Budget 2005: Infrastructure gets a boost

The union budget, presented to the parliament recently by the finance minister, includes a host of provisions which are expected to give a boost to the infrastructure sector. Some of these provisions are highlighted below.

The increase in allocations for NHDP from Rs 65.14 billion in 2004-2005 to Rs 93.20 billion in 2005-2006 will result in greater availability of funds. To take care of this additional allocation, the cess on both petrol and diesel has been increased by 50 paise per litre and the resources raised will be earmarked exclusively for national highways. The government's focus on NHDP Phase III will result in speedy implementation of the project. The centre has allocated Rs 14 billion in 2005-2006 to four-lane 4000 km of roads. The special two-phase Accelerated Road Development Programme in North-East for 6396 km of roads would develop the entire region.

The National Urban Renewal Mission has been established, which will cover mega cities and all cities with a population of over a million. An outlay of Rs 55 billion has been allocated under this mission, which includes projects such as the Mumbai western expressway sealink, Bangalore metro rail, etc.

A corpus of Rs 80 billion has been provided for the Rural Infrastructure Development Fund. Indira Awas Yojana which covers rural housing has been allocated Rs 27.50 billion in 2005-2006. About 15 lakh houses will be constructed during the next year.

A financial special purpose vehicle (SPV) would be established to finance infrastructure projects that are financially viable, SPV would lend funds to eligible projects - a limit of Rs 100 billion would be fixed for 2005-2006.

- Compiled from various sources

The Cabinet Committee on Economic Affairs (CCEA) has provided in-principle clearance for allowing 100 percent foreign direct investment (FDI) under the automatic route in the construction sector. The government will soon unveil the detailed guidelines which are aimed at curbing speculative deals in the reality market.

Commerce and industry minister, Mr Kamal Nath said the move will allow FDI up to 100 percent in townships, housing, built-up infrastructure and construction-development projects.

The permission opens up foreign investment in various sub-segments such as housing, commercial premises, resorts, hospitals, educational institutions, recreational facilities and infrastructure related to cities and regions. It will catalyse investments in this vital sector of the economy, Mr Nath said.

- The Economic Times

The government is set to announce two parallel programmes to give cities and large towns a face-lift - a national urban renewal mission for select 60 cities and a unified infrastructure development scheme for all other cities.

The national urban renewal mission will be a fast-track programme under which redevelopment of a city will have to be completed in five years. Both programmes will have similar elements: they will aim at improving the urban infrastructure and redevelopment of slums. The financing model for these requires states and urban local bodies to share part of the cost redevelopment.

It is estimated that the national urban renewal mission will be provided about Rs 43 billion in the financial year 2006, while unified infrastructure development scheme will be allocated Rs 12 billion. The urban development ministry could see its outlay increased from Rs 18.2 billion in the current year to Rs 5.5 billion, while urban employment would see its allocation increased to Rs 25 billion from Rs 8.4 billion. A significant chunk of the allocation to the urban development ministry would go into financing expansion of the Delhi Metro.

-- The Economic Times

The Dubai-based Emaar Properties has drawn up plans to invest US $ 500 million in the development of integrated township projects in the country. The company, in which the government of Dubai has a 33.8 percent stake is setting up a 60:40 joint venture with the Delhi-based MGF Group which will invest US $ 333 million in the US $ 833-million project.

Emaar plans to make all its future real estate investments in India through the joint venture with the MGF Group which has built, and manages shopping malls like Metropolitan and Plaza around Delhi.

Emaar already has a joint venture with the Andhra Pradesh government called Andhra Pradesh Industrial Infrastructure Corporation

- Business Standard

Bangalore's metro rail project gets central fund

The ambitious metro rail project in Bangalore may finally take off, with the finance minister announcing a monetary package for it in the budget.

Managing director, Bangalore Mass Rapid Transit Ltd (BMRTL) said that initially the union government was supposed to fund about Rs 1000 million for the year 2005-2006 for this project. "Now they have said that they can increase the amount. So a new proposal for Rs 2000 million for this project in this year has been made", he said.

This long pending project is expected to get the clearance from centre by mid-March and the construction is expected to start from first week of May.

The estimated cost of the project has escalated by a whopping Rs 6000 million in the last 18 months. According to the sources, the estimated cost has gone up to Rs 56 billion against the earlier estimation of around Rs 50 billion. BMRTL will get around Rs 35 billion from the 46 financial institutions and the rest will be provided by the state government and central government over eight-year period.

Bangalore metro rail plan is to take up 23.63 km of elevated track and 6.7 km of underground track under the first phase of the project. It will also have 32 connecting terminals across the city and the trains would ply along two corridors from North-South and East-West. The project is proposed to be completed in five years and it would cater to over 820,000 commuters every day after its completion in 2009-2011.

