Mumbai Metro – MMRDA Awards Metro-7 Corridor Project to Simplex Infra, J Kumar, NCC Ltd

metro-smallThe Mumbai Metropolitan Region Development Authority (MMRDA) has awarded the Mumbai Metro-7 corridor project from Andheri (E) to Dahisar (E) to Simplex Infrastructure Ltd, J Kumar Infraprojects Ltd and NCC Ltd for three different packages.

The Executive Committee of MMRDA has taken this decision on Monday. MMRDA is the nodal agency for Mumbai Metro projects.

“The Executive Committee of the MMRDA, headed by Mr. Swadhin Kshatriya, Maharashtra Chief Secretary accorded administrative approval to the appointment of contractors to design and construct an elevated viaduct and 16 stations on the 16.5-km long Metro-7 corridor from Andheri (E) to Dahisar (E) in three packages”, MMRDA said in a statement.

Simplex Infrastructure has won the contract to design and construct the first package consisting of an elevated viaduct and five elevated stations, namely Andheri (E), Shankarwadi, JVLR Junction, Mahanand and New Ashok Nagar.

J Kumar Infraprojects has been awarded the project to design and construct the second package consisting of an elevated viaduct and six elevated stations, including- Aarey, Dindoshi, Pathan Wadi, Pushpa Park, Bandongri and Mahindra & Mahindra.

NCC Ltd has given the contract to design and construct the third package consisting of an elevated viaduct and five elevated stations at Magathane, Devipada, National Park, Ovaripada and Dahisar (E).

These three winning bidders have given 30 months time period to complete design and construct all 16 stations of the entire metro corridor.

Last month, MMRDA has announced Rs 6,647.67 crore budget for the year 2016-17. Out of this, MMRDA has allocated Rs 2,151 crore for metro projects. The Authority has spared Rs. 500-crore each for the first phase of the Dahisar to DN Nagar (18.5-km, 17 stations, Rs. 4,994 crore) and the Andheri (East) to Dahisar (East) (16.5- km, 16 stations, Rs. 4,737 crore) Metro corridors, Rs. 1,000-crore have been allotted to the Colaba-Bandra-SEEPZ (33.5-km, 27 stations, Rs. 23,136 crore) Metro corridor, Rs 100 crore  for the implementation of other Metro corridors from the Master Plan for the 118-km Metro network, Rs. 46.25 crore for Versova-Andheri-Ghatkopar and Rs.5.50 crore for the review of and Studies of Metro corridors in the Master Plan.

The 16.5-km long Metro-7 corridor from Andheri (E) to Dahisar (E) is estimated Rs 6,208 crore investment  by  the time of completion of the project in 2019.

The remaining investment will come through public private partnership (PPP) model.

The government has planned eight metro corridors in Mumbai and one is in Thane.

The Mumbai Metro Rail phase-3, Colaba-Bandra-SEEPZ route will be the costliest and longest among all eight corridors, it will be built underground. The total distance will be 33.5 km long and will have 27 stations, will cater to the huge office crowd and will tackle the rising traffic. The project cost estimated by authorities is Rs. 23,136 crore, which could go up by the time of completion of the project. The government has set the deadline to complete the project by 2022.

Currently only one metro project, which is operational in Mumbai is 11.40 km Versova-Andheri-Ghatkopar, all other metro projects are in different stages of planning and tendering, the work of the few projects is expected to start this year.

Source: Information in this article has been obtained from MMRDA website

India to Construct 8 New Major Ports, Aims to Invest Rs 12 Trillion in Ports & Waterways

ports&waterways-smallThe government of India has been constantly working to improve the port and maritime infrastructure of the country to increase the cargo capacity and waterways transportation. Last week, Union Shipping and Ports Minister announced to construct eight new major ports in the country and indicated government plans to invest more than Rs 12 trillion in ports & waterways sector in the long term.

This year government will construct three major ports at Wadhwan in Maharashtra, Sagar in Bengal and Colachel in Tamil Nadu with the cost of Rs 25,000 crore, but did not announce the names of other five ports. Minister said after Kandla, no major port has been constructed after 1950s in the country.  These eight new ports will add to existing 12 major ports.

