Impact of Covid 19 On Roads - October 2020 PDF
Impact of Covid 19 On Roads - October 2020 PDF
Impact of Covid 19 On Roads - October 2020 PDF
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Roads
• The National Highways Authority of India (NHAI) will allow highway developers an additional three-month leeway till December 31, 2020, to
meet completion deadlines that are running late owing to the COVID-19 pandemic.
• The deadline extension will be granted without the imposition of any additional costs or penalties but only on a case-to-case basis. This is
among a host of decisions taken by the authority to speed up roadbuilding as part of new policy guidelines.
• NHAI has agreed to most of the suggestions made by the National Highways Builders Federation (NHBF) related to project delivery, to resolve
issues and increase the pace of construction of highway projects.
• In order to enable the bidders to have an assessment of road condition at the time of bidding, NHAI will provide the detailed project report
(DPR) along with the Network Survey Vehicle (NSV)/LIDAR data as per availability to the bidders. All survey data collected by DPR consultants
will be made available to agencies under one platform through the Data Lake.
• Apart from this, in order to ensure timely payments to vendors and their monitoring, submission of bills related to project payments will be
done through PMS/Data Lake Portal.
• A sum of Rs 103.39 billion has been released by the Ministry of Road Transport and Highways (MoRTH) during the COVID-19 period,
under the simplified payment process as envisaged in the ambitious Aatma-Nirbhar Bharat scheme.
• Besides, another sum of Rs 24.75 billion is being processed and is likely to be released soon.
• The ministry has simplified the payment process under the Aatma-Nirbhar Bharat scheme, and contractors’ payments are being made
every month instead of milestone achievement basis.
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Roads
• NHAI has agreed to most of the suggestions made by the Consulting Engineers Association of India (CEAI), in order to further improve the
ease of doing business in the national highways sector.
• Suggestions regarding omnibus bank guarantee system has been accepted by NHAI and guidelines have been issued on the matter. Besides,
suggestions regarding the use of innovative technology/material have been accepted by the authority.
• NHAI has also assured that the approval process of various stages of DPR shall be expedited. Meanwhile, under technical capacity provisions,
cap on the number of projects awarded to a consultant will be linked to the consultant’s performance and its rating on the Vendor
Performance Evaluation System.
• NHAI has withdrawn the fourth bundle of its toll-operate-transfer (TOT) programme, as it tests new models for its asset monetisation
programme to take off.
• The authority has finally withdrawn the tender, to tune it to its recent policy change of not disclosing the base price for TOT tenders. Further,
the fresh tender will see revised model concession agreement and request for proposal documents.
• NHAI has invited bids for the TOT Bundle V without a base price as the authority looks for better price bids for its operating assets. Separate
bids have been invited for the two bundles, each consisting of one national highway stretch in Gujarat. The total length of the bundles is
159.5 km.
• Bundle V comprises of Palanpur- Radhanpur-Samkhiyali section of NH-27 in Gujarat, which has been divided into two bundles: TOT Bundle-5
(A-1) and TOT Bundle-5 (A-2). The last date for bid submission for both bundles has been set at December 23, 2020.
• The concession period for the bundle is 20 years. The Initial Estimated Concession Value (IECV) of the projects on offer will be disclosed after
receipt of technical bids and after declaring the selected bidder.
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Roads
• MoRTH has issued an order to waive off permit requirement for vehicles carrying oxygen following the COVID-19 pandemic. The ministry has
specified that the provisions of sub-section (1) of the section 66 shall not apply to a transport vehicle, used exclusively for the carriage of
oxygen during the period of COVID-19 pandemic, upto March 31, 2021.
• The decision has been taken in view of certain issues brought to notice of the ministry about problems being faced by transport vehicle
operators for the carriage, transportation and delivery of oxygen cylinders or oxygen tanks across the states or within a state.
• E-way bill generation is inching closer to pre-COVID levels with August 2020 clocking 49.4 million, higher than July numbers of 48.3 million,
but slightly lower than August 2019 numbers of 51.2 million.
• E-way bills clocked a daily average of 1.5 million in August 2020, similar to that in July 2020, but higher than 1.4 million in June 2020. The daily
average numbers are inching closer to the 1.8 million per day recorded during the pre-COVID period, between January 25-March 24, 2020.
Meanwhile, over 10.4 million e-way bills have already been reportedly generated in the first six days of September 2020.
• The National Green Highways Mission plans to create green corridors along national highways. With plantation, transplantation,
beautification and maintenance as its mainstay, the project, flagged off in 2015, is yet to take off fully.
• While the initial target for the first year was to plant trees along 6,000 km of highways, only 3060 km of roads have been greened at a cost of
Rs 1.21 billion from 2016-2019. During 2016-2020, 1,186,525 trees out of a target of 3,089,857 trees have been planted on 3597.39 km of
national highways.
