Tag Archives: NHAI

NH 47 home to property boom

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News Point: A stretch with immense potential yet not fully exploited in terms of real estate developments along it, National Highway 47 (NH47) is seen as the next growth corridor by the developers in Coimbatore.

NH 47, National Highway 47, NHAI, National Highway Authority of India, India real estate news, Indian property marketAt a time when a section of analysts are talking about saturation of property market in the established locations, the stretch of NH 47 assumes even greater significance as there are land parcels available in the region. This 620 kilometer (390 miles) highway that connects Salem and Kanyakumari in South India passes through major cities of Coimbatore, Kochi and Trivandrum has been included in the North-South Corridor of the Indian highway system due to its strategic positioning.

The potential of the region is such that developers are eyeing this as a potential goldmine. However, this anticipation of fast forward growth has its own share of waiting game before developers are putting their bet behind. Many believe the slow pace of development in the widening of NH 47 has been the reason why investors have so far not acquired land in this belt. There are others who believe the kind of opportunity cost that lies in this region, this is the time to enter the market for hitting the jack pot.

NH 47 is currently undergoing conversion from two lane to four lane, with some sections being converted to six lane. The stretch between Coimbatore and Trivandrum via Kochi is one of the busiest among the Indian highways, with most of the traffic in this stretch comprising of trucks carrying consumer goods, construction material, container lorries and passenger vehicles. A large number of industries and textile parks are located on the highway between Coimbatore, Erode and Tiruppur districts. This highway is often referred as the lifeline for the industries in the region.

Analysts believe the real estate market will get a major boost once the widening of NH 47 will be over. Widening of National Highways (NH) 47 from Chengapalli to Neelambur and from Madukkarai to Walayar is expected to be completed by July 2014. The NHAI started the works to six lane the road from Chengapalli to Neelambur and four lane it from Madukkarai to Walayar in 2010 at a total outlay of Rs. 850 crore. Though the work on the highway has been in the news for slow pace of developments, yet analysts have always put their bet on the markets along the stretch of NH 47.

It is believed that once widening of the stretch will be over, it will give a major boost to the industries, thus helping the economic activity of the region in general and real estate market in particular. This will also catalyse many small and medium enterprises (SMEs) in the area and export driven businesses will grow along NH 47. This highway has in recent times seen a large number of educational institutions, SMEs, factories, hotels & hospitals. Moreover, it is the main link connecting Coimbatore to main cities of neighbourhood state, Kerala

R.S. Krishnan, Head-Operations-Site, Rakindo Developers agrees that efforts are needed to ensure the fast track growth of property market along NH 47 in Coimbatore. He believes infrastructure facilities like drinking water, pipelines, proper roads, electricity needs to be provided to fast track growth. He though has a word of caution when he says that pollution along NH 47 should be monitored and kept under check so that the property market in the region becomes liveable.

“Completion of the new upcoming bridge across Noyyal River near Sundakkamuthur and Kuniyamuthur will benefit road users from Kerala to reach Ukkadam junction to head towards the city which will reduce considerable travel time. Widening of NH 47 from Chengapalli to Walayar passing by Neelambur and Madukkarai should be done at a fast pace. Early completion of the Proposed 26 km Western by-pass road connecting Kuniyamuthur with Thudiyalur announced in 2012 will ease congestion,” says Krishnan.

A section of market watchers in this part of the world though blame that there are not enough big ticket corporate presence along NH 47 in Coimbatore for the growth of realty market. They maintain that the lack of economic opportunities can be attributed to improper & slow progress on road expansions and infrastructure development. Due to improper connectivity to the heart of the city, roads face heavy traffic especially during peak hours.

However, nearly all agree to the fact that there are boundless potential of economic activities along the stretch and if tapped well this will transform the region as one of the most thriving real estate market. Just the ongoing widening of the highway itself has led to renewed interest level of investors and the land cost along the stretch has appreciated in the range of 10-20 per cent depending upon the location. Moreover, some of the corporate sector are gradually shifting to this part of the region due to cheap rental values of the commercial property.

In terms of traditional strength of the local economy, since SMEs have always been one of the prime drivers of economy of the region analysts are confident that the prospects of SMEs along NH 47 in Coimbatore are pretty bright. With 85 per cent of SMEs functioning in the town and city, there is a growing demand and possibilities for Industrial estates along NH 47. Connectivity to the neighbouring state Kerala had encouraged NH 47 in developing many SMEs. There is also a considerable growth of frequent travellers from Kerala who are associated with SMEs across NH 47.

