Costain Final Report | Rail Transport | Profit (Accounting)

Strategy for Highways Sector - India

Costain is an international engineering and construction group with a reputation for technical excellence founded on more than 140 years of experience.

Contents: 1. 2. 3. 4. 5. 6. 7. Introduction: Costain Highways Sector Strategy: Solution: Business expansion in India Client: National Highways Authority of India (NHAI): Business Strategy and Action Plan: Proposed Action Plan: Appendices: 7.1 7.2 7.3 7.4 7.5 Appendix 1: Types of Projects in NHAI Appendix 2: Details of projects under NHDP (phase II, III ) Appendix 3: Sample list of contractors Appendix 4: IRCON INTERNATIONAL 1 1 3 5 10 13 14 14 19 32 34

Appendix 5: Rail sector opportunity: Dedicated Freight Corridors: 39

1. Introduction:
Costain highways sector vision is ³to become the No 1 Provider of Highways Solution Services to µBlue Chip¶ customers.´ The financial objective is ³to maintain double digit growth in annual turnover and Profit´. At present, Costain is largely a UK based business with almost no presence internationally. In the short-term, due to the forthcoming Olympics in London this growth may be achieved despite the fears of economic recession. However, in the medium to long-term, a sustained double digit growth may be difficult to achieve without resorting to new markets and new services. Expanding Costain¶s business into India can help achieve this objective. This report assesses the current Highways sector strategy for Costain, assesses the market potential for Highways sector in India, suggests different strategies for launching business in India, and assesses future potential for business growth in other allied sectors and other markets.

2. Costain Highways Sector Strategy:
Vision:µTo be the No 1 Provider of Highway Solution Services to ³Blue Chip´ Customers¶

Mission:

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Health and safety: Ensure the health and well being of our staff and those affected by our activities

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Environment: Minimise our direct impact on the environment and continue to raise awareness, internally, with our supply chain and our key external stakeholders, of the importance of protecting and where possible enhance the environment.

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Our People: Create a shared culture and work ethic driven by strong leadership, sustained through career progression and enhanced through talent identification and management, personal development, recognition and reward. Page 1

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Community: Enhance the reputation of the company and its clients, partners and suppliers through active stakeholder engagement and the delivery of legacy projects, which offer long term benefits to the community and meet society¶s needs.

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Marketplace: Improve our supplier and subcontractor selection and management enabling us to continually deliver improved efficiencies and added value for sustained business performance. Work to achieve success and so provide our stakeholders with the high quality outcomes they expect.

Objectives: y y y y y Zero Accidents Delighted Customers Minimum impact on the environment Maximum contribution to the communities in which we work Maintain Double Digit growth in annual Turnover & Profit

Current problem:

µChallenge is to maintain sustained growth and profitability¶.

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Highly competitive UK Highway sector Investment opportunities in Capital Projects likely to reduce particularly after London Olympics.

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Maintenance projects give lower profit margins TUPE regulations create ³people´ issues and drain resources in terms of management time.

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Solution: Business expansion in India Roads are the dominant mode of transportation in India.66 km of highway per square kilometre of land. Table 1: National Highways/Expressways State Highways Major and other roads Rural Roads 66590 Km 128600 Km 470000 Km 2650000 Km (Source: India Development Report 2008) National Highways: The National Highways is made up of Single lane (3.5 m width per lane) Four/Six/Eight Lane (3. The density of India¶s highway network is 0.org accessed on 23/7/2008).3 million KM consists of National Highways. the Indian Prime Minister had indicated that India needs investments in infrastructure to the tune of US$320 billion in the next 5-10 years.worldbank.5 m width per lane) 32% 56% 12% (Source: India Development Report 2008) Page 3 . India has accorded very high priority to investments in Transport Infrastructure. major and other district roads and village/rural roads.75m width) Double/ Intermediate Lane (3.3. carrying 90% of the country¶s passenger traffic and 65% of its freight. Out of this. In October 2006. (Source: http://web. State Highways. Roads sector in India: The road network aggregating to 3. at least US$ 50 ± 60 billion is required to improve road infrastructure in next 5 years (Source: India Investment Commission 2006).

State Public Works Departments (PWD¶s) 3. Public-Private Partnerships: Several initiatives have been taken by the government to encourage private sector participation in the NHDP.The Central Government is responsible for development and maintenance of the National Highways and it carries out the work using 3 main agencies: 1. National Highways Authority of India (NHAI) 2. permit private financing and allow tolling.  Provision of encumbrance free site for work. which includes:  Provision of capital subsidy up to 40% of the project cost to make projects commercially viable.e. i.  100% tax exemption for 5 years and 30% Tax relief for 5 years. Border Roads Organisation (BRO) Government Strategy for Highways: y Launching µNational Highway Development Program¶ with its seven phase program ending in 2015 Operationalising the National Highways Authority to act as infrastructure procurer and not just provider y y Amending the National Highways Act to expedite land acquisition. the Government shall meet all expenses relating to land and other pre-construction activities  Foreign Direct Investment up to 100% in road sector  Duty free imports of high-capacity equipment for construction projects  Higher concession period (up to 30 years)  Right to collect and retain toll Page 4 .

The Authority was operationalised in Feb. National Highways connecting four metropolitan cities --Delhi. Mumbai. i. it can be seen there are 3 types of projects are that NHAI are may be of significance to Costain. NHDP Phase I& II: The Phase I & Phase II of NHDP comprises of (i) Golden Quadrilateral (GQ).846 km. (ii) North-South & East-West Corridor (NS-EW) which comprises 4-laning of 7. This project is being executed in 7 phases to be completed by 2015. ADB etc) NHAI funded project International Competitive bidding is carried out for projects funded by Multilateral funding agencies and for larger projects for which sufficient nos.e. Chennai & Kolkata having an aggregate length of 5. 1995. NHAI awards consultancy services projects for y y y y IT Services Feasibility studies and project preparation Construction supervision Highways sector studies.300 1 NHAI is responsible for the development.. Page 5 . maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto. etc The details of the steps in selection of Consultants are shown in appendix 1. the largest highway project ever undertaken in India.4. National Highways Development Project: NHAI is mandated to implement the National Highways Development Project (NHDP). of domestic consultants/contractors/consortium is not available. From the details in appendix 1. Client: National Highways Authority of India (NHAI): The type of projects NHAI1 undertakes is given in appendix 1. y y y Build operate and Transfer (BOT) Multilateral agencies aided Project (World Bank.

Consultancy works for a length of 1. The total estimated cost of the NHDP Phase I & II having a total length of 14. 16. This includes 5. economically important areas etc. important tourist places. The proposal for implementation of the balance length of about 7.000 kms of National Highway.km of National Highways connecting North-South corridor from Srinagar to Kanyakumari with Cochin-Salem spur and East-West corridor from Silchar to Porbandar. NHDP Phase-V: Phase V of NHDP comprising six laning of 6.109 km of NH having High-density corridor connecting State capitals.2006.639 crore (US$161 billion) NHDP Phase-III: NHDP Phase-III involves 4-laning of 12.500 km of existing 4 lane highways on Design Build Finance & Operate (DBFO) basis was approved on 5. NHDP Phase-VI: Government has recently approved the proposal for development of 1000 kms of access controlled four /six lane divided carriageway expressways under NHDP phase-VI on BOT basis at the cost of Rs. (iv) Up gradation of 831 km of other important National Highways. on PPP basis.64. (iii) 380 Km length of National Highways are proposed to be upgraded to 4-lane standards for providing connectivity to 10 major ports of the country to NHDP.225 km has already been awarded for feasibility study and bids for 180 km length are under evaluation.680 crore (US $4170 million) Page 6 .294 km under NHDP Phase-IIIB has been approved recently.10.815 km under NHDP Phase-III A. NHDP Phase-IV: Phase IV of NHDP comprising 2-laning with paved shoulders of 20.700 km of GQ and other selected stretches. Civil works for a length of 148 km was awarded on BOT Concessions and for balance follow up actions are being taken to award the contracts on BOT basis.357 km is about Rs. The Government has approved implementation of 4.

