| Author |
 Topic  |
|
S.ravi
Advanced Member
India
4205 Posts |
 Posted - 11/04/2008 : 21:46:39
|
Last hurdle cleared for Charkop-Mankhurd Metro line http://timesofindia.indiatimes.com/Mumbai/Last_hurdle_cleared_for_Cha
rkop-Mankhurd_Metro_line/articleshow/3674111.cms
Mumbai: The Mumbai Metro's second line, Charkop-Bandra-Mankhurd, got
a boost with the Centre clearing the Rs 1,500 cr viability gap
funding (VGF),
making it easier for the over Rs 6,190 crore project to go through.
The Centre's decision was announced by chief minister Vilasrao
Deshmukh at Mantralaya on Tuesday.
VGF is the sum assured by the government to the private firm
undertaking the project to ensure that it is financially viable.
Large infrastructure projects have a long gestation period for
becoming profitable and the VGF is a cushion for the contractor.
The VGF approval will clear the way for planners who can now go
ahead full steam with the project.
Seven business consortia are in the running for bagging the contract
for the construction of the Metro project, including two headed by
the rival Ambani brothers. The financial bids for the project are
slated for submission on December 15.
The Metro planners will hold a meeting on Wednesday to sort out any
technical hitches which the bidders might encounter.
The Mumbai Metro will have a total of nine lines in the city. The
first line from Versova-Andheri-Mankhurd is already under
construction and is expected to be ready in four years.
The Centre's clearance has come after a long wait. Though officials
of the Mumbai Metropolitan Region Development Authority (MMRDA) had
been told that the project has been given the nod a few months ago,
the official permission took time in coming. "We can now go ahead
with the project,'' they said.
The Centre's clearance comes in the wake of a general cloud of
uncertainty over finance for future projects thanks to the global
meltdown.
The second line is also being undertaken on the public private
partnership (PPP) model like the first line. It will have 27
stations and, when complete, will ease the southern-northern and
eastern-western connectivity.
The third line from Colaba to Bandra will cost a whopping Rs 12,000
crore and will be mainly underground.
|
 |
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 11/10/2008 : 18:37:24
|
L&T consortium wins MMRDA project; shares surge 6%
http://economictimes.indiatimes.com/stocks_in_news_home/LT_shares_sur
ge_6/articleshow/3694477.cms
10 Nov 2008, 1201 hrs IST
MUMBAI: A consortium led by Larsen & Toubro with Malaysia's Scomi
Engineering Bhd has bagged a Rs 2460 crore order from the Mumbai
Metropolitan Region Development Authority to implement the country's
first monorail system in Mumbai.
The project involves designing, constructing, installation, testing
& commissioning and integrated testing including train trail with
initial operation & maintenance from Gadge Maharaj Chowk (Jacob
Circle) to Wadala (approx. 11 kms) and Wadala to Chembur via Mahul
corridor on a Lump Sum Turnkey basis.
The monorail will have 18 stations enroute. The project is to be
completed in a tight schedule of 30 months.
Shares of Larsen & Toubro gained 6.44 per cent to Rs 927 on bagging
this order.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 11/18/2008 : 08:05:57
|
MMRDA to spend Rs 89 lakh on inaugurations, bhoomipujas
http://www.mumbaimirror.com/index.aspx?Page=article§name=News%20-
%20City§id=2&contentid=2008111720081117035642576f630f45d
With talk of general elections gaining momentum, authority allegedly
holding events to impress voters
Monday, November 17, 2008
The authority has invited bids to conduct the pujas
The Mumbai Metropolitan Region Development Authority (MMRDA) is on a
spending spree. Known for being a cash-rich body, the authority will
spend Rs 89 lakh on inaugurations, bhoomi pujas and publicity
campaigns for development projects it has undertaken.
The authority, is implementing various projects, including the World
Bank funded Mumbai Urban Development Project, the Mumbai Urban
Infrastructure Project and the Metro Rail and Mono Rail projects for
the metropolis.
