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Showing posts with label L&T. Show all posts
Showing posts with label L&T. Show all posts

Friday, 18 March 2016

20:44

Larsen & Toubro’s delayed Rs 16,000 crore metro rail project in Hyderabad

 Larsen & Toubro’s delayed Rs 16,000 crore metro rail project in Hyderabad
Rating Agencies says L&T Hyderabad Metro project prone to Risks
Hyderabad: Larsen & Toubro’s delayed Rs 16,000 crore metro rail project in Hyderabad is prone to significant risk in terms of the time it will take to complete as well as revenues it will earn thereafter, rating agencies have said.

The project has suffered substantial delays owing to various constraints including Telangana government’s advocated route chang es. Underscoring the apprehensions repeatedly expressed by L&T Metro Rail on the project’s economic viability, India Ratings said said it was sceptical about the actual usage of the metro rail in terms of ridership.

India Ratings, which recently assigned AA (SO) rating for Rs 1,000 crore of debt instruments that indicate high degree of safety on timely servicing of financial obligation thanks to unconditional and irrevocable undertaking from L&T, has highlighted many risks.

It said the project’s physical progress was only 49.6% at the end of June 2015 compared to the planned progress of 73.5%.

ICRA, another rating agency that assigned AA rating for Rs 1,250 crore of non-fund facilities, said, “With the project execution delayed due to alignment disputes with government of Telangana, the project COD (commercial operation date) is expected to be delayed by six to 12 months from the targeted date of June 2017.”

It further said, “Speedy execution without any further delays cost overruns as well as targeted ramp up of fare and non-fare revenues post COD would be critical for the credit profile of the SPV and IDPL (L&T Infrastructure Development Projects Limited).”

India Ratings said “despite a detailed analysis of various factors likely to impinge on patronage, cash flows remain vulnerable to forecasting limitations”. It said, “Although the project has a strong economic rationale, the actual usage of the metro rail in terms of ridership and growth will become clear only after the project becomes operational.”

A senior L&T Metro Rail finance official, who did not wish to be named, said highlighting the risks associated with the project was routine for the rating agencies.”We could secure better rating for the bonds since they were guaranteed by our promoters.

A senior official from Hyderabad Metro Rail Corporation, who did not wish to be named, said that in case of Bangalore Metro, none of its Metro Rail routes touches the IT Corridors of Bangalore.  Bangalore enjoys strong global IT power with majority of the residents employed in IT Sectors as well, whereas none of the IT Corridors have Metro Rail.  In case of Hyderabad, it is different, as majority of the routes on the Nagole-Hitec City, LB Nagar-Miyapur etc covers the most commercially viable routes where the traffic is more covering all the Eduacational, Banking, Government, IT and Manufacturing hubs.
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Friday, 18 December 2015

08:29

Varanasi Metro DPR to be submitted with UP Govt by year-end

Varanasi Metro DPR to be submitted with UP Govt by year-end

Varanasi: The detailed project report (DPR) of the Varanasi metro is to be submitted with the Uttar Pradesh government by December 2015 end, said Lucknow Metro Rail Corporation (LMRC). LMRC officials made a presentation on the draft DPR of Varanasi Metro to the Metroman, E. Sreedharan who is also the principal advisor to LMRC.

Sreedharan visited the city on Wednesday to review various undergoing civil works of Lucknow metro project and was satisfied with the progress of the project. He took a review of the physical progress of the project along with the operation and maintenance (O&M) preparedness of the organisation.

The project director of Larsen and Toubro (L&T) – the contractor of the first 8.5 km metro stretch to be completed by December 2016- gave a presentation to Sreedharan and other LMRC officials about the on-going civil construction activities being undertaken on the 8.5 km priority metro corridor from Transport Nagar to Charbagh. Sreedharan stressed the need for completing the civil works in deadline set by the government.

He instructed the system contractor to take up their work further and desired the civil contractors to take measures accordingly. He also gave inputs for speedy preparation of Varanasi metro DPR to the LMRC. The DPR is being prepared by RITES in coordination with LMRC. The regional development authority will be the nodal agency for executing the project.

Likewise, metro projects in other districts of UP are also proposed and work regarding their DPR preparation is in the pipeline. Apart from Lucknow, metro is set to run in Kanpur, Agra and Meerut along with Varanasi.
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Wednesday, 14 October 2015

16:07

Chennai Metro Rail uses Wireless Tech for perfect track alignment

Chennai Metro Rail uses Wireless Tech for perfect track alignment

Chennai: In an attempt to achieve perfect alignment of tracks, metro rail has adopted wireless technology from a US-based company that set alignment for bullet train tracks in China. Working in association with Larsen and Toubro, a small team from Trimble, which has an R&D Unit in Chennai, uses equipment that can scan alignment of tracks after they are laid and upload information wirelessly on to the system. It saves time, cost and eliminates human error.

