Indian Infrastructure Snap Shots

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Some Indian Infrastructure Snapshots-

Chhatrapati Shivaji International AirportMumbaiThe year 2006 witnessed a momentous change for the airports in India with the privatization of Mumbais GVK Chhatrapati Shivaji International Airport (GVK CSIA). In January 2006, GVK led consortium, comprising of Airports Company South Africa and Bidvest won the bid to manage and operate GVK CSIA. To accomplish this task, Mumbai International Airport Pvt. Ltd. (GVK CSIA) was formed by GVK led consortium (74%) and Airports Authority of India (26%).

Kolkata's Netaji Subhas Chandra Bose International Airport (around $0.5bn)Opened in January 2013, the state-of-the-art terminal has been built at a cost of Rs 2,325 crore by a Thai-Indian consortium, Italian-Thai Development Public Co -ITD Cementation. The new terminal can handle 25 million passengers annually.

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Mumbai MetroThe Master Plan includes nine corridors covering a length of 146.5 kms out of which 32.5 kms is proposed underground and rest is elevated. The total updated cost of the Mumbai Metro master plan is Rs. 67,618 Cr. @ 2012 price level.Versova-Andheri-Ghatkopar (Metro Line 1): Corridor is 11.40 Km elevated corridor. [ Opened to public. Total cost: Rs 2,356 crores. Equity: (Reliance-69%; MMRDA-26%)]Charkop-Bandra-Mankhurd Corridor (Metro Line-2): The Charkop-Bandra-Mankhurd Corridor of Mumbai MRTS begins from the Northern Suburbs of Mumbai at Charkop and stretches up to Mankhurd (via Bandra and Kurla) in the East. The route length of the Corridor is 31.87 km. This corridor is planned as elevated for its entire length having 27 Metro Stations [Total cost: Rs7,660 crores]Colaba-Bandra-SEEPZ (Metro Line 3): Is 32.50 km long and fully underground with 27 stations. It connects major CBDs of Nariman point and Bandra-Kurla Complex, Domestic and International Airport [Total cost- Rs23,136 crores. JAICA loan-Rs13,235 crores. 2020 completion.]

Mumbai Monorail Chembur Wadala Sant Gadge Maharaj Chowk - 20 Km long Monorail corridor is a feeder service to the other Transit System and to cater crowded and narrow congested areas [Opened to public-Feb2014. Total Cost: Rs2,460 crores.]Monorail is generally provided in crowded regions where sharp turns are present. (Greater maneuverability is required)--Metro is generally provided in regions, where sharp turns are absent and route is mostly straightforward. It can carry more passengers than a monorail system.

Jaipur MetroJaipur Metro began commercial service between Chandpole and Mansarover on 3 June 2015.

The Jaipur Metro Rail system isIndia's sixth metro rail systemafter those in Kolkata, Delhi, Bangalore,GurgaonandMumbai. (Metros to come: Hyderabad, Chennai, Kochi....)

Jaipur Metro is the first metro in India to run on Double-storey elevated road and Metro track.

It is also touted as one of the fastest built metro systems in India (9.63km in 4 yrs)

FROM PUBLIC TO PRIVATE OWNERSHIPIN METROS........Kolkata Metro was owned fully by the Indian Railways.Delhi Metro was a 50-50 venture between the Delhi government and the central government.Delhi Airport Express Metro has Delhi Metro investing in the civil construction, while Reliance Infrastructure invested in coaches, signalling equipment, tracks et cetera and got the concession to run it.Mumbai Metro, the Mumbai Metropolitan Region Development Authority took a 26 per cent stake, while 74 percent is owned by Reliance Infrastructure and others. Gurgaon Rapid Metro: owned by ILFSComparative Cost of MetrosCost in crore Length in Km Total Cost Crores per KmGurgaon Rapid MetroPhase 1 1,088 5.1 213Phase 2* 2,143 6.5 330Delhi Metro Rail CorporationPhase 1 10,571 `65.0 163Phase 2 18,894 124.0 152Phase 3* 35,242 103.0 342Delhi Airport Express Line 3,869 22.7 170Mumbai Metro*Line I (completed)2,356 11.0 214Line II 8,250 32.0 258Bangalore* 11,609 42.3 274Chennai Metro* 14,600 45.0 324Kolkata Metro (Line II)* 4,874 14.7 332Hyderabad Metro* 14,132 72.0 196*Under construction