Minister claimed, the 12 existing major ports of the country have given Rs 4,200 crore profit in 2015-16 and growth is faster than private sector ports and global peers. The operating profit from these ports has jumped almost Rs 670 crore.

Maritime India Summit fetched the investment proposal of Rs 82,905 crore, which concluded last week. During the summit 141 Memorandum of Understandings (MoUs) and Business agreements were signed by various players in the  maritime sector, including Major Ports, State Maritime Boards and PSUs like Shipping Corporation of India, Cochin Shipyard Limited, Inland Waterways Authority of India, etc. to develop, modernise new and existing ports, cargo and waterways system in the country.

The major agreements are,  Rs 9,167 crore agreement between Maharashtra Maritime Board and Jawaharlal Nehru Port Trust to construct phase-1 of Greenfield port at Wadhwan, Maharashtra,  Rs 3,000 crore agreement between Andhra Pradesh government with Inland Waterways Authority of India to develop the National Waterway-4, Rs 5,411 crore agreement between Gujarat Maritime Board and Shapoorji Pallonji for the development of a new LNG Terminal at Chara and Rs 18,412 crore agreement between Vishakhapatnam Port Trust and HPCL to double the capacity of the Visakha Refinery from 7.5 MMT to 15 MMT.

India’s Prime Minister said while addressing Maritime India Summit, “the Ministry of Shipping is showcasing about 250 projects with investment opportunity in the Maritime Sector. These projects include various infrastructure development opportunities in 12 Major Ports, projects in eight maritime states and other agencies. Of these, over 100 projects have been identified under the Sagarmala Programme. With more than 14,000 kilometers of navigable inland waterways in the country, there is tremendous potential for development in this sector.”

Government of India aims to increase the country’s port capacity to 3000 million tonnes by 2025 from existing 1400 million and willing to mobilize an investment of Rupees one trillion in the port sector to facilitate this growth.  In the last two years, major ports of the country have been awarded 56 new projects involving an investment of more than Rs 25,000 crore and it would create an additional port capacity of 317 million tonnes per annum.

In recent times, despite the global slowdown, major Indian ports have witnessed more than four percent growth in last two years. During this period these major ports have added 165 million tonne capacity and 94 million tonnes added in 2015-16 alone which is the highest ever. 2015 recorded the highest ever quantity of cargo handled by major ports and fastest average turnaround time in ports.

Last month, Parliament passed the bill to declare 111 new rivers in National Waterways, earlier there were only five rivers declared as National Waterways. The government has projected initial investment of Rs 70,000 crore and government exploring various ways to collect the fund for the project. This eco-friendly mode of transportation bound to decrease around 18 percent of logistics cost in the country.

It shows, the outlook of maritime, shipping, ports, waterways sector are very positive and huge investment is going to take place in coming years for the expansion and improvement of infrastructure. Such a huge investment in this sector will strongly support construction equipment sector, which is directly dependent on infrastructure development in the country.

Bhopal to Receive Rs 22,000 Crore for Infrastructure Development

infrastructure-smallThe state government of Madhya Pradesh has decided to improve the infrastructure and aim to make Bhopal, an ideal smart city.  Chief Minister Shivraj Singh Chouhan has announced Rs 15,000 crore investments for the next five years for the development of the city.

Last week CM said “People who come to the state capital get swayed by its beauty. Rs 15,000 crore will be spent on Bhopal’s development in the next five years and a blueprint for this has been drawn.”

The total amount of Rs 22,000 crore will be spent to improve the infrastructure; another Rs 7,000 crore will come as a soft loan from the Japan International Cooperation Agency (JICA) to construct the first phase of 83 km metro rail project in Bhopal.

Bhopal is among 20 cities which have been selected by the government of India for the first phase of the smart cities project. As the city has been chosen to develop under the smart cities plan, the government is trying to enhance the greenery of the city and willing to invest in it.

