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Wednesday, December 17, 2014
NEWS
LOGISTICS
“The line between disorder and order lies in logistics…” - Sun Tzu
Federal structure a “development mechanism", says Narendra Modi
NEW DELHI Sagar Sandesh News Service
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he Prime Minister, Mr Narendra Modi, on December 11, 2014, said India's federal structure should be viewed as a "development mechanism" rather than just a "constitutional arrangement." Interacting with a group of 16 eminent economists from the United States, the Prime Minister
said his focus was to build "Team India" – through a partnership with all state Chief Ministers, and by encouraging and facilitating states to take initiatives for economic growth. Stating that a person who is unhealthy cannot derive benefit from exercise, the Prime Minister said that the first six months of his Government were focused on making India healthy once again. The "exercise" would begin now,
Narendra Modi
he added along with his statement. The Prime Minister said there would be a youth-centric focus to all policies of his Government, as 65 percent of India's population is below the age of 35. Therefore, skill development and job creation would continue to be accorded the topmost priority. The Prime Minister stressed on the need to inject technology into government processes and decision making, saying this would provide the best possible solution to the problem of corruption. He said the Government's focus on
infrastructure and "Digital India" would boost employment opportunities even in the rural areas. The Prime Minister said the success of the Pradhan Mantri Jan Dhan Yojana would not only bring economic benefits, but had also boosted the confidence within Government, as a key objective of the scheme (opening bank accounts for the poor) has been achieved. Speaking on the occasion, Finance Minister Mr Arun Jaitley gave an overview of the various decisions taken by the Government over the last six months in the economic sphere.
HCC sells Nirmal BOT road Road connectivity to project for Rs 64 cr in AP seven ports complete CHENNAI
MUMBAI
Sagar Sandesh News Service
Sagar Sandesh News Bureau
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I
nfrastructure development arm of the Hindustan Construction Company(HCC) group, HCC Concessions Ltd has sold its annuity project Nirmal BOT Ltd in Andhra Pradesh to Highway Concession One Pvt Ltd (HCOPL) for a consideration of Rs 64 crore, says a release on 5 Dec 14. HCOPL will acquire 74% equity stake upfront, while the balance 26% equity stake shall be acquired upon receipt of an approval from NHAI. Additionally, Nirmal has also received an arbitration award in its favour for Rs 16.67 crore, which shall be payable to HCC, upon receipt. Majority of HCOPL stake is held by IDFC Alternatives. On the occasion, Mr Arjun Dhawan, President & CEO, HCC Concessions said, “This sale furthers our commitment to create value for shareholders. We take great pleasure in strengthening our relationship with IDFC as we transfer the custody of this first PPP asset developed by the HCC group.” M K Sinha, Managing Partner & CEO, IDFC Alternatives, said, “This investment is in continuation with our road sector aggregation strategy of acquiring controlling stakes in operating road assets. The acquisition also reinforces our intention to partner with sponsors with proven and long established track record in the sector and we look forward to continue working with the HCC Group in the future as well.”
About Nirmal BOT Ltd Nirmal was the first NHAI BOT project of the HCC Group and was completed in July 2009, 3 months ahead of schedule. The project awarded by NHAI for a
concession period of 20 years, has been operational for 5 years now. Nirmal is 30 kms long and connects Kadthal to Armur on NH-7 in Telangana. The project was developed with a total capital cost of Rs 315 crore.
About HCC Concessions The company is a subsidiary of HCC Infrastructure Co Ltd serving India’s infrastructure needs in the areas of transportation, power and urban infrastructure. The company focuses on sustainable and responsible development through the Public Private Partnership results from expertise in concept innovation, risk analytics, construction management and operations. HCC infrastructure is a wholly owned subsidiary of Hindustan Construction Company (HCC).
About HCC: With an engineering heritage of nearly 100 years, HCC has executed a majority of India’s landmark infrastructure projects having constructed 25% of India’s Hydel Power generation and over 50% of India’s nuclear power generation capacities, over 3,500 lane km of expressways and highways, more than 280 km of complex tunneling and over 350 bridges. HCC’s landmark projects include the Bandra Worli Sea Link, Mumbai-India’s first and longest open sea cable-stayed bridge; the Kolkata Metro,
Farakka Barrage and India’s largest nuclear power plant at Kudankulam-Tamil Nau to name a few. HCC group with the combined turnover of Rs 9,668 crore comprises HCC Ltd, HCC Infrastructure Co Ltd, HCC Real Estate Ltd, Lavasa Corporation Ltd and Steiner AG in Switzerland.
About HCOPL: The company is a road asset holding company that is controlled and majority owned by the India Infrastructure Fund. It was incorporated with the objective of acquiring and managing operating road assets and as on date, owns equity interests in two operating road projects.
About India Infrastructure Fund: India Infrastructure Fund (IIF) is a SEBI registered domestic venture capital fund that invests in core infrastructure assets in India, with a focus on assets that provide regular cash yield and capital appreciation. IIF is managed by IDFC alternatives, the alternate asset management vertical of the IDFC group. IDFC alternatives have an established multi-asset class platform comprising three asset classes i.e. private equity infrastructure and real estate. IIF is one of the six funds that are managed by IDFC alternatives and that together aggregate USD 3.4 billion.
he Minister of State for Road Transport and Highways, Mr Pon. Radhakrishnan informed the Rajya Sabha on Monday that out of nine projects for development of road connectivity to the major ports, seven projects have been completed. As regards the other two, work in Mormugao Port was foreclosed on the directive of Hon’ble Supreme Court and work in Chennai Ennore Port road is in progress
Major initiatives to upgrade National Highways Mr Pon. Radhakrishnan also informed the House that Government has launched major initiatives to upgrade and strengthen 54,478 kms of National Highways (NH) in the country including the State of West Bengal through various phases of National Highways Development project (NHDP), out of which 22,345 km have been completed and 12,625 km are under various stages of implementation till October 31, 2014. The remaining length will also be completed in a phased manner. These projects are being implemented through various modes of delivery and through various agencies and various local factors are also often affecting these constructions adversely. Therefore, timelines for
completion cannot be determined at this stage. Model Concession Agreement (MCA) lays the guiding principle for safety requirements on the project highway entrusted to National Highways Authority of India (NHAI), that safety requirements apply to all phases of construction, operation and maintenance with emphasis on identification of factors associated with accidents, consideration of the same, and implementation of appropriate remedial measures. The Concessionaires are also required to abide by the Manual for Safety in Road Design, issued by the Government, insofar as they relate to safety of the users. The Concessionaires have to make adequate arrangements during the construction period for the safety of workers and road users and notify NHAI and the independent engineer. MCA also elaborates safety requirements applicable to phases of operation and maintenance of the project. For carrying out safety audit of the project highways, Road Safety Cell of NHAI has appointed Safety Consultants. The Safety Consultant has to collect and analyse the accident data for the preceding two years and study the Safety Report for the Development Period and inspect the Project Highways to assess the adequacy of safety measures.