In a nutshell, everyone within the built environment agrees that the real estate along the stretch of NH 47 is poised for fast forward growth. It may have been delayed for long, but then the potential of the region can be assessed by the fact that all developers have either acquired the land in the region or are in the process of acquisition. Analysts believe in terms of pipeline visibility very few locations in South India can match NH 47. They feel a few big ticket projects and some public private partnership projects can completely change the urban landscape in this region.

 

Expressway stories mixed with success & delays

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Bottom Line: Expressways across the country are redefining the distance and connectivity, with the holistic growth of the regions along the route.

india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India PropertyA TV advertisement recently showed an old man entering into the past time zone. He is being stuck in traffic and pollution but suddenly awakens to the reality of expressways & highways to understand how much the country has progressed over the years in terms of infrastructure and cross connectivity.

Well, the advertisement might have seemed as an over-projection India’s progress but what can not be doubted is the fact that expressways across the country are redefining the distance and connectivity, with the holistic growth of the regions along the route.

To say that the expressways are the future of long-distance motoring in India would be stating the obvious. The government wants 11,500 miles of “controlled-access highway” to be built by 2022. The country’s main highways, which comprise 2% of India’s roads yet carry 40% of the traffic, are to be widened and improved as well.

This, unfortunately, is one side of the story. While India aspires to be among the best of global case studies in the highways & expressways, the ground realities often come as a road block that threaten to derail the inevitable march to fast forward mode of transportation. Following facts indicate two different realities of expressways:

Government of India will construct 1,000 kms of expressways under its flagship road building programme National Highways Development Project at a cost of Rs. 16,680 crore 

Mumbai-Pune Expressway has not only connected the two cities seamlessly but has been catalyst to economic revival of the adjoin regions 

Several expressways of NHAI are either incomplete or have failed to take off 

The $2bn expressway from Delhi to Agra remains empty, with developer looking for ways to exit this PPP project 

India’s longest expressway, an eight-lane, 1,047-km from Ballia to Noida, the Ganga Expressway along the river Ganges remains non-starter

Dwarka Expressway is home to lakhs of new residential units, yet the project is facing repeated hurdles and road blocks 

The fundamental question is that to what extent expressways in India have changed the urban dynamics. If expressways have changed the travelling time, distance & experience why is there so much of resistance? Have expressways failed to revive the economy of the region surrounding it? How much catching is to be done and are we anywhere close to the global benchmarks? There are unfortunately more questions than answers.

Vineet Relia, Managing Director of SARE Homes maintains that road sector of any nation is the most critical factor for economical and social development. He points out to reports that suggest 1% growth in infrastructure leads to an equivalent growth of 1% in the GDP.

“To augment road sector and ensure quicker connectivity, in the recent years government has fast tracked the investment process for the sector and has announced many new expressways. However, the sector is still at a nascent stage and there is a lot more to do in terms of improving the last mile connectivity,” says Relia.

Kishor Pate, CMD, Amit Enterprises Housing feels India’s pace of urbanization cannot be compared to most developed countries. “There are several limitations related to technology, funding and political will which play a role in the deployment of expressways in India. That said, India does have several success stories, not the least of which is the Mumbai-Pune Expressway.”

Experts point out that the success and potential of expressways is unquestionable. Yet if there are two different tales to tell it is because in the Indian context the planning and implementation varies from one region to the other. For example, the main criteria for selection of expressway corridors must be the traffic volume and the project should be approved to the highest density corridor.

Then the land acquisition should be tackled more professionally and the PPP model should actually be the partnership and not a relationship of contractors and owners. If expressways are developed professionally, it can definitely change the urban dynamics of the region.

For example, the stretch between Jaipur and Delhi has seen immense industrial activity and is crucial as part of the golden quadrilateral. This is one of the best examples for success stories in the expressways sector. The upgradation of the project has immense impact on the social and economical growth of the connecting districts. The expressway has not only diminished the travel time but has also opened up opportunities for industrial as well as urban development of the locations and allocated the base for tourism and other associated commercial industries.