Sources in the government stated that with the talk of general
elections gaining momentum, the authority is likely to hold the
events to impress voters. The authority has decided to spend over Rs
31 lakh only on building pandals for the programmes. In addition,
the authority will spend over Rs 58 lakh for publicity, banners and
other works at the venue of inauguration, bhoomi puja, for which, it
has already invited bids.
When asked, an official of the authority informed the MMRDA it was
expecting the consent of Prime Minister Manmohan Singh to inaugurate
the monorail, the work of which is scheduled to begin in the last
week of November. The 20 kilometre monorail project, connecting Sant
Gadge Maharaj Chowk (Saat Rasta), Wadala and Chembur, is being
implemented on a pilot basis.
The authority is also spending over Rs one crore for the renovation
of offices of the Urban Development Department (UDD). A major chunk
of the amount is reportedly being spent to refurbish the office of
Manukumar Shrivastava who joined as secretary of UDD a few months
ago. According to the MMRDA, considerable amount of money was also
spent on renovating offices of both UDD secretaries T C Benjamin and
Shrivastava. Benjamin is one of the nine members of the executive
committee, Shrivastava is there as a permanent invitee of the MMRDA.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 11/22/2008 : 03:40:14
|
Mumbai, Capability of taking sharper turns makes monorail
more
flexible option in congested corridors
With the decks being cleared for the country’s first monorail
project to take
off, the monorail idea is catching up fast. Monorail is likely to edge
out a
couple of metro stretches being planned in the city. The Mumbai
Metropolitan
Region Development Authority (MMRDA) is thinking of replacing two
Metro rail
corridors that are part of the Metro rail masterplan with monorail
instead.
The two corridors, one between Hutatma Chowk and Ghatkopar (21.8 km)
and the
other from Ghatkopar to Mulund (12.4 km) are being examined by MMRDA
to see if
monorail corridors could be a better option, as the two corridors pass
through
densely populated and congested areas. Monorail is believed to more
flexible
making it easier for it to make its way through congested areas. The
monorail
can take sharper turns unlike the metro system.
The 21.8-km Hutatma Chowk-Ghatkopar corridor is part of Phase II of
the Metro
masterplan, while the Ghatkopar-Mulund corridor is under Phase III of
the
masterplan chalked out by the Delhi Metro Rail Corporation.
According to MMRDA officials, it is being debated whether a monorail
or metro
rail would suit the corridor which is lengthy as well as congested. â
€śSince it
is a densely populated route, monorail is better suited. But there is
also a
school of thought that says since a higher number of commuters is
expected to
use longer routes, Metro system could be advisable,†a senior MMRDA
official
revealed on condition of anonymity.
When queried about the proposal to replace the metro corridors with
monorail,
Ratnakar Gaikwad, Metropolitan Commissioner said: “We’re examining
the
proposal of replacing the two corridors with monorail. No decision has
been
arrived at, as yet.â€
An official, who favours the monorail system on the two corridors
said,
“Monorail is cost-effective. The length and density of the
alignments make
monorail a better option, as it can take sharper turns unlike the
metro rail.
We’re also exploring if the route could be undertaken on a public-
private
partnership (PPP) model.â€
The work on the country’s first monorail system on the Jacob
Circle-Wadala-Chembur route would commence by February. The 19-km
monorail
corridor would be built by Malaysian firm Scomi along with Larsen &
Toubro.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 11/22/2008 : 03:46:47
|
Railways clear Mumbai Metro line crossing
A major hurdle in the construction of Rs 2,356-crore first corridor of Mumbai Metro on the Varsova-Andheri-Ghatkopar route has been removed with the railways agreeing to take their proposed elevated corridor between Mumbai Central and Virar above the Mumbai Metro’s elevated structure that will cross the railway line at the Andheri station.
A state government’s urban development ministry told Business Standard: “The issue was settled during a meeting called by Chief Secretary Johny Joseph that was attended by the Western Railway chief engineer (bridges) and other senior officials.”
