The infrastructure finance update for the month of March 2023 covers mostly updates from the sectors of roads and highways, smart cities, ports and logistics. The government is making significant investments and working to construct roads and highways all across the country. The government is inaugurating and laying foundation for multiple development projects mainly focusing on roads and highways on a large scale every month.
The PM Gati Shakti initiative’s Network Planning Group (NPG) authorised six infrastructure projects related to renewable energy, roads, and railways. The NPG examined and recommended these initiatives during its 45th session, according to the Ministry of Commerce and Industry (MoCI). One project was authorised by the Ministry of New and Renewable Energy (MNRE), three projects by the Ministry of Railways, and two projects by the Ministry of Road Transport and Highways of India (MoRTH). These projects will be created using an integrated and holistic approach in accordance with the PM Gati Shakti Principles. According to the MoCI, these initiatives will improve multimodal connectivity, the movement of goods and passengers, and logistics efficiency across the nation. The three railway projects proposed by the Ministry of Railways include the construction of an elevated railway track between Kanpur Anwarganj and Mandhana, a rail bridge across the Ganga connecting Vikramshila and Katareah railway stations, and the doubling of the 178.28-km Ajmer-Chittaurgarh railway line.
Roads and Highways:
The World Bank and the Government of India have agreed to build the Green National Highway Corridors Project (GNHCP) in the states of Himachal Pradesh, Rajasthan, Uttar Pradesh, and Andhra Pradesh for a total length of 781 km with loan assistance of US $ 500 million against the total project cost of US $ 1288.24 million. (Rs. 7,662.47 crore). The goal of the GNHCP is to demonstrate a safe and green highway while taking climate resilience and the use of green technologies into consideration. To do this, it will incorporate provisions for natural resource conservation using cement treated sub base/reclaimed asphalt pavement, use of local/marginal material such as lime, fly ash, waste plastic, and bio-engineering measures for slope protection such as hydro seeding, coco/jute fiber, etc., which will improve the ability of the Ministry to bring Green technologies into the mainstream.
According to Ministry of Road Transport and Highways, all ports in Andhra Pradesh will be connected with four-lane highways at a cost of Rs 20,000 crore. According to government, these port connectivity enhancing roads will be built irrespective of a port being a minor, major port, private or state port. The passing of three industrial corridors, Visakhapatnam – Chennai, Chennai – Bengaluru, and Hyderabad – Bengaluru, through the State makes it a potential logistics hub. Apart from the main port in Vishakhapatnam, the state has 15 ports, including operational ones in Krishnapatnam, Gangavaram, Kakinada Deep Water, Kakinada Anchorage, and Rawa. Four more harbours are being built, three of which are government-owned. The state intends to add 100 MT of cargo handling capability to its ports, which currently have a capacity of 228 MT.
The road building projects in West Bengal and Telangana have received approval from the Union Minister of Road Transport and Highways. The action will increase tourists and connectivity in the area. A substantial budget of Rs 812.50 crore has been cleared by the ministry for the project in West Bengal to widen and strengthen the current alignment of National Highway (NH) 116B. This large-scale project is a component of the Annual Plan 2022–2023 and is anticipated to be carried out in the Engineering, procurement, and construction (EPC) method. The government has also given approval for the construction of a 4-Lane Access-Controlled Greenfield Highway Section on National Highway 163G in Telangana. (Khammam to Vijayawada). Under the Economic Corridor, a new route will connect the villages of Brahmanapalli (K) and V. Venkatayapalem. The 29.92 km length road (Package I) will cost Rs. 983.90 crore to construct. The Hybrid Annuity Model (HAM) will be used to build the new route.
The long-awaited Bengaluru-Mysuru Expressway was officially opened in Mandya by the prime minister. The project entails the 6-lining of NH-275’s Bengaluru-Nidaghatta-Mysuru stretch. A sum of about Rs 8,480 crores were spent on the 118 Km-long project’s construction. The new highway will reduce the current three-hour trip from Mysuru to Bengaluru to just 75 minutes. According to Ministry, region’s socioeconomic growth will be accelerated by the new highway. During his visit to Karnataka, PM also formally inaugurated and laid the foundations for a number of infrastructure projects totaling about Rs 16,000 crores. The world’s longest train platform, Shree Siddharoodha Swamiji Hubballi Station, will be dedicated to the country by the prime minister. The development of the 1,507 m-long structure cost Rs 20.1 crores. Two trains will also be flagged off by him from the terminal.
With the G20 Summit scheduled for September, the Delhi government revealed a budget that significantly supported investments in public transportation and road infrastructure, reversing the Aam Aadmi Party’s prior emphasis on providing basic amenities for citizens. Seven of the budget’s nine major announcements—which have both short- and long-term timelines—come from these industries. Projects include the construction of more than 20 flyovers, including double-decker ones to be built in coordination with the Delhi Metro Rail Corporation; the introduction of 1,600 new zero-emission electric buses; and the upgrading and beautification of 1,400 km of the road network under the control of the Delhi government’s Public Works Department as well as the footpaths adjacent to them. Capital expenditures totaling more than Rs 21,000 crore are included in the Rs 78,800 crore allocation. With a projected cost of Rs 19,466 crore over a ten-year period, the Delhi road improvement and beautification plan. The initiative was requested to receive Rs 2,034 crore from the government for the upcoming fiscal year. With a budget of Rs 772 crore, 26 new flyover, underpass, and bridge developments are planned for the upcoming fiscal year. Ten of these projects are currently being worked on, five are currently undergoing the tendering procedure, and eleven have been submitted for design approval. Together with the DMRC, the Delhi government is also building three double-decker flyovers for a total of Rs 320 crore. Metro trains will run on the top deck and vehicles on the lower deck of the flyovers connecting Bhajanpura to Yamuna Vihar, Azadpur to Rani Jhansi intersections, and Saket to Pul Prahladpur. The entire amount allotted for all the road and bridge projects is Rs 3,126 crore.