Indore Bus Rapid Transport System (BRTS)[over Rs 11 crores per km] Built at a cost of Rs 130 crore, the Indore Bus Rapid Transport System (BRTS) with swanky air-conditioned buses covers a distance of 11.7 km. The entire stretch of BRTS in Indore will cover 106 km, connecting all major corridors in Indore. The other operational BRTS are in Ahmedabad, Delhi, Jaipur, Vijayawada, Rajkot. BRTS are under construction in Mumbai, Kolkata, Pimpri-Chinchwad, Pune, Surat Visakapatnam and Bhopal.

J&K Chenab bridge

At a height of 1,053 feet, Indian Railways expects to complete this highest railway bridge in the world by 2016. The 1.3-km-long arch-shaped bridge across Chenab river-bed in Reasi district will be on the railway line connecting Baramulla and Srinagar to Jammu. The main arch will have a span of 465 mts. across river Chenab which gives another distinction to this bridge being the longest single span railway arch bridge in the world.However, this Katra-Qazigund leg has run into controversy very recently. Based on a report by E Sreedharan (of Konkan Rly and Delhi Metro fame), the foundations of the arch are located on steep slopes on geologically weak rocks dipping towards river bed on Qazigund end hence unsafe. A High Court on 18May2015 has asked for a change in alignment.

Howrah-Dhanbad double decker express trainWith the introduction of the Howrah-Dhanbad double decker express train in 2011, India joined the big league of European countries that runair-conditioned double decker trains. Its average operating speed is 62 km/hr, with a maximum limit of 110 km/hr (likely to be scrapped).

Currently, some other double decker air-conditioned express trains in India: Delhi -Jaipur, Mumbai-Ahmedabad , Chennai-Bangalore, Delhi-Lucknow, Mumbai-Goa (not so successful).

Expected to follow soon: IndoreBhopal, PuneMumbai, KachegudaGuntur, KachegudaTirupati.

Yamuna Expressway: Greater Noida to Agra (>$2bn) [About Rs 8 Crore per km] Yamuna Expressway is a 6-lane, 165 km long, controlled-access expressway, connecting Greater Noida with Agra in Uttar Pradesh. Built at a cost of Rs 12,839 crore, it is India's longest six-laned controlled-access expressway stretch. Several residential, commercial, industrial and recreational developments have been planned on either sides of the Expressway.

Indias Largest Toll Plaza: Delhi-GurgaonGadkari (Feb 2015) has decided to jettison 125 toll plazas in the country to reduce waiting periods (and thereby, save time and fuel) since the jams cost the country about 2-3 per cent of its GDP. This, consequently, may allow the government to save aboutRs.88,000 crore.

That said, the government is contemplating:(i) increasing the road cess on petrol and diesel in order to compensate for the revenue lost by the forfeiture of tolling; and,(ii) levy a 2 per cent surcharge on purchase of new vehicles.

National Highway :Golden Quadrilateral 5,800Kms ---4/6Lane (>$12bn)

Assuming a utilisation of only 10 per cent of Gujarats existing canal network of 19,000 Kilometre, it is estimated that 2,200 MW of solar power generating capacity can be installed by covering the canals with solar panels.

Narendra Modi, Chief Minister ofGujarat, inaugurated a 1Megawatt(MW) pilot project on 24 April 2012.[1]The project is situated on the Narmada branch canal inMehsana district. The project virtually eliminates the requirement to acquire vast tracts of land and limits evaporation of water from the 750 meter long canal, tackling two challenges simultaneously by providing energy and water security.