Conventionally, staff on a trolley pushed along the tracks check for alignment. Chennai Metro Rail Ltd (CMRL) contractors have brought in the latest technology as the tracks are on elevated lines and in tunnels. A senior official rail said the technology was selected based on the requirement given. “We specified high level of accuracy to ensure safety of trains.”

Trimble Managing Director (SAARC Region) Rajan Aiyer said the biggest concern was safety. “Even the smallest misalignment can have disastrous effects. There are different methods available but the one we use is unique and easy to use. It is compact and wireless and can perform a complete geometrical survey of the line axis, track adjustment, documentation and approval.” The technology was also used to check alignment for tracks used for high speed trains where a slight change in alignment could have huge consequences, he added. It was used for track alignment at Bengaluru and Hyderabad Metro Rail systems.
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Wednesday, 7 October 2015

07:47

L&T, HCC among L1 Bidders for seven Mumbai Metro Rail blocks

L&T, HCC among L1 Bidders for seven Mumbai Metro Rail blocks

Mumbai: Mumbai Metro Rail Corporation (MMRC) has received 31 bids from nine consortium to develop seven sections of the Colaba-Bandra-Seepz corridor.

Seven consortiums have emerged as L1 bidders. Engineering and infrastructure major Larsen & Toubro (in partnership with Shanghai Tunnel Engineering Co) emerged the lowest bidder for two sections (Cuffe Parade to Flora Fountain and Marol to Seepz) of the 33.5-km corridor. Bidders for the other sections include consortiums led by HCC (CST to Mumbai Central section), J Kumar (Dharavi to the domestic airport and the domestic airport to the international one), ITD Cementation (Siddhivinayak to Mahim) and Soma (Mumbai Central to Mahim section).

The third phase of the Mumbai metro project, estimated to cost Rs 23,136 crore, will be developed on a cash-contract basis, not under the build-operate-transfer model used for the 11.4-km Versova-Andheri-Ghatkopar corridor.

MMRC declined to confirm the names of the lowest bidders. “The process is still on. It will take time. MMRC will share the information in this regard at an appropriate time,” Managing Director Ashwini Bhide told.

Japan International Cooperation Agency (JICA) has already announced it will provide a loan at low interest for the Colaba-Bandra-Seepz corridor.

This was reiterated by JICA during Maharashtra Chief Minister Devendra Fadnavis’s recent visit to Japan. After a meeting with JICA officials in September, Fadnavis had tweeted JICA would soon start public consultations on the Mumbai metro project.

The Centre has signed a loan agreement with JICA, which will provide 57 per cent of the total overall project cost, or Rs 13,235 crore. The Centre and the state government will contribute equal amounts.

A sum of Rs 777 crore will be borne by Mumbai International Airport.

The Colaba-Bandra-Seepz metro corridor will have 27 stations. Of these, 26 will be underground (the one at Aarey Colony, Goregaon, will be an exceptions).

The corridor, expected to be completed by FY20, will carry 1.39 million commuters daily by 2021 and 1.7 million a day by 2031.

Of the 31 consortiums, the following have emerged lowest bidders for seven blocks of Colaba-Bandra-SEEPZ Metro Corridor

L&T-Shanghai Tunnel Engineering Co
OSJC Moscow Metrostroy-HCC
DOGUS-Soma
Continental Engineering Corporation-ITD
J Kumar Infraprojects-China Railway No 3 Engineering Group
The project to be developed in 7 parts which comprise 4-5 kms long twin tunnel
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Sunday, 23 August 2015

10:41

Cost over-runs could make Hyderabad Metro unviable, while Fare Hike has its Limitations

Cost over-runs could make Hyderabad Metro unviable, while Fare Hike has its Limitations

Hyderabad: Challenges posed by an urban environment are no excuse for getting stuck during project execution — this seems to have been the guiding principle for L&T Metro Rail Hyderabad Limited (LTMRHL), which has in three years never faced a work stoppage on the 72-km three-corridor metro rail project in spite of recurring problems on the ground as well as at the government level.

Cost overruns could make the entire project unviable while increase in fares to make up the difference has its limitations as was evident by public protest against a Rs 100 fare for a one-way ride on the Mumbai metro. “We did not stop work. That was the basic direction of our execution strategy. We opened multiple fronts and if we had come across a roadblock at one place we resumed work on other front,” LTMRHL chief executive V B Gadgil told.

The state government had set July 2017 as the dead-line for completion of the Rs 14,700 crore project in five years. The appointed date was fixed as July 5, 2012 after taking into account the initial hiccups. The concession period is for 35 years with an entitlement to extend it for further 25 years.

Now this dead-line is an impossible task for the company as it would take at least 30 months to build the three 2-level interchange stations that link the three metro corridors at Ameerpet, MG Bus Station and the Parade Grounds, in addition to other issues ” It is in our interest to complete the project early as we are the concessionaire of the project, but this is something which is not entirely in our hands” he said.

The company had spent more than Rs 7,000 crore while accomplishing about 55 per cent of the work on all the three corridors by following the ‘no stopping of work’ strategy. Delays are manageable as long as the work is progressing. The second important strategy that worked well for the project was the adoption of precasting mode to the maximum possible extent. In fact, the overhead metro stations are being completely built with precast structures.

Next year the citizens of Hyderabad are likely to start riding Metro Rails in a limited distance. The company hopes to begin commercial operations on a 10 km stretch between Miyapur and Ameerpet of the most viable corridor and as well as the least viable 7 km long Nagole-Mettuguda stretch by March-April, 2016.

These two stretches were chosen together as opposed to the original idea of operationalising the Nagole-Mettuguda stretch in 2015 itself, only for the sake of operational viability from the start, according to the metro rail company chief executive.

For instance, the rider ship on Chennai Metro was yet to achieve critical mass and a similar situation would end up in serving the tourist interest by Hyderabad Metro. Which means the company has to bear higher operational costs compared to passenger revenues.

Coinciding with this initial phase, the L&T Metro is planning to complete around 1.3 million sft of transit oriented commercial space, including malls, at Erramanjil, Hitech City and Ameerpet.

While it took 11 years for completion of the first 7 kms of Mumbai Metro and 5 years for Delhi Metro, it was no mean achievement if the Hyderabad Metro developers will be able to operationalise close to 20 kms in over 3 years against all odds, the government officials say.

The Metro Rail execution was a difficult task as two projects-construction of metro rail and road expansion in metro rail routes as it is being built in the middle of the existing road- were happening simultaneously. Shifting the utilities including sewer and water pipelines, demolition of structures coming in way of the project were some of the other big problems the company faced on an ongoing basis.

Three rail over bridges (ROBs) near Secunderabad railway station, three alignment changes proposed by the Telangana government, the right of way and other issues that still exist in at least 10 km stretch are the other major issues still to be sorted out. The work got stuck at the Assembly complex, Sultan Bazar and on the entire stretch of MG Bustation-Falaknuma due to the alignment changes proposed by the government. This would involve another 10 kms of distance.

” We had given reports to the government explaining the pros and cons including the consequences pertaining to the changes three months ago. The authorities are yet to tell us what we should do,” Gadgil said. Hyderabad Metrorail Limited, the state government’s nodal agency, recently said the government is willing consider bearing the additional costs arising out of these changes.

On the whole things have changed considerably over the past three months with the chief secretary reviewing the problems on ground every Tuesday resulting in better coordination and cooperation from the government agencies, according to Gadgil.

There is a larger contentious issue that requires to be resolved at some point between the two parties of this PPP project was the claim of the cost escalation to the extent of around Rs 3,000 crore due to delays in facilitation by the government agencies. ” It is in that range and an independent assessment of the same has to be made to arrive at an ultimate figure,” he said.

The company has asked the government to take responsibility for the cost escalation while the government was yet to respond as it has to first constitute a committee to look into these claims.

“The criticality at this point of time is to get the matters of alignment and other field level issues sorted out to quickly start work on the remaining stretches. Other issues come later ,” says L&T MRHL chief.

Except for the cost overruns, the project is perfectly viable and even the fares will be lower compared to all other metros as the concessionaire here is dealing with a much larger size of a metro unlike in other cities, according to him.
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Thursday, 9 July 2015

07:31

Hyderabad Metro Rail works Progressing Fast: NVS Reddy, Managing Director

Hyderabad Metro Rail works Progressing Fast: NVS Reddy, Managing Director

Hyderabad: Approximately 1,800 square meters of the Country Club of India and a Wakf Board property at Greenlands has been acquired by the Hyderabad Metro Rail to fill the gap which existed on this stretch.

Apprising the chief secretary Rajiv Sharma of the latest development, HMR MD N.V.S.Reddy clarified that all the bottlenecks and gaps will be cleared. Mr Reddy explained, “We have acquired the open land near the Country Club of India building. The land deals have been closed and will be handed over to L&T for construction works soon.”