It was brought to the notice of railway authorities that constructing a metro bridge over the railway corridor would prove to be too steep for the metro railway to cross. Besides, it was also brought to their notice that work on the metro railway was in advance stages, whereas work of the elevated railway corridor was only at the planning stage.
It may be recalled that Railway Minister Lalu Prasad Yadav had announced to develop the elevated corridor between Mumbai Central and Virar in his Railway Budget speech earlier this year.
Subsequently, a feasibility study was ordered, following which the railway authorities withheld their final clearance to the Mumbai Metro line at Andheri station.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 02/09/2009 : 18:12:05
|
STATE-OF-THE-ART: Minister of State for Railways R. Velu inaugurating the ‘deluxe EMU rake’ at ICF in Chennai on Monday.
CHENNAI: The Integral Coach Factory, Perambur, has rolled out an AC/DC EMU with air-conditioned driver’s cabin.
Flagging off the deluxe EMU rake on Monday, Minister of State for Railways R.Velu said that this was the 39th rake supplied by ICF to the Maharashtra Rail Vikas Corporation (MRVC) for the Mumbai suburban service. The ICF had been given the contract for manufacture of 101 AC/DC EMU rakes by the MRVC under a World Bank scheme, of which 38 had been delivered. This was the first EMU rake with AC driver cabins. In future, all EMUs would have the facility.
The Minister said five new generation EMU rakes were being supplied to the Corporation every month. The feedback for the coaches was encouraging. They had named the trains “silver bullets” of the Mumbai suburban.
Amenities provided in these coaches were on a par with those of any EMUs in the international suburban system.
These included global positioning system for displaying passenger relevant information, LED display of destination on either side of the train and forced ventilation system for pumping in fresh air into the coaches to relieve suffocation during peak-time rush.
General Manager M.S. Jayanth said that the new EMU was different from the conventional rake as state-of-the art technology had been incorporated in the rake. The energy requirement of the new coach would be 35 per cent less than that of conventional coaches due to regeneration of energy during braking. Reduced energy requirements would mean reduced emissions and a cleaner environment.
After a complete changeover to new-generation coaches, Railways would save Rs.100 core per annum and earn Rs.12 crore on carbon credit.
The total cost of the new coach would be around Rs.27 crore, which was much less compared to Rs.84 crore charged by some international companies for an 8-car rake of metro rail system. In addition to the 101 rakes, the Railway Ministry on its part was to supply 57 rakes to the Mumbai suburban service, which were also to be supplied by ICF, he added.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 02/20/2009 : 08:43:30
|
http://timesofindia.indiatimes.com/Mumbai/Spotlight_on_Delhi_model_for_second_line_of_Metro/articleshow/4152067.cms
19 Feb 2009, 0158 hrs IST
MUMBAI: The Delhi model for building a Metro rail link, which showcases a line
funded by the government instead of by the private sector, has been
highlighted once again as a possible alternative model for the second line of
the Mumbai Metro from Charkop-Bandra-Mankhurd.
This model has come up for discussion among transport circles as the Public
Private Parternership(PPP) model for the second line - in which private
companies play a leading role in the construction and operation of the line -
failed to garner any bids last Friday, the final day of the bidding. This was
despite the fact that the bidders were granted extra time.
Senior officials involved with the planning said that if there are no bids by
March 15, then the government will have to consider other options and the Delhi
model will be a strong one.
The Delhi model will entail government funding while the PPP model will mean
that the private sector plays a leading role in funding, constructing and
operating the line.
The second line of the Mumbai Metro, which is slated to cost over Rs 6,500 crore
failed to get bids last Friday, even though two consortiums led by the Ambani
brothers were short-listed.
The Delhi model, which has been successful, is being promoted by the chairman of
the Delhi Metro Rail Corporation chairman, E Shreedharan. He has made no secret
of his dislike for the private sector being a major partner in the building of
the Metro rail links across the country.
