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Thursday, February 11, 2016

Government Clears Key Infrastructure Projects in UP, Haryana, Maha and Telangana

While all eyes on the expected budgetary sops for the struggling infrastructure and real estate sectors, there has been some positive news emanating from different parts of the country during the last couple of months, which can rejuvenate the construction industry as a whole from its current precarious state.

Navi Mumbai International Airport


The Ministry of Civil Aviation has recently cleared the proposal to build the much-delayed Rs 15,000-crore Navi Mumbai International airport. The government has given an in-principle go-ahead for financial bids or Request For Proposals (RPFs), which will be soon shared with the four bidders shortlisted for the project, according to official sources. The four bidders are GMR Group, GVK-led MIAL, Hiranandani Developers along with Zurich Airport and Mia Infrastructure with Tata Realty and Infrastructure.

The airport is expected to commence operations from October 2019, while the developer and operator will be required to pay an annual concession fee prior to that. The fee would range from Rs 5 crore in the first year to Rs 1,250 crore from the 40th year of operation.

The government is expected to earn Rs 17,000 crore during the sixty-year period, the net present value of which is likely to be nearly RS 2,045 crore. It is also clarified that the airport project will be awarded only for 30 years (and not 60 years), with extension periods of 10 and 20 years, while the ten-year extension period beyond the 30th year would be on the basis of the operational performance of the airport operator.

The winner of the Navi Mumbai Airport project will also get a Rs 3,000-crore interest-free loan from City and Industrial Development Corporation (CIDCO), to be repaid over a period of 10 years.

Sewri–Nhava Sheva Mumbai Trans Harbour Link gets the Centre’s nod


After being stalled for several months due to the lack of environmental clearances, the Sewri–Nhava Sheva Mumbai Trans Harbour Link received an in-principle approval from the Ministry of Environment and Forests (MoEF). To receive the final clearance, the Mumbai Metropolitan Region Development Authority (MMRDA) is required to prepare a fresh application for tribal rehabilitation in the forest area. The project is worth Rs 12,000 crore and the tendering process is expected to commence soon, while MMRDA is working out a formal loan agreement with the Japan International Cooperation Agency(JICA) for funding the project.

Deadline set for the Coastal Freeway

The Maharashtra government has set 2019 as the deadline for the completion of the Coastal Freeway from Nariman Point to Kandivali. The Central Government has released a notification amending the Coastal Regulation Zone norms, permitting the reclamation of land for the coastal road.

Telangana gets RS 41,000-cr road, highway projects


The Central Government has announced road projects worth RS 41,000 crore for Telangana; these include two express highways from Hyderabad to Bengaluru and Vijayawada. The government has also offered to provide further assistance in case a new national highway is proposed for the state.

NCRPB to assist nine transport infrastructure projects in Uttar Pradesh and Haryana

The National Capital Region Planning  Board (NCRPB) has announced support for seven transport infrastructure projects in Uttar Pradesh (UP) and  two in Haryana together costing Rs 7838 crore, which would help considerably in resolving traffic and pollution issues.  The NCRPB would extend a loan assistance of Rs 3,113 crore for these projects.


The UP projects include the construction of a 10.30-km, six-lane elevated road in Ghaziabad, expected to be completed by the end of 2016. This road would extend from UP Gate to Raj Nagar Extension, connecting NH-24 with NH-58, while also serving as a bypass on the Kosambi–Mohan Nagar–Vaishali section.

On completion, the travel time between UP Gate and Hindon bridge is likely to reduce to around 15 minutes from the current 50 minutes.

The UP projects also include the 29.70-km Noida–Greater Noida Metro Project, which is awaiting final approval from the Central Government.

Among the projects proposed in Haryana is the development of the 52.33-km Manesar–Palwal Expressway, connecting NH-8 with NH-2, which is expected to be completed in 12 months. The improvement of the 38.41-km Gurgaon–Pataudi–Rewari road on SH-26 and the development of a 5.80-km elevated road on NH-10 from Chhotu Ram Chowk to Old Bus Stand in Rohtak are the other upcoming projects in Haryana.

Maharashtra defers revision of ready reckoner tax rate to April 1


The Maharashtra government has decided to defer revising the ready reckoner rates to April 1 instead of January 1. This decision is aimed at aligning any changes in the rates with the government’s tax revenue targets for the financial year. Thus, homebuyers can avail themselves of the existing rates for three more months.

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