Similarly, negotiations are also going on for the other gaps like Padma Hansa Apartments after ISKON temple at Secunderabad, front portions of residential homes and open areas outside homes on Road No. 5 Banjara Hills, 30 housing properties across Madhuranagar and Krishna Nagar in the Yusufguda stretch and furniture shops at Nampally. He assured the chief secretary that works were on in full swing.

Mr Sharma insisted that targets for completing utility shifting like sewage, water and electrical works must be carried out on time. He cautioned HMR not to delay works and also ensure that works of restoration of roads are carried out on a priority basis so that the users are not inconvenienced.

As part of rapid progress in Metro Rail realignments on the metro rail corridor-I (Miyapur-LB Nagar), it is expected that decades-old lake, a nursery and lawns on the Public Gardens premises may vanish. Also, hundreds of morning walkers may face inconvenience once the metro rail construction begins. Following the Telangana government’s directive to the Hyderabad Metro Rail to change the alignment in such a way that the Miyapur-LB Nagar corridor-I line passes from behind the Assembly instead of the front, preparations such as earmarking the right of way (RoW), pegging and soil testing on Public Gardens premises are in full swing.

The L&T-HMRL had already constructed pillars between Nampally and the Assembly en route Telugu University , but on Chief Minister K Chandrasekhar Rao’s instructions, the work was stopped last year.  As per the new alignment, RoW markings have been made in the commercial nursery (compound wall adja cent to the Nampally rail line), a lake, behind the Jubilee Hall, a kitchen, a temple, a building of general administration (protocol) department and police outpost (earlier bird enclosure).

As per the marking, nearly 15 pillars would be constructed between the nursery and lake on the Public Garden premises. Though there is no official communication from the HMRL to the horticulture department on the exact extent of Public Garden land it needs for the metro rail project, officials claim it could be around five acres.

“Without prior intimation, HMRL authorities started marking RoW for the metro rail on our premises. When the HMRL sent a letter to us seeking permission to allot Public Gardens land for metro rail four months ago, we made it clear that no permanent construction activity could be taken up in the water body or abutting it as per the Supreme Court directives. But they are going ahead without giving a reply,” assistant director, government gardens, department of horticulture, John Jawaharlal told.

The Public Garden is spread over 40 acres. On nearly 10-acre land, various structures, including offices of the horticulture department, Jubilee Hall, AP & Telangana Legislative Councils, GAD-Protocol (AP) property and museum are located. ” A nursery , spread over nearly three acres, may vanish due to the metro rail pillars,” he said.

A few structures, including a kitchen located behind the Jubilee Hall, a temple, a portion of the GAD protocol building, the police outpost and a portion of lake would get affected due to the nearly 1.5-km ROW . Besides, nearly 10 century-old trees and green lawns will be wiped out. “We fear threat to the heritage building, Jubilee Hall, during earth excavation works,” the official said.

Meanwhile, the Public Garden Walkers’ Association approached the Lokayukta in June and lodged a complaint against the HMRL for realigning the metro rail.
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Wednesday, 8 July 2015

09:34

L&T Metro signs MoU with Reliance Jio & Indus Towers to enable strong Cell phone signals to traveling Commuters

L&T Metro signs MoU with Reliance Jio & Indus Towers to enable strong Cell phone signals to traveling Commuters

Hyderabad: L&T Metro Rail (Hyderabad) Limited has signed MoUs with Indus Tower Limited and Reliance Jio Infocom Limited for using signal towers provided on the roof of the entry and exit structures of all the 64 stations along the three metro corridors.

These two companies will in turn provide access to the mobile service providers to enable their respective customers to have strong cell phone signals while commuting in metros.

Metro officials did not disclose financial details of the deal, which will be in force for nine years.

“This will provide high-quality mobile services and real-time information to all our commuters with an easy access to multiple mobile operators,” a release stated.
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Monday, 8 June 2015

08:33

HPCL to supply gas for Food Outlets at Hyderabad Metro Rail malls

HPCL to supply gas for Food Outlets at Hyderabad Metro Rail malls

Oil company, cooking gas agency B.S. Enterprises ink pact with L&T Metro Rail

Hyderabad: The Hindustan Petroleum Corporation Ltd (HPCL) will supply liquefied petroleum gas to the food outlets at shopping malls planned to be set up along the Metro Rail corridor in Hyderabad.

The company along with one of its LPG distributors, B.S. Enterprises, entered into an 25-year agreement with L&T Metro Rail Hyderabad.

B.S. Enterprises proprietor B.Srinivas said the agreement is for malls proposed at Hi-Tech City, Panjagutta and Erramanzil stations.
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