CM has also announced Rs 100 crore for the infrastructure development of the state’s capital. This will be additional support for construction of flyovers at Upper Lake, Lower Lake and Habibganj.

Bhopal Development Authority (BDA) is also heavily betting on enhancement of city infrastructure, in the recently announced budget, BDA has aimed to improve Bhopal traffic system. The city development body proposed to construct two flyovers, one at Lal Ghati and another at Board Office square at MP Nagar.

Out of this Rs 15,000 crore, the government has decided to spend Rs 1,500 crore for the development of Hamidia road and new interstate bus terminal (ISBT) at Old Sabzi Mandi will be built to cater to the new demand. Old Bhopal areas have been ignored for a long period, now this area will be also developed.

Under the Smart Cities Mission scheme, the city will get Rs 200 crore in the first year as central government assistance and the following year it will receive Rs 100 crore each till 2019.

Huge infrastructure activities will be taking place in Bhopal and Indore due to proposed Rs 3 lakh crore economic corridor between Indore and Bhopal. Under this project six small cities will also be developed and existing four lane road will be converted into six lane road. Due to construction between two cities, connectivity, infrastructure, travelling would improve and help in generating employment.

Under the smart city scheme, the authority would invest and work to improve various areas like, better electricity supply, adequate water supply, construction of affordable housing, especially for the poor, better connectivity of information technology, improvement of hospitals, education system, better connectivity of public transportation, better waste management and sanitation system, e-governance and other.

Huge infra activities in Madhya Pradesh are a positive sign for heavy construction equipment manufacturers.

Source: Information in this article has been obtained from PTI, TNN, Supercorridorindore

Infrastructure Development to Drive the Excavator Market, Mainly Mini Excavator

As per the estimate of the Twelfth Plan of the Planning Commission of India, India would witness roughly USD 1 trillion investments in the infrastructure sector.  Since National Democratic Alliance (NDA) government has come in power, the government has given additional priority to this sector and much needed attention to boost the infrastructure sector.

The government has planned an outlay of Rs 2, 21,246 crore in the Budget 2016-17, which has shown the clear picture  to construction equipment companies that  construction machines demand will rise due to investment and expansion of infra sector.

Excavators are the crucial and versatile equipment used for various constructions related works, especially used for road, highways, mining, canals and river dredging and  other works like digging holes, foundation and trenches, heavy lifting and material handling.

Global market research company, Research and Markets said in its report  called ‘Excavator Market in India 2015-2019’, that the Indian excavator market is to grow at a compound annual growth rate (CAGR) of 7.86 percent over the period between 2014 and 2019.

As per another report of the same research company, market for mini excavator is also bullish on India. The report known as ‘Indian Mini Excavator Market Outlook 2020’ said, the mini excavator market is to grow around at CAGR 12.5 percent during 2015-2020. The report estimated that Indian mini excavator market was Rs 5.7 billion in 2014.

Generally, mini excavators are more fuel efficient compared to heavy excavators.

One of the major reasons for the better growth of the mini excavator is, it’s very handy, very compact, versatile in nature, mobility is very easy from one place to another place on construction sites and pass through even small gates and having various other advantages. Nowadays, many contractors have started preferring mini excavator over Backhoe loader due to its above mentioned features, which could lead to its market expansion. However, both have different feature sets and applicability of these two equipments depend on the project size.

Excavator manufacturers like JCB India, Caterpillar, BEML, Komatsu India, Hyundai Construction Equipment India, L&T Construction Equipment, Tata Hitachi, Volvo, Sany India are the key players in this segment and growth of these companies are expected to rise.

Various government initiatives such as Smart cities,  affordable housing for rural and urban population, growing expansion of road & highway network, huge investment in railway infrastructure, new ports and expansion of airport across the country will definitely driver the excavators and heavy construction equipment  market in the country and help in growing the sector.

Source: Information in this article has been obtained from Planning commission, Research and Markets report.

Investment in Road and Highways will Drive The Construction Equipment Industry

The journey of the economy always travels by roads and highways in any economies in the world, so do in India. Therefore, National Democratic Alliance’s (NDA) government has given utmost priority to the infrastructure sector, especially road and highways in the country to improve economic growth to meet its target.

