India

Roadmap announced for key transport sectors


Published

The Prime Minister’s Office has announced a roadmap for shipping, civil aviation and railways which will set targets for the setting of major infrastructure projects. The official announcement as published on the Prime Minister’s Office website is as follows:

“Shipping

Work has begun on the two new major ports in Andhra Pradesh and West Bengal. A technical committee has visited three sites to identify a suitable location for the major port in Andhra Pradesh and has submitted its report. Ministry of Shipping will finalize the site in Andhra Pradesh for the major port by 31st August, 2012. A note will be brought before the Cabinet by 30th September, 2012 seeking ‘in-principle’ approval for the major port project in Andhra Pradesh. The State Support Agreement for the major port at Sagar will be finalized and executed by 1st August, 2012 and the matter will be brought before the Cabinet for consideration and approval by 30th September, 2012. An SPV would be formed to implement both the projects in West Bengal and Andhra Pradesh with 26% equity from the respective State Governments and 74% from Government of India. The SPV will then bid out the project on a PPP basis. The Ministry of Shipping will constitute a Project Steering Group with Secretary, Shipping as Chairman and the Secretaries of Economic Affairs and Planning or their representatives as members to periodically oversee the progress on establishment of both the ports including finalizing the structure of the SPV, monitoring the bidding process, preparation of documents and award of concessions.

Civil Aviation

For the airport at Navi Mumbai, CIDCO is the nodal agency for the airport. CIDCO has prepared the transaction documents. For the Navi Mumbai airport, the Ministry of Civil Aviation will discuss the matter with Govt. of Maharashtra and obtain their concurrence to the process to be adopted to manage the PPP award process after the documents are cleared by Govt. of India. This will be completed by 15 August 2012. The Ministry will subsequently move a note to CCI on the process to be followed including approval of concession agreements, etc. by Govt. of India. The airport project will be awarded by March 2013. As regards the airport at Mopa, Goa, a Steering Committee under the Chief Minister already stands constituted. Consultants have also been appointed and the process of land acquisition is going on at full pace. The work is scheduled to be awarded by March, 2013. Similarly, at Kannur, Kerala, the State Government has set up an agency i.e. M/s Kannur International Airport Ltd. for implementing the project. The Ministry of Civil Aviation will propose a Standing IMG for all new PPP airports which will address all regulatory, traffic and pricing issues relating to these airports; harmonise the greenfield airport policy with regard to matters of concern to both the Central and State Governments; and suggest ways for fast tracking PPP airports under the Greenfield Policy.

Railways

The Elevated Rail Corridor in Mumbai is the railway project which is the most advanced stage. The technical feasibility study has already been conducted. A Draft State Support Agreement has been agreed to between the Government of Maharashtra and the Ministry. The project will be implemented in PPP mode. The concessionaire shall be finalized by 15th March, 2013. The revenue stream to make the project viable is the development of real estate for which the consultations with Government of Maharashtra are going on. The necessary documentation for the Project is under preparation/finalization. The Ministry of Railways will constitute a Project Steering Group with the Chairman Railway Board as Chairman, and Secretary (DEA), Secretary (Planning), Chief Secretary of the Government of Maharashtra (or his representative), Member(Engineering) and GM, Western Railways as members to monitor the implementation of the project including finalizing the documentation, overseeing the bidding process, and awarding the contract in timely manner.

The High Speed Rail Corridor Project between Mumbai and Ahmedabad and other routes is technologically the most advanced railway project. Pre-feasibility study has been conducted by M/s RITES in association with other expert consultants. There are various alternative options for implementing the project. Of all the options, only the SPV or the PPP options seem to be viable. The Ministry of Railways will constitute a Project Steering Group with the Chairman Railway Board as Chairman, and Secretary (DEA), Secretary (Planning), Member (Mechanical), Member (Engineering) and Member (Electrical) as members. The Terms of Reference of the Project Steering Group will inter-alia include (a) examining the options available for implementing this project and finalizing feasible options; (b) suggesting ways of strengthening the capacity of railways to design and execute high speed train projects; and (c) suggesting mechanisms for quickly moving forward on chosen options. The Project Steering Group may obtain expertise on high speed train projects through RITES. The Project Steering Group will meet each fortnight.

For Station Redevelopment, a new body that is Indian Railway Station Development Corporation (IRSDC) is to be constituted to implement the redevelopment of stations. Five stations have already been shortlisted for redevelopment. The Model Concession Agreement (MCA) document prepared by Planning Commission will be used as a base document. “

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