Shreedharan has come out strongly against the private sector constructing public
transport projects in the city and has voiced his opinion against the Hyderabad
Metro which was being built based on a PPP model. Metro circles state that
Shreedharan was of the opinion that as most of the transport projects were not
profit-yielding, they were best handled by the government as was the
Fri Feb 20, 2009 10:57 am
|
Edited by - S.ravi on 02/20/2009 08:44:31 |
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 02/21/2009 : 21:08:07
|
H Govt. may take up the Phase II of metro
Mumbai : Projects Today reported that the Maharashtra Government may have to opt for Delhi model to implement the Phase II of Mumbai metro project as the ongoing credit crunch has kept the bidders away from the proposed rail link project. As per report, the Delhi model will entail government funding while the PPP model will mean that the private sector plays a leading role in funding, constructing and operating the line. Phase II project route stretch from Charkop to Bandra to Mankhurd which is to be implemented on PPP basis has failed to attract bidders despite of the fact thatthe bidders were granted extra time. The Phase II project is estimated to cost INR 6,500 crore. (Sourced from Projects Today)
Posted by Suresh Tripathi at 7:37 AM 0 comments
|
|
|
|
irse
Forum Admin
India
553 Posts |
Posted - 03/10/2009 : 00:10:55
|
http://www.hindu. com/thehindu/ holnus/004200903 091731.htm
Mumbai (PTI): The Mumbai Metropolitan Region Development Authority (MMRDA) is considering having partial underground Metro Rail between south Mumbai and the western suburbs, instead of having the total stretch underground as envisaged earlier, to reduce project cost.
"In the backdrop of prevailing recession, partly underground and partly elevated rail is much more feasible instead of a completely underground metro rail project as it will save about Rs 3,000 crore," a top MMRDA official told PTI.
"We have given two plans to the State government. One is to have the project completely underground and another is having it partly underground. It's now up to the State government to decide," the official said.
"Only after elections, will the government consider the proposals and most probably partial underground project may be worked out as it is cost-effective, " the official added.
While the MMRDA initially planned entirely underground metro rail starting from Colaba in south Mumbai to Bandra in western suburbs with an estimated cost of Rs 12,000 crore, it sent another proposal to have an underground route till Mahim and an elvated route from there till Bandra.
Recession has also taken its toll on the quantum of bidding for the project work. Companies which initially evinced interest to build the second Metro rail Charkop-Bandra- Mankhurd, did not submit bid documents, reportedly due to recession and sought some more time to submit the documents.
Work on the first metro rail between Versova-Andheri- Ghatkopar is underway.
irse |
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 03/10/2009 : 10:31:17
|
'Rehab & resettlement, most challenging in Phase-II'
http://www.expressindia.com/latest-news/rehab-&-resettlement-most-challenging-in\-phaseii/432891/
Mumbai Even as the railways grapple to complete the Phase-I of the Mumbai Urban Transport Project (MUTP), work for the Phase-II has already got underway. This phase involves laying of the fifth and sixth lines between Chhatrapati Shivaji Terminus (CSTM) and Kurla, as well as Thane and Diva and the sixth line between Borivali and Mumbai Central. It also involves the extension work of the Harbour
line from Andheri to Goregaon.
Newsline discussed the progress of the MUTP work with P C Sehgal, managing director, Mumbai Rail Vikas Corporation (MRVC).
What are the most challenging projects in the Phase-II of the MUTP?
All projects are challenging since it requires coordination with 39 agencies.
But Rehabilitation and Resettlement (R&R) is the most challenging one. Phase-II involves removal of 15,000 hutments. Though the number is less than that of Phase-I, it is still a daunting task. More importantly, land acquisition is also a challenging task that has to be undertaken.
How much land has to be acquired for Phase-II?
The entire phase requires some 1,20,000 sq metres of land. Of the total land required, a part belongs to the defence and forest department (for the Thane-Diva project). The Mumbai Metropolitan Regional Development Authority (MMRDA) is coordinating with the state government for the same.