) Under Implementation (Km. The project-wise details NHDP Phase I.) NS . NHDP Phase I & II are likely to be completed by December 2008 whereas NHDP Phase IIIA is scheduled for completion by December 2009.) Already 4-Laned (Km. I & II NHDP Phase III NHDP Phase V Port Connectivity Others Total by NHAI NHDP Total 5.807 179 573 9559 157 3701 1577 1030 6465 195 369 7029 18 143 25 2 188 8 15 211 - 821 10.325 6 20 16.500 31755 380 962 33097 5. II .351 Page 7 . II.IIIA & V at present.) Balance length for award (Km. 6 laning of 148 km has been awarded 6 laning is proposed under NHDP Phase V. 2008) NHDP GQ Total Length (Km.300 12109 6.EW Ph. IIIA & V NHDP & Other NHAI Projects (Status :30th June.689 2620 498 - 8. The present phases under Phase I. II & IIIA envisages improving more than 25. In addition to above.034 5470 16.Status of NHDP: NATIONAL HIGHWAY DEVELOPEMENT PROJECT(NHDP) National Highways Development Project is being implemented in 4 phases I.846 7.) Contracts Under Implementation (No.785 km of arterial routes of NH Network to international standards.

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Contracts competition: Already large numbers of firms are operating within the NHDP.5 80826 27800 41210 16680 16680 20206. 35. Phase IIIA.5 6950 10302. 430 Crore (US$ 58. and they have been operating successfully in India. The detailed list of these projects is in appendix 2.2. The NHDP project has attracted large number of international construction firms/consultants. It is clear that opportunities are endless in the foreseeable future. Most of the global firms have formed JV with Indian firms for carrying out construction projects. Future Outlook: The Government has formulated an ambitious plan for investment of Rs. and Phase V.9 billion) for up gradation of National Highways under various phases of NHDP in a phased manner in the years to come. The details of this plan are as under:- Phase Project Likely cost in Rs (in crore) Likely cost in US$ (million) (1US$= 40 Rs) NHDP phase I & II NHDP phase III NHDP Phase IV NHDP Phase V NHDP Phase VI NHDP Phase VI GQ and ES/NS corridor 4 laning 2 laning 6 laning Expressways Flyovers. A sample list of the contractors who have already undertaken various projects is given in appendix 3. Currently. Phase IIIB.5 4170 4170 (Source: India Development Report 2008) Page 9 .Offered Projects: The NHDP Phase I programme is operational from December 2000 and most of the projects are already being implemented. ring road 52434 13108. there are large number of projects being offered for NHDP phase II.

but there are many State level agencies that have very ambitious plans for investments. India can become a base for business expansion in the nearby growth Page 10 .in/index. 5. Karnataka Road Development Corporation Ltd: The details are provided in the official website http://www. Very high demand for Services in the form of consultancy like Planning. Although there are several global players operating in the market.html Thus.co. cost appraisal.aspx. which are potentially high growth areas in India.in/ 3.Based on the lines of Central Government¶s NHAI. Design.aprdc.msrdc. Airports.krdcl. Maharashtra Road Development Corporation Ltd: The details are provided in the official website http://www. Opening up of business opportunities in other sectors like Rail. 3. Among the prominent agencies are: 1. Business Strategy and Action Plan: Business strategy for Highway sector: Costain¶s present Highway sector The Highways sector in India is a very attractive market and offers business growth potential for Costain plc because: 1. construction supervision etc. 2. Andhra Pradesh Road Development Corporation: The details are provided in the official website http://www. Property. Costain plc may like to explore business growth opportunities in India in the Highway sector. The biggest client is the National Highways Authority of India. feasibility studies. the Road sector in India is a very attractive market. India¶s Highway sector is growing at a phenomenal rate 2. project management. Retail etc. the total investment and number of projects being offered is so large that there is enough room for more players. various State Government¶s have also created their own agencies to carry out Road construction works.org/tender.

Market Entry strategy for Costain: There are 3 ways for market entry: 1. However. and start their operations. and the fact that many foreign firms are already operating successfully in India. Entering India Highway sector market will mean that there will have to be an upfront investment and a commitment of long-term business expansion plan in India.markets like UAE and Qatar because bulk of the labour force in the Middle-east is from India. A large number of firms from UK. In-sourcing of the human capital from Indian business to take care of Highways maintenance sector in UK. build systems and procedures afresh. Japan. Costain plc may have lost out on opportunities in the last 7-8 years. recruit locally (from a rich pool of technical workforce available). Australia. 2. 4. it is believed that even today there is enough potential for business expansion in India. Korea etc are active players in India¶s Highway sector and so the risk of entering in India has got drastically reduced. Many firms would be willing to be acquired by a UK based large firm like Costain. Acquisition: Costain may offer to acquire an Indian firm of sufficient scale and size. The local knowledge and experience of the acquired firm can be retained while the systems and Page 11 . Organic growth: India has allowed 100% FDI in the Road sector. In fact. which is active in the Highways sector. the avenue of organic growth may not be most desirable. This will be cautious move but may be time consuming. so that Costain can focus their resources on the more lucrative Capital works projects. China. USA. Costain can incorporate their subsidiary in India. Given that Costain has already lost out on valuable time.

Strategic Alliance: A joint venture can be formed with a strategic partner in India. Page 12 .procedures may be reconfigured and rationalised. and COSTAIN can focus on high value capital projects in UK and Capital projects and consultancy projects in India. Costain can in reasonable time operate in the Indian market.east. the low value maintenance works in UK as well as India can be managed by IRCON. Central Asia and Africa. This is the recommended strategy because with a strategic partnership with IRCON. and is highly reputed within India. One such firm that may be interested is IRCON INTERNATIONAL2. The profile of this firm is in appendix 4. IRCON has previously worked with ATKINS in UK and the Middle. Middle east . 3. like many other foreign firms have done before. 2 IRCON International is a public sector enterprise carrying out turnkey solutions in the Infrastructure markets in India as well as Malaysia. with its brand and values intact. This business model can be expanded in all other markets where IRCON already has a presence.

3. In the first phase. Business opportunities in nearby markets like UAE and Qatar. using the in-house talent already available within Costain. and launch the business expansion in India at the earliest. 4. Page 13 . 2. a $10 billion project in India called the µDedicated Freight Corridor¶ has been launched. new sectors can be explored for business expansion. For example.6. Proposed Action Plan: 1. After a prominent presence in the Indian highways sector is gained. Details are in appendix 5. In the second phase. 5. consultancy services practice to be developed for India. focus will be on the global tenders which will be awarded based on international competitive bidding. Create a Business Strategy plan for Highway sector in India. to be tapped by using India as the base.

