminal building to be spread over 17,560 sq m is likely to be a centrally air-conditioned building with 20 immigration counters, 27 customs counters and two aerobridges. It is expected to handle 250 arriving and as many departing passengers as against the total capacity of just 150 passengers in the existing building. Besides, AAI had planned to extend the runway from the existing 7,500 m by another 3,000 m. Currently, land acquisition is underway for around 600 acres by the Tamil Nadu Government. Cargo terminal at Delhi Airport by Oct 2010 W FS India, a joint venture between Worldwide Flight Services and the Bird Group, which recently launched ground handling at Delhgi and Kochi, has won a 25-year concession to build and operate a state-ofthe-art Cargo Terminal at Delhi Airport which is scheduled to open in the 3rd Quarter of 2010. Combined with the planned opening of the new Terminal 3 at Delhi International Airport in the second quarter of 2010 and the upcoming Commonwealth Games in October 2010, WFS India will develop into a comprehensive Ground Handling Organisation that provides cargo, passenger and ramp handling for international carriers operating to and from Delhi Airport. 6|Real Estate Projects Info | 21 - 27 September | 2009 Ansal to invest in 19 townships A nsal Properties & Infrastructure said it will invest up to Rs 35,000 crore over the next 10 years to develop 19 township projects. “We are the largest township developer. We are currently developing 19 townships in North India. These townships are spread over about 7,000 acre of land,” said Ansal API’s Vice Chairman and Managing Director Pranav Ansal. He said the size of the townships vary between 100 acre and 2,500 acre, and added that the company would rather focus on the Northern region, rather than achieve a pan-India presence. “From fiscal 2010-11, the com- CW Games Village flats by Oct R eal estate developer Emaar MGF, which is building the Commonwealth Games Residential Complex at the Games Village in east Delhi, said it will complete 32 flats next month. A senior urban development official who conducted an aassessment of the Games Village project said the flats that needed to be completed early were on track. “Officials from the Commonwealth Committee will stay in those flats to find out whether they adhere to the required standards or not,” he said. An Emaar spokesper- son informed the media that Tower 9, which comprises 32 apartments of three- and fivebedroom configuration will be ready by next month for a complete dry run of the fit outs and operations. . The residential complex, spread over 27 acre, is comprised of 34 towers with configurations of 2 to 5 BHK homes. Price for these flats ranges from Rs 1.8 crore to Rs 5.5 crore. According to an urban development ministry estimate, 56 per cent of the Games Village project was completed by mid-August and it will be fully ready by April 2010. Indiabulls starts luxury project The townships vary between 100 and 2,500 acre in size. I pany will invest about Rs 30,000 crore to Rs 35,000 crore over 10 years on developing these 19 townships”. Ansal has already pumped in Rs 4,000 crore and will add another Rs 1,600 crore in the remaining part of this financial year. ndiabulls Real Estate Ltd has launched Indiabulls Sky, a residential high-rise project with managed private residences in Lower Parel. These residences will be privately owned and according to the company, will be serviced by a dedicated butler, who will be on-call 24x7, in a style comparable to the best in world hospitality. The available options are 3BHKs, duplexes and penthouses on the 65th floor. Brigade to raise Rs 900 cr for hotels, township angalore-based Brigade Enterprises expects to raise funds about Rs 900 crore through private equity to expand its hospitality vertical and to develop a 120 acre township. The Rs 500 crore publicly held company has mandated JP Morgan to raise the funds. CMD MR Jaishankar Bhubaneswar low-cost housing B confirmed these plans and added that he expects funds to be tied up by end of the current fiscal. Brigade’s hospitality subsidiary will build 1,000 hotel rooms across Bangalore, Mysore, Kochi and a few other cities. The company will use the funds also to develop a 1.5 million sq ft integrated town- ship in Bangalore. Brigade's projects cover 6.74 million sq ft of developable area, and is set to launch 8 to 10 million sq ft more. The company is also set to join the budget housing bandwagon during 2010, and is looking to launch projects in Bangalore and Mysore to build Rs 20 lakh per dwelling unit. T he Bhubaneswar Development Authority (BDA) finalised three locations in the city for developing 800 dwelling units in its low-cost housing projects: four acre at Subudhipur, three acre at Kalinganagar and two acre at Paikraipur. BDA plans to invest Rs 80-100 crore on developing 1,000 dwelling units, which are likely to be a mix of 1, 2 and 3 BHK flats. The architects have submitted their plans for the mass housing projects, and tenders for construction are set to be floated in a month. Construction is expected to begin in early 2010 and likely to be commissioned by end 2011. 21 - 27 September | 2009 | Projects Info Engineering |7 Pondy Oxide to set up EoU Honda to expand Haridwar facility ero Honda has decided to expand its Haridwar manufacturing facility and has deposited Rs 32.5 crore as land premium to retain its hold over the 94 acre of vacant land, after resolving issues with the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (Sidcul) on the same. Barring a minor dispute over 22 acre, most of the concerns have been resolved with Hero Honda, official sources said. Uttarakhand Principal Secretary (Industries) PC Sharma confirmed that Hero Honda had deposited Rs 32.5 crore to expand its Haridwar unit. Sharma said the company would carry out considerable expansion at its Haridwar unit, which would create vast opportunities for employment in the state. Sidcul, the state government’s nodal agency for industrial development, had allotted 265 acre to Hero Honda for setting up a manufacturing facility at Haridwar in 2006. According to Sidcul’s latest notice, the group set up its facility on only I H n order to support its total business target of Rs 500 crore by 2011-12, Chennai-based Pondy Oxide & Chemicals Ltd is planning to set up an export-oriented unit. The company is planning to foray into new countries like Japan, Vietnam, Malaysia and Bangladesh to increase the export business. Its current export order size is about $ 2.5 million to be executed in the next two months. The proposed unit would mainly cater to these new and current export markets. The invest- ment in the project would be Rs 40 crore, which will be funded through debt and internal accruals. “The company has units in and around Chennai and one in Puducherry with a total capacity of 28,800 tonnes per annum, which would be increased to 60,000 tonnes by 2010-11,” said Anil Kumar Bansal, Managing Director, Pondy Oxides & Chemicals. The company, which is into metals, metallic oxides and plastic additives, is planning to manufacture aluminum and value-added products. 7 auto-testing centres soon T Honda’s Rs 1,900 crore Haridwar facility will produce its mobikes. 119-120 acre and kept around 50 acre for its vendors, the land premium for which has been paid to Sidcul. For the remaining 94 acre of land, Hero Honda paid Rs 32.5 crore against Sidcul’s earlier estimate of Rs 50 crore. Hero Honda Motors Ltd and its ancillaries have already invested Rs 1,900 crore in the manufacturing facility. The state-of-theart plant, which went on stream on 8 April, 2008, has scaled up rapidly and is already producing more than 4,000 two-wheelers per day. he ministry of heavy industries is setting up seven Auto Testing Centres to make India an auto hub, according to Ambuj Sharma, Joint Secretary in the heavy industry ministry. He said cars would be tested in these centres before they are rolled out on the roads. In these auto-testing centres, car manufacturers belonging to Indonesia, Malaysia and Thailand would be allowed to test their products as part of the govern- ment attempt to invite more foreign direct investment participation in the automobile sector. Car manufacturers currently have to go to Europe and the US for testing their products, and this is for the first time that India is setting up such centres with fully government-aided funds of Rs 1800 crore. These centres would become operational by September 2011 in Manesar, Pune, Ahmed Nagar, and Raibarelli, among others. Audi plans showroom in Chennai udi India is all set to open its first showroom in Chennai in 2010. The Bangalore-based Jubilant Motors Private Ltd is setting up a service centre and a showroom in Chennai, investing about Rs 15 crore. Anil Reddy, Head of Sales, Audi India, said in addition to Chennai, the company is setting up sales outlets in Kolkata A Govt to source power equipment in bulk he government has announced its plan for a bulk procurement of power equipment through public-private participation (PPP). “Large companies, such as Bharat Heavy Electricals, L&T, Bharat Forge and GB Engg, that have formed joint ventures with overseas companies, are planning to commission production capacities that would supply equipment for generating about 25,000 mw by the end of 2011,” said Bharatsinh Solanki, T Union minister of state for power. “Equipment for at least 11 units of 660 mw will be available within four months,” he added. India has plans to add power generating capacity of around 78,000 mw by 2012. The total estimated investment for power equipment for 660 mw units is estimated to be around $ 8 billion (over Rs 39,000 crore as per current exchange rates), Solanki said. The country plans to adopt bulk procurement of equipment for