Phase-II has begun but Phase-I is still way behind completion? Projects like the construction of Oshiwara station are still under process?
It is not true. More than 70 per cent of the Phase-I work has been completed. In case of the pending Oshiwara station project, the level crossing needs to be closed and an alternative arrangement needs to be made. Unless that is done by the state government agencies, we cannot start the construction.
The new rakes are adding to the woes of the city commuters. More than 40 cases of (new) rake failure have been recorded since January. Is the MRVC planning to
add features to the new rakes to be introduced under Phase-II?
The rake manufacturer, Siemens, has admitted its fault and is rectifying its mistakes. The work for the same has already begun and they have promised to finish the work by August 2009. However, the same models were approved by the Railway Research Design and Standards Organisation (RDSO) and the railway board in Delhi.
We might introduce some new changes in the rakes in Phase-II. It could be change in the interiors, seats, suspensions and panelling.
Construction of bridges, both under Phase-I and II, has been a major task for the MRVC?
Under the Phase-I, we have built a bridge on the Mithi river near Bandra. This will ensure laying of the fifth line between Mahim and Santacruz and the sixth line between Borivali and Mumbai-Central. We have taken special care during the construction of the bridge and also the extension of a Road over Bridge (ROB).
In fact, we have almost completed the extension of the ROB in just eight months.
We would also be using a different technology for the construction of bridge over the Thane creek at two-three places, as the conditions at the Thane creek are different unlike that in case of the Mithi. We also have to keep into consideration the depth of the creek and soil quality before we begin work there.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 03/29/2009 : 20:06:27
|
Metro II: residents' proposal for underground stretch under scrutiny
http://www.expressindia.com/latest-news/metro-ii-residents-proposal-for-underground-stretch-under-scrutiny/440405/
Mumbai The nodal agency for the implementation of the second metro rail corridor has sent the proposal for an underground stretch between Andheri and Bandra, presented by residents protesting against the project, for evaluation by an independent consultant.
The “conceptual plan” proposes an underground section of the
Charkop-Bandra-Mankhurd corridor from ESIC Nagar in Andheri to Bandra.
According to these citizen activists, the over-ground metro corridor will affect hundreds of structures. The Mumbai Metropolitan Region Development Authority has asked an independent consultant to scrutinise the plan before forwarding it to the Delhi Metro Rail Corporation, its principal consultant.
“We’ve asked Louis Berger Group to scrutinise the plan. They will come up with a feasibility report,” said Ratnakar Gaikwad, Metropolitan Commissioner.
The study will look into the technical feasibility, financial viability and the impact of the alternative design on the pace of implementation of the corridor.
The economic slump has affected the implementation of the 32-km corridor as none of the seven interested consortia had submitted financial bids for the Rs 6,192-crore project. However, the MMRDA is hopeful of getting a few responses by April 30, the fourth extended date to submit bids. The MMRDA is also contemplating to fund the project in case no bidders come forward.
On the other hand, the residents of areas like JVPD, Santacruz, Khar and Linking Road are conducting their own detailed study into the plan proposed by their core committee. “We’re conducting our own detailed micro plan for the eight-km underground stretch in association with IIT, Mumbai,” said Nitin Killawala, member of the residents’ committee.
According to them, an elevated metro corridor will affect hundreds of
structures. “As per our calculation, from ESIC Nagar to Bandra, there are over 153 structures that will be affected. At some places, the staircases marked on maps of the planning agency fall in the frontage of the buildings or commercial structures,” said Killawala, who is also an architect.
The residents want the government to scrap the tendering process and come up with another funding model and incorporate the underground section. “The MMRDA has sent us a letter saying that its consultants are evaluating the proposed plan, but it hasn’t given us any time frame within which it will be done. The MMRDA should discontinue the bidding process for the time being,” Killawala
said.