ADB. Local (National) Competitive Bidding (LCB/NCB) Projects financed by NHAI (in general) Page 14 . are being executed on BOT basis. of domestic consultants /contractors/consortium are not available.1 Appendix 1: Types of Projects in NHAI Types of Projects NHAI undertakes 1. For other types of projects selection is as per standards work procedures.7. Projects of Delhi . Externally Aided Projects: NHAI is the implementing agency for executing projects for which loan assistance is available from Multilateral Development Agencies like ADB and World Bank or JIBC. 3. majority of the funds are transferred by Ministry of Road Transport & Highways to NHAI through budgetary route and NHAI receives agency charges for executing these projects. road is transferred back to NHAI by the Concessionaire. There is a time lag between stage 1 and 2. Different Procurement Procedures International Competitive Bidding(ICB) Projects financed by international lending agencies & for larger projects for which sufficient nos.Tada etc. Wide publicity is given to NHAI tenders so as to attract attention of leading Contractors / consultants.Gurgaon Section (Access Controlled 8/6 Lane) and Nellore . Bidding process : General procedure for selection is a two-stage bidding comprising of: y Stage 1: Pre-qualification . NHAI funded Projects: NHAI receives funds for augmenting its capital base from the Government through annual budgets or by Market borrowing. Notice inviting tenders is posted on this web site and published in leading newspapers. selection is with consultation / concurrence of the funding organisation. Build Operate and Transfer (BOT): In order to promote involvement of private sector in construction and maintenance of National Highways. y Stage 2: Commercial bids from pre-qualified bidders. projects are offered on BOT basis. 2. Appendices: 7. In case of these projects.on basis of technical and financial expertise of the firm and its track records on similar projects. which can range up to thirty years. Final selection : If a project is funded by Multilateral funding agency like World Bank. Concession period.

Stationery Computer & Equipment charges.bio-data of key-personnel Comments on TOR & Associated arrangements if any Financial Proposal y y y y Lump Sum.Consultancy Services What are Consultancy Services? y y y y y IT Services Feasibility studies and project preparation Construction Supervision Highway Sector Studies Others Procurement of Consultants is mostly on y y y Quality and Cost based selection Quality based selection Single Source Selection (sometime) What Constitutes a Consultancy . supply of equipment Support Staff Page 15 .man month rates Traveling & transport. Office accommodation.out-of-pocket expenses .Technical Proposal (TP) & Financial Proposal (FP)? Technical Proposal y y y y Background information . work programme Manning schedule .experience in similar works Approach & methodology. Cost plus fee basis .

by a committee o y After Successful negotiation.by same firm. the financial proposal of Highest ranked consultant is negotiated..Steps in Quality & Cost Based Selection of Consultants Preparation of Terms of Reference (TOR) y Preparation of Short List o o y y y y Open Advertisement On & of entire pre-qualification document Long List from : Lending Agencies & Available with NHAI Issue of Letter of Invitation and TOR and Draft Agreement Receipt of Technical Proposal (TP) & Financial Proposal(FP) Evaluation By Committee of TP Opening of FP of Consultants who qualify in TP o o y y y In the Presence of Representatives of Consultants Marks obtained in TP are informed prior to opening of FP Combined Evaluation of TP & FP Negotiations on technical issues with highest ranked consultant Work Award How and When Quality & Single Source Selection of Consultants y Quality Based Selection : Adopted by ADB & JIBC o After Evaluation of Technical Proposal . Where rapid Selection is Essential Where the firm has excellent experience in the particular field Steps in Civil Works Contract Procurement y Invitation to Contractors to Pre-Qualify o o o o o Pre-Qualification of Contractors Issue of Tender (BID) documents to pre-qualified contractors Receipt of tenders &opening of tenders in the presence of tenderers Evaluation of Tenders Award of Contract Page 16 . work is awarded Single Source Selection : In Urgent Cases Only o o o Where Work An Extension of Existing study ..

Technical Security  Substantial Responsiveness  A tender which confirms to all the terms.Completeness and signed .Details of Civil Works Contract Procurement y Pre-Qualification of Contractors o o o Press Notification & Entire PQ Document on www. without material deviation o Only Substantially bids are compared Award of work to the lowest evaluated bidder What generally Constitutes a BID document? y Volume I o y Instructions to Bidders . conditions and specifications of the tender documents .special conditions Volume II o y Technical Specifications Volume III o y Form of BID.nhai. bill of quantities.schedules.plant and equipment Experience in Similar Works Track Record  o Satisfactory timely completion &litigation Evaluation of Tenders  o Bid Security . liquid assets  o Personnel Organization .org Submission of PQ Applications Evaluation Parameters  Financial  o Technical Average annual turnover.conditions of contract . bid capacity.correction of computational errors.model forms Volume IV o Drawings Page 17 .

Page 18 .Price preference for domestic bidders.key parameters of procurement of civil works under International Competitive Bidding y Currency Conversion o All Amount are converted into single currency at the exchange rate on the date of BID opening y Price Preference o .

10 4.00 224.2 Appendix 2: Details of projects under NHDP (phase II.7.26 183.00 50.90 35.00 114.NO STRETCH NH LENGTH(Km.40 157. Manasar to Nagpur I/C Kamptee Kanoon 7 36.00 28.44 STATE: Punjab Page 19 .00 STATE: Maharashtra 1.Batole-Udhampur 1A 122 1035.46 227. Udhampur Jammu (0-66) 1A 86 1011. Walayar-Vadakkancherry 47 55 600. Srinagar. Banihal. Nagpur Bypass 7 21.60 STATE: Kerala 1.9 STATE: Jammu Kashmir 1. Vadakkancherry -Thrissur 47 29 515.77 2.00 230.12 43. III ) PROSPECTS FOR INVESTMENT STATEWISE PROJECTS UNDER NHDP PHASE II ESTIMATED PROJECT COST S.00 1111.00 2.) RS. Udarband to Harangajo 54 31 202.00 2.48 40. MP/MH Border to Manasar 7 37.Khanbal-Banihal 1A 32 129.09 3. (CRORES ) USD (MILLION) STATE: Assam 1. Two tunnels on Udhampur-Banihal-Srinagar Section 1A 19 5000.60 3.00 132.

12 STATE: Delhi 1. Salem-Coimbatore Kerala Border Section 47 82 540. Patna-Muzaffarpur 19 & 77 60 391. Delhi-Meerut 58 46 299. (CRORES ) USD (MILLION) STATE: Andhra Pradesh 1.00 42.NO STRETCH NH LENGTH(Km. Jallandhar -Amritsar 1 20 190. Hyderabad-Vijaywada 9 176 1141 248. Patna-Bakhtiarpur 30 53 345.56 75.00 STATE: Uttar Pradesh 1.00 75.92 65. Vijaywada-Machhlipatnam 9 65 423.3 32.76 195.800 345.13 2.20 Page 20 .80 92.20 85.Chennai 205 138 899.03.00 120.99 PROSPECTS FOR INVESTMENT STATEWISE PROJECTS UNDER NHDP Phase III-A ESTIMATED PROJECT COST S.6 STATE: Bihar 1.0 of NH-3 2.20 STATE: Tamil Nadu 1.Tiruthani .04 3. Tirupati .04 2.1.) RS. Agra Bypass Km176-800 of NH-2 to Km 13.