supercritical power projects, which typically use technology that increases efficiency and reduces emission output. While the minister did not elaborate on the source of funds for the projects, it is widely-believed that the PPP model would be used. Also, in the Union Budget, the finance minister said that the Indian Infrastructure Finance Company would provide Rs 6,000 crore for infrastructure projects that also include power projects. and Ludhiana. Through nine sales outlets, the company currently sells three sedans – A4, A6 and A8 assembled at its sister concern – Volkswagen’s facility in Pune. Besides, it imports and sells TT, R8, Q5 and Q7. In India, Audi sold 1,128 units till August this year growing by more than 60 per cent over last year. Nissan sources parts from India N POSCO ups automobile plate capacity OSCO said that it will establish an automobile plate processing centre in Nagoya with an annual capacity of 150,000 ton, aimed at expanding the process capacity of auto steel in Japan as well as improving the sales quota in high-end steel market and overseas. POSCO owns an auto plate processing centre in Kyushu, where Toyota, Nissan and Daihatsu all have production plants. Early P this year, POSCO established the steel processing centres in India and Thailand with the annual capacity of 120,000 tons respectively into production. Earlier, the auto plate processing plant in Mexico with 400,000 tons of annual capacity also started production. In order to satisfy the increasing steel demand in the global auto manufacturing and local electronic manufacturing, POSCO increased the establishment of steel processing plants in overseas, except Japan, India, Thailand and Mexican, the auto processing centre of POSCO in Malaysia has also completed. It also intends to set up an auto steel plate processing plant in Vietnam with the annual capacity of 100,000 tons. The processing centre in Shenyang is also set to establish with 170,000 tons of annual capacity. issan will source components worth $ 20 million in 2010 from India for its plants in Thailand, China and Japan, which will double to $ 40 million by 2012. The parts include engine pistons, clutches, starter motors and discs, said Kiminobu Tokuyama, Chief Executive Officer, Nissan Motor India, on the sidelines of the launch of the new Teana sedan and X-Trail sport utility vehicle. For the moment, 94 vendors are associated with the Nissan project in Chennai. The company is investing $ 13 million in the Renault-Nissan Technology and Business Centre India, which employs 1,200 technicians, and plans to raise this number to 1,500 by 2010. The centre carries out advanced research, product development, design, and global sourcing for both Renault and Nissan. Tokuyama reiterated that of the total ¥ 350 billion earmarked globally, Nissan’s single largest investment this year would be in India. Production in the Chennai plant will begin in May 2010 with an installed capacity of 200,000 units; it can be doubled to 400,000 units. Communication Feature MCP is harmless and does not enter human lungs as asbestos. It has fireproof concrete qualities and therefore is used in tunnel construction. The explosion type flaking and pieces of concrete falling down due to excessive heat can be almost avoided. The consequently reduced maintenance expenditure can be offset against slight extra costs. Good results can also be achieved by adding it in grouting compounds, joint adhesives, etc. Asota AFC and MCP are chemical resistant, environment-friendly, corrosion resistant and do not rot. Their applications include tunnels, foundations, RCC slabs, bridges, cement floors, roadways, fire walls, precast products, cellars, subways, swimming pools, etc. For further information on these products contact: Stuti Exports Pvt Ltd, C-3, Shiv Krishnadham Soc, LBS Marg, Mulund West, Mumbai – 400 080, Maharashtra, India Tel: 022 2592 2212 / 13 Fax: 022 2592 6701 Email:
[email protected] Asota AFC and MCP are the latest generation of fibres in fibre concrete Manufactured from virgin polyolefin polymer, Asota AFC adds to concrete and helps in fire safety. The residual humidity in concrete causes explosion type flaking on the surface. This is triggered by vapour pressure. Asota AFC cavities promote the pressure compensation in hot concrete, up to 200°C. Asota AFC liquefies at nearly 170°C but offers sufficient clearance and vapour permeability for pressure compensation. This is achieved by the cavities that are spun lengthwise. The polymers decompose Cracking - without Asota AFC Cracking - with Asota AFC from approximately 250°C. This frees the channels near the surface and promotes the pressure balance. Asota MCP improves properties of concrete. During hardening or curing, concrete develops micro cracks that widen out due to shrinkage. Asota MCP takes the stress and provides a balanced level of humidity in the matrix due to greater retention ability. Less water collects on the surface and this leads to ‘internal after treatment’ of concrete. * This write-up is based on publicity material provided by the company. Asapp Media Pvt Ltd cannot be held responsible for the contents. 8|Energy linton Climate Initiative (CCI) is planning to set up a solar power project in Gujarat with an investment of nearly $10 billion (Rs 50,000 crore). A memorandum of understanding (MoU) was signed recently by S Jagadeesan, Principal Secretary, State Energy Department, and Ira Magaziner, Chairman of the Clinton Climate Initiative (CCI), in the presence of the Chief Minister, Narendra Modi. The park would be spread over 5,000 hectares, likely to be made available by the government in Banaskantha, Patan, Surendranagar and Kutch districts. These selections reflect a bid to harness the otherwise infertile desert land for developing energy security. CCI is Projects Info | 21 - 27 September | 2009 $10 bn solar project in Gujarat C Snapshots Clinton Climate Initiative to partner with Guj govt on solar parks Project will help harness arid land 5000 hectare land has been identified to develop the parks in four districts CCI is talking with ADB and other sources for funding CCI is also considering similar parks in US, S Africa and Australia considering similar parks in the United States, South Africa and Australia. It is in talks with companies from across the world to invest in the project, Magaziner said. CCI is also negotiating with the Asian Development Bank (ADB) and fund houses to raise money at lower interest rates to bring down the unit cost of electricity in the next five-six years. Under the MoU signed with the CCI, the State Government would facilitate identification of land and create the infrastructure for setting up the solar power plants in co-ordination with CCI. It would invite national and international developers to set up these plants on chargeable basis for the infrastructure created. The power produced by these plants would be purchased by the State power utilities. CCI is a programme of the William J. Clinton Foundation, set up by former US President Bill Clinton. The proposed solar energy park would be spread over 5,000 hectare. he Department of Information Technology is likely to grant an additional two-three months for financial closure to applicants that have received in-principle nod for solar photovoltaic projects. The applications were filed under the Special Incentive Package Scheme (SIPS). While none of the 12 applicants has achieved full financial closure – the ear- Breather for solar projects T lier deadline for which was August 31 – some have reported back with partial financial closure or tied up commitment for funds higher than the threshold investment limit stipulated under SIPS. “About six-eight companies have made substantial progress, and these companies may be given an extension,” said R Chandrasekar, Secretary, Department of IT. Himachal invites tenders for 54 hydel projects T he Himachal Pradesh government has asked the staterun company Himurja (state energy development agency) to invite open bids from private players to execute 54 identified small projects ranging from 0.40 mw to 5 mw capacity, aggregating 134 mw capacity. This decision was taken by the state cabinet on 16 September 2009. It also approved allotment of the 149 mw Sacha pass hydel project to L&T Power Development Ltd. The 13 mw Suil project was bagged by MBD Ltd, a state government spokesperson said. Himachal Pradesh is now set to venture into thermal and gas sectors by generating 2,000 mw of additional power. According to another decision, 1500 mw will be generated by getting coal blocks in the name of the state government. The remaining 500 mw would be generated through share under ultra mega power projects besides tie-ups with gas-based companies. The cabinet also decided that the Gypsa and Khab hydel projects would be developed under the state sector and an effort would be made to declare the Khab project as a project of national importance. Construction Adhunik to invest Rs 3,350 cr in 2 yrs A dhunik Metaliks plans to invest Rs 3,350 crore in mining and power over the next two years along with its subsidiaries Orissa Manganese & Minerals Ltd and Adhunik Power & Natural Resources. Orissa Manganese, the 100 per cent subsidiary, is planning an iron ore beneficiation and pelletisation plant in Jharkhand, and a 30 mw power plant and 40,000 tonnes of ferro alloys. According to Adhunik’s MD Manoj K Agarwal, the total investment in the project would be Rs 700 crore. The iron ore beneficiation and pelletisation plant would be in Jharkhand while the power plant and the ferro alloys plant would be set up in Orissa. Agarwal said that around 1,00,000 tonnes of iron ore was being mined a month, which would go up to 1.5-1.7 million tonnes by the year-end and 3 mn t, next year. Adhunik Power, the other subsidiary, has lined up a 540 mw power plant at an investment of Rs 2,650 crore. The company has tied up debts to raise Rs 200 crore for the project internally, and was in an advanced stage of talks with private equity players to raise Rs 450 crore. 