An ultra-mega green solar power project with a capacity of four gigawatts to be constructed, making it the largest solar installation in the world, is being set up in Rajasthan, India.4GW proposed is about twice the current solar photovoltaic capacity of India.The project will be built on 23,000 acres of land (about 10 km by 10 km)First phase of 1GW expected to be commissioned by the end of 2016 (?).- See more at: http://www.rtcc.org/2013/10/07/ultra-mega-solar-power-project-to-be-constructed-in-india/#sthash.OTtn6Vtk.VjbCwPA1.dpuf

UMPP Tata Mundra Power 4,000MW(5*800MW, Rs17,000 Crores, commissioned over Feb2012 to March 2013)first private sector power project in India to be based on the energy efficient supercritical technologythe Power Purchase Agreement Tata Power entered into with the utilities was predicated on low Indonesian coal pricesafter September 23, 2011, the Indonesian government policy changed to aligning the export price with the international price, which has skyrocketed in recent years. Tata has been lobbying the Indian government to allow the increased costs of imported coal to be passed through to customersWhile the entire equity was denominated in Indian rupees, about 60% of the debt was in dollars. The sharp rupee depreciation this fiscal [year] has made CGPLs equity base smaller and its dollar-debt larger, throwing its financial ratios off the trackIn April 2015, locals filed envrionmental non-compliance lawsuitFishing communities and farmers from India filed suit against the International Finance Corporation (IFC), the private-lending arm of the World Bank Group, in federal court in Washington, D.C. The plaintiffs allege that the IFC caused the loss of their livelihoods, destroyed their lands and water, and created threats to their health by funding the Tata Mundra plant.Residents claim that warm water discharged by the Tata plant has driven fish away from the intertidal zone, where the Waghers used to practice pagadiya, a traditional method of setting up nets and harvesting the fish at low tide. Returns from boat fishing, which takes place farther from shore, have also declined.

Sardar Sarovar Dam on Narmada RiverModi Govt has announced that the dam height will be raised by 17 meters.

Irrigation: Sardar Sarovar DamKevadiya Colony in Narmada district Sardar Sarovar, as conceived, was one of the world's largest hydroelectric and irrigation projects. Some 37,000 hectares of land in Madhya Pradesh, Gujarat, and Maharashtra were slated to be submerged following the construction of some 3,000 dams, 75,000 kilometers of canals, and an electric power generating capacity of 1,450 megawatts of power per year. Included among the 3,000 dams was the proposed 160-meter-high Sardar Sarovar Dam.

Sardar Sarovar Narmada Nigam Limited, a state government undertaking, completed raising the dam up to 121.92 metres in 2006. Narmada Control Authority (NCA) has been asked to allow installation of spillway piers, which will take dam to full height of 138.62 metres and 30 steel radial gates over Sardar Sarovar Dam. It is the piers and gates that will technically make it a dam, without which it can only be called a causeway. In absence of gates, with the dam overflowing druing monsoons, water goes wasted even as parched lands of Saurashtra and north Gujarat reel under drought.

THREE GORGES DAM, CHINA 22,500MWThe Three Gorges Dam is a hydroelectric dam that spans the Yangtze River by the town of Sandouping, located in Yiling District, Yichang, Hubei province, China. The Three Gorges Dam is the world's largest power station in terms of installed capacity.

The Three Gorges Dam is also the most notorious dam: record number of people displaced (more than 1.2 million), number of cities and towns flooded (13 cities, 140 towns, 1,350 villages), and length of reservoir (more than 600 kilometers).

BeijingGuangzhouShenzhenHongKongLongest High-Speed Railway in the WorldThe Beijing-Guangzhou High-Speed Railway, short for Jingguang High-Speed Railway,has been in full operation since December 26, 2012.As an important north-south rail line ofChina high-speed railway, itruns fromBeijing WestRailway StationtoGuangzhou South Railway Stationwith a total length of 2,298 km (1,428 miles). It is the longest high-speed railway in the world. The speed was designed to be 350 km/h (217 miles/h),but it is down to 300 km/h (186 miles/h) in real operation currently. Thetravel timefrom Guangzhou to Beijing is shortened to 8 hours via the high-speed train.

.MOVIE TIME OVER. LET US GET BACK TO WORK.....

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Gurgaon Rapid MetroIndias first privately-funded metro project (1)

Rapid MetroRail Gurgaon South Limited, (RMGSL) a special purpose vehicle (SPV) promoted by IL&FS Rail Limited (IRL) and IL&FS Transportation Networks Limited (ITNL) for executing the Phase II of the Rapid Metro Project in Gurgaon has successfully arranged debt funds for the Rs 2,143 crore project.

RMGSL had signed the Concession Agreement with Haryana Urban Development Authority (HUDA) in January this year after wining the extension project through an open tender process.

The project is being implemented on Public Private Partnership basis. A consortium of three banks led by Canara bank will give RMGSL a loan of Rs 1,500 crore, while the company will invest Rs 643 crore as equity.