Rohtak-Bawal 71 97 632. Pallakad. Panipat-Rohtak 71A 73 475.72 15. Charthalai-Paliakad 47 50.88 274.06 4.4 28. Kandla-Mundra Port 8A 73 475.05 Page 21 .10 2.22 175.08 41.2.51 STATE: Kerala 1.26 71. Surat-Hazira Port 6 29 189.96 103.5 329.36 25. Delhi -Hissar (Delhi Portion) 10 20 130. Balgaum-Goa /KNT Border 4A 84 547.30 STATE: Karnataka 1.59 2.58 2.63 5. Bijapur-Hospet 13 194 1264.49 STATE: Jharkhand 1.97 3.47 STATE: Haryana 1. Hazaribag-Ranchi 33 75 489 106.Thiruvananthapuram 47 123.47 3.44 137.92 100. Mangalore-KNT/Kerala Border 17 18 117.39 2.34 STATE: Gujarat 1.96 103.60 113. Kundapur-Surathakal 17 71 462. Mulbagal-Kamataka/AP Border 4 11 71. Rohtak-Hissar 10 80 521.68 119.5 805.

30 Page 22 . Parwanoo-Shimla (Punjab.4 99.93 3.60 42. Chandikhole-Duburi 200 39 254.11 2.3. Reengus ±Sikar 11 41 267. Tonk -Kota -Deoli 12 64 417. Pimpalgaon-Nasik-Gonde 3 60 391. Panikoili-Roxy 215 249 1623.32 58.56 252. Chandigarh-Kurali 21 30 195.96 138. Nagpur-Wainganga Br 6 60 391.04 2.48 352.20 85.20 49. Deoli ±Jhalawar 12 178 1160. MP/Maharashtra Border-Dhule 3 97 632. Haryana and HP) 22 110 717.61 2.04 3.35 STATE: Punjab 1. Roxy-Rajamunda 215 20 130.71 3.49 STATE: Orissa 1.22 STATE: Maharashtra 1.20 85.28 2.91 STATE: Rajasthan 1. Amritsar-Wagha Border 1 35 228.36 60.90 4.20 155.52 3.95 4.28 55.28 90.44 137. Kerala/Tamil Nadu Border -Kanyakumari 47 70 456. Trivendrum -Kerala/Tamil Nadu Border 47 43 280.40 28. Duburi-Talcher 200 98 638.

Barasat ±Bangaon 35 60 391. Trichy -Puddukotai -Ramanathapuram 210 200 1304 283.88 97.48 STATE: Uttaranchal 1.Rajamundri 5 200 1268 309.STATE: Tamil Nadu 2. Chilkaluripet-Vijayawada-Elluru-Rajamundri 5 270 1712 417.89 5.02 3.4 240.27 Page 23 . Tada-Neliore Bypass 5 130 824 201.04 109.NO STRETCH NH LENGTH(Km.) RS. Nagapatnam -Thanjavur 67 74 482. Muzaffernagar -Haridwar 58 & 72 77 502. (CRORES ) USD (MILLION) STATE: Andhra Pradesh 1.80 STATE:West Bengal 1. Haridwar -Dehradun 72 69 449.48 104. Vishakapatnam-Ankapalli.14 2. Krishnagiri -Tindivaram 66 170 1108.96 6.04 Total 3346 21679 4712.17 2.2 85.82 PROSPECTS FOR INVESTMENT STATEWISE PROJECTS UNDER NHDP PHASE V ESTIMATED PROJECT COST S.

84 2.Ahmedabad 8 140 888 216. Samaikhiali-Gandhidham 8A 56 355 86.90 1.49 STATE: Jharkhand 1. Ahmedabad-Vadodara Expressway NE-1 95 602 146.95 STATE: Karnataka Page 24 .95 STATE: Haryana 1.Panagarh 2 100 634 154.Barwa Adda 2 150 951 231. Srikakulam-Vishakhapattnam Ankapalli 5 100 634 154. Icchapuram-Srikakulam 5 140 888 216.24 1.60 3.63 1.53 6. Panipat-Jalandhar 1 116 735 179.49 STATE: Gujarat 2. Barwa Adda .38 2. Surat Dahisar(Gujarat portion) 8 120 761 185.56 3. Udaipur .63 5. Delhi ± Ahmebad 1 140 888 216. Gurgaon-Kotputli-Jaipur(Haryana portion) 8 126 799 194. Aurangabad.4.49 STATE: Bihar 1. Vanarasi-Aurangabad 2 140 888 216. Aurangabad-Barwa Adda 2 70 444 108. Neliore-Chilkaluripet 5 184 1167 284.

ChitradurgaBypass-TumkurBypass 4 145 919 242.22 4. Bangalore-Tumkur 4 65 412 100.Belgaum 4 77 488 119.05 5. Chandikhol-Paradeep 5A 77 488 119. Bangalore-Krishnagiri 7 55 349 85.24 3. Surat Dahisar (Maharashtra portion) 8 125 793 193.05 STATE: Maharashtra 1. Satara-Kagal-Belgaum 4 133 843 205.1.Bhubaneswar 5 70 444 108.07 2. Pune Satara 4 145 919 224. Indore-Dewas 3 55 349 85.07 STATE: Punjab 1.80 Page 25 . Bhubneshwar-lchchaDuram 5 185 1173 286.22 3. Balasore Chandikhol 5 140 888 216.10 5.27 3.29 STATE: Orissa 1. Ludhiana-Chandigarh 95 & 21 82 520 126.07 STATE: Madhya Pradesh 1.66 2.51 2. Belgaum-Hubli 4 110 697 170. Kagal . Hubli-Chitradurga 4 200 1268 309. Chandikhol-Jagatpur.49 4.

Chennai-Tada 5 50 317 77.10 6. Gurgaon-Kotputli-Jaipur (Rajasthan portion) 8 104 659 160. Hapur-Moradabad 24 110 697 170. Panipat .32 2.41 4.1. Bangalore -Krishnagiri 7 40 254 61.90 STATE: Tamil Nadu 1. Agra-Gwalior 3 85 539 131.32 5.29 2. Kishangarh Udaipur 79A 79 & 76 315 1997 487. Udaipur-Ahmedabad 8 95 602 146.53 STATE:Rajasthan 1. Delhi-Agra 2 130 824 201. Delhi-Hapur 24 60 380 92.85 STATE: Uttar Pradesh 1.Jalandhar 1 184 1167 284.10 2.78 7.12 2. Agra-Etawah Bypass 3 125 793 193. Allahabad Bypass-Varanasi 2 160 1014 247.44 STATE:West Bengal Page 26 . Varanasi-Aurangabad 2 50 317 77.02 8.82 3. Krishnagiri-Poonamalee 7&4 240 1522 371.37 3. Etawah -Allahabad 2 310 1965 479.

12 2.48 175.87 Page 27 . Itanagar-Arunachal Pradesh/Assam Border 52A 22 143. Badardewa-Assarn/Arunachal Pradesh Border 52A 9 58.) RS. Assam/Meghalaya Border to Assam/Tripura Border 44 116 756. Baihata Chariali-Banderdewa 52 314 2047.76 2.76 4.1.76 Total 6304 39967 9748 PROSPECTS FOR INVESTMENT STATEWISE PROJECTS UNDER NHDP Phase PHASE III B ESTIMATED PROJECT COST S. Doboka-Assam/Nagaland Border-Dimapur 36 124 808.68 12. BarwaAdda-Panagarh 2 20 127 30. Panagarh-Dhankuni 2 135 856 208. Silchar-Assarn/Mizoram Border 54 50 326 70.6 42.28 445.06 3. Dhankuni-Baleshwar 4&6 240 1522 371. Hyderabad-Yadgiri 202 30 195. (CRORES ) USD (MILLION) STATE: Andhra Pradesh 1.84 272.14 2.42 5.32 164.52 STATE: Arunachal Pradesh 1.18 STATE: Assam 1.44 31.NO STRETCH NH LENGTH(Km. Cuddapah-Mydukur-Kumool 18 192 1251.93 3.

68 119.76 18.56 216.4 99. Jetpur-Somnath 8D 127 828.28 197.06 3. Panaji-Goa/KNT Border 4A 69 449.60 2.6 361. Mokama-Munger 80 70 456.86 5.43 4.88 97. Raipur-Simga 200 28 182.26 STATE: Chhatisgarh 1.28 126.02 STATE: Gujarat 1. Muzaffarpur-Sonbasra 77 89 580.01 2.65 STATE: J & K Page 28 .15 2. Motihari-Raxaul 28A 67 436. Patna-Buxar 84 130 847. Gujara/Maharashtra Border-Surat 6 84 547.69 STATE: Goa 1. Forbesganj-Jogwani 57 A 13 84.2 297. Gujara/MP Border-Ahmedabad 59 210 1369. Gopalganj-Chapra-Hajipur 19 & 85 153 997.Panaji Goa/KNT Border 17 139 906.80 2.84 94.96 32.STATE: Bihar 1.04 180.97 3.6 184. Bakhtiarpur-Begusarai-Khagarai-Purnea 31 255 1662. Maharashtra/Goa border.43 6.56 39.22 7. Kumud-Dhamtari 43 23 149.

44 420. Kalamboli-Mumbra (6 Laning) 4 20 130.76 18.52 143.43 STATE:Meghalya Page 29 . Indore-Jhabua-Gujara/MP Border 59 169 1101. Assam/Mizoram Border-Aizawl 54 113 736.68 119.54 4.52 639.70 3.76 198.06 STATE: Madhya Pradesh 1.17 STATE:Mizoram 1. Bhopal-Rajmarg crossing -Jabalpur 12 297 1936. Jhansi-Khajuraho 75 100 652 141.1. Talegaon-Amravati 6 58 378. Bhopal-Sanchi 86 (Ext.4 240.16 STATE:Kerala 1.97 2.24 STATE: Maharashtra 1.35 2. Srinagar -Baramula -Uri 1A 101 658.43 5. Obaiduliaganj-Bheembetka 69 13 84.21 3.4 28.) 40 260. KNT/Kerala border-Khozikode-Eddapally 17 451 2940. Panvel-indapur 17 84 547. Nagaland/Manipur Border-imphal 39 140 912.16 82.74 STATE:Manipur 1.96 4.8 56.88 239. Pune-Sholapur 9 170 1108.8 160.

Muradabad-Bareilly 24 112 730.54 3.86 3.69 STATE: Orissa 1. Kohima-Nagaland/Manipur Border 39 28 182.72 192.56 39.56 216.92 348.68 83.77 STATE:Nagaland 1.16 STATE: Rajasthan 1. Bhubaneshwar-Puri 203 59 384.68 119.90 4. Beawar-Pali-Pindwara 14 246 1603. Jaipur. Ghaziabad-Aligarh 91 106 691. Jaipur-Reengus 11 54 352.24 158.75 2.08 76.23 2.24 STATE: Tirpura Page 30 . Kishangarh-Ajmer-Beawar 8 82 534. Bareilly-Sitapur 24 153 997. Amritsar-Pathankot 15 101 658.12 150.64 116.63 STATE: Punjab 1.68 STATE: Uttar Pradesh 1.1.52 143.06 2.Tonk 12 86 560. Sambalpur-Baragarh-Chattisgarh/Orissa Border 6 84 547. Shillong (excluding Shillong Bypass)-Assam/Meghalaya Border 44 136 886.72 121.

) 45 293.64 80. Tripura/Assam Border to Agartala 44 195 1271. Coimbatore-Mettupalayam 67 (Ext. Theni-Kumili 220 57 371.79 8593.63 3.78 4.4 276.72 263.4 63.64 Total 6063 39530. Madurai-Ramnathpuram-Rameshwaram -Dhanuskodi 49 186 1212.96 103.1.39 STATE:Tamil Nadu 1.76 -- > Page 31 .) 73 475.47 2. Dindigul-Perigulam-Theni 45 (Ext.

Karur 67 79.Phase III 30th June 2008 NH No Length (Km) S.685 Ashoka .3 Appendix 3: Sample list of contractors List of Contractors & Nationality of National Highways Developement Project .Sadbhav .8 Navyuga Engineering Co.9 BSCPL . Consortium-Indian 8 Kondhali . 22 1 50 9 Ambala . Consortium-Indian Maytas . Ltd.C & C Consortium-Indian 16 Mahua-Jaipur Elevated Highway from Silk board junction to electronic city junction Neelamangala Junction on NH 4 with NH 48 to Devihalli 11 108 IJM Corporation Berhad-Malaysian 17 7 9. . Ltd. Ltd.-Indian Oriental Structural Engineers Pvt.NCC Consortium-Indian 5 1 36. . .Telegaon 6 21.-Indian 3 Meerut-Muzaffarnagar End of Durg Bypass .22 6 Pondicherry . Ltd. .Delhi Brass ConsortiumIndian GMR Energy Ltd.Chattisgarh / Maharashtra Border Amritsar .Pimpalgaon 3 118 IRCON-SOMA Consortium-Indian 14 Gonde-Vadape (Thane) 3 100 Gammon India Ltd.-Indian Page 32 . & GMR Infrastruture Ltd.SREI Consortium (JV)-Indian Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation 2 Khalghat .98 SOMA ..Kiratpur 21 42.Rajdeep Buildcon Pvt.kondhali 6 40 Atlanta .MAYTAS Consortium-Indian 18 48 81 Lanco Devihalli Highways Pvt.7 Reliance Energy Limited-Indian Oriental Structural Engineers Pvt.69 13 Dhule .MAYTAS Consortium-Indian 4 6 82.MP/Maharashtra Border 3 82. Ltd.Tindivanam 66 38.NCC .Delhi Brass ConsortiumIndian Jaiprakash Associates-Indian 11 Indore-Khalghat 3 80 12 Zirakpur ..Wagha border 58 79 Nagarjuna Construction Co. Ltd.61 7 Trichy .7.Billimoria Consortium-Indian 15 Kurali .Parwanoo 22 28.IDFC Ltd. Ltd.Zirakpur 36 10 Jalandhar .IDFC Consortium-Indian Rohan Builders Pvt.no Stretch Contractor & Nationality Status NHDP Phase IIIA 1 Nagpur .Amritsar 49 IVRCL Infrastructure Projects Ltd.

IDFC Consortium-Indian 29 7 14.Trichy 67 56 Madhucon Projects Ltd.SREI .Raipur 6 45 21 Madurai-Arupukottai-Tuticorin 45B 128. Ltd.19 Salem-Ulundrupet (BOT-1/TN-06) 68 136.DSC(Indian) .38 GVR Construction Pvt. Chennai-Indian 30 Thanjarur .Wainganga Bridge Six Laning of Bangalore-Hosur Section of NH-7 10 63.Delhi Brass ConsortiumIndian KCT . .-Indian Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation Under Implementation 20 Aurang .Lucknow 24 75 24 Banglore .. Ltd. Ltd.JLI(UK) . .-Indian Apollo(UK) .Neelamangala 4 19.724 23 Sitapur .ERA consortium-Indian 26 Agra .273 Reliance Energy Limited-Indian Page 33 .Dindigul 45 88.Bharatpur 11 45 27 Delhi/Haryana Border to Rohtak Chattisgarh / Maharashtra Border .SREI-Indian Oriental Structural Engineers Pvt.49 28 6 80.357 Reliance Energy Limited-Indian Apollo(UK) . Ltd.LOR(UK) Consortium-UK Indian JV Navyuga Engineering Co.JLI(UK) .157 22 Banglore-Hoskote-Mudbagal Section 4 79.5 25 Bharatpur-Mahua 11 57 Madhucon Projects Ltd.055 Ashoka .LOR(UK) Consortium-UK Indian JV Madhucon Projects Ltd.DSC(Indian) .Madhucon granites Ltd (JV)Indian Lanco Hoskote Highway Pvt.-Indian 31 Trichy .

ADB (Asian Development Bank). Technological excellence in areas of activities y Usage of fully batch type automatic Hot Mix Plant for ensuring quality of bituminous production y Usage of fully automatic high capacity concrete batching plant for ensuring quality of concrete production. Page 34 . The brief details of IRCON s y Construction of flexible pavement to International Standards y Construction of rigid pavements to International Standards y Complete Mechanization of Highway Construction (Both rigid and Flexible) y Usage of latest and World class technology in Highway Construction. y Deployment of highly experienced man power y Strict adherence to quality being ISO 9001:2000 Organization. Arab Fund for Economic & Social Development.7. y Delivering the Projects as per schedule to the complete satisfaction of Customer 2. y Usage of high capacity. Fields of Expertise For over last 18 years IRCON is engaged in execution of Highways and Roads of International Standards both in India and Abroad. Sensor Paver y Construction of concrete pavement by using full width (9 M) paver for Dry Lean Concrete and full width slip form paver for pavement quality concrete.4 Appendix 4: IRCON INTERNATIONAL Road / Highway / Air Port 1. ADB (African Development Bank). JBIC (Japan Bank for International Co activities in this field are summarized hereunder: operation). Kuwait Fund. y Construction of bituminous pavement by using full width (9 meter) . cone crusher for quality control of aggregates. KFW (Kreditanstall fuer Wideraufbau) etc. funded by accredited organizations like World Bank.

West Highway Belbari to Chawharwa ( 140 Kms) during 1989 1994 at a cost of Rs. 138 Million y Reconstruction of the East. during 1996. 131 Million. Nepal y Road Rehabilitation and maintenance on Tribhuwan Rajpath. 600 Million Chittagong Highway ( 35 Kms ) during 1989 y Road Improvement Project. Contract No. y Improvement of 11 intersections at Dhaka.3. Bangladesh. 1996 at a cost of Rs.4 Package (in JV with SMJ. 2001 at a cost of Bangladeshi Taka 410 Million y Second road Rehabilitation and maintenance Project between Nawabganj and Sona Masjid. Important Dhaka B. at a cost of Rs. 11 & 12 (Re . 123 Million. Bangladesh y Construction of Sylhet Town Bye pass Road from Sylhet town to Haripur. between Comilla and Feni on Nationally Important Dhaka1994 at a cost of Rs. contract package No (W) C3. during 1993 y 1995 at a cost of Rs. y Rehabilitation of Dhaka Sylhet Road Bangladesh contract no 1-B at a cost of Rs 685 million. India y Re . 6. during 2002 to 2003 at a cost of Rs. Kolkata Page 35 . 243 Million Pabna on National Highway No. 302 Million. 218 Million Road Improvement Project Contract No. Contract No. Salient Features of completed Projects Abroad A.1998 at a cost of Rs 324 Million y Second Road Rehabilitation and maintenance Project between Navaraon and Satkhira. 3. y Application of innovative and appropriate methods for execution of Projects under extreme topographical and climatic condition. Airport. 50 million. Thankot Naubise section during 1995-1998 at a cost of Rs. during 1994 y Road Rehabilitation and Maintenance Project on Nagarbari 2/3C.1 between Daud Kandi and Chandina ( 28 Kms ) on Nationally Chittagong Highway during 1989 1994 at a cost of Rs. Sylihet to Haripur. Contract No. 240 Million . Contract No. P-2. Indonesia) during 2004-05 at a cost of Rs.Construction of Bay No. C. Indonesia y Toll Road Project for IV. 44) and Part of Taxi Track at NSCBI Rs. 631 Million.y Usage of WMM sensor paver at base course level for achieving workmanship and riding quality of finished road. W4. y Reconstruction of Sylihet Bangladesh during 1999 Tamable Jaflong road improvement project contract 1.Designated as Bay No.

125 Million Nadu during 1997 y Bhubaneshwar Runway Projects during 1996 to 1999 at the cost of Rs 763 Million.D. between Delhi and Mathura ( 111 Kms ) in States of 1998.1998 at a cost of Rs.A .TNHP 3.B connector for CMDA Calcutta during the year 2001 at a cost of Rs 47 Million. at a cost of Rs 233 Million. y Strengthening and Widening of Four Lane of NH 1 between Khanna and Sirhind ( 24 Kms ) in Punjab during 1987 1993 at a cost of Rs. y Widening and Strengthening of Warrangal 1998 y 2000 at a cost of Rs.8 in State of Rajasthan during 1998 Halol Road Project ( 18 Kms ) in State of Gujrat in 1999 2000 Construction of Outer Ring Road Varthur to Sarjapur in Bangalore during 1998-2000. 100 Million. Gaziabad in state of Uttar Pradesh in 1997 y 1999 at a cost of Rs. GSHP-7 in the State of Gujarat at a cost of Rs. y Extension of Runway and Apron with rigid pavement and provision of additional taxi track at Indore airport in the State of Madya Pradesh during 1995. 1992 Haryana and Uttar Pradesh Pradesh in 1991 y Strengthening of existing two lane carriage way near Nasik in the State of Maharashtra during 1989 at a cost of Rs. 1530 Million y Noida y Greater Noida Expressway during 1999 to 2003. Page 36 . connector and R. in the State of Uttar Pradesh at a cost of Rs. at a cost of Rs. at a cost of Rs 2024 Million. 532 Million y 11 and NH. 75 Million. Chennai in the State of Tamil Construction of Internal Roads for Industrial Complex at Irrungatta 1999 at a cost of Rs. in Bangalore during 2001-2002 .1999 at a cost of Rs.C.M. y Construction of 2 Lane 11 Km long Cement Concrete Road for UPSIDC at Kasua . 900 Million. Bye pass from P. during 1997-1998 . y Bituminous Works on E. y Construction of package-III of Kona Expressway of C. Construction of Outer Ring Road Between Magadi Road to Tumkur Road . at a cost of Rs 248 Million. 1637 Million. at a cost of Rs 55 Million in Kolkatta region.1730 Million y Strengthening and Widening to 4 Lane of NH-2.y Four Laning of Khaga Allahabad Road on NH 2 (43 Kms) Contract No. Greater Noida and Loni. 108 Million Kottai. 641 Million y Strengthening and Widening of Vadodara at a cost of Rs. 1720 Million y Godhra Shamlaji Road Project ( 121 Kms ) Contract No.M. 129 Million. 543 Million 1998 y Construction of Jaipur Byepass ( 14 Kms connecting NH 2000 at a cost of Rs. y Improvement and Strengthening of Varanasi Shaktinagar Road Projects ( 184 Kms ) in state of Uttar Pradesh during 1993. Tadipatri Road ( 65 Kms ) in State of Andhra Pradesh during Raiputnam Road ( 115 Kms) in State of Andhra Pradesh during Widening and Strengthening of Cuddapah 2000 at a cost of Rs.

Chauharawa Pavement Strengthening Project at a cost Rs.05 between IRCON and Govt.00 to Km 220. Madhubani.Package : EW . India y 4 .Cont. 1200 Million (IRCON's share). 5. Upgradation of Bhognipur Ghatmpur-Chaudhagra Road ( 83Kms) Contract No 25/PD/SRP-II/2002-2003 Dt 24-03-2003 at a cost Rs 700 Million y Construction / Commissioning & Maintenance of Rural Roads in the State of Bihar under the Pradhan Mantri Gram Sadak Yojana(PMGSY).: 02 / 2003. Our Valued Clients (at present) Domestic Page 37 .II-5 .72 Million. Road Transport and Highway).Rs. (In JV with M/s. 3030 million.Mechara Road Upgrading .Rs.89 /Har.25 to 4 .000 of Panchi Gujran Panipat section of NH-1 in the State of Haryana Package : N S .40 Million.at a cost Rs. y Six laning of KM 66. Vaishali. y Improvement.ICB No. 1216.000 to KM 86. y Rehabilitation and upgrading of Km 170. of India ( M/o Shipping. Soma Enterprise) at a cost of Rs.04.31 in West Bengal . 610 Million.00 of NH . y Tamil Nadu Road Sector Project.Rs. Contract Package : KR (New Mangalore). Nepal y Belbari .Upgradation of Roads from Nagapattinam to Kattumavadi & New Bypass at Nagapattinam.Dhule section of NH 3 on BOT basis. 1682 Million. 1: Dera .10 Million. Kolkata for Airports Authority of India 98. y Development of State Highways in districts of Darbhanga. y UPSRP 01 . Muzaffarpur and Samastipur under RSVY(Rashtriya Sam Vikas Yojana). B.Islampur (including bypass) section of NH .II (WB . 2110. y UPSRP 04 .Agreement entered into on 27.TNSP02 . y Extension of Secondary Runway at NSCBI Airport.Laning of Siliguri .77 Crores. of Bihar ( Road Construction Deptt.). Tituthuraipundi and Muttupet (In JV with SMJ Indonesia) at a cost of Rs.Manga .4. 198. Govt.Package . Operation & Maintenance of 4 laning of Pimpalgaon .7) . y Development of adequate port road connectivity to New Mangalore port.lane configuration in the state of Uttar Pradesh: East -West Corridor . Salient Features of On-Going Projects Abroad A. 1450 Million. Upgradation of Katra to Bilhaur via Jalalbad-Bilgram (173 km) Contract No 24/PD/SRP-II/2002- 2003 Dt 24-3-2003 at a cost of Rs 1501 Million. Ethiopia y Construction of Dera .EW .

Govt.P. of Bihar PWD (R&B) Chandigarh State Industrial Promotion Corporation of Tamilnadu Tamilnadu Road Sector Project Highway Dept. Govt. Nirman Bhavan .National Highway Authority of India Roads & Building Department . Lucknow -226001 Government of UP PWD (R&B) Govt. State Industrial Development Corporation Bangalore Development Authority Gujarat Toll Road Limited Air Port Authority of India Ministry of Rural Development. of Nepal PT JASA MARGA (Persero) (Indonesian Highway Corporation) Ethiopian Road Authority.Government of Gujrat UPPWD . . His Majesty Govt. of Ethiopia . Govt.Bangladesh Page 38 . Govt. of India Port Trust of India International Ministry of communication of Roads & Highway Department (RHD) Department of Roads. of Tamilnadu Ministry of Home Affairs. of India & Govt. of Andhra Pradesh Noida & Greater Noida Industrial Development Authority Kolkata Metropolitan Development Authority U. Ministry of Works & Transport.

and will be funded directly by IR from its own resources. So the announcement on April 8 that tenders are being invited for construction work on one of the country's two Dedicated Freight Corridors is a welcome development. In his budget speech on February 26 (RG 4. Railways Minister Lalu Prasad promised that work on the Eastern and Western DFCs would get underway during the 2008-09 financial year. This section of line is needed to relieve a major bottleneck on the existing network. A design-and-build contract valued at around Rs30bn is expected to be awarded in September or October. as the rapid growth in both freight and passenger traffic over recent years is forecast to continue.has now invited expressions of interest for the 300 km segment of the Eastern DFC between Bhaupur (near Kanpur) and Mandrak (near Aligarh). INDIA: the first contracts for construction of the country¶s two high-capacity dedicated freight corridors are due to be awarded by October. Dfccil was officially incorporated Page 39 .08 p245).5 Appendix 5: Rail sector opportunity: Dedicated Freight Corridors: (Source: Railway Gazette International website accessed on 26th July 2008) 26 Jun 2008 | Raghu Dayal ³Following the approval of a funding agreement with Japanese banks.7.06 p686). reports Raghu Dayal There is no doubt about the urgency of substantial capacity enhancement on the Indian Railways network. Two years ago the government approved in principle the construction of the first two corridors totalling almost 2800 km (RG 10. The special purpose vehicle established to lead the projects Dedicated Freight Corridor Corp of India Ltd .

Much of the country's economic growth is also concentrated in this region. The Golden Quadrilateral routes linking the four important metropolitan areas of Delhi. determining the full technical specifications. but not much tangible work has materialised so far. driven by India's strong economic growth. However. This will see axleloads raised from between 20 and 22 tonnes to 30 tonnes on the main routes. Citing the overall socio-economic interest. Road Transport & Highways. Mumbai. Chennai and Kolkata represent just 16% of IR's network but carry more than 50% of the total freight and passenger traffic. and at least 25 tonnes on feeder lines connecting with the new corridors. agreeing the route alignments and cost projections. total freight movement in the country amounted to more than 1100 billion tonne-km in 2006-07 Of this. IR had no less than 89% of the freight market. coastal shipping 6·85% and inland waterways just 0·15%. the dedicated freight corridors are expected to trigger a much-needed improvement of technical standards across the network and lead to more cost-effective operation. Boosting rail's competitiveness Although the volume of rail traffic is continuing to increase. These are intended to relieve two of IR's busiest main lines. including energy consumption and environmental conservation. and looking at sources of funding.in October 2006. a lot has been happening behind the scenes. The 1483 km Western DFC will link JN Port near Mumbai with Dadri in the Delhi area. and the 2007-08 railway budget provided Rs13·3bn towards the estimated Rs282bn cost. According to figures issued by the Ministry of Shipping. the roads handled around 60%. Described as IR's 'most ambitious project ever'. and the Eastern corridor will run for 1279 km from Ludhiana to Sonnagar. IR's market share of both passenger and freight is actually falling. Taller and wider wagons will improve Page 40 . A preliminary engineering and traffic study by Rail India Technical & Economic Services has now been followed up by a more detailed feasibility study by the Japan International Co-operation Agency. Back in 1950-51. the government recognises that rail capacity needs to be enhanced and more customer-focused services introduced to counter competition from other modes. the railways 33%.

These logistics parks will enable rail to compete more effectively with road for break-bulk domestic container business. Rites favours conventional flat wagons and diesel locos. This would require a catenary height of 6870 mm above rail. rising to 106 million in 2023 and 157 million by 2033 (Table II). Nevertheless. at 20·4% compared to 13·5% using diesel haulage. the western DFC could be handling 10 million TEUs a year. Transport costs per TEU would be around Rs1·5 per TEU-km for either option. 145 million in 2023 and 155 million by 2033. Corresponding figures for the eastern corridor are 69 million tonnes in 2013. whereas well wagons would limit the increase to around 50%. JICA estimates the electric option would generate a better internal rate of return. whereas JICA cites experience in China and elsewhere of using well-wagons to accommodate doublestack on electrified lines. The DFCs are also expected to act as a catalyst for economic growth and encourage value-added services such as the creation of logistics parks and industrial hubs along their routes. The JICA report cites economic. environmental and energy issues in support of electrifying both the eastern and western corridors. this is expected to increase by an average 8·6% year on year to 43 million TEUs by 2031. pointing out that environmental clearance will be one of the essential requirements in Page 41 . To a considerable extent. traffic growth on the western corridor will be driven by rising international container traffic through the ports. If rail takes a 35% share. compared to 4800 mm for single-stack and 7470 mm for double-stack on flat wagons. annual traffic of 10 million TEUs would require 300 trains each way per day. There may also be scope to develop piggyback business. Containers in the west Traffic on the western corridor is forecast at 38 million tonnes in 2013. At an average of 90 TEUs per train. The best way to handle container traffic is a source of disagreement between Rites and JICA. against Rs1·8 for single-stacked boxes. The consultants agree that the answer is to adopt double-stack. and expand its carriage of automobile movements. Flat wagons could double the capacity per train. provide storage and distribution for trainload commodities.payloads. leading in turn to a reduced unit cost of transport. IR is looking for much higher productivity of its assets.

and at least 6 m from the nearest conventional track. They will be laid with UIC 60 kg/m rail and 90 kg/m UTS head-hardened rail on the curves. where trains carrying two containers on flat wagons are being tested on this heavy haul mineral line. Asian Development Bank and Japan Bank for International Co-operation. laid at 1660 per km on the main line and 1540 per km on loop lines and sidings. Removing the requirement for an assistant driver in favour of single-manning of locomotives will cut costs. The rails will be carried on precast concrete sleepers. Turnouts will have cast manganese crossings and concrete bearers. arguing that level crossings with automatic detection systems. JICA recommends that freight trains should run to a firm timetable to ensure a high quality of service. but the loop turnouts will be 1 in 8·5 with a diverging speed of 45 km/h. Minimum main line radius will be 700 m. JICA also favours Page 42 . and increase line capacity. Shorter loops would also reduce the land take. would suffice in urban areas where bridge construction could be difficult and would cause hardship for non-motorised road traffic. IR has asked the Research. Development & Standards Organisation to carry out trials with double-stack container trains under the wires. JICA believes that 750 m loops at intervals of 30 to 40 km would provide sufficient capacity for the foreseeable future. With 745 road crossings planned for the western corridor and 580 for the eastern. DFC tracks would be laid at 5·5 m spacing. Main line and junction turnouts will have a 1 in 12 angle to permit diverging speeds of 60 km/h. Whereas Rites favours building the lines for 1500 m long trains. this is a potentially significant issue. particularly for intermodal business. Trials are currently underway on the Jakhapura . JICA rejects Rites' call for the construction of road overbridges throughout. Both routes are being designed for a maximum speed of 100 km/h and a 30 tonne axleload. Going against current trends towards full grade separation.Daitari section of the East Coast Railway.any project appraisal by international lending agencies such as the World Bank. it says. Signifying its tacit acceptance of an electric option. Specifications agreed Technical specifications for the new lines have largely been firmed up. as will the elimination of brake vans through the use of end-of-train detectors.

A fleet of six-axle electric locos rated at 9000 hp is envisaged for the container trains and eightaxle locos of 12000 hp for the bulk freight trains. Rs100bn for electric locomotives and Rs61bn for land acquisition. but still less than half the number of people that IR currently employs for the same tasks (Table IV). This is less of a problem on the eastern corridor except where bypass lines are planned around Tundla and Aligarh. Rites estimated the cost of building the western corridor at Rs166bn and the eastern at Rs116bn. with 1200 houses to be cleared in the 80 km between Dadri and Rewari alone. Costs and financing Compensation for land acquisition is one of several elements that are driving up the cost of the project. In its preliminary study.an advanced train control system including CTC and balises for train detection. Proposed staffing levels are in fact higher than those applying in Japan. The issue of squatter encroachments is particularly severe on the western corridor between Vadodara and the Mumbai area. This includes Rs269bn for construction. as well as financing and management costs. However. JICA now puts the total for both routes at Rs559bn. The 92 km route through the Mumbai suburbs from Vasai Road to J N Port has a further 560 dwellings. JICA recommends that the DFCs should have a lean management organisation segregated from IR's existing structure. calculating that 112 households and 237 squatters would have to be resettled for every 100 route-km. Squatters are also a big issue in the area around Delhi's main container terminal at Tughlakabad. JICA has recommended implementing the project in three phases. and financing it from a number of sources: internal generation by IR (at 6·5% interest). Looking at operational and managerial aspects of the project. up to 660 ha of farmland must be acquired to create the corridor through the fertile coastal belt. This raises questions about compensation. resettlement costs and job opportunities. inflation and contingencies. Nearer to Vadodara. a low-interest loan from JBIC (0·4%). The Japanese study team also looked at the socio-economic impact in each of the 37 districts along the two routes. this would contribute to reduced operations and maintenance costs. other international financial institutions (6%) and commercial Page 43 .

JBIC has shown particular interest in the Western corridor.borrowing (12%). IR currently favours funding the DFCs from its own equity. Funding of 26·2bn yuan for the railway to Tibet included a 75% contribution from central government and 25% from the Railway Development Fund. CR built up a Railway Development Fund by levying a toll of 0·028 yuan/tonne-km on all traffic.Shanghai high speed line will only have a 4bn yuan equity contribution from the government. and also issued government bonds. There is a strong likelihood of World Bank providing funds for the this route. ³ Page 44 . Similar sums are to be raised by issuing stock in overseas markets and the sale of foreign bonds. as well. Local and municipal railways in China have been able to attract private and local government equity. JICA compared the DFCs with recent railway construction projects in China. and will probably provide funding for the initial section of this line between Rewari and Vadodara. Conversely. It has already committed its one-third equity contribution to enable work to start on the eastern corridor. the Beijing . the debt service coverage ratio would be around 1·9. The National Development Bank is contributing 15bn yuan. supplemented by borrowings as necessary. although the lion's share of domestic debt has been raised through the National Development Bank. enabling Dfccil to earn a return on equity of around 11%. In its review of likely funding sources. By contrast. another 12bn will come from as donor loans. For the proposed funding split. and 3·5bn yuan as international loan from commercial banks.

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