News
Thursday, November 26, 2015
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Government to soon begin work on three express highways: Nitin Gadkari
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Railways eyes Rs 1.1-lakh cr fund for infra upgrade
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Supreme Court seeks objections to hydel projects report
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Failure to implement reforms may hamper India investment: Moody’s
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Government makes use of plastic waste in road construction mandatory
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'Indian construction equipment sector to grow to $5 bn by 2020'
Government to soon begin work on three express highways: Nitin Gadkari
PTI,
November 26, 2015
The government will soon start work on three express highways, including the one
between Delhi and Srinagar, Union Minister Nitin Gadkari said today.
Besides, work would also begin on the Delhi-Meerut and Mumbai-Nagpur express
highways.
Inaugurating the EXCON trade fair here, the Road Transport and Highways Minister
said the government would start work on the 14-lane Delhi-Meerut express highway by
December.
"(We) will construct Delhi-Srinagar express highway which will reduce travelling time to
Srinagar from national capital to 6 hours from present 22 hours. Similarly MumbaiNagpur express highway will reduce travelling time to 6 hours from 18-19 hours," he
said.
"It will be designed in such a fashion that vehicles can run on the express highway at a
speed of 150 to 200 kilometre per hour. It will be access-controlled highway," he said.
The Minister also said that in the long run, the government plans to build ten express
highways.
Gadkari noted that road building pace is picking up and reached 18 kilometre per day
now from "mere 2 kilometre a day during the UPA regime. It will reach 30 kilometre a
day by March 2016".
"95 per cent of the stuck 380 road projects, when I took over, have been rolled out by
addressing regulatory hurdles," he added.
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Further, Gadkari said total length of national highways would be increased to 1.5 lakh
kilometre by March 2016 from present 96,000 kilometre.
According to the Minister, infrastructure development is picking up in the country and
construction equipment manufacturers can take advantage of the tremendous
opportunities.
"I urge equipment manufacturers to build ethanol and bio-diesel engine vehicles instead
of diesel," the Minister said.
Noting that highways and shipping sector would create 50 lakh jobs in the next five
years, Gadkari urged construction industry to impart skill training to the youth.
EXCON, an international construction equipment and technology trade fair, is organised
by industry body CII.
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Railways eyes Rs 1.1-lakh cr fund for infra upgrade
FE Bureau,
November 26, 2015
Preliminary discussion on, with the aim to address needs for ensuring end to track
accidents
A wait of almost two decades for the people of South Assam (Barak Valley) to have
broad-gauge rail connectivity has finally come to an end as Union railway minister
Suresh Prabhu today flagged off the first passenger train service on the newly conver
Indian Railways (IR) is working on a proposal to create a mega fund called Rashtriya
Rail Sanraksha Kosh (RRSK), with a corpus of Rs 1,10,239 crore, to upgrade its creaking
infrastructure.
Officials said the fund would be used to eliminate level-crossings, install collision
avoidance systems, as well as for track renewal and signal upgrades.
“The idea is to seek the bulk of this fund from the finance ministry,” said a senior
Railway Board official, who did not wish to be identified. “This includes around Rs
40,000 crore for elimination of unmanned level crossings and replacing old signalling
and telecom infrastructure, which lead to more than half the rail-related accidents.”
The rail ministry had set up a six-member committee under the executive director of its
planning directorate for a scheme, including funding sources and focus areas. The
committee had sought inputs on fund requirements from directorates — mechanical,
electrical and civil engineering, among others. The inputs are expected by the end of next
week. The committee will then create a consolidated proposal within a month and send it
to the finance ministry.
“The initial estimate works out to Rs 1,10,239 crore but is likely to be expanded,” the
official said. Another senior Board official said discussions on the sources of the fund
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were still at a preliminary stage. “It is still not clear whether a separate cess would have
to be levied to create the fund, like it was done in 2001. But, the fund would be used
largely for addressing safety-related issues,” he said.
A similar fund to bolster safety infrastructure was introduced in 2001, when Nitish
Kumar was railways minister, to wipe out the accumulated arrears of renewal on aged
assets, including tracks, bridges, signalling gears and rolling stock. It was created with an
initial corpus of Rs 17,000 crore, of which Rs 12,000 crore had come from the finance
ministry as dividend-free capital. The fund was closed in 2008 and its balance of Rs 597
crore merged to the Depreciation Reserve Fund.