“Locations must not only be well-connected, but viable on all other fronts as well. If the quality of real estate being developed in a location is sub-standard, properties are overpriced or if projects there are chronically delayed, the area will not pick up despite excellent connectivity,” sums up Anil Pharande, Chairman – Pharande Spaces. 

By: Ravi Sinha

Numero uno positioning of NH 24 on National Highways

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By: Prameet Narula

NH24, National Highway 24, NHAI, National Highway Authority of India, India real estate news, Indian realty news, India property market, Indian housing, Track2Media Research, Track2RealtyTrack2Realty Exclusive: Real estate development along highways and expressways is an established reality of India’s urban growth, yet a few have been trend setters. These are the territories which have been investment magnet much before being fully developed. National Highway 24, popularly known as NH 24 that connects the national capital Delhi to Uttar Pradesh capital Lucknow running 438 kilo meter in length is one such highway which is being seen as the new growth corridor of north India in general and Delhi-NCR in particular.

What actually makes NH 24 different from other National Highways? This can not be answered with credit to any one factor. As a matter of fact, a combination of factors has collectively elevated NH 24 as a premium National Highway worth investment. Be it residential developments or the mushrooming small and medium enterprises, the stretch has something to offer for all. The best part is the affordability while being close to all the major landmark destinations of the Delhi-NCR.

NH 24 has the locational advantage, added with the fact that the Ghaziabad Development Authority made sure that the land is released at a price point to keep the region most affordable in the Delhi-NCR region. As a result, social infrastructure also shaped well along the stretch with many schools and hospitals coming up. Moreover, Public Private Partnerships in the region (PPP) has also taken off well. As a matter of fact, in one of rare cases of different developers coming together, a mega township has emerged along NH24. The township called Crossings Republik has been developed by a syndicate of seven builders including Gaursons India, Assotech, Mahagun, Suptertech, Paramount, Ajnara and Panchsheel groups on about 360 acres.

Prima facie it seems that the journey of NH 24 on a fast forward track has just started. The government has some ambitious plans that can change the urban landscape in this part of the world. It is not just widening of the NH 24 to 14 lanes but also the kind of state-of-the-art mega township projects that are in the pipeline. Ghaziabad Development Authority Vice Chairman Santosh Kumar Yadav recently said that there is a 600-acre land bank with Awaas Vikas across CISF headquarters, which is virgin land located in an area called Siddharth Vihar and is as big as Vaishali. According to him, the direction of residential growth in Ghaziabad will now change.

The Ghaziabad Development Authority is now constructing a new ring road, also to be called Northern Peripheral Road. This will start from NH 24 near Dasna toll, move towards NH 58, connect the Pipeline Road, Hindon Air Force station and culminate at Delhi’s Wazirabad Bridge. This is a six-lane ring road sanctioned under the PPP mode, 13 major bidders from the country are bidding for this project, including one from Mumbai and one international bidder from Oman.

According to reports, at least Rs. 200 crore is being spent on land acquisition for the Northern Periphery Road. In this case land is being bought by Ghaziabad Development Authority and the construction of the road will cost at least Rs. 500 crore. This means that from then on anybody can enter Delhi and cross over this stretch in just about 25 minutes. This stretch will be on an embankment and not on the ground like NH24.

Developers are naturally elated with the prospects of the stretch and they believe the emergence of NH 24 as the new growth corridor will revive the real estate market across the Delhi-NCR region. Gaurav Gupta, Secretary General, Raj Nagar Extension Association and Managing Director of SG Estates says not very long ago considered a hinterland, the whole stretch has transformed into a significant realty growth corridor. The area has excellent connectivity with Ghaziabad, Raj Nagar Extension, Noida and Delhi; making it the next promising destination for end users.

“This stretch promises a lot for customers who are looking for an affordable house. Many developers are coming up with projects on this stretch to meet the burgeoning demand of the middle-class buyers. The best thing about this location is the buyers have a bouquet of options to choose as per their pocket convenience. These options are very few in places like Gurgaon and Noida. The location has a good potential owing to proximity to Delhi along with superlative highway connectivity which is the impetus for demand for the end-users. Places like Kaushambi, Crossings Republik etc, have recorded manifold price appreciation due to their connectivity with NH-24,” says Gupta.