The Indian road network spread in around 33 lakh km and it is second largest in the world. Country’s 65 percent freight and 80 percent passenger traffic are carried by the roads. Despite National highways constitutes just around 1.7 percent of the total road network, but carry around 40 percent of the total road traffic.

In the Budget 2016-17, the government outlay Rs 2, 21, 246 crore for country’s infrastructure in ongoing financial year. Finance Minister Mr. Arun Jaitley planned the outlay of Rs 97,000 crore for road sector, including Pradhan Mantri Gram Sadak Yojana (PMGSY).  He approved nearly 10,000 km of National Highways in this fiscal and allocated Rs 55,000 crore for road and highways across the country and additional Rs 15,000 crore has to be raised by NHAI through bonds.

Such a huge investment to expand further road network in the country, will not only benefit infrastructure sector, but also going to change the construction equipment industry. Such a huge construction will require a big number of construction machineries and will boost the demand of new or used machines.

Road construction has jumped by 36 percent during April-September 2015 under various programmes of the road ministry as compared to during the same period of last fiscal. 2,446 km of roads and highways had been constructed between April and September 2015.

In 2014-15, government had constructed 12 km roads per day, which improved to 16 km per day in 2015-16 and the government has set the target of 30 km of road and highways from 2017.

Recently Minister of Road Transport & Highways Mr. Nitin Gadkari said his government targets to award Rs 1 lakh crore road projects in the North East region in next five years.

National Highways and Infrastructure Development Corporation (NHIDCL) which is a fully owned company of the Ministry of Road Transport & Highways has been awarded 109 projects in 13 states, including West Bengal, Assam, Nagaland, Manipur, Meghalaya, Mizoram, Sikkim, Manipur and Arunachal Pradesh. The length of the projects which are under various stages is 7,148 km.

In March 2016, the road ministry has asked all state government to submit the list of state highways, which could be converted into national highways. States have to send the proposal to road ministry with the detail of traffic plying on those roads; these roads will be developed under public private partnership (PPP) basis.

Government is not only working to improve state highways and national highways, but also trying to expand the rural road network under the scheme of PMGSY. Under the scheme 60,117 km road (spent Rs 18,832.92 crore) had been constructed in 2009-10 later the scheme suffered badly and declined, now the NDA’s government has decided to bring the scheme back on the track, the government has planned to invest Rs 27,000 crore and achieve the target of 45,000 km in  2016-17.

Ministry of Road Transport and Highways (MoRTH) has set the target to increase the highway length to 2 lakh km in years to come.  Ministry has also announced to upgrade Dwarka Expressway, which connects Dwarka in Delhi with Gurgaon.  Earlier this year, he had announced Rs 41,000 crore road projects in Telangana including two express highways. Last year in June, the government had approved Rs 4,720.92 crore highway projects in Madhya Pradesh and Telangana under highways building programme NHDP.

Such a huge investment in road and highways sector is expected to bring boom in the used construction equipment industry. A Sector which went through a bad phase until 2014 for the last few years, seem to be back on track and sale of construction machines will shoot-up. It is estimated that equipment sales will touch 96,700 units by FY 2018, in 2015 the sales has touched 68,200 units.

Indian Construction Equipment Manufacturers’ Association (ICEMA) estimated that the Indian construction equipment industry would grow to USD 5 billion by FY2019-20 from the current USD 2.8 billion.

ICRA Research (the Moody’s Investors service company) report said demand for Mining and Construction Equipment (MCE) industry to grow by 6-7 percent in 2015-16 and expected sharp growth of 20-25 percent in 2016-17. Further the report said, 2016 will be a promising year in most of the product segment.

Various reports also suggest that along with the Indian equipment market, the global construction equipment market will grow too.

It does seem road development in the country will set a new milestone in the world and bad phase of equipment industry will no longer continue.

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Note: Information in this article has taken from various sources, like MoRTH, NHAI, ICRA Research, ICEMA report and from the statements of Mr. Nitin Gadkari covered by national media.

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