Work on the Phase II will start shortly and will connect Sikanderpur to Sector 55-56, a 7-km route with six stations. On completion of Phase I and II, Rapid Metro network will be a 12 km long system with 12 stations.

The first phase of the project is likely to commence operations from May this year.

The Rapid Metro would have a network spread of more than 20 kms on completion of all the three phases. Phase I of the network would connect Delhi Metro Sikanderpur station to Cyber City.

This phase is expected to be operational by May this year and will have a network span of 5.1 km with six stations. Phase II, known as South Extension, will connect Sikanderpur to Sector 55-56. Phase III, which is under planning, will provide connectivity to Udyog Vihar and Old Gurgaon.Gurgaon Rapid MetroIndias first privately-funded metro project (2)

It might be a ride of less than 15 minutes, cost just Rs 12, stretch over all of 5.1 km and be just a week old, but it is the boldest metro experiment in the country. If Gurgaon's Rapid Metro, which connects the Delhi Metro with Cyber City, the suburb's commercial hub, succeeds, it could change the face of urban transport in the country.

To begin with, it's the only privately-funded public metro anywhere in the world. The project was initially conceived as a collaborative venture between real estate developer DLF and Infrastructure Leasing & Financial Services, or IL&FS. But DLF, facing financial problems, pulled out and IL&FS became the sole owner.

The venture thus does not have any investment by the central government, Haryana or any other public sector undertaking. It has raised the entire money for building and operating the project on its own balance sheet, without any guarantee or viability-gap funding from the government. And it did not even get the 20 acres of land which it needed for the project at any concessional rate from the state.(PRIVATE LINES)


In contrast, the Kolkata Metro was owned fully by the Indian Railways. The Delhi Metro was a 50-50 venture between the Delhi government and the central government. In the first phase of the Mumbai Metro, the Mumbai Metropolitan Region Development Authority took a 26 per cent stake, while Reliance Infrastructure and others owned the rest. And in the Delhi Airport Express project, Delhi Metro invested in the civil construction, while Reliance Infrastructure invested in coaches, signaling equipment, tracks et cetera and got the concessions to run it. "It's a unique business model," says Sanjiv Rai, managing director of Rapid MetroRail Gurgaon Ltd, or RMGL, with evident pride.

Distinguishing featuresRMGL's project is different in other ways too. It's the first time any state government has granted a 99-year concession to operate a project. Most public-private partnerships have a 30-year concession period which is renewable for another 30 years. In the second phase of the Mumbai Metro, the concession is for 45 years. But a 99-year concession is unheard of. This, Rai says, is also the first time that a consortium of banks, led by Andhra Bank, has given a loan for a period of 17 years and nine months to a metro. In all other projects, the loans have tenure of not more than 15 years.


The Rs 1,100-crore project is funded seven parts by debt and three parts by equity. The debt carries interest of 13 per cent per annum, though there is a moratorium of two-and-a-half years on the repayment of the principal. Rai hopes to reduce the cost of funding by floating 30-year bonds, once the government permits it. This is in tune with the 30-year tenure of the loan given by the Japanese International Cooperation Agency to Delhi Metro. Rai says by the end of the first year, he expects over 90,000 commuters to travel every day on the metro. And by merely changing the frequency of the trains, he can accommodate as many as 250,000 to 300,000 commuters every day without any sizeable investment. Rai expects to break even in the sixth year of operations on the current investment.

Meanwhile, the company has started work on the second phase which connects Delhi Metro with the second commercial hub of Gurgaon on the Golf Course Road. This stretch will be 6.6-km long and will cost double the amount of the first phase: Rs 2,143 crore. At Rs 329 crore per km, it will be amongst the most expensive metro projects in the country. Rai, however, says that the huge increase in cost is because the line will be longer and it will have seven trains (compared to five in the existing line). Moreover, inflation is expected to take its toll on the cost because the project will take three years to build.


But many say that Rai's ambitious projection of ridership will be difficult to achieve. More than one week after starting operations, the average ridership is just 10,000 a day. Even if the numbers increase ten times in a year, the company, given the ticket of Rs 12, will make Rs 12 lakh a day and less than Rs 4 crore a month. This might not be enough to pay the monthly interest outgo of Rs 8.24 crore (13 per cent annual interest on a debt of Rs 761 crore).

