Building Materials Park Will Set up in Andhra Pradesh at $6.4 Billion

An International Industrial Park with an expected investment of USD 6.4 billion will come up in the Indian state of Andhra Pradesh. The industrial park will comprise a Building Materials Park and Logistics Park; both will be set up in the area of 20 square km each at Donakonda in Prakasam district of AP.

A Memorandum of Understanding (MoU) in this regard has been signed between Andhra Pradesh government and China Association of Small and Medium Enterprises and China Small and Medium Investment Group Limited in Beijing on Monday. This is one of the major investments from China during current visit of 13-member delegation from the state led by Chief Minister N. Chandrababu Naidu to China.

This international industrial park is one of its kind in India and will give major boost to make in Andhra Pradesh, said an official statement from the CM’s office.

Building Materials Industrial Park will be set up in an area of 20 square km with an expected investment of USD 0.9 billion and will manufacture all kinds of building materials and low- carbon energy-saving new materials, it is expected to fetch 10,000 direct employment, said an official in CMO, reported Indian express.

AP government will also facilitate to build Modern Building Materials Logistics Park in the area of 20 square km with an expected investment of USD 5.5 billion to look after the logistics and distribution of these building material products, and setting up of this park will employ around 35,000 people directly.

The proposed project will be constructed in three phases with an investment of USD 6.4 billion in next 4-5 year period.

The Industrial park will manufacture different construction materials such as concrete, bricks, cement, tiles, stones, metals, ceramics, engineering plastics, composite materials, wood, bamboos etc. and will also manufacture decoration materials like paint, glass with special effects, coatings, ceramic tiles in all colours, cladding materials, veneering will be manufactured too.

Chinese Manufacturing and logistics companies and companies from other parts of the world will invest and set up their units in the Industrial Park. The manufactured products in the park will be supplied in domestic markets and will also be exported to other countries.

During his current visit to China, Andhra Pradesh’s Chief Minister has also signed another MoU with a group of three companies (China Huanqiu Contracting and Engineering Corporation, Isomeric Holdings, and LEPL Ventures) for setting up a gas-based fertilizer plant with an investment of Rs 10,183 crore in the Sate and this plant is expected to provide direct job to 5,000 people, said the government.

The State has been attracting huge investment from foreign and Indian companies for setting up of different plants and in its infrastructure development. Andhra Pradesh is going to be one the crucial market for construction equipment manufacturers as setting of these industrial parks, various other plants and infrastructure development in the state will require huge amount CE, which opens the door for players who are into the business of both new and used machines.

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Hyderabad Metro Rail Project Will Now Complete in December 2018

Hyderabad metro rail project deadline has got extended by 18 months, now it is likely to complete only by December 2018 due to various reasons; originally the deadline to complete this three phase metro project was fixed for July 2017.

“This is a linear project, hence all segments have to be completed for it to become operational. Even if 80 percent of the project is completed and 20 percent is remaining due to some hurdles, the Metro can’t operate. Hence completion is possible only after all aspects are in place,” said Mr. V B Gadgil MD & CEO of L&T Metro Rail Hyderabad Ltd.

This Rs 16,375 crore metro rail project is being constructed by L&T Metro Rail Hyderabad Ltd, which is the subsidiary of L&T Infrastructure Developments Project Ltd an infrastructure arm of Larsen & Toubro Ltd. L&T Metro Rail Hyderabad has to implement the Project on Design, Built, Finance Operate and Transfer (DBFOT) basis.

Hyderabad metro project is the largest fund tie-up in India for a non-power infrastructure Public Private Partnership (PPP) project.

Last year, L&T Metro Rail Hyderabad held a trial run on Stage-2 from Miyapur to Kukatpally Housing Board (KPHB) in May 2015 and test run between Miyapur and SR had held in October 2015.
Nagole to Mettuguda (Corridor III) and Miyapur to SR Nagar (Corridor I) even these two stretches will not be launched on June 2, 2016, which was expected to get clearance by May 31st. L&T Metro Rail Hyderabad informed the Telangana government that few departments need to clear some processes which required for getting railway safety certificate.

So far L&T Metro Rail Hyderabad has pumped around Rs 9,000 crore on this 72 km long elevated metro rail project, including Rs 2,700 crore from equity. This metro project is being financed by 30 percent equity and 70 percent by debt. A consortium of 10 banks led by State Bank of India has sanctioned the entire debt requirement of the project.

Delayed in the project will cause to change in the estimated project cost.

The L&T Metro Rail Hyderabad had signed the Concession Agreement with Government of Andhra Pradesh in September, 2010 and completed the financial closure for the Hyderabad metro project on 1st March, 2011; the project had commence in April 2012.

L&T Metro Rail Hyderabad has taken world class consultants services like Louis Berger, AECOM Feedback Ventures Consortium, Parsons Brinckerhoff, Halcrow, E&Y etc for the execution of Metro Rail Project.

Hyderabad Metro Rail Network will cover total 72 km distance for all three corridors, Corridor – I: Miyapur to LB Nagar, Corridor II: JBS to Falaknuma and Corridor III : Negole to Shilparamam.

The Metro Rail Network will pass through the major roads of Hyderabad which connects main bus hubs, commercial spots and residential areas. The bus depots that are being interlinked include Miyapur, MGBS, Koti, Dilshuknagar, Charminar and Jubilee Bus Station.

Hyderabad metro will be connected to MMTS services at Begumpet, Falaknuma, Bharatnagar and Malakpet along with prime train terminals at Secunderabad, Nampally and Begumpet.

Source: Information has been obtained from L&T Metro Rail, Business Line, Deccan Chronicle.