Navneet Bhadla, Director of Brys Group says real estate is by and large sentiment driven and naturally when the developers and the buyers find that there is intent of the government to take the region to fast forward mode of development then it has a chain effect on the prospect of the entire market in and around. According to her, NH 24 is also the lifeline of many small and medium enterprises (SMEs) and the big ticket corporate entry of late clearly indicates the region has become a traction point for the developers.

“After all, NH 24 is connecting the entire east coast region of Delhi-NCR and the proposed plans augur well for the sector and overall economy of the region. I have always maintained that development along the highways that cater to many micro markets in and around is the way forward to revive the real estate market which will eventually contribute to the revival of the economy of the region. Having said this, let me add here that there are very few highways that has as good promises & prospects as the NH24,” explains Bhadla.

Locations like Indirapuram and Crossings Republik are ideal locations along the stretch of NH 24 for those who want affordable houses while working in the major business destinations of Delhi-NCR. As of now, it has well connected access to Delhi and Noida. The Northern Periphery Road will further connect it to Gurgaon as well. And that makes areas in and around NH 24 an ideal location with affordable housing options galore.

HCC wins Rs 1,534 cr contracts including 10.2 km tunnel in J&K

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, National Highways Authority of India, NHAI, Road Transport and Highways MinistryHindustan Construction Company (HCC) today said it has bagged two major contracts worth Rs 1,534 crore in various business segments including one in Jammu & Kashmir for construction of a tunnel.

“The first order is for the construction of a 10.2 km tunnel on the Udhampur-Srinagar-Baramulla railway line in Jammu & Kashmir…This contract is worth Rs 884 crore and will be completed in 60 months,” HCC said in a statement.

The tunnel contract on the Dharam-Qazigund Section in the state has been given to HCC by IRCON International Limited, which is engaged in constructing the Udhampur-Srinagar- Baramula railway line, the company said.

This will be the second largest tunnel in India after the 10.96 km long Pir Panjal Tunnel between Qazigund to Banihal in Jammu and Kashmir, which has also been built by HCC. The tunnel is nearing completion.

“The second is an EPC (engineering, procurement and construction) order for expansion of a section of the National Highways-8 between Vadodara and Surat, which also includes the construction of an extradosed bridge across River Narmada,” the company said.

The order, with a value of Rs 650 crore, is a contract from HCC Concessions, a step down subsidiary of HCC.

This contract was awarded to HCC Concessions by the National Highways Authority of India in April this year for the six-laning of a section of NH-8 between Vadodara and Surat, the statement said.

The scope of work also includes the construction of a new four-lane extradosed bridge across the Narmada River in Gujarat on a DBFOT (design, build, finance, operate and transfer) (Toll) basis, it added.

Work has already commenced on this project, and is scheduled for completion in 36 months.

The company claimed it has executed a number of India’s landmark infrastructure projects.

This included constructing 25 percent of Hydel Power generation, over 50 percent of country’s Nuclear Power generation capacities, over 3,100 lane km of Expressways and Highways, more than 200 km of complex Tunneling and over 324 Bridges.

HCC’s other projects include the Bandra Worli Sea Link, Mumbai – India’s first and longest open sea cable-stayed bridge; the Kolkata Metro, Farraka Barrage and India’s largest nuclear power plant at Kudankulam – Tamil Nadu, it said.

The group, which comprises HCC, HCC Infrastructure, HCC Real Estate, Lavasa Corporation and Steiner AG in Switzerland, has a turnover of Rs 8,157 crore.

Infra sector requires more public, private projects: Saugata Ray

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, National Highways Authority of India, NHAI, Road Transport and Highways MinistryGreater public and private participation is required in sectors such as railways, ports and power as India looks at investing USD 1 trillion in infrastructure over the next five years, Minister of State for Urban Development Saugata Ray has said.

Besides, he said, urban development projects have not been able to get a strong response based on Public-Private- Partnership.

Although PPP is happening in sectors like telecom, ports and roads, lot of other segments need greater attention, the minister added.

“India’s basic infrastructure was ranked at 86th in the global competitive report 2010 by the World Economic Forum. So, we have a long way to go. There is a potential for PPP to contribute more and help bridge the infrastructure gap in sectors like ports, roads, railways and power,” Ray said.

He was speaking at the “2nd Regional Conference on Infrastructure Management” organised by CII and CBRE.

“We are envisaging PPP in urban development but the response has not been encouraging except in solid waste management,” he said.