But Rai says that does not concern him as a similar trend was seen when Delhi Metro began service: commuters take time to get used to a new alternative. With 26 million square feet of office space in Cyber City, there is a large market. Offices work in two or even three shifts here. It is estimated that 250,000 people troop in for each shift. Parking is a nightmare. Many offices have taken paring slots inside faraway malls and run buses to ferry employees from there to the premises in Cyber City. The demand for an inexpensive metro service is surely there. "We are talking to all companies in the location to offer an alternative to the taxi and bus services which they offer to their employees, which will save them costs. They could also use it partially," says a senior RMGL executive. He also says the company is wooing commuters who currently spend Rs 100 a day on parking in Cyber City to take a more viable alternative.


Another big market is Udyog Vihar which lies across the busy highway (which connects Delhi to Jaipur) from Cyber City. It is estimated that an equally large number of people work there. To tap into this market, RMGL has tied up with the Haryana government which will run 35 air-conditioned buses from Udyog Vihar to one of the metro stations. It is also talking with the state government as well as industry associations to pool in money to build a skywalk over the highway to connect Udyog Vihar to the metro. The skywalk would cost Rs 10 crore.

Higher tariffsThe company is also hopeful that the tariff will go up in the days to come. That's because its tariff is linked to that of Delhi Metro. And Delhi Metro is known to revise its tariffs every three or four years. As the current tariff was fixed three years ago, it expects an increase as early as next year. In the past, Delhi Metro has raised tariffs 25-26 per cent at one go; so it expects a similar increase next year too. Rai says: "The average annual increase comes to 6 to 7 per cent. That has been built in to our revenue projections."

RMGL is also eyeing non-tariff revenues, which it expects will contribute 10 to 15 per cent of its overall revenues, despite the limited real estate play that it has been allowed. The company has offered companies entire stations to brand (there are five stations at the moment; the sixth will be operational by March next year), for which it has already roped in big spenders like Vodafone and Micromax with a contract ranging from three to five years. It is also branding the trains and has got on board companies like real estate developer 3C, car maker Skoda and American Express.


Rai says that the company has already sold about 50 per cent of its advertising inventory. The company also has permission, according to the concessions agreement, to utilise 250 square metres of space in each station to set up retail outlets; it has already got a pharmacy store open. What will also help is that RMGL does not have to share the ticketing revenue with the Haryana government. The only thing it has to share with the state is a nominal 5 to 7 per cent of its non-ticketing revenues. It will work out to less than 1 per cent of its overall revenue.

So can the new model be replicated in other cities? Rai says that he is getting queries from other states and cities like Lucknow and Ludhiana which want to look at a similar model. But he says that a privately-funded metro project can only work if it has a large catchment of commuters. If the experiment in Gurgaon works it could blaze a whole new trail - not just in India but across the world.

Mumbai's Eastern Freeway ($0.3bn)Built to reduce travel time between South Mumbai and the Eastern suburbs,the Eastern Freeway, once complete will connectP D'Mello Road to the Eastern Express Highway at Ghatkopar. At the moment, a 13.59 km stretch from Orange Gate on P D'Mello Road (South Mumbai) to Panjarpol, Chembur is open. Built by Mumbai Metropolitan Region Development Authority (MMRDA)at a cost of Rs 1,250 crore (16.8km)

*The Jammu-Udhampur-Katra-Quazigund-Baramulla Railway line is the biggest project in the construction of a mountain railway since independence. From Jammu to Baramulla, length of the new rail line is 345 km. It passes through the young Himalayas, tectonic thrusts and faults.

**Katra-Qazigund leg is the most difficult stretch of this project. This 129 Km long alignment through Patni and Pir Panjal ranges requires construction of 62 bridges and 35 tunnels, totalling to a length of 103 kms (approx. 80% of the alignment). One of the tunnels is 10.9kms long.

However, this Katra-Qazigund leg has run into controversy very recently. Based on a report by E Sreedharan (of Konkan Rly and Delhi Metro fame), the foundations of the arch are located on steep slopes on geologically weak rocks dipping towards river bed on Qazigund end hence unsafe. A High Court on 18May2015 has asked for a change in alignment.

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Indian Infrastructure Snap Shots