Nhdp Phases Unit-i Notes

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National HighwaysDevelopment Project Phases



INTRODUCTION

The global phenomenon of rapidindustrialisation and liberalisation hasboosted the need for infrastructureprojects viz. Highways, Airports, PowerProjects etc.



Indian Infrastructure Scenario

3.2 million kilometres of Roadway 63,200 kilometres of Railway

Over 150 Seaports

12 International Airports and Over 90 Domestic Airports



Modal Shift Share

About 65% of freight and 80%passenger traffic is carried by theroads.

National Highways constitute only

about 2% of the road network but carryabout 40% of the total road traffic.

Number of vehicles has been growing at

an average pace of 10.16% per annumover the last five years.



Indian Road Network

Type of Road Length (Km.)

Expressways 200

National Highways 66,590

State Highways 1,28,000

Major District Roads 4,70,000

Rural and Other Roads 26,50,000

Total Length (second

largest in the world) 33.4 Lakhs Km. (Approx.)



Indian Infrastructure Investments

India needs about Rs. 27,60,000 crore ofinvestment in infrastructure developmentsover the next 10 years.

As per the recent Assocham’s report on“Infrastructure: The $150-billion GrowthStory”, in the coming six years, India shallbe investing Rs. 3,20,000 crore for the

development of infrastructure projects viz.Highways, Ports and Airports.





National Highways Authority of India (NHAI)

Constituted by an Act of Parliament-National Highways Authority of IndiaAct, 1988.

Responsible for Development,Maintenance and Management ofNational Highways.

Operationalised in February-1995.



National Highways Authority of India (NHAI)

India's Largest ever Highways Project World class roads with uninterrupted

traffic flow

NHAI is responsible for implementingon National Highways of lengtharound 24,000 Km.



National Highways DevelopmentProject (NHDP)

The Govt. of India under the aegis ofNHAI initiated the National HighwaysDevelopment Project (NHDP);

Under the first two phases of theproject i.e. NHDP Phase-I & NHDPPhase-II, about 14,279 km length of

National Highways are proposed to beupgraded to 4 or 6 lane at a totalestimated cost of Rs.64,639 crore.



National Highways DevelopmentProject (NHDP Phase-I and II)

The Golden Quadrilateral (GQ) Projectconnects high density metro corridors ofDelhi, Mumbai, Chennai, Kolkata and

Delhi with a total length of 5846 Kms;The North-South (N-S) Corridor

(Srinagar to Kanyakumari, including

Kochi-Salem spur) and East-West (E-W) Corridor (Silchar to Porbander) witha total length of 7300 Kms;



National Highways DevelopmentProject (NHDP Phase-III)

NHDP Phase-III that was launched in 2005,includes upgradation and 4 laning of 12,109km of national highways on BOT basis at

an estimated cost of Rs 80,626 crore. In addition to implementation of NHDP, the

NHAI is also responsible for implementing of

other projects on National Highways (mainlyroad connectivity to major ports in India) at anestimated cost of Rs. 4,000 crore



National Highways DevelopmentProject (NHDP Phase-III-A_III-B)

NHDP Phase III-A: The Government hasapproved 4/6 laning of 4000 km on BOTbasis and preparation of Detailed ProjectReports (DPR) of the balance 6000 km in1st Stage and targeted to be completed byDec 2009 is in progress.

All the stretches ranging from 11 km to

300 km under the project will be executedon build, operate and transfer (BOT) basis.




The authority recently awarded a contractfor four and six-laning of 29-km highwaysto Jaiprakash & Associates. The project isexpected to cost Rs 295 crore (ET_10-09-07).

NHDP Phase III-B: In the 2nd Stage, 4/6laning of balance 6000 km will be taken up

and completed by Dec. 2012




The present phases under Phase I, II andIIIA envisage improving more than 25,785km of arterial routes on national highwaysto global standards.

While NHDP Phases I and II are likely tobe completed by December 2008, PhaseIIIA is expected to be completed by 2009

end.



National Highways DevelopmentProject (NHDP Phase-V)

NHDP Phase V: Under NHDP Phase V,NHAI has awarded the contract for six-laning of 148 km.

Other Phases viz. NHDP IV, VI and VII,are in the planning stage.