According to him, the MMRDA is avoiding the underground section mainly owing to its cost factor, but it is neglecting the social cost an elevated corridor will incur.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 04/02/2009 : 10:32:56
|
Metro work hits Andheri sewer
http://timesofindia.indiatimes.com/Mumbai/Metro-work-hits-Andheri-sewer/articleshow/4341598.cms
1 Apr 2009, 0153 hrs IST
MUMBAI: Shifting and securing underground utilities like sewage and water mains for civic infrastructure projects without affecting public life continue to be a difficult proposition.
Construction work on the city's first Versova-Andheri-Ghatkopar Metro rail corridor received a jolt when an old and deeply laid sewage line got damaged at Manish Nagar on J P Road on Monday, causing inconvenience to residents.
According to sources, the damage caused during digging is major and will take at least five days to repair. It has stalled the construction work. The incident has occurred despite the fact that the Reliance-led executing agency for the Metro rail project-- Mumbai Metro One (MMOPL)--had carried out utility mapping
of the entire stretch.
"The sewage mains were 30 ft below the ground and were aging. Water has spilled all over, causing inconvenience to residents of the surrounding area,'' a source said. However, according to MMOPL officials all-out efforts were being made to repair the damage and restore normalcy.
"MMOPL has engaged field experts, with experience in handling this kind of repair works at such a deep level, to complete restoration in the shortest possible time,'' added an MMOPL official. Sources said this is the first such mishap to have occurred during the construction of the Metro after it began a year ago.
Bowing to pressure from residents, authorities had to recently postpone work on civic projects like the sewage line at Pedder Road and the demolition of the Lalbaug flyover.
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 04/02/2009 : 10:40:30
|
Sewage enters homes as Metro digging goes awry
http://www.dnaindia.com/report.asp?newsid=1244586
Thursday, April 2, 2009 2:26 IST
Mumbai: Residents of JP Road in Andheri (W) are getting contaminated water for the last 10 days due to drainage and water pipes being ruptured by the piling work in the area for the phase I of the Metro Rail project.
Mumbai Metro One Pvt Ltd (MMOPL), which is executing the phase 1 of the VAG Corridor of the Metro Line, is routinely running into deeply laid and ageing underground utility networks. The utility networks at certain points between Versova and Andheri on J P Road have been severed, causing inconvenience to residents.
Angered residents from JP Road staged a 'rasta roko' on Wednesday to protest the contaminated water supply in their area. "Our homes have been getting sewage water for the last 10 days. The MMRDA is passing the blame on the BMC saying that wrong underground maps were given to them, which has resulted in the drilling work rupturing old drainage and water pipes," said Mohammed Sajid Sayed, a JP Road resident. "The main pipes are damaged at four places, and the
small ones at nine locations," said Rajendra Yadav residing in Kredo Villa, Andheri(W).
"These utility networks, laid 30 feet below ground, have been affected despite the rigorous utility mapping exercises at the planning stage, and in spite of the due precautions taken during the execution stage," said an official from the Reliance Mumbai Metro 1 (P) Ltd.
Anil Khoje, assistant municipal commissioner, K (W) ward, said, "Due to the piling work, the water and drainage lines at some places were damaged. It's a trial and error method and the lines have now been repaired."
Khoje said the BMC held a meeting with the MMRDA in this regard. "It has been decided that all officials from various agencies will be present during excavation to minimise damage and cause less inconvenience to residents."
|
|
|
|
S.ravi
Advanced Member
India
4205 Posts |
Posted - 04/02/2009 : 10:45:05
|
The Capitalist | Mumbai’s Metro project: time for normative pricin
http://www.livemint.com/2009/04/01220207/The-Capitalist--Mumbai8217.html
The Capitalist | Mumbai’s Metro project: time for normative pricing rules?
According to MMRDA, while the first phase has been given under the PPP scheme, the other two phases may not adopt the same route because of the way it was abused in the Maytas proposal
The construction of Metro railway in Mumbai was initially expected to cost around Rs214 crore per km. Nobody bothered about the price till media reports gave out the project cost of a consortium headed by Maytas Infra Ltd—promoted by the family of fraud-hit Satyam Computer Services Ltd founder B. Ramalinga Raju—for the Hyderabad Metro rail project.