Logistics:
The current administration at the Center has placed a strong emphasis on the creation of Multi Modal Logistics Parks in an effort to strengthen and diversify the logistic system, which could increase efficiency and facilitate the smooth movement of products and services throughout the nation. By 2025, Indore, the state’s centre and a major infrastructure boost for the industrial zone in Madhya Pradesh, will have a Multi-Modal Logistics Park (MMLP). The MMLP project has been given to G R Infraprojects Limited and will be developed in three stages. Phase-I is expected to be finished in two years, or by 2025, and will then begin commercial operations. The MMLP will be built on 255.17 acres in the Dhar district of Madhya Pradesh, close to Pithampur, which is situated around 30 kms from both the airport and the metropolis of Indore. The MMLP initiative is expected to cost Rs 1,110.58 crore in total. The project is being proposed to be developed in the PPP-DBFOT mode, which is a concession agreement for the development of the project on a Design, Build, Finance, Operate, and Transfer basis. Under this arrangement, the developer will be appointed with a 45-year concession period for developing and operating the MMLP at an estimated cost of Rs 758.10 crore.
The Tamil Nadu government will support projects with more than Rs 500 crore with personalized incentives in an effort to promote the logistics sector in a significant manner. The government will work with financial institutions like the National Investment & Infrastructure Fund (NIIF), Tamil Nadu Infrastructure Fund (TNIF), or any other suitable sources for leveraging funds to attract and allow financing for large-scale logistics infrastructure development. In order to promote city logistics, the government will encourage the phase-wise creation of a logistics master plan for the state’s main cities and metropolitan areas. It will select and reserve land parcels, each at least 50 acres in size, in key state sites for the construction of private freight terminals (PFT), warehousing clusters, and multi-modal logistics parks.
Out of the 70 projects totaling Rs 2,856 crore that were approved under the Sagarmala Programme for the construction of coastal berths, roll-on, roll-off, passenger jetties, etc., 15 projects totaling Rs 849 crore have already been finished. To make it easier for cargo to transition from traditional land-based transportation to coastal shipping, numerous efforts and projects have been launched. Major ports give coastal cargo vessels a 40% discount on costs connected to vessels and cargo. The minister claims that in order to move cargo more quickly, initiatives have been identified for improving the first and last miles of rail and road connectivity with all main and minor ports.
Smart Cities:
The government has established Integrated Command and Control Centers (ICCCs) in 100 smart cities to improve monitoring and coordination. These Centers will serve as the enabling communities’ nerve centres and brains. These smart cities will also include a decision support system to improve the quality of living for their residents. ICCCs have also assisted communities in accomplishing more with less by utilising centralised monitoring, real-time data, and informed decision-making. This is propelling communities towards innovation, inclusion, and efficiency. Thirty of the 100 ICCCs are working on traffic management and transportation problems such as Integrated Traffic Management System (ITMS), Red Light Violation Detection (RLVD), Adaptive Traffic Control System (ATCS), Automatic Number Plate Recognition System (AnPR), and others. Kanpur, Ludhiana, Ahmedabad, Surat, Chandigarh, Nashik, Saharanpur, Visakhapatnam, Ujjain, and other cities have implemented traffic management systems.
Projects listed under the government’s flagship urban development program, “Smart City Mission,” will be finished in 22 cities by April 2023. Aiming to advance inclusive and sustainable urban growth in India, the government’s Smart Cities Mission includes these 22 Smart Cities. With an emphasis on technology and innovation, 100 cities from across the nation were chosen as part of this mission to be transformed into Smart Cities. The initiatives in 22 Smart Cities, including Bhopal, Indore, Agra, Varanasi, Bhubaneswar, Chennai, Coimbatore, Erode, Ranchi, Salem, Surat, Udaipur, Visakhapatnam, Ahmedabad, Kakinada, Pune, Vellore, Pimpri-Chinchwad, Madurai, Amaravati, Tiruchirappalli, and Thanjavur, will all be finished by April.
The six-lane Urban Extension Road (UER) II will have 27 flyovers, 26 smaller bridges, and 17 public subways, according to the Ministry of Road Transport and Highways. It will be Delhi’s third Ring Road. The 75-kilometer-long road, which will connect NH-1 to Dwarka and Bahadurgarh and create a Ring Road along the western range, will cost more than Rs 8,000 crore. After leaving the NH-1 interchange, it will journey through Kanjhawala, Nangloi, Najafgarh, Dwarka Sector 24, Bawana, and Sonipat. A portion of the road will also connect the Bahadurgarh bypass and Dhichaon Kalan to the national route. The undertaking entails the construction of UER-II in five distinct packages at a cost of Rs 7,716 crore.
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