- Financial Express

Bioshields are best to avert disasters

In a report given recently to environment minister Mr A. Raja, a 12-member expert committee chaired by scientist, M.S. Swaminathan, has recommended a three-tier structure to strengthen the institutional capacity to manage these areas. The head of this structure will be a 21-member National Board for Sustainable Coastal Zone Management, patterned on the wildlife board and chaired by the environment minister. It will consist NGOs, media representatives, bureaucrats and experts.

Post-tsunami, the Swaminathan Committee has suggested that the existing bio-shields be protected and intensive plantation undertaken along the coast. It has suggested a redefinition of categories to manage activity along the coasts, which play host to municipalities and panchayats, special economic zones, heritage sites, defence installations and power plants. Loosely put, the four existing categories sought to regulate development within 200 m to 500 m of the high-tide line, depending on the sensitivity of the area.

As per the Swaminathan plan, Zone I will consist of ecologically sensitive areas such as mangroves, coral reefs, sand dunes, inland tide/water bodies such as estuaries, lakes, lagoons, creeks and straits, mudflats, marine parks and sanctuaries, coastal forests and wildlife, coastal freshwater lakes, salt marshes, turtle nesting grounds, horse shoe crab habitats, seagrass beds, seaweed beds, nesting grounds of migratory birds.

Zone II will have areas of particular concern - which are economically important, densely populated and culturally/strategically important. The administrative boundaries of these areas will be the boundaries of coastal management zone II.

Zone III will comprise all other open areas, including the coastal seas, but exclude those in the three other categories.

Zone IV will consist of the Andaman and Nicobar Islands and Lakshadweep .

- The Times of India

Disaster management authority gets nod

The union cabinet approved a proposal for setting up of national disaster management authority to be headed by prime minister, Mr Manmohan Singh and building up of specialised capabilities for rapid intervention in case of calamities.

The authority will enable specialised response to all types of disasters in a minimum response time thus reducing the impact of calamities and casualties, the spokesperson said. A bill to give parliamentary approval to the authority was referred to a group of ministers by the union cabinet.

"Pending passage of the Disaster Management Bill 2005, NDMA and its associated committees, including the executive committee of secretaries and the advisory committee of experts would be set up through an executive order", the spokesperson said.

- Financial Express

Power generation

The West Bengal State Electricity Board (WBSEB) is setting up the 3 ´ 200 kW Naxal small hydel power plant near Jaldhaka hydel project in Darjeeling district. Bids are invited from contractors for design and engineering, testing at Pelton turbine, AC sychronous generator and auxiliaries and associated electrical and electro-mechanical system including erection and commissioning in 27 months.

Uttranchal Jal Vidyut Nigam is to set up 1 MW hydel plant christened Dunav Jal Vidyut Pariyojana at Bironkhal block in Pauri Garhwal district. The run-of-the-river scheme is to be located on the tributary of river Ganga. As of February 2005, pre-qualifying of contractors were underway. UJVNL is yet to finalise the completion schedule.

- New Projects

UK cement industry achieves climate change target

The British Cement Association (BCA) has announced that all four UK cement manufacturers and the sector as a whole have achieved their targets under the "Climate Change Levy Agreements" for 2004. Three years after the start of the Climate Change Agreements, the sector has achieved an improvement in specific energy consumption of 21.2 percent relative to the base year position. The cement industry is well on track to hit its umbrella agreement target of a 26.8 percent reduction by 2010.

The four UK cement manufacturers, Buxton Lime Industries, Castle Cement, Lafarge Cement UK and Rugby Cement produce more than 90 percent of UK cement and have underlying Climate Change Agreements that underpin a challenging 2010 sector energy efficiency target of 1234 kWh/tonne of cement relative to a 1990 baseline. The four member companies will each receive a discount of 80 percent on the full Climate Change Levy for meeting their targets by improving energy efficiency and thereby reducing carbon emissions.

- BCA press release

Updated ACI publication

The American Concrete Institute announced the availability of Structural Concrete Theory and Design, 3rd Edition - a new book authored by M. Nadim Hassoun and Akthem Al-Manaseer and published by Wiley.

This book presents the analysis and design of both reinforced and prestressed concrete elements as well as the practical aspects of the modern design of concrete structures. Structural Concrete Theory and Design bolsters students' and professionals' understanding by presenting design methods in an easy-to-understand manner supported with the use of numerous examples and problems. Updated to reflect the new ACI 318-05/318R-05 Building Code Requirements for structural concrete, this third edition features:

• A completely new chapter on seismic design that incorporates the latest from the International Building Code (IBC 2003).
  
• A new section presenting innovative models for predicting shrinkage and creep of concrete.
  
• Three chapters which have been completely rewritten, while others have been revised to incorporate updates to ACI 318-05
  
• SI unit examples, conversion factors from customary US to SI and SI units design tables

- ACI press release