21 - 27 September | 2009 | Projects Info Ne ws Kerala, GAIL in pact for pipeline infra he Kerala State Industrial Development Corporation (KSIDC) and Gas Authority of India Ltd (Gail) will develop gas pipeline infrastructure for the state and thereby attract Rs 8,500 crore in investments. The pact is expected to kick off a gas pipeline project in the state for supply of re-gasified LNG from Petronet LNG’s terminal at Kochi, as well as promote city gas distribution projects using natural gas. Petronet LNG will establish the LNG terminal at an estimated investment of Rs 4,000 crore to be commissioned by 2012. Gail proposes to develop the infrastructure across the state for natural gas to be supplied for various applications, including power generation, manufacture of fertilizer, and city gas distribution for domestic, automobile and commercial end users. Gail will facilitate two gas pipelines, a Kochi-Kanjirakode-Mangalore-Bangalore pipeline and a sub-sea gas pipeline from Kochi to Kayamkulam. The 1,114 km Kochi-Mangalore pipeline is to cost Rs 3,032 crore and the Kochi-Kayamkulam pipeline Rs 1,000 crore. T It is planning an iron ore beneficiation and pelletisation plant in Jharkhand. Two iron ore plants in Bellary he Bellary based iron ore mining company MSPL said it will set up two iron ore beneficiation plants in Bellary, Karnataka. Both the plants, which are likely to have 1.2 million tonne capacity each, will be set up with an estimated outlay of Rs 650 crore. The company is likely to raise funds from the financial institutions and internal accruals to finance the project. The state high level clearance committee has already approved the new investment proposal and the water T required for the plants from Almatti dam across Krishna river. The company will establish the plants at an area spread over 500 acre at Waddarahalli and 450 acre at Nandibanda villages near Hospet, and is in the process of acquiring land from Karnataka Industrial Area Development Board (KIADB). It is also expected to open a mine it acquired from Dalmia Group at PK Halli in Bellary district. MSPL plans to extract 2.5 million tonne additional iron ore every year. Tata to push for K’taka steel plant T ata Metaliks is planning for a 3-5 million tonne steel plant in Karnataka. Tata Metaliks posted a loss after tax of Rs 148.7 crore for the year ended 31 March 2009 and the company is not making any major investments this year. The company is seeking a 900 acre allotment. The land allotment is yet to happen. The company had planned a unit in West Bengal. However, the state government could not acquire land for the project, despite an assurance made in February 2005 by the chief minister. The steel project is also subject to availability of iron ore mines. For a 3 mt unit, the ore required would be 250-300 mnt. TSIL mining project delayed roduction from the Utkal-E coal block, allotted to Tata Sponge Iron Ltd will be delayed because of problems in land acquisition process. Coal production from this block is now likely to resume only in early 2011 instead of the current year. Two hundred hectares of government land is yet to be handed over to the company for the Rs 500 crore coal mine project though the state government had earlier signed a memorandum of understanding with the company. The coal mine project was being taken up by Tata Sponge Iron in association P with two other private players, Scaw Industries of Dhenkanal and SPS Sponge Iron Limited of Sundergarh. Ujjwal Chatterjee, General Manager, Tata Sponge Iron, said the coal mine project needs about 1000 hectare of land out of which 600 hectare is privately owned, while the remaining is forest and government owned in Chhendipada tehsil. He said 6(1) notification under the Land Acquisition Act has been issued and 7(1) notification is in the process. The company has deposited Rs 64 crore with the state government for private land acquisition. 10|Editorial Caution on ‘affordable’ ! Published by ASAPP Media Pvt Ltd, A-303, Navbharat Estate, Zakaria Bunder Road, Sewri (West), Mumbai - 400 015. Tel : 022-2419 3000. Fax : 022-2417 5734. Editor-in Chief Pratap Vijay Padode
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[email protected] Branch Offices Delhi: Tel: 011-41315000/ 46561818 Bangalore: Tel: 080-4157 1979 Pune: Tel: 020-2613 1949 Chennai: Mob: 098411 31129 Representative Offices UAE: Ikan Media Tel/Fax: +971-4-391 8902 (*Responsible for selection of news under the PRD Act.) All rights reserved. While all efforts are made to ensure that the information published is correct, projects info holds no responsibility for any unlikely errors that might occur. Reproduction in any manner, electronic or otherwise, in whole or in part, without prior written permission is prohibited. Printed and Published by Rajeev Nambiar for ASAPP Media Pvt Ltd, Published from A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015, and printed at Indigo Press (India) Pvt Ltd, Plot No 1C/716, Off Dadoji Konddeo Cross Road, Between Sussex and Retiwala Ind. Estate, Byculla (East), Mumbai 400 027. Subject to Mumbai jurisdiction only. The information on products and projects on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. projects info holds no responsibility for any decision taken by readers on the basis of information provided herein. Projects Info | 21 - 27 September | 2009 LETTERS Send your ideas to Projects Info ASAPP Media Pvt Ltd, A-303, Navbharat Estate, Zakaria Bunder Road, Sewri (W), Mumbai - 400 015. Tel : 022-2419 3000 Fax : 022-2417 5734 onfederation of Indian Industries’ (CII) recently concluded annual conference in Mumbai, “Turnaround in the Downturn: An Insight into the Current Real Estate Scenario”, was an important event. It was almost like an occasion to herald a turnaround in the real estate industry. However, it also brought forth several earthy realities that project managers, developers and policymakers could ponder. First, a white paper by CII-Jones Lang LaSalle Meghraj, released at the conference, estimates that the initial yield on real estate investments are likely to see a compression during 2010-11, while the rupees will probably appreciate. Capital values will stabilise or marginally appreciate over that period. Several CII panellists contended that greed was a threat to the industry, and while that may be only side of the issue, it is a harsh truth. The slowdown should have been expected, yet it turned out that developers rode the boom wave right through until the first half of 2008 and bought up properties at rates that seemed almost unrealistic. Having done so, when the rates crashed in 2008-9, many of them have held steadfastly on to their overpriced property. Several developers, though, have been more adventurous. Recently, Bangalore real estate player Nitesh Estate Pvt Ltd actually halved prices on their property in Whitefield. From a premium price tag (and a name to match—Forest Hills, named after a posh suburb on New York’s Long Island), the apartments suddenly have a new target market— the Rs 20-30 lakh segment. (The apartments are now renamed Flushing Meadows, named after a less premium neighbourhood in New York’s Queens.) Builders are walking a tightrope walk, stuck between the threat of a potential decline in demand tied with any further increase in prices, and having to service their own loans and other commitments from past purchases of land. The predictable part of the real estate slowdown was that in a large part, as most analysts agree, it was a price correction waiting to happen. Some customers have felt that the demand for superpremium properties may be more limited than the real estate estimates. The problem is in the term “affordable”. The industry has pegged it at Rs 30 lakh or less. Even premium players such as Hiranandani plan to enter this lucrative segment. At one of the sessions of the CII conference, however, that concept was in question. Are we categorising Rs 30 lakh as affordable because it is a good alternative post-slowdown? What does affordable housing mean to the consumer? Although the conference itself did not offer concrete solutions, it is logical to expect that a) estimating the price of affordability is critical and commensurate with salaries, not with land purchase prices—especially in a market full of job losses and large-scale salary consolidation in critical market segments such as IT; b) much thinking needs to go in before builders brand property as “affordable”, so as not to lose the slightly more premium, brand-conscious buyer as well as a section of the middle-class segment that aspires to buy anything but “affordable” stuff. Your feedback is important to us. Enquiries regarding the industry or your business, suggestions on what you would like to read, your thoughts on the current issue, or comments on anything you deem relevant, email our editor at
[email protected]. C Market Index BSE SENSEX INR-$ Rates Voices “We have identified three to four locations and will be finalising these in the next three to four weeks. About 5,000 hectares of land is required. We have been to many places where they talk and talk. Finally, we came to Gujarat, where people act. CCI is aiming to set up a solar park with a generation capacity of 3,000 mw, which could go up to 5,000 mw. The cost of the project would be about $8-10 billion for 3,000 mw and for 5,000 mw, it would be about $15 billion. The feasibility study will be over in 2010 and the plant will start in 2012. From the progress made so far, we feel the Gujarat project will be the first to come up. And this would be the world’s largest solar project.” Ira Magaziner, Chairman, Clinton Climate Initiative email:
[email protected] www.Projectsinfo.in 21 - 27 September | 2009 | Projects Info Interaction|11 “We specialise in high quality hydraulic equipment” Vijay Naidu, Head-Sales, Portable Equipments, Xtech Equipment Pvt Ltd elucidates on his company’s growth, product range and future plans to PROJECTS INFO. Pune-based Xtech Equipment Pvt Ltd established in associate partnership with Darda Systemtechnik GmbH, Germany, manufacture a range of hydraulic tools and equipment to cater to the needs of the construction and mining industry in India and neighbouring countries. Xtech sells hydraulic portable equipment. This equipment is used in rock demolitions, breaking of concrete, etc. They also serve the mining industry; they are especially useful where blasting is prohibited due to high environmental concerns. Xtech specialises in bringing equipment to the Indian market with after sales service backup by qualified engineers. What is your hinterland of operation? We have our presence in each and every state of India. Apart from India, we are also present in Nepal, Bhutan and Sri Lanka. Please elaborate on your product range. The products introduced by us in the market are unique and are exclusively designed for specialised works. Our product range includes: • Hydraulic Rock and Concrete Splitters - Rock and Concrete Breaking • Portable hand held Hydraulic Breaking / Cutting Equipments – Concrete • Construction Chemicals – Water Proofing and Leak sealing • High Performance Hydraulic Rock Drill with Built in Compressor • Surface Mining Equipments – Construction and Mining The portable equipments are powered by portable/mobile hydraulic power units powered by diesel/petrol engines (They consume about 0.75 - 1 litre per hour) and electric motors. What are the latest products added to the Xtech’s eclectic range? The company has Darda Hydraulic Rock and Concrete Splitters which are being manufactured by Darda GmbH. These splitters are used for rock excavation, concrete demolition and pile cutting as they provide a powerful and cost effective alternative to other conventional demolition techniques. They are an alternative in cases where rock hammers produce vibrations and take time for pile cutting. Can you elaborate on their (Darda Hydraulic Rock and Concrete Splitters) functioning? Initially, a hole is drilled to a specified diameter and depth using an ordinary rock drill. Then the wedge set is inserted into the hole with the wedge in a retracted position. The hydraulic pressure then forces the wedge between the two counter wedges, pressing them against the walls of the drilled hole. The effective splitting force of up to 413 tonne or 4048 KN breaks concrete and rock from inside, demolishing thinner iron rods at the same time. • • • • • • • “Our equipments are best suited for disaster management situations like earthquakes as they provide quick relief to victims trapped in buildings as compared to conventional methods of breaking.” Vijay Naidu, Head-Sales, Portable Equipments, Xtech Equipment Pvt Ltd How are the splitters used? The splitters are used for: Removal of overburden in natural stone industry – Granite, Marble, Sandstone etc. Precision splitting in the natural stone industry for production of marble and granite blocks. Demolition work in concrete and reinforced concrete like wall, bridges, foundations etc. Hard rock excavation. Demolition of rocks for trenching, tunnelling etc. Enlarging work in underground mines. Underwater demolition. • Secondary splitting of boulders. Where does your company’s equipment find applications? Our equipments are best suited for disaster management situations like earthquakes as they provide quick relief to victims trapped in buildings as compared to conventional methods of breaking, and are the best alternative at sites where blasting is prohibited. These equipments are also useful and effective tools in road projects, civil maintenance, breaking of boulders (landslides, mines), deconstruction, and demolition. They can also be used in cramped areas where mobilisation of heavy equipments like dozers, excavators and compressors takes time, and in many instances it is difficult to deploy such equipments in congested areas due to their inaccessibility. Xtech’s equipments are easy to operate, portable and economical. Who are your major clients? Currently more than 700 of our equipments are operational. Our major customers include L&T, Tata Group, HCC, Konkan Railway, Delhi Metro Project, BARC along with other road and civil contractors. What are the future plans of the company? Xtech has grown very rapidly in last three years and intend to grow at a very fast rate in the next two years. Our presence in the market has grown considerably with presence in each and every state. We have been more aggressive in the market for the last few years, our market penetration has increased with appointment dealers in Nepal and Bhutan. 21 - 27 September | 2009 | Projects Info Project update|13 Nahar awaits land at Mandideep A patch of land has yet to be transferred to Ludhiana based Nahar Group for its Rs 300 crore project at Mandideep near Bhopal in Madhya Pradesh, after a state apex committee approved the transfer a year ago. The project, to be called Nahar Poly Films, is to make Biaxially-Oriented Polypropylene films near its existing yarn manufacturing unit. The apex committee has already cleared the matter but the district administration needs to speed up the process. Works on right of way, diversion of land and works pertaining to electric lines are yet to be facilitated to the company. The company needs to compensate farmers for obtaining a right of way so that the power line can reach the unit. The new unit is expected to have a manufacturing capacity of 30,000 tpa and the work is likely to be completed within a year. Nimoo-Bazgo to be ready by Aug 2010 HPC’s 45 mw NimooBazgo hydroelectric project in Jammu & Kashmir (J&K) is expected to be completed by August 2010. The project, located at Alchi, about 70 km from Leh, harnesses the hydel-power potential of river Indus, and is being constructed at an outlay of Rs 611 crore. The project’s three units will produce 239.33 million units of power annually. NN Vohra, Governor, J&K, laid the foundation stone of 66/11 kV, 6.3 MVA electric sub-station at Bazgo. The sub-station will be one of the six being constructed in the area under the RGGVY. The work on all the six sub-stations has started, and is scheduled to be completed by October 2010. N Ghat highway to be concreted W ork on the concretisation of the Shiradi Ghat stretch on the Mangalore-Bangalore NH-48 is expected to begin in November 2009 and will be completed by May 2010. Union Ministry of Road Transport and Highways has revised the cost of concreting the 26-km stretch from Rs 115 crore to Rs 118.58 crore. Bids for the project are expected to be invited shortly. The central government is providing additional funds are being provided by the Union Government to cover the cost of construction of culverts and protection walls. Additionally, stretches on NH-17 between Thokkottu and Talapady, between Padubidri and Mulky, and Sasthana and Santhekatte will be asphalted at a cost of Rs 2.45 crore, Rs 5.75 crore and Rs 4.5 crore respectively. The Nimoo-Bazgo project will have three units of 15 mw each. Concor depot to be functional by March 2010 Kajauli water project DPR ready C ontainer Corporation of India (Concor) is setting up a Rs 53 crore (estimated) inland container depot (ICD) for the Himachal Pradesh Government at Sheetalpur in Baddi district. Concor has started the work for Phase I and the platform is expected to be functional by March 2010. Work is on to develop warehouses, administrative buildings and basic infrastructure facilities. The state government has transferred about 86 bigha (about 18 acre) of government land, valued at about Rs 16 crore, to the company at a nominal lease of Re 1 per acre per year for a period of 95 years. The government is also negotiating with farmers to acquire land for widening of roads leading to the depot. The extension of railway link to Baddi will further facilitate the import-export process. UNtil that time, the depot will function as a container freight station. An already approved 33.75 km long ChandigarhBaddi new Rs 750 crore broad gauge link projecthas run into land acquisition problems on the original route, and now the railways ministry is studying an alternate route for the project. T he Municipal Corporation of Chandigarh has prepared a detailed project report (DPR) for Phase V and VI of the Kajauli water project, and will be sent to the Union Territory administration for approval before seeking the Union Ministry of Urban Development's approval and funding. The two phases will supply 40 million gallons per day. The project, estimated to cost Rs 198 crore, is expected to finish in three years. Contracts awarded L&T sub to make offshore jacket &T Modular Fabrication Yard, a subsidiary of L&T, has received an order from ONGC to fabricate a massive jacket structure at a cost of $ 925 million (approximately Rs 4,440 crore). The jacket weighing in excess of 10,000 million tonne will be the biggest single-piece structure to be fabricated in the entire Gulf region. Work on the jacket BHEL bags Vallur power project order HEL has bagged an order worth Rs 1,300 crore from NTPC-Tamil Nadu Energy Company Ltd (NTECL) for the supply and installation of the boiler, turbine and generator (BTG) package as an extension of its upcoming Vallur thermal power project at Ennore in Tamil Nadu, involving one unit of 500 mw. NTECL is a JV company of NTPC and Tamil Nadu Electricity Board. BHEL’s scope of work will include design, engineering, manufacture, supply, erection and commissioning of steam turbine, generator, boiler and associated auxiliaries, besides state-of-the-art controls and instrumentation system. The company is already executing a contract for the 2x500 mw greenfield Vallur power project of NTECL. L B is scheduled to begin in January 2010 at L&T’s waterfront fabrication yard within the Port of Sohar in Oman. The 60 metrehigh structure is a key component of an offshore facility for ONGC’s Mumbai High North field. A special skid-way will also be built at the Sohar yard on top of which the ultra-large jacket structure will be fabricated. Petron bags power project orders P etron Engineering Construction has bagged two orders cumulatively valued at Rs 154.42 crore from Powergen Infrastructure for erection and associated works of boiler and auxiliaries, and from Adani Power Maharashtra for the work of TG auxiliaries of Units 1 and 3 out of 3 x 660 mw Tiroda Thermal Power Project at Tiroda in Gondia, Maharashtra. Areva to build substation BHEL will supply and install boiler, turbine and generator for the Vallur project. reva T&D has bagged an order from Haryana Vidyut Prasaran Nigam Ltd (HVPNL) valued at Rs 76 crore for turnkey design and construction of a World Bank-funded 400 kV air insulated substation at Nawada A near Faridabad, including supply of 2x315 MVA power transformers, high voltage circuit breakers and other t&d products. Areva T&D is also constructing HVPNL’s 400 kV substation at Kirori near Hissar. HP to invite tenders for 54 hydels U'khand to re-invite airport bids he Himachal Pradesh Energy Development Agency will invite open bids from private companies to execute 54 identified small hydro-electric projects ranging from 0.40 to 5 mw capacity, aggregating 134 mw capacity. The state government has allotted the 149 mw Sach Pass hydel project to L&T Power Development Company while the 13 mw Suil project was bagged by MBD. The state also plans to venture into T thermal and gas sectors by generating 2,000 mw of additional power. Additionally, 1,500 mw will be generated by obtaining coal blocks in the name of the state government. The remaining 500 mw is to be generated through share under ultra mega power projects and tie-ups with gas-based companies. The Gypsa and Khab hydel projects will be developed under the state sector. T he Uttarakhand State Infrastructure Development Corporation Ltd (USIDCL) is likely to re-invite bids shortly from eligible consultants for the modernisation and expansion of the Naini-Saini airport in the hilly Pithoragarh district. Previously, USIDCL had received only one bid, forcing the civil aviation department to reinitiate the process. The state government intends to invest Rs 45 crore for the upgradation and modernisation of the airport to promote tourism, and wants the airport to be developed under PPP mode. The government has acquired 17.8 hectare for the airport. EoIs were also invited for expanding and strengthening the runway and upgradation associated operational infrastructure and terminal facilities at the airport, pending over several decades. Alstom signals for Namma Metro lstom Projects India Ltd said the firm, along with consortium partners, won a contract to supply signalling equipment and services to the Bangalore Metro Rail Corporation worth Rs 5.63 billion. The consortium comprises of Alstom Projects India Ltd, Alstom Transport SA, Thales Security Solutions and Services and Sumitomo Corporation. A 14 |Tenders Sl. no. Organisation Location State Tender Value (Rs) EMD / Doc Cost (Rs) ARCHITECTS/INTERIOR WORK/CONSULTANCY 1 Delhi Agricultural Marketing Board Khampur Delhi 700,00,000.00 NA / NA Projects Info | 21 - 27 September | 2009 Document Date Submission / Opening Date 16/11/2009 16/11/2009 / 16/11/2009 Details: 103-2009--: Development of a modern wholesale fruit market at Tikri Khampur. The Architects Contact: Project Engineer-III, 9, Institutional Area, Pankha Road, Janakpuri, New Delhi-110058, Delhi. cum Consultants who have completed “at-least three works costing not less then Rs 50 crores each or Tel: 011 2852 2281, 285 25232. Fax: 011 2852 2085 two works costing not less then Rs 75 crores each or one work costing not less then Rs 125 Crores” for planning & designing of the projects excluding the housing projects during last seven years may apply alongwith a certificate of having completed the work, issued by the client with details of work done area achieved and cost of the project etc. Cost of the land is not to be included in the project cost 2 Public Works Department Surat Gujarat NA NA / 1,000.00 30/10/2009 04/11/2009 / 04/11/2009 Details: 3/1 for Year 2009-2010: Appointment of technical assistant for preparation of feasibility report Contact: The Executive Engineer, National Highway Division Jalgaon, Bandhakam Bhavan Compound, for four lanning to Surat Dhule section of NH-6 in km. 360/00 to 520/600 (length 160 km with nine Opposite Collector Office, Jalgaon - Maharashtra. Tel: 0257 232 322 fly overs). 3 Chennai Metro Rail Ltd Chennai Tamil Nadu 153,00,000.00 NA / 20,800.00 16/10/2009 22/10/2009 / 22/10/2009 Details: ECV02-02: Design and construction of elevated viaduct from ch:15738m to 20900 m on corri- Contact: Officer on Special Duty, 11/6 Seethammal Road, Alwarpet, Chennai : 600018, Tamil Nadu. Tel: dor-2 (including viaducts at Ashok Nagar - KK Nagar and SIDCO stations but excluding 600m of viaducts 044 2431 0171. Fax: 044 2431 2320 at Alandur station) for a length of 4562m. Completion of work: 24 months BUILDING MATERIAL/EQUIPMENT 4 South Eastern Coalfields Ltd Korba Chattisgarh 15,00,000.00 30,000.00 / 2,000.00 20/10/2009 20/10/2009 / 20/10/2009 Details: SECL/BSP/MMW/SEC.III(B)/WS ITEM/09-10/91: Supply of portable boring machine with welding resurface machine. Qty: 1 set. 5 Talcher Thermal Power Station Angul Orissa Contact: Chief General Manager (MM), SECL Material Management Wing, Kusmunda Area, Korba, Chattisgarh Tel: 077 5224 6320 Fax: 077 5224 6332 NA 1,12,000.00 / 850 01/10/2009 01/10/2009 / 01/10/2009 Details: NIT No. TTPS/C&M/2009/259; 26.08.2009: Supply of portland slag cement (PSC) as per Contact: Sh. Binay Mallik, Manager (C&M), Talcher Thermal, Angul, Orissa 75910. IS:455, qty: 1800 mt (Material code: M0325600006). Tender documents will be issued to prospec- Tel: 067 6024 6110 tive bidders against deposit of requisite tender fee and application for bid document. The qualifying Requirement status will be examined during the process of evaluation of tender submitted by them. Credentials are required to be submitted with bid only. Tender documents submitted by agencies will not be returned back. CEILING/FLOORING/PLASTER/PAINTING 6 Western Railway Sabarmati Gujarat 16,80,000.00 33,600.00 / 2,000.00 05/10/2009 05/10/2009 / 05/10/2009 Details: DRM/ADI/122 of 2009-2010: Work of “Sabarmati (new colony). Providing leak proof work on Contact: Divisional Railway Manager, Engineering Department, Ahmedabad : 380025, Gujarat Tel: 079 leaky roofs of staff quarters in type-I quarters.” Sabarmati (new colony). Period of completion: 3 months 2294 0858, Fax: 079 2294 0858 DRILLING WORKS/EQUIPMENT 7 South Eastern Coalfields Ltd Korba Chattisgarh 17,00,00,000.00 10,00,000.00/ 5,000.00 08/10/2009 08/10/2009 / 08/10/2009 Details: SECL/BSP/MMW/PVB/160MM DRILL (Global)/89: Supply of 160mm drills - Qty : 3 nos Contact: Chief General Manager (MM), SECL Material Management Wing, Kusmunda Area, Korba, additional and 14 nos. replacement. Chattisgarh Tel: 077 5224 6320. Fax: 077 5224 6332 EPC/CIVIL WORKS/FENCING/WALL WORKS 8 Oil and Natural Gas Corporation Ltd Thapaka Andhra Pradesh NA NA / 500.00 26/10/2009 26/10/2009/ 26/10/2009 Details: KC11C03037: Civil works for Tatipaka Refinery in island area of E.G. Dist. Construction of Contact: NA, Rajahmundry Asset, Rajahmundry, Andhra Pradesh. Tel: 088 3243 1570, 72, 27160222 boundary wall and wicket gate at Thapaka Refinery-II. 9 Engineers India Ltd Bharmaputra Assam NA NA / NA 06/10/2009 17/10/2009 / 17/10/2009 Details: 6907/T-064/09-10/3PL/65: Civil and structural works of LLDPE/HCP unit for Brahamaputra Petrochemical complex. 10 Bihar State Electricity Board Gaya Bihar Contact: AGM (C&P), BPCL Projects, EI Annexe, 2nd floor, 1 Bhikai Cama Place, R K Puram, New Delhi : 110066, Delhi. Tel: 011 2676 2091, 26767074. Tel: 011 2616 7664, 2619 5714 27,70,00,000.00 NA / 10,000.00 19/10/2009 19/10/2009 / 19/10/2009 Details: 191/PR/BSEB/09: Construction of 2x10 MVA, 132/33 KV grid sub-station at Imamganj (Gaya) Contact: Chief Engineer (Transmission), Vidyut Bhawan, 3rd floor, J L Nehru Marg, Patna: 800021, Bihar. and 132 KV single circuit transmission line between Imamganj and Sherghati GSS (route length 25 kms. Tel: 0612 2504 655. Fax: 0612 2504 655 approx) on turnkey basis. Time of completion of works: 18 months. Tenders are invited from established qualified and experienced firms. 11 Godavari Marathwada Irrigation Development Nanded Corporation Maharashtra 60,00,000.00 60,000.00 / 2,000.00 27/10/2009 27/10/2009 / 27/10/2009 Details: 01 of 2009-2010: Construction of parapet wall pitching and catch water drain of Limboti dam Contact: Executive Engineer, Medium Project Division, Nanded, Maharashtra Tel: 022 4822 20436 @ upper manar medium project Tq. Loha Dist. Nanded. Time limit: 6 calendar months. Class of registration: Class IV & above. 12 East Coast Railway Khurda Orissa 16,30,400.00 32,610.00 / 2,000.00 05/10/2009 05/10/2009/ 07/10/2009 Details: DRM/Engg/KUR/15/09, Dt. 21.8.2009: Provision of R.C.C. pale fencing at L.C.s under ADENI/Cuttack’s jurisdiction of Khurda road division. Contact: Divisional Railway Manager, Khurda Road, Orissa Tel: 0674 2303 106 PLUMBING/DRAINAGE/SANITARY WORKS 13 Corporation of Chennai Chennai Tamil Nadu 40,67,00,000.00 40,67,000.00/ 16,875.00 21/10/2009 23/10/2009 / 23/10/2009 Details: SWDC No. B4/2192/2009: Providing re-sectioning and concrete lining to Raj Bhavan canal Contact: The Superintending Engineer, Storm Water Drain Department, Ripon Building, Chennai : including fencing and other improvement works and construction of storm water drain work in Velachery 600003, Tamil Nadu. Tel: 044 2538 1580 water shed, Chennai. Period of completion: 24 months. The bidder should be well established and reputed civil engineering contractor, registered as a legal entity in India for a minimum period of 5(Five) Years, five) years. and having experience of minimum 5 21 - 27 September | 2009 | Projects Info Tenders |15 Location State Tender Value (Rs) EMD / Doc Cost (Rs) Document Date Submission / Opening Date Sl. no. Organisation PLUMBING/DRAINAGE/SANITARY WORKS 14 Corporation of Chennai Chennai Tamil Nadu 1,142,300,000 NA / NA 23/10/2009 23/10/2009 / 23/10/2009 Details: S.W.D.C.NO.52/2181/2009: Construction of various sizes of storm water drains and canal Contact: Superintending Engineer / Executive Engineer, Storm Water Drain Department, Chennai, Tamil improvement work in Chennai City under JNNURM project (1) Kolathur water shed (2) Virugambakkam Nadu. Tel: 044 2538 1580 & Arumbakkam water shed (3) Velachery water shed. BUILDING MATERIAL/EQUIPMENT 15 Military Engineer Services Residential/Commercial Buildings Hyderabad Andhra Pradesh 4,82,00,000.00 3,91,000.00 / 2,000.00 20/10/2009 20/10/2009 / 20/10/2009 Details: Provision of civil works for housing technical buildings at technical area at RCI, Hyderabad. 16 Northeast Frontier Railway Guwahati Assam Contact: Dala Rambabu, CE R&D, Picket, Secunderabad, Andhra Pradesh. Tel: 040 2784 7664, Fax: 040 2784 7664 3,32,02,789.00 3,16,015.00 / 10000 07/10/2009 07/10/2009 / 08/10/2009 Details: 20 of 2009: At Guwahati - Replacement of 35 units overaged semi pucca type-II (SS) qrs by Contact: Sr Divisional Engineer/C, Maligaon-11, Assam. standard type II (TS) qrs and 12 units over-aged semi-pucca type-III (SS) qrs by standard type-III (TS) Tel: 0361 2572 794 2572 779 / 257 0761/ 257 3852 qrs. Date of completion: 365 days 17 Housing Board Haryana Faridabad Sonipat Haryana 2094,00,000.00 5,00,000.00 / 4,500.00 08/10/2009 16/10/2009 / 16/10/2009 Details: Construction of stilt + 10 storeyed 160 type-A flats including internal P.H & E.I services at Contact: Er. Naresh Kumar Gandhi, H.No. 2191-92 Sec-28, Faridabad, Haryana. HSIIDC complex Barhi Distt. Sonipat Haryana. Time limit: 36 months. Tenders are invited from the Tel: 0129 227 6030 contractor currently enlsisted in the appropriate category with central government, any state government, MES, public sector undertakings or any organisation that has undertaken construction of similar works of not less than Rs 20 crores during each of the last three years. 18 Housing Board Haryana Faridabad Sonipat Haryana 2468,00,000.00 5,00,000.00 / 4,500.00 08/10/2009 16/10/2009 / 16/10/2009 Details: Construction of stilt + 10 storeyed 240 type-B flats including internal P.H & E.I services at Contact: Er. Naresh Kumar Gandhi, H.No. 2191-92 Sec-28, Faridabad, Haryana. HSIIDC complex Barhi Distt. Sonipat Haryana. Time limit: 36 months. Tenders are invited from the Tel: 0129 227 6030 contractor currently enlsisted in the appropriate category with central government, any state government, MES, public sector undertakings or any organisation that has undertaken construction of similar works of not less than Rs 20 crores during each of the last three years. 19 Himachal Pradesh, Public Works Department Mandi Himachal Pradesh 1,63,31285.00 1,95,900.00 / 1,250.00 05/10/2009 08/10/2009 / 08/10/2009 Details: Construction of government degree college at Lambattach Tehsil Thunag Dist. Mandir HP (sh: Contact: Executive Engineer, Public Works Department, Himachal Pradesh construction of building portion with w/s & SI). Time limt: 1 year 6 months. Tel: 0190 5224 850 20 Himachal Pradesh, Public Works Department Mandi Himachal Pradesh 16,66,978.00 32,500.00 / 315.00 05/10/2009 08/10/2009 / 08/10/2009 Details: Construction of P.H.C Building at Thachi (sh: construction of building portion i/c w/s & s/1). Contact: Executive Engineer, Public Works Department, Himachal Pradesh Time limit: 1 year. Tel: 019 0522 4850 21 Border Roads Organisation Sampark Jammu & Kashmir 225,00,00,000.00 3,00,000.00 / 2,000.00 31/10/2009 31/10/2009/ 31/10/2009 Details: CA NO CE (P) SPK/2009-2010: Construction of married accommodation (type-II) at HQ 13 Contact: Chief Engineer, HQ CE (P) Sampark C/O 56 APO, Jammu & Kashmir BRTF (Malpur complex) under project Sampaark in J&K State. Completion period: 24 months 22 Karnataka State Police Housing Corporation Ltd Chamaraj Karnataka 214,00,000.00 2,14,000.00/ 10,400.00 03/10/2009 12/10/2009 / 13/10/2009 Details: PHC/Contracts/Mys/TND/2009-10/463: Construction of seating gallery to dist. stadium at Contact: Executive Engineer Contracts, No. 59, Richmond Road Bangalore-560 025, Karnataka Chamaraj nagar in Chamaraj nagar fist. under DC work. Tenders are invited with Class-I registered Tel: 080 2558 4102 Extn: 317 / 329 Fax:080 2294 2219 contractor of State PWDs/Central/MES/Govt. undertakings.Period of contract including monsoon: 12 months. 23 East Coast Railway Khurda Orissa 21,91,100.00 43,820.00 / 3,000.00 05/10/2009 05/10/2009 / 07/10/2009 Details: DRM/Engg/KUR/15/09, Dt. 21.8.2009: Construction of crew lobby cum crew booking office at Contact: Divisional Railway Manager, Khurda Road, Orissa Angul station of Khurda road division. Tel: 0674 2303 106 ROADS/ROAD OVER BRIDGE/BRIDGES/FLYOVERS/HIGHWAYS 24 National Highways Authority Jorbat Assam NA NA / 50000 14/10/2009 14/10/2009/ 14/10/2009 Details: NHAI/BOT/11019/9/2003/53: Request for qualification for four laning of Jorbat-Shillong Contact: Mr Pawan Kumar, G-5 & 6 Sector-10, Dwarka, New Delhi : 110075, Delhi (Barapani) section of NH-40 from km 0.000 to 61.800 in the states of Assam and Meghalaya on Tel: 011 2507 4100 2507 4200 Extn : 2230. Fax: 011 2509 3508 DBFOT pattern under SARDP_NE on build, operate and transfer (annuity) basis (project reference no. NHAI/SARDP/20081)25 East Central Railway Patna Bihar 71,080,000 505,400.00/ 10,000.00 06/10/2009 07/10/2009 / 09/10/2009 Details: 28 of 2009-10 (Open)/South: Construction of cut & cover protal bridge ( 2x6.25m) for elephant Contact: Chief Administrative Office/Construction, Mahendrughat, Patna, Bihar pas at ch. km 45.900 & ch.47.475 and other associated works between Koderma to Hazaribagh in con- Tel: 0161 2268 3409. Fax: 0161 2268 3409 nection with construction new a BG rail line from Koderma to Ranchi. Time of Completion after issue of LOA: 12 Months. Tender package no. KH-05. 26 Government of Karnataka Bellary Karnataka 276,59,00,000.00 NA / NA 26/10/2009 26/10/2009 / 27/10/2009 Details: Request for proposal for Development of state highway No. 132 commencing from Ch.0.000 to Contact: Project Director, PIU, KSHIP, K R Circle, Bangalore- 560 001, Karnataka. Ch.27.400 from Bellary city to Andhra Pradesh (AP) border to 4 (Four) lane2, undertake construction Fax: 080 2229 666. of wayside amenities and improvements of the existing carriageway on the available right of way extending from km 0.000 to km 3.4000 from Andhra Pradesh border to Chatra Gudi in the state of Andhra Pradesh on a design-build-operate-transfer (DBOT) basis through e-procurement. 27 Public Works Department Akluj Maharashtra 1,08,55,000.00 1,08,000.00 / 5,000.00 30/10/2009 6/11/2009 / 06/11/2009 Details: 22 for Year 2009-2010: Improvements to Mahad Pandharpur road SH 70 Km.171/00 to 174/00 Contact: The Executive Engineer,, Akluj, Maharashtra Tel: 0218 5227 490 ( BM & Carpet) Tal.Malshiras Dist.Solapur 16 |Feature Projects Info | 21 - 27 September | 2009 Wind power: Energy of the future Wind power has emerged as an important energy source worldwide, and is beginning to figure in national energy plans, income and employment. A report by PROJECTS INFO on the recent developments in the sector. I ndia has long played an important role in the world’s wind energy market established in the 1990s. Since the mid-seventies, when work began in earnest on harnessing wind, the development of wind energy technology has made significant progress. Modern wind turbines are highly sophisticated machines built on aerodynamic principles, which were developed from the aerospace industry, incorporating advanced materials and electronics. Modern wind turbines are designed to deliver energy across a range of wind speeds. The technical feasibility of using wind as a major source of energy has now been established, and wind energy today ranks as one of the most promising renewable technologies for generating electricity. The technology, its repowering, untapped off-shore potential and furthering wind resource assessment could play a key part in the nation’s effort to provide energy to its ever growing economy, which will then boom and combat climate change. After a lull last decade, wind energy has experienced a re-emergence for electric power generation in the grid-connected mode. The positive development of wind energy in India has been driven by progressive state level legislation, including policy measures such as renewable portfolio standards and feed-in-tariffs. The Ministry of New and Renewable Energy (MNRE) has placed a vital role in framing the policies, which have had a considerable impact. Some states with Renewable Portfolio Standards (RPS) or other policies to promote wind generation have introduced feed-in-tariffs (tariffs higher than conventional electricity rates to offset cost disadvantages in producing alternative energy forms) for wind generation. Also, the Electricity Act of 2003 is a step forward to protect the interest of the generator, the transmitter and the consumer. The National Renewable Energy Portfolios, set up by the Central Regulatory Authority will complement or supplement existing portfolio stan- dards at state level. Such a dynamic national standard level will have minimum stipulated purchase obligations. The government also provides fiscal and other benefits to promote private investment in all renewable energy sectors, including wind energy. The major incentives are provided as per the Income Tax Act, under Section 32 Rules 5 and Section 80. Such benefits help the developers of these projects to reduce the capital investment. However, it does not have direct bearing on the tariff rates. As there are other major factors which effect cost of generation of a wind power project, such as plant load factor, capital cost, interest on borrowing etc., the above tax benefits result in a marginal reduction in the cost of generation. These benefits are intended to promote investment in renewable energy sector and increasing green power generation. The Ministry is fast pushing the introduction of generation based incentive (GBI). This will attract domestic and foreign direct investment (FDI) and IPPs to come to India and set up large wind farms instead of existing in retail market conditions. Indian Wind Turbine Manufacturers Association (IWTMA) has requested that the two investment portfolios, one for accelerated depreciation (AD) and the other for GBI (Non-depreciation customers), must co-exist leaving the option to the investor. The proposal is under consideration now. MNRE is implementing the world’s largest wind resource assessment programme, which forms the backbone of their wind exploitation efforts. Preliminary estimates indicate a potential of about 20,000 mw. Scientific surveys are being intensified to identify specific viable and potential sites. A recent study undertaken to reassess the potential, places it at about 45,000 mw. Assuming a grid penetration of 20 per cent, a technical potential of about 9,000 mw is already available for exploitation in the potential States. 160 sites have so far been identified in 13 States, while survey work is in progress in 24 States / UTs. The States of Rajasthan, Gujarat and West Bengal have also shown wind potential recently. Today, the country has a wind power installed capacity of 992 mw, out of which about 940 mw is accounted for by commercial installations. About 3.5 billion units of electricity have been fed in to the grid so far. A good local production base for wind turbines now exists in the country, with 15 manufacturing companies active in this sector. A recent report on the wind energy industry in India reveals that turbine prices have always been lower than the global average, due to lower labour and production costs in the country. More than a dozen international companies now manufacture wind turbines in India. “Over the past few years, both the government and the wind power industry have succeeded in injecting greater stability into the Indian market. This has encouraged larger private and public sector enterprises to invest in wind,” stated the report published by the Global Wind Energy Council (GWEC) and IWTMA. The report states, “It has also stimulated a stronger domestic manufacturing sector; some foreign companies now source more than 80 per cent of the components for their turbines in India. The current annual production capacity of wind turbines manufactured in India is about 3,000-3,500 mw, including turbines for the domestic as well as for the export markets. However, the actual number of turbines produced is 21 - 27 September | 2009 | Projects Info Now, the industry has entered the “commercialisation phase”, thereby lowering the cost of wind turbine generators during the last few decades. The costs are expected to be reduced further by increasing the local manufacturing of all turbine components in India and substituting imports of more expensive parts from international markets. Rising raw material prices and shortages in the supply chain for turbine components caused a marked increase in the price of new wind turbines globally in the years 2006 to 2008. Ramifications of the financial crisis have reversed this upward trend, and according to New Energy Finance, the newly launched Wind Turbine Price Index shows an 18 per cent decrease in contract prices for delivery in H1 2010. As financing for new projects became harder to come by, difficulties in previous supply chains were overcome. In addition, decreasing raw material prices also helped bring prices down. As a result, since late 2008, global turbine prices have dropped by 18 per cent for turbines to be delivered in the first half of Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. State 2010. Today, the capital cost of wind power projects cost Rs 6.5 crore per mw on turnkey basis. The government has introduced a package of incentives which include tax concessions such as 100 per cent accelerated depreciation, tax holidays for power generation projects, soft loans, relief from customs and excise duty, liberalised foreign investment procedures, etc. IREDA is also playing a significant role in promoting renewable energy projects, wind energy projects in particular. Companies across business domains are turning to this environment friendly energy source for captive or commercial utilisation. DLF had invested Rs 1500 crore on wind energy. Major black-energy firms such as ONGS, BPCL, HPCL, IOC and British Petroleum have together purchased wind turbines that can produce 150 mw of power investing over Re1,000 crore. Reliance, Tata and Bajaj are increasingly investing into wind power for captive and commercial use. The Indian Railways too has set up windmills. Several large hospitality firms are currently in talks Technical Potential (mw) (b) 1920 1780 1180 605 845 3040 780 910 1880 450 13390 Installed Capacity (mw) (c) 121.1 667 847 2.0 58 1485 2 470 3460 1.6 0.5 7114 mw Feature |17 with domestic and foreign wind energy solution providers, as going green gives them a USP . Industry experts say lack of awareness is a major set back to implement such initiatives. Fear of whether the system will work, how efficient it will be and maintenance cost are some of the factors that restrain consumers from opting it out. Maintenance costs tend to be very low, and wind energy can be a powerful energy source. Research & Development The Ministry supports R&D projects through C-WET and through research institutions, national laboratories, universities and industries. Subgroups, consisting of experts in various fields of wind energy, have identified thrust areas for research on new and alternative material for construction of wind turbine components, hybrid systems, models for forecasting of wind power and human resource development. A working group consisting of experts from different organizations has been constituted to examine the feasibility of offshore wind farms in India. A proposal has been formulated by C-WET to set up measurement systems at two offshore locations in Tamil Nadu. driven by market forces, and high interest rates often do not allow for the accumulation of inventory. Thanks to new market entrants, it is expected that the annual production capacity will rise to 5,000 mw per year by 2015.” Companies operating in this segment in India include Suzlon, Vestas Wind Tech, RRB Energy, Enercon, Vestas, GE, Gamesa, Siemens, ReGen Power Tech, LMGlasfiber, WinWinD, Kenersys and Global Wind Power. These companies are manufacturing in India either through a joint venture under licensed production as subsidiaries of foreign companies or as Indian companies with their own technology. The report indicates that the capital cost of producing wind turbines has fallen steadily over the past 20 years as turbine design is now largely concentrated on the three-bladed upwind model with variable speed and pitch blade regulation. Also, optimised manufacturing techniques, mass production and automation have resulted in economies of scale. A graduated assumption estimates the costs of Rs 5.35 crore/mw (as per 2008 prices) to decrease to Rs 5.00 crore/ mw by 2010, then stabilising at that level. The reason for this graduated assumption is that the manufacturing industry has not yet gained the full benefits of series production, especially due to the rapid up scaling of products. Neither has the full potential of the latest design optimisations been realised. Gross Potential (mw) (a) 8275 9675 6620 875 3650 1700 5400 3050 450 45195 mw Andhra Pradesh Gujarat Karnataka Kerala Maharashtra Orissa Rajasthan Tamil Nadu West Bengal Other States Total IWTMA’s wind energy outlook scenarios Three different scenarios for wind energy development in India are set against two electricity demand projections. The Reference Scenario is based on the International Energy Agency’s (IEA) predictions for the power mix in India in 2030, resulting in a minimal increase in wind power in this time frame from the current 10 gw to 27 gw. This would also be reflected in a negligible impact on investment, employment and CO2 savings by wind energy. The Moderate Scenario is based on an estimation. This could result in a total installed capacity of 142 gw by 2030, which would produce 341 TWh of electricity and satisfy 12.6 - 14.2 per cent of India’s demand. The impact on annual investment (Rs 336 billion) and employment (142,000 jobs) would be considerable, and 323 million tons of CO2 could be saved every year. The moderate scenario and the following advanced scenario is a vision statement of the future considering the enormous capacity of power demand of India and possible untapped wind resource. The potential of off-shore is not even estimated but one cannot play down the 7000 km of coastline. Re-powering with larger turbines will add to reaching such capacities. The outlook for India as done for others globally upto 2030 is a projection that is achievable. Madhya Pradesh 5500 POSSIBLE GENERATION per mw ( in lakh units ) Tamil Nadu Maharashtra Karnataka Gujarat Andhra Pradesh Madhya Pradesh Buy-back 16 - 20 14 - 16 14 - 20 12 - 14 12 - 16 12 - 14 Third party-sales Other Incentives Penalty on kVARh consumption Van Drawal 0.10p/unit. To Give 10 Lakhs / MW to APTransco 1 lakh /to NEDCAP No generatin tax for 5 years Van drawal 0.40p/unit R.P.<10% energy 0.10 P.>10% 0.25p 27 paise per kVARh Items Andhra Pradesh Karnataka Wheeling 2% of energy Banking - Presently Rs.3.37 w.e.f 1 April 2004 (frozen for 5 years) Rs 3.40 / kwh no ecalation for 10 years 3.14 for 20 years Rs 2.25/kwh (5% Esc.95-96 ) to be decided on case to case basis Rs 3.37/kwh Present Rs 3.97p/kwh coming down to Rs 3.30 from the 5th year to 20th year Rs 3.50/kwh with escalation of 15 p per unit/year for 13 years present Rs 3.32/kwh Allowed as per E.Act NOT Available 2003 subject to NEDCAP APERC Regulations Allowed to HT consumers Allowed Not Allowed Not Allowed Allowed same as for other industries 15% (max Rs 5 lakh) same as for other industries same as for other industries 30% (max Rs 20 lakh per project ) - 5% of energy +1.15Kwh as cross subsidy for 3rd party sale To be decided by SERC 2% of energy 2% of energy 4% of energy 2% of energy +Transmission charges by SERC 2% every month for 12 months 12 months 6 months 6 months Not Allowed Kerala Uttar Pradesh West Bengal Gujarat Madhya Pradesh Maharashtra 2% of energy +5% T&D loss Rajasthan 2% of Energy 2% for 12 months 2% for 12 months Allowed Sales tax (Exemption for 6 years subject to a minimum PLF of 20%) Details Contact IWTMA Allowed * Courtesy : MNRE 21 - 27 September | 2009 | Projects Info Spectrum |19 The real value of your money Spectrum Contact: 022-2419 3000. Fax: 2417 5734. E-mail:
[email protected] [email protected] RLDA invites bids to develop properties he Rail Land Development Authority (RLDA) has invited bids for the commercial development of two properties in Vijayawada and Visakhapatnam in Andhra Pradesh. The authority has invited tenders in a single stage, two-packet bidding system to develop the properties on long- T term lease basis. The properties located at Poornanandampet, Vijayawada, and at Ambedkar Circle in Visakhapatnam, are surplus railway lands. A prebid conference will be held at the RLDA office in New Delhi on 10 October. The last date for the submission of bids is 27 October. News Garv to develop township arv Buildtech, a subsidiary of Omaxe, has entered into a MoU with Lucknow Development Authority for the development of a hitech township on a proposed area of 2,700 acre in the city. G The proposed township is strategically located at the Lucknow Ring Road, in close proximity to Lucknow Airport. The project is to be executed in phases over a period of five to seven years. Kool Homes launches four projects in Pune Adani calls bids for thermal plant dani Mining Pvt Ltd (AMPL), an SPV of Adani Group, has invited tenders in two part bidding system from potential developers for its 1,080 mw (8x135) thermal power project at Udaipur in Surguja district K ool Homes has launched four tech-savvy residential projects in Pune comprising 1,000 homes with an investment of Rs 150 crore. A township is planned on 27 acre in Mohammadwadi, whose Phase I will include 300 flats on six acre. The other projects, in Bavdhan, Balewadi and Kondhwa, will include 250 units each on two or three acre land. Units will be 2 and 3 BHK homes cover- ing 1,200 and 1,490 sq ft with a price of Rs 50 and Rs 60 lakh respectively. The flats will be equipped with ultra-modern amenities such as exhibitionstyle modular kitchens, motorised curtain controls, etc. A of Chhattisgarh. AMPL is likely to set up the proposed power project based on CFBC boiler using coal washery rejects on EPC basis. Last date of submission for tenders is 27 October. Bidders for waste mgt project R amky Enviro Engineers has emerged as the lowest bidder for the integrated solid waste management project to maintain the 60-acre fruits and vegetables wholesale market at Koyambedu in Chennai. The Chennai Metropolitan Development Authority invited the bid for maintaining the fruits and vegetables market, which houses over 3,000 shops. A final decision on the award of the contract is to be taken after a negotiation meeting later this month. Punjab's low-cost homes project P Phase I will include 300 flats on 6 acre. unjab Chief Minister Parkash Singh Badal launched a lowcost housing project developed by his government in collaboration with Ambuja Cement Foundation. The project has an outlay of Rs 2.2 crore and developed over an area of seven acre at village Gaggar in Muktsar district. An official release said that the project was equipped with all civic amenities for the houseless scheduled caste and backward class families. Badal said that after the successful completion of this prestigious housing project for the lower strata of the society, several other companies of national repute have evinced keen interest to join hands with the state government for such projects to accommodate more such deserving beneficiaries. Regd. No. MH/MR/WEST/191/2009-2011. WPP No. MR/Tech/WPP-113/West/2009-2011 Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400 001 on every Monday & Tuesday. RNI No. MAHENG/2006/17992. 20 |News Forward Jhajjar power project raises Rs 3,900 crore page 1 for the Jhajjar Power Plant in just eight months from its foundation date under such difficult financial market conditions, reflects the inherent strength of CLP and the confidence of the lending community in the Company.” He further added, “Once completed and commissioned in time, Jhajjar project will contribute significantly towards improving the power situation in Haryana State and will also help the state’s employment status by providing jobs for about 250 staff directly and thousands indirectly.” Projects Info | 21 - 27 September | 2009 Alstom, Dow dedicate CCS pilot plant in US A lstom and The Dow Chemical Co have dedicated a pilot plant to capture carbon dioxide (CO2) from the flue gas of a coal-fired boiler at the Dow-owned facility in West Virginia. The pilot plant uses proprietary advanced-amine technology jointly developed by Alstom and Dow to capture approximately 1,800 metric tons of CO2 annually. The pilot will operate for the next two years, generating data that can be used to optimize the technology for use at other coal- fired power plants. In 2008, the two companies entered into a Joint Development Agreement to develop this technology. In March 2009, the companies announced their plans to design and construct the plant. GACL plans Rs 98 crore expansion at Dahej Barmer power unit sync-ed SW Energy Ltd said it has synchronised the first unit of 135 mw lignite-based power project in Barmer, Rajasthan, where the company’s wholly owned subsidiary Raj WestPower Ltd (RWPL) expects to commence commercial operation of the first unit of 135 mw in October 2009 and the entire project by October 2010. The total investment is Rs 5,000 crore for the power project and approxi- G J mately Rs 702 crore for the lignite mining. The entire power will be sold to Rajasthan State Electricity Distribution companies. To part finance various projects including the power plant and lignite mining projects at Barmer, JSW Energy is proposing to enter the capital market with an initial public offering of equity shares aggregating up to Rs 3,000 crore and has filed its Draft Red Herring Prospectus with SEBI. ujarat Alkalies & Chemicals Ltd (GACL) has taken up expansion of its hydrogen peroxide project at its Dahej Complex to increase the capacity by 14,000 tpa for an investment of Rs 98 crore. After commissioning of expansion project, GACL is poised to be the largest pro- ducer of Hydrogen Peroxide in the country, according to company sources. The company had commissioned its first hydrogen peroxide plant in 1996 at Baroda and second plant at Dahej in 2007. The total existing capacity of both plants is 25,080 mta, which shall go up to 39,080 mta. The company has roped in Chematur Engineering AB of Sweden as a technology partner. The project is expected to be on stream during Financial Year 2010-11. GACL is considering a Rs 2600 crore investment over the next three years in greenfield and other projects. Rs 50,000 crore to revive fertiliser units T BPCL may shut Sulphur unit harat Petroleum (BPCL) is planning to close a unit that reduces sulphur content in gasoline and diesel for an upgrade to produce fuels that B meet Euro III and Euro IV specifications. It will be mandatory to sell Euro III and Euro IV fuels from April 1, so the plant's function is obviated. he Board for Reconstruction of Public Sector Enterprises (BRPSE) has proposed to the government a revival of five sick fertiliser units, which will involve an investment of more than Rs 50,000 crore. Instead of reviving the units with private partners, BRPSE has proposed reviving the units through government funding, mainly from revenue raised from the ongo- ing disinvestment drive. “The revival would involve almost rebuilding the units, as all of them have been based on outdated technology. Also, it will reduce dependence on naphtha, as the units would run on gas-based technology,” said Nitish Sengupta, Chairman, BRPSE. The units include Sindri in Jharkand, Talcher in Orissa and Rupnarayanpur in West Bengal. While each unit would require an investment upto Rs 10,000 crore, the Union Fertiliser Ministry would decide the revival package and source of funding, Sengupta said. Additionally, Namrup-II and III units of Brahmaputra Valley Fertiliser Corporation Ltd have been already been revamped. Commercial production of Namrup-II started in 2005.