Railways Minister Suresh Prabhu had earlier this month met with Finance Minister Arun
Jaitley, seeking assistance for creation of a special fund for safety upgrade. After the
recent spate of train accidents, Prabhu had announced a zero-accident mission. Officials
said the fund was a part of that initiative.
The year 2015 has seen eight train accidents because of derailments. Two trains had
derailed minutes apart at the same spot near Harda in Madhya Pradesh in August,
claiming 29 lives, forcing Prabhu to pull up zonal general managers.
UPGRADE PLAN
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Rashtriya Rail Sanraksha Kosh (RRSK) to have corpus of Rs 1,10,239 crore

Railway Board panel working out blueprint but initial discussions suggest
funding assistance being sought from finance ministry
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Money to be used to strengthen rail and safety infrastructure
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No clarity on whether the government would introduce a safety cess to create the
fund
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A similar cess levied in 2001 by Nitish Kumar helped raise Rs 17,000 crore
The idea for RRSK was mooted in the aftermath of the spate of train accidents earlier
this year that claimed innocent lives.
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Supreme Court seeks objections to hydel projects report
FE Bureau,
November 26, 2015
The Supreme Court has sought objections to a fresh report filed by the government
recommending implementation of five out of six hydroelectric power (HEP) projects,
which were earlier recommended for cancellation due to their bio-diversity impacts on
Alaknanda and Bhagirath river basins in Uttarakhand.
The Supreme Court has sought objections to a fresh report filed by the government
recommending implementation of five out of six hydroelectric power (HEP) projects,
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which were earlier recommended for cancellation due to their bio-diversity impacts on
Alaknanda and Bhagirath river basins in Uttarakhand.
Citing the experts body’s report, the environment and forest ministry told a bench
headed by Justice Dipak Misra that the implementation of the five projects — NTPC’s
(Lata Tapavan 171 MW ), NHPC’s (Kotlibhel IA-195 MW), GMR’s (Alaknanda-300MW),
Super Hydro (Khironi Ganga-4 MW and Bhyunder Ganga-24 MW) — can be done only
after each project developer formulated the disaster mitigation plan (DMP), longitudinal
connectivity of E-flow of water, safety measures required during tunneling and blasting,
muck disposal and transportation, etc and also obtained necessary clearance from the
National Board for Wild Life.
However, the seven-member expert body, headed by civil engineer and hydrology expert
BP Das, has recommended against implementation of THDC’s 108-MW Jhelam Tamak
HEP, situated on Dhauli Ganga, saying the project has not yet obtained necessary
clearances and not reached the “ripe stage” for examination for acceptability for
implementation.
After a brief hearing, the bench on Tuesday asked the government to apprise it of the
findings of an inter-ministerial committee, which has been set up on Monday to look into
an expert panel’s report giving clearance to five hydro power projects.
The bench asked the MoEF to apprise it about the final decision on the hydro projects
and posted the matter for further hearing on January 20.
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Failure to implement reforms may hamper India investment: Moody’s
TNN,
November 26, 2015
A failure to implement reforms in India could hamper investment amid weak global
growth, global ratings agency Moody's Investors Services cautioned on Wednesday.
It said it was highly unlikely that major reforms would be enacted in the upper house of
parliament where the ruling coalition is in a minority. The agency said despite overall
supportive domestic conditions for the country's companies, potential headwinds loom
from a loss of reform momentum.
The Modi administration so far this year has been unable to enact legislation on key
reforms, including a unified goods and services tax and the Land Acquisition Bill, it said.
The government hopes to get the GST Constitution Amendment bill approved in
parliament and is keen to push the legislative business. It has reached out to the
opposition parties to forge a consensus and ensure the passage of the crucial GST bill.
The Narendra Modi government has identified implementation of GST as a key reform
initiative. The government has unveiled a flurry of reforms after the rout in Bihar
assembly elections and Modi has promised to accelerate the reforms drive.
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Moody's Investors Service says that most non-financial corporates it rates in India (Baa3
positive) will benefit from strong domestic growth and accommodative monetary policy,
although weak global growth and a potential US rate hike will weigh on businesses.
"Healthy 7.5% GDP growth for India for the fiscal year ending March 2017 (FY2017) and
a pick-up in manufacturing activity will be broadly supportive of business growth," says
Vikas Halan, a Moody's Vice President and Senior Credit Officer.
"However, the corporates remain vulnerable to the volatile Indian rupee as against the
US dollar and to low commodity prices, which has in turn led to a sharp decline in
external trade," said Halan while releasing the agency's 2016 outlook presentation for
Indian non-financial corporates.
The fall in commodity prices has benefited many Indian corporates given the country's
status as a net important of raw materials and its recent history of high inflation.
The resultant moderating inflation should result in lower borrowing costs for corporates
and yields on corporate bonds, said Moody's.
The ratings agency expects upstream oil and gas companies to benefit from lower fuel
subsidy burdens, although low crude and domestic natural gas prices will continue to
hurt profitability.
Refining and marketing companies meanwhile should benefit from healthy margins as
demand growth outpaces expected capacity additions.
The agency's negative outlook for the steel industry reflects elevated leverage and an
extended period of low prices due to continuing steel imports, while the negative outlook
for metals and mining companies reflects bleak global commodity prices.
In the real estate sector the agency expects demand to improve in 2016 on the back of
lower interests rates, although approval delays could push back project launches for
property developers.
It expects retail auto sales volumes to grow 6% in 2016 on the back of sustained growth
in passenger vehicles sales and a recovery in commercial vehicle sales.
The telecom companies that the agency rates in India have reported improving revenue
per user (ARPU) and EBITDA margins, however competition remains intense and the
regulatory framework continues to evolve.
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Government makes use of plastic waste in road construction mandatory
ET Bureau,
November 26, 2015
The government has made it mandatory for road developers to use waste plastic along
with bituminous mixes for road construction to overcome the growing problem of
disposal of plastic waste in India's urban centres.
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Road developers will now have to use waste plastic along with hot mixes for constructing
bitumen roads within 50 km of periphery of any city that has a population of over five
lakh. In recently released guidelines for developers, the government said that in case of
non-availability of waste plastic, the developer has to seek the road transport & highways
ministry's approval for constructing only bitumen roads.
"Urban local bodies, which are usually short of financial resources, can make money by
selling the plastic waste generated by cities to road developers. They can signs
memorandums of understanding with the road construction companies," a senior
government official told ET.
India generates 56 lakh tonne of plastic waste annually. As per a study by the Central
Pollution Control Board, 60 large cities in India generate over 15,000 tonne of plastic
waste every day. Delhi generates close to 7,000 tonne of waste every day, of which over
10 per cent is pure plastic but cannot be disposed even by waste-to-energy plants
because of environmental reasons.
In an observation earlier this year, the Supreme Court had said that the country was
sitting on a plastic time bomb.
Plastic will add to the longevity of roads by making them water resistant and also
increasing the resistance of roads to change in weather.
The government expects this measure to bring down the cost as well for road developers,
from about Rs 10 crore for one km of road length at present.
"The cost factor is yet to be analysed, but it will be slightly less than 100 per cent
bitumen," the official said.
The ministry will also encourage state governments and rural development ministry to
make use of plastic waste mandatory in construction of roads.
"The same technology can also be used for construction of rural roads as it will enhance
their quality as well as longevity. These roads can have a plastic coating mixed with
bitumen," the official said.
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'Indian construction equipment sector to grow to $5 bn by 2020'
Business Standard,
November 26, 2015
The construction equipment industry in India is projected to grow to $5 billion by 201920 from the current size of $2.8 billion, an industry report said on Wednesday.
According to a report from the Indian Construction Equipment Manufacturers'
Association - an affiliated body of Confederation of Indian Industry - the after sales
spares market is about $800 million and is a major source of income and employment
opportunity.
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"There is cautious optimism that by 2018-19, the industry will get back to an output level
of 70,000 units that was achieved in 2011-12. The overcapacity built in earlier boom
years is expected to be utilised before fresh investments are made," it said.
According to the industry body, the recent progress in highway road building activity and
coal mining auction augurs well with the futuristic projected growth.
"There is scope for the government to play an enabling role for the industry to grow.
Clearing the GST and Land bills and creating a separate regulatory framework and
legislation specifically for off-highway equipment are of utmost priority," it said.
While backhoe loaders and hydraulic excavators continue to dominate the market
accounting for over half the size, customer practices to use better technology equipment
is changing, albeit slowly. Presently, while direct employment in the sector is about 1
million, it impacts over 10 million livelihoods in allied sectors, the report said.
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