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Roads
• MoRTH has successfully completed construction of road length of 3,951 km during April-September 2020. It has achieved a construction pace
of 21.6 km per day, despite the COVID-19 difficulties. Besides, the ministry has set an ambitious target of constructing 11,000 km road length
during the current fiscal year.
• NHAI has awarded 40 projects for a total cumulative length of 1,330 km during April-September 2020. The authority has reported that
projects awarded so far in first half of the current financial year are 1.6 times higher than 828 km awarded in 2019-20 and 3.5 times higher of
373 km awarded in 2018-19, during the same period.
• For the awarded projects, NHAI has already completed at least 80-90 per cent of the land acquisition, actioned utilities shifting and has
obtained required clearances from various forest and environment authorities.
• Capital cost of these 40 projects stands at Rs 472.89 billion, which includes cost of civil work, land acquisition, and other pre- construction
activities. Meanwhile, NHAI has set a target of awarding 4,500 km of projects during current financial year and is likely to exceed the same.
• A total of 322 projects, spanning a length of 12,413 km have been awarded under Bharatmala Pariyojana till August 2020. Further, 2921 km
roads have been constructed under the project till the same date.
• MoRTH has taken up detailed review of national highways network and has given overall investment approval for Phase I of Bharatmala
Pariyojana for development of about 34,800 km (including 10,000 km residual NHDP stretches).
• MoRTH has plans for construction of over 50,000 km highways, a majority of which will be four and six lanes wide.
• The ministry has also called upon the investors to consider that the upcoming Infrastructure Investment Trust (InvIT) has scope for broad
basing the investor groups. The InvIT is set to be an attractive vehicle for mobilising funds for road development.
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Roads
• The central government has released funds worth Rs 2.03 billion as the first installment for the construction of 600 km long roads in three
districts in Bihar.
• The project involves construction of 51 roads with total length of 600 km and 34 bridges in three districts of Rohtas, Nawada and Jamui in
Bihar at an estimated cost of Rs 10.34 billion under the road connectivity scheme for the Left Wing Extremism affected areas.
• NHAI has received financial approval of about Rs 32 billion for the two packages under the Delhi-Dehradun highway project (NH-709B). The
project involves six-laning of 155.42 km Delhi-Saharanpur section of NH-709B in Uttar Pradesh.
• The project has been proposed as a new highway which will serve as an alternate between Delhi, Uttar Pradesh and Uttarakhand, and is likely
to shorten the travelling distance by about 70 km.
• The Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) has released funds worth Rs 2.75 billion for the Gorakhpur Link
six-lane expressway project (NH-27, SH-5). The funds have been allocated for speeding up the process of land acquisition under the project.
The project involves construction of 91.34 km six-lane access-controlled expressway in Uttar Pradesh and is being implemented in two
packages.
• The Bihar State Cabinet has accorded administrative sanction worth Rs 4.2 billion for the Kargil Chowk-NIT Mor elevated road project. The
scope of work involves construction of 2.07 km four-lane elevated road from Kargil Chowk to NIT Mor on Ashok Rajpath in Bihar at an
estimated cost of Rs 3.15 billion.
• The Andhra Pradesh government has sanctioned funds worth Rs 1 billion to acquire land for the Amaravati-Anantapur expressway project in
the current financial year. The total cost of the land acquisition has been estimated at Rs 22.31 billion.
• The sanction will be deposited with NHAI as soon as the award for compensation under Section 3(G) of National Highways Act is finalised by
the competent authority for land acquisition.
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Roads
• Telangana government has urged the central government to provide Rs 5 billion for development works on the Hyderabad - Vijayawada
section of NH-65.
• The State Public Works Department (PWD) has prepared DPRs for about Rs 5 billion for construction of flyovers, grade separators, service
roads, and augmentation of lane capacity. The state government has also requested the central government to sanction the funds in the
2020-21 annual plan.
• MoRTH has enhanced the allocation of funds for expenditure under Special Accelerated Road Development Programme in North Eastern
Areas (SARDP-NE) related works during the current financial year.
• Against the earlier Rs 3.9 billion expenditure envisaged to be incurred from National Investment Fund during 2020-21, a sum of Rs 7.6 billion
has been set aside for the same period. Of this, Rs 3 billion is specifically marked for the Arunachal Pradesh package.
• Under SARDP-NE (Phase –A and Arunachal Pradesh), 6,418 km (5,998 km actual design length) has already been identified for development at
an estimated investment of about Rs 304.5 billion, of which 3,356 km has been completed and 1,961 km is under construction.
Loans/Bonds
• The Uttar Pradesh Cabinet has granted approval to the funding proposal of Punjab National Bank (PNB)-led consortium for the 91.35 km
Gorakhpur Link expressway project.