The minister also cited the example of development of Delhi Metro and other big airport projects through PPP mode.

Ray said presence of large scale skilled manpower makes India an important player in infrastructure management.

Delhi Mumbai Industrial Corridor (DMIC) CEO Amitabh Kant said that to accommodate the increasing population in the urban areas, comprehensive planning of cities are required with the help of private players.

Citing example of the government’s ambitious USD 100 billion DMIC project, which aims to create world class infrastructure, Kant said they have involved best experts from the world for the proposed smart cities in the DMIC.

These world-class cities would have self-sustainable habitats with minimal pollution levels, maximum recycling, optimised energy supplies and efficient public transportation. Government has planned seven such cities in the DMIC.

He said to develop infrastructure in the DMIC, both public and private participation is needed. But added that the government have to provide the basic infrastructure to attract private players.

“We are working with best master planners for the cities. CISCO and IBM are working with us,” he said.

CBRE South Asia Chairman and Managing Director Anshuman Magazine said that although the country’s infrastructure is gradually improving, managing and maintaining it is a big question.

Recently, for instance, services of Delhi Airport Metro Express, implemented under the PPP mode, were suspended on technical grounds.

Besides, CAG has raised concerns over the Delhi Airport project, implemented by GMR-led DIAL, for alleged deviations from the signed contract.

Atlanta bags order worth Rs 10435.1 mn

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, National Highways Authority of India, NHAI, Road Transport and Highways MinistryMumbai-based infrastructure and real estate firm, Atlanta in consortium has bagged around Rs.10435.1mn order from National Highway Authority of India (NHAI), the flagship road building programme of the Ministry of Transport and Highways.

Atlanta along with a Joint Venture partner Essar Projects has bagged the order for four laning of Lucknow-Sultanpur road widening project of around 126 kilometres in Uttar Pradesh. The project has a concession period of 23 years, which includes two-and-a-half years of construction time and is based on Public Private Partnership (PPP) mode on Design, Build, Finance, Operate & Transfer (DBFOT) basis. The debt equity ratio is proposed at 3:1.

“We expect to bag additional road project orders worth Rs.20 bn in this fiscal,” said Rajhoo Bbarot, MD, Atlanta. He declined to divulge details of the fund raising.

A total of 34 players, including Gammon Infrastructure, L& T Infrastructure, HCC Concessions and IL&FS Transportation, had shown interest in the project.

Atlanta has registered a cumulative revenue growth of 30% during the last two years. The current order book of Rs.1,950 crore is seven times its FY11 sales, while the average execution cycle is three years. This gives good visibility of revenues for the coming three years.

Atlanta recently secured an order of 117 km Mohania-Ara for Rs.9170 mn in Bihar and another one in Punjab for Rs.2200mn. The Bihar project entails four laning of Mohania-Ara section on National Highway 30 under the public-private-partnership mode for a length of 117 km.

Currently Atlanta has two operational road projects. First is Mumbra bypass on NH 4 and the second is Nagpur Kondhali on NH 6. Other than this it is pre-qualified for projects worth Rs.400bn. So far, the company has done 225 lane kms and 600 lane Kms are in pipeline.

Atlanta’s focus areas for EPC business comprise highways, bridges, railways, and other urban infrastructure projects across the country. It has over 3 decades of experience in Engineering, procurement, Construction (EPC) and Realty.

Atlanta is credited with successfully commissioning India’s first Greenfield BOT project on National Highways – Udaipur Bypass within the record time of 18 months as against stipulated time of 36 months. Atlanta has already developed three projects on DBFOT basis on Public private partnership basis.

NHAI for realty development to attract expressway bids

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india realty news, india real estate news, real estate news india, realty news india, india property news, property news india, india news, property news, real estate news, India Property, National Highways Authority of India, NHAI, Road Transport and Highways Ministry, Kamal NathWhile the land acquired by the Uttar Pradesh Government along the Expressway has snowballed into a political slug fest, the National Highways Authority of India (NHAI) still believes that is the way to go. The NHAI is planning to follow the Uttar Pradesh model for developing expressways.

Requesting anonymity a senior NHAI official said they were discussing the model, of offering longer concession periods and land pockets for real estate development along an expressway.

The Union Road Transport and Highways Ministry under Kamal Nath had proposