Parsvnath pays Rs 501cr instalment to RLDA for Delhi rail land

Realty firm Parsvnath Developers today said it has paid Rs 500.86 crore instalment to the Rail Land Development Authority (RLDA) against the 38 acres of rail land that it had bought for Rs 1,651 crore.

Parsvnath had bought this land, located at Sarai Rohilla- Kishanganj in the national capital, from RLDA in 2010 through an auction.

“The company has so far made payments of three instalments together with interest aggregating to Rs 1,161.46 crore,” Parsvnath Group Chairman Pradeep Jain said in a statement.

In May this year, a development agreement was executed between RLDA and Parsvnath Rail Land Project, a special purpose vehicle (SPV) incorporated for implementing this project.

The company will develop luxury apartments, commercial/ shopping areas, railway housing, railway service building & common facilities, Hospital/School and other amenities.

Parsvnath has appointed Callison LLC of USA as architect for the project in co-ordination with architect Sikka & Associates.

The company will develop this project in partnership with private equity firm Red Fort Capital.

Rail Budget a major push for infrastructure creation

The rail budget has provided a major boost for the growth of infrastructure sectors. The budget has provisions for speeding execution of projects in key industries including power, coal, mining, ports and urban transport. Additionally, the renewed focus by the rail ministry on the much delayed Dedicated Freight Corridor (DFCC) project will help capturing the freight traffic currently locked up in these sectors.

The rail ministry will rope in the private sector and state governments concerned In order to complete the ambitious projects on time. “An investment of upto Rs 9,000 crore is expected under these projects including Rs 3,800 crore for port connectivity projects, Rs 4,000 crore for coal mine connectivity and Rs 800 crore for iron ore mines connectivity improvements,” rail minister Pawan Kumar Bansal said while presenting the budget in Parliament.

He said the private participation will he aided by the “Participative” Public Private Partnership (PPP) policy newly approved by the Union cabinet. Evacuation constraints owing to lack of rail connectivity have acted as a major dampener for fresh investment in power and coal sectors. The rail ministry is currently mulling floating a Special Purpose vehicle (SPV) with miner Coal India Ltd (CIL) and the Chhattisgarh government. The SPV will spend over Rs 4,000 crore in laying a 180-Kilometer line for evacuating coal from Mand Raigarh coalfield in Chhattisgarh.

Bansal said the ministry plans to mobilize over a lakh crore investment in these sectors through PPP mode in the 12th Plan. “Among the focus areas identified are elevated rail corridor, DFCC, redevelopment of stations, power generation and freight terminals,” he said, noting their high capital intensive nature and long gestation periods as concerns. The rail ministry has allocated Rs 1,000 crore each for setting up a land development authority and Indian Railway Station Development Corporation in 2013-14.

The minister also said that DFCCIL, the rail ministry’s arm executing the freight corridor project, has already completed land acquisition for 2,800-Km stretch on the Eastern and the Western arms of the project. He also said that a Rs 3,300 crore contract has been awarded for 343-Km Kanpur-Khurja section and construction contract for 1,500 KM on the two corridors would be awarded by end 2013-14. Additionally, preliminary studies have commenced for four future corridors.

As was expected the ministry’s plan expenditure in DFCC is set for a massive jump from Rs 1,542 crore (Revised Estimate) in the current financial year to Rs 7,124 crore in 2013-14. The rail ministry is already working on a 66-km stretch of the New Karwandiya-Durgawati section of the Sonnagar-Mughalsarai stretch (122 km) of the eastern corridor. It is to be commissioned by December.

Freight Traffic on the Golden Quadrilateral linking the four cities of Delhi, Mumbai, Chennai and Howrah – and its two diagonals Delhi-Chennai and Mumbai-Howrah – carries more than 55 per cent of revenue earning freight traffic of Indian Railways. The existing routes of Howrah-Delhi on the Eastern Corridor and Mumbai-Delhi on the Western corridor are highly saturated creating the need for dedicated routes.

The project ones commissioned would mark an inflexion point in the 150 year old history of Indian Railways which has so far run only mixed traffic across its network failing to capture high freight movement demand. The corridor would enable freight trains to run at an average speed of over 65 kmph as against 22 kmph currently.Focus back on Dedicated Freight Corridor.

CCEA clears 3 Joint venture Railway projects

The minister for railways, Mr Pawan Kumar Bansal, today announced the decision of the Cabinet Committee on Economic Affairs to approve three important railway projects to be funded through joint venture.