It was found that Maytas’ costs were Rs174 crore per km for the Hyderabad project, much lower than the project cost of Mumbai Metro but higher than the Delhi Metro Rail Corp. Ltd’s (DMRC) Rs162 crore per km. Since Delhi was the first city rail project of its kind in India, costs were expected to be high. Experience gained from the first project always allows lower costs in subsequent
projects.
Mumbai’s proposed costs were shocking. The anger and protests following Maytas’ disclosures—and Mumbai’s rip-off proposed costs—appear to have borne fruit. The costs disclosed last month by the Mumbai Metropolitan Regional Development Authority (MMRDA) for its Metro project now appear to be more reasonable than those of Maytas and lower than those of Delhi. But with steel prices having halved since then and finance costs tumbling, Mumbai’s costs
should have been at least 25% lower than DMRC’s. According to MMRDA, while the first phase has been given under the public-private partnership (PPP) scheme, the other two phases may not adopt the
same route because of growing disenchantment with PPP and also because of the way it was abused in the Maytas proposal. But rejecting the PPP route may not be the best solution.
************
Public utility pricing and PPP Till now, a big champion of the PPP route has been Infrastructure Leasing and
Financial Services Ltd (IL&FS), which has spearheaded private investment in infrastructure. It is backed by the Planning Commission which continues to support the PPP route for infrastructure development.
It now appears that most IL&FS-backed projects have tended to inflate costs.
Disclosures about the Maytas’ Hyderabad Metro costs—coupled with news about how tenders for ambulances for the Emergency Access Foundation, also promoted by the Satyam group, were cleverly structured—have clouded perceptions about PPPs and IL&FS.
A letter written by DMRC chief E. Sreedharan to the Planning Commission, expressing grave reservations about PPP in the Hyderabad project, further aggravated the situation. True, the planning body ticked off Sreedharan for his letter, but his charges have stuck. There now appears to be a lot of soul-searching about the price state governments ought to pay for infrastructure
projects.
The Hyderabad Metro project allowed for a cost of Rs174 crore per km even though it was higher than DMRC’s costs.
People close to IL&FS privately say that DMRC’s own quote for the project was around Rs240 crore per km. While this could not be independently verified, the fact is that nobody adopted a normative pricing policy. IL&FS could have done this easily, first, because it has experience in infrastructure costing, and second, because, according to submissions before the Company Law Board (CLB),
IL&FS controls a 37% equity holding in Maytas, even though it directly controls just 14.4%. Not surprisingly, CLB refused to allow IL&FS a seat on Maytas’ reconstituted board on grounds that such a seat would pose a conflict of interest.
All this raises a fundamental question: Can any government award an
infrastructure project to a private party merely on the basis of the bids it receives? Shouldn’t there be a ceiling price indicator based on some normative pricing parameters? After all, infrastructure is an inescapable monopoly, and its cost is always
paid by citizens through tolls, tickets and tariffs. Their interests need to be protected.
Ideally, the state should have stated that since DMRC had managed to build an excellent facility at Rs161 crore per km, the project would be offered to any party that could better this price. Now with Reliance Infrastructure Ltd quoting a lower price of Rs127 crore per km for Delhi Metro’s airport link, this should become the new normative price benchmark.
Without such a regulatory framework involving normative pricing rules and a cap on what should be charged to common folk, the entire exercise can become a collusive deal between the government and private business. PPP is welcome. It allows for private funds to finance infrastructure building. The danger lies in (a) not adopting caps on costs, and (b) finding excuses for allowing further increases in costs after a project has been awarded. A way to
counter this could be to set stiff penalties for the planners and revocation of bank guarantees for the investors if costs are upwardly revised after contracts have been awarded. Hopefully, some PPP norms may be revised and fiscal prudence get the respect it
deserves.
|
|
|
|
Topic |
|
|
|
mumbai metro -Latest news