Expressway Authority of India(ET_31-08-07)

THE government is planning to set upExpressway Authority of India on thelines of National Highways Authority ofIndia (NHAI) for faster development of

rapid transit system.

The proposed authority would developabout 15,000 km of expressway in the

country on build, operate and transfer(BOT) basis over a period of 10 to 12years.



Expressway Authority of India(ET_31-08-07)

The CoI headed by the prime ministerhad indicated to set up a separateauthority for expediting theconstruction of expressways in the

country. Expressways would increase the

average distance travelled by goods aswell as the passenger to over 500 kmper day against the present averagedistance covered by long-haul vehiclesin the region of 250-300 km a day.



BOT Projects

• The NHAI has so far taken up 32 projectsvalued about Rs. 4692.31 Cr. on BuildOperate and Transfer basis (Toll basedprojects).

• Out of this, 22 projects have beencompleted and 10 numbers of projects are

in progress.



The BOT Toll-Based Scheme

• The toll based on the various studiesconducted by IRC has been recommendedas:

• Rs. 0.40 per km. for cars,

• Rs. 0.7 per km. for light commercialvehicles and

• Rs. 1.4 per km. for trucks and buses.



The BOT Annuity Scheme

• The agencies unwilling to burn theirfingers through the toll system, theannuity-based scheme is proposed.

• Here, the private operator enters in toa concession agreement withGovernment and builds, operates theproject; the Govt. collects the toll and

it pays private operators a regularamount for the concession period.



The NHAI SPV Scheme

• Twelve projects valued about Rs.2266 Cr.have been identified under SPVs funding.

• Five projects amounting to Rs. 923 Cr.have been completed so far under SPVs.

• Seven numbers of projects valued aboutRs. 1343 Cr. are in progress on SPVs

funding basis

Under this scheme, the NHAI puts in acertain amount of equity into the SPV with orwithout a partner and uses this equity to raisemoney from market. The money is to be paid

back from the future toll revenues.



Encouragement for PrivateSector Participation

• Tolls rates indexed to whole-sale priceindex;

• Government/National Highways Authorityof India authorized to provide capital grant

up to 40% of project cost to make theproject viable. However, the quantum ofthe grant would be decided on case-to-case basis;

• 10 years of corporate tax holiday to beavailed of in 20 years of commissioning ofthe project;

• External commercial borrowings up to 35

% of the project cost permitted;




• Import of modern high capacity road

construction equipments exempted frompayment of customs duty;

• Foreign Direct Investment up to 100 % allowed(with foreign equity up to Rs.1500 Cr.);

• Development of Build Operate and Transfer(BOT) on Government to Government basisagreed in principle;

• Model Concession Agreements have been

released for projects costing more than Rs.100Cr. as well as less than Rs.100 Cr. to be takenup under BOT scheme. A concessionagreement for BOT projects under AnnuityPayment Scheme has also been finalised etc.




• Amendment of National Highway Act for

expeditious land acquisition, proceduralchange for environmental clearance,enhanced delegation of power to Ministry forexpeditious clearance of the projects.

• As per Central Road Fund Act 2000, thedistribution of total of 100% cess on petrol and50% cess on diesel would be: 57.5% forNational Highways, 30% for State roads and12.5% for road over/under bridges and safetyworks on Rail-Road Crossing. The remaining50% of the cess on diesel is to be used todevelop rural roads.



Negative Grants



NORTH KARNATAKA EXPRESSWAY LIMITED

Case Example



Belgaum-Maharashtra Border Road Project(Km. 515.000 to Km. 592.240 of NH-4)

KM 515 + 000

KM 592 + 240

KE Y

PLAN





Major Components of this Project:

• 2 Lane rigid pavement (concrete) - 92 kms

• 2 Lane flexible pavement (asphalt) - 62 kms

• Major Bridges - 06 Nos.

• Minor Bridges - 12 Nos.

• Grade Separators - 07 Nos.

• Pedestrian Underpasses - 01 No.

• Vehicular Underpasses - 06 Nos.

• Cattle Walk, Cart Track - 11 Nos.

• Cattle Walk cum Train - 15 Nos.• Bus Lay-byes - 15 Nos.

• Traffic Safety Measures - Guard Rails on major openintersections and high embankments.

Belgaum-Maharashtra Border Road Project(Km. 515.000 to Km. 592.000 of NH4)

Documents

Nhdp Phases Unit-i Notes