The CCEA approved the construction of a new broad gauge line between Raigarh (Mand colliery) to Bhupdeopur railway station of 63 km length at a cost of Rs 379.08 crore to be funded through a joint venture (JV) consisting of IRCON International Ltd (a railway PSU) and two other stakeholders, South Eastern Coalfields Ltd (SECL) and Government of Chhattisgarh.

IRCON will spearhead the process of formation of a Special Purpose Vehicle (SPV) with 26 per cent equity and the Government of Chhattisgarh will transfer government land free of cost.

The Government of Chhattisgarh will thus participate to the level of 10 per cent in equity, either through capitalisation of land or through cash contribution and SECL will take the balance equity. The project is likely to be completed in the next five years during the 13th Plan period.

Minister of Railways Reviews Progress of Dedicated Freight Corridors

The Minister of Railways, Shri Pawan Kumar Bansal reviewed the implementation of Dedicated Freight Corridor (DFC) projects in India being implemented by Dedicated Freight Corridor Corporation of India (DFCCIL), the fully owned Special Purpose Vehicle (SPV) of Ministry of Railways specially constituted for the purpose. Shri R K Gupta Managing Director DFCCIL made a detailed presentation. The Minister of Railways alongwith Chairman, Railway Board, Shri Vinay Mittal, and the Members of Indian Railway Board took stock of the current status of various activities involved in the project implementation and also discussed various issues having critical impact on the project implementation.

One of the notable features reflected during the review as acquisition of 7968 hectares of land constituting over 82 per cent which marks achievement of a major landmark of 80 per cent land acquisition stipulated by the funding agencies, e.g. World Bank, Japan International Cooperation Agency (JICA). It was appreciated that approximately 8000 hectares of land over 9 States and 61 Districts has been acquired in a span of less than three years, which is very remarkable. The remaining 18 per cent land acquisition is also progressing steadily.

DFCCIL officials also highlighted the current procurement status for physical execution of works indicating that contract for railway track works over 1000 kms is expected to be awarded in coming months making the physical execution visible at the ground level. Shri Vinay Mittal apprised the Railway Minister regarding the remarkable achievement of project authorities in obtaining environmental clearance of two Wild Life Sanctuaries and one Bird Sanctuary within 10 to 16 months, which has been possible due to active support and cooperation of the State Governments of Gujarat and Maharashtra and their Forest and Environment officials. The Union Ministry of Forest and Environment has also provided necessary assistance by lending the services of an experienced officer to assist DFC project authorities and guide them in processing various forest and environment clearances. The inter-ministerial cooperation has been very effective for the DFC project in this respect. Shri Mittal also pointed out that DFCCIL has successfully complied with stringent requirement of social impact assessment and its mitigation as stipulated by funding agencies like World Bank and JICA.

The initial timelines of commissioning of the entire project by December 2016 for both Eastern and Western Corridors stipulated at the time of approval of the project were also reviewed in the light of the subsequent developments of requirement of environmental clearances, processes involved and the ground realities encountered in the project implementation. It was brought out by the project authorities before the Railway Minister that due to sequential progressive processing of different phases of the project by both World Bank and JICA and course correction in the alignment due to various reasons, the commissioning of DFC would now be achieved in phases varying from December 2015 depending on the availability of funds and funding arrangement being tied up wherever it is yet to be concluded.

The Railway Minister emphasized the importance of DFC project to be implemented and commissioned at the earliest and the DFCCIL project authorities assured that no stone will be left unturned with the support and assistance of the Ministry of Railways to achieve this mega project of national importance.

RVNL to take up MMTS phase two works

The Multi-Modal Transit Services (MMTS) received a boost with the government and the Railway Board set to sign a Memorandum of Understanding (MoU) for the formation of a Special Purpose Vehicle (SPV) to implement and run the project.

The SPV formation will help quicken the much delayed phase two of the project connecting the city’s suburbs and the International Airport at Shamshabad.

The government will have 51 per cent share and the RB 49 per cent in it with the former already committing to fund two-thirds of the estimated project cost of more than Rs.650 crore.

Detailed survey

The Rail Vikas Nigam Limited (RVNL) has been entrusted with the job of taking up the works and it is already undertaking a detailed survey of the available railway lines, land required for the new lines, stations and workshops, road crossings, etc., across the eight routes extending to more than 100 kilometres.

Top government officials led by Principal Secretaries Lakshmi Parthasarathy, S.P. Singh and railway officials, including those from RVNL, held a meeting on Wednesday to discuss the modalities of the SPV.

It took seven years for the RB to clear the SPV as a draft proposal was floated by the government way back in 2005 at an initial cost of Rs.325 crore.