• The PNB-led consortium includes Union Bank of India (UBI), UCO Bank, Canara Bank, Indian Bank, Bank of Maharashtra and Bank of India
(BoI). The project is being implemented at an approved cost of Rs 58.77 billion.
• The Uttar Pradesh government has decided to tap Reserve Bank of India (RBI)-licensed private banking entities for funding the 628 km Ganga
expressway project, which is estimated to cost about Rs 300 billion.
• However, the private sector lenders will be expected to offer credit on the same terms and conditions, as the nationalised and public sector
banks.
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Roads
• Cube Highways III Private Limited has acquired 100 per cent stake in KNR Walayar Tollways Private Limited (KWTPL), a subsidiary of KNR
Constructions Limited.
• The enterprise value of the assets for this transaction stands at Rs 5.12 billion (comprising debt of Rs 1.27 billion and an equity valuation of Rs
3.85 billion), excluding claims payable by NHAI and other governmental instrumentalities, which will be passed through to KNR Constructions
as and when realised.
• KWTPL operates a 53.5 km four-lane toll road connecting Walayar on the Kerala/Tamil Nadu border and Vadakkancherry in Kerala.
• HCC Concessions Limited, the infrastructure development arm of HCC Group, has completed the sale of 100 per cent stake in Farakka-Raiganj
Highways Limited (FRHL) to Cube Highways and Infrastructure II Private Limited.
• FRHL is a public-private-partnership (PPP) project with an enterprise valuation of Rs 15.08 billion, comprising debt of Rs 9.05 billion and an
equity valuation of Rs 6.03 billion.
• The total expected pay-out of Rs 6.03 billion to HCC Group includes a cash pay-out of Rs 2.70 billion which combines equity consideration and
contractor payments and Rs 2.33 billion of hold backs to be released on the completion of dispute resolution with NHAI, while upto Rs 1
billion of earnout is payable in 2023 contingent on traffic projections.
• Additionally, as part of the agreement with Cube Highways, HCC Group will be entitled to a revenue share from FRHL over the entire
concession period.
• The enterprise value of Rs 15.08 billion also excludes a structure section of the project, which had been descoped by NHAI, and for which
Cube Highways has offered a contingent pay-out.
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Roads
Delhi - Amritsar Delhi, Punjab and Recently, NHAI invited bids for five packages under the project.
Under
- Katra 309.36 600.00 Jammu & Due date for bid submission for all packages stands at
Bidding
expressway Kashmir December 3, 2020.
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Amritsar- Punjab,
It is one of the greenfield expressways being constructed under the
Bhatinda- Haryana, Under
176.77 762.00 Bharatmala Pariyojana. Currently, the project is under construction
Jamnagar Rajasthan, Construction
and is expected to be completed by FY23.
highway Gujarat
Raipur- Chhattisgarh,
It is one of the greenfield expressways being constructed under the
Vishakhapatn Odisha,
163.43 464.00 Approved Bharatmala Pariyojana. As of June 2020, land acquisition is ongoing
am Andhra
on the project. The project is expected to be completed by FY24.
expressway Pradesh
Solapur- Maharashtra,
Currently, the project is in the announced stage and is expected to
Kurnool 104.30 279.00 Andhra Announced
be completed by FY2025.
highway Pradesh
First approved in 2005, the project had stalled due to lack of
Bengaluru
funding, but is now picking up pace as the central government has
Satellite
144.04 281.00 Karnataka Announced announced to bear entire land acquisition cost for Phase I of the
Town Ring
project. It is being implemented under the Bharatmala Pariyojana
Road
and is expected to be completed by FY24.
The Supreme Court has directed the Brihanmumbai Municipal
Corporation (BMC) not to undertake reclamation beyond the 90
Mumbai hectare (ha) area for the coastal road project, as mandated by the
Under
Coastal Road 140.00 29.20 Maharashtra Coastal Regulation Zone (CRZ) clearances in 2016. However, BMC
Construction
Project intends to reclaim a total of 111 ha for the project and has applied
for fresh clearances for the 21 ha before the state’s coastal
authority.
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Roads
Ambala-
Haryana, Under Currently, the project is under construction and is expected to be
Kotputli 113.75 227.00
Rajasthan Construction completed by FY23.
expressway
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Roads
Awarded/Completed Projects
Awarded/Completed Projects
Ashoka
Arrah-Pararia highway Awarded 54.30 7.00 Buildcon Ashoka Buildcon Limited has received letter of award
Limited (LoA) for from NHAI for two EPC road projects in
Bihar, being implemented under Bharatmala
Ashoka Pariyojana.
Pararia-Mohania highway Awarded 60.80 6.90 Buildcon
Limited
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Roads
Awarded/Completed Projects
Awarded/Completed Projects
Rapallewada-
Dilip Buildcon Dilip Buildcon Limited has received LoA from
Telangana/Maharashtra Awarded 52.60 11.41
Limited NHAI for the project.
border highway
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