SPV role cut out

The SPV objective is to make the project financially viable as it will look into the commercial exploitation of the station and lands, while the railways will be operating the trains. It will be headed by a chairman to be nominated from the government side, while the managing director will be from the railways for operations and maintenance and there will be a board of directors drawn from both sides, officials said.

Two phases
Current phase one operations too will be brought under the agency’s umbrella once it is formed. Phase two works are proposed to be taken up in two phases: Falaknuma-Umadanagar-Airport (20 km): new line from Umdanagar to airport and doubling of line from Falaknuma-Umdanagar with electrification; Telapur-Patancheru (9 km): track restoration and electrification; Secunderabad-Bolarum (14 km): electrification and remodelling of stations, Sanatnagar-Moula Ali (21 km): doubling and electrification.

Second stage Moula Ali-Malkajgiri-Sitaphalmandi (10 km): doubling and electrification, Bolarum-Medchal (14 km): doubling and electrification & Moula Ali-Ghatkesar (14 km): quadrupling and electrification.

Published in: on November 25, 2012 at 11:45 am  Leave a Comment  
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PMO clears roadmap for Mum-Ahd bullet train

Putting the ambitious Mumbai-Ahmedabad rail corridor on the fast track, the railways will constitute a project steering group to examine options for executing it.

The prime minister’s office (PMO) on Friday announced a roadmap for implementation of flagship infrastructure projects, which include high-speed corridors, the elevated rail corridor for thesuburban Mumbaisection and redevelopment of stations.

The high-speed rail corridor project between Mumbai andAhmedabad andother six routes is technologically the most advanced railway project. A pre-feasibility study has been conducted by RITES in association with other experts.There are various alternatives for implementing the high-speed corridor project but out of all, only the special purpose vehicle (SPV) or the public–private partnership (PPP) options, seem viable, said a senior railway ministry official.

The group will examine options for implementing the project and finalizing the feasibleones,suggesting waysof strengthening the capacity of railways to design and executehigh-speedtrain projects and suggest mechanisms for quickly moving forward on chosen options.
The elevated rail corridor in Mumbai, the other key infrastructure project of the railways, also got the PMO’s nod. According to the official, the projectwillbeimplemented in PPP mode and a concessionaire will be finalized by March 15, 2013. — PTI
Estimated Cost 60,000 crore Expected Speed 300kmph Distance 492 km Travel Time 2.5 hrs Duronto takes 7 hours to cover the distance.

Call to execute metro rail with public participation

KOCHI: The proposed Kochi metro rail project can be executed with participation from members of the public, just as the Cochin International Airport was completed, former Union Minister O. Rajagopal, said.

Addressing reporters at the Ernakulam Press Club here on Saturday, he said that this would ensure people’s participation in the system of mass-rapid transport.

“For this, a Special Purpose Vehicle (SPV), comprising stakeholders from among the public, the Urban Development Ministry, the Corporation of Cochin and the State and Central governments can be formed.”

He urged the State and Central governments to end the blame game over the Union Finance Ministry refusing to allot funds for the venture. Planning Commission Deputy Chairman M.S. Ahluwalia had recently said that the project could not be executed as a Centre-State joint-venture scheme.

“The five Union Ministers from Kerala must work in tandem with the MPs from the State so that the project kicks off. There are also many Keralites holding powerful posts in the Centre. A combined political and administrative effort would ensure that the present bottlenecks are overcome. Any further delay in beginning work on the project that would decongest Kochi roads does not augur well for the State. The UPA government at the Centre has gone back on the promise that it would sanction the project within 100 days of assuming office.”

Mr. Rajagopal said that Delhi-model metro-rail cannot be copied as such for Kochi since unlike in Kochi, the Delhi government owns the whole of the land there.

Published in: on July 11, 2010 at 8:00 am  Leave a Comment  

Railway Projects through Public-Private Partnership

Indian Railways have identified certain areas for possible execution through public-private partnership route. These include development of world class stations, establishment of super specialty hospitals/medical colleges, setting up of manufacturing units for rolling stock, setting up of perishable cargo centres, infrastructure projects for port connectivity and several activities in catering/tourism and hospitality area.

In South Central Railway, Obulavaripalle-Krishnapatnam new line project (112 kms.) has been taken up with private sector participation through Special Purpose Vehicle (SPV) formed by Rail Vikas Nigam Limited (RVNL) in partnership with Krishnapatnam Port Company Limited and Bramhani Industries Limited along with NMDC Limited and Government of Andhra Pradesh.

This information was given by the Minister of State for Railways, Shri K.H. Muniyappa in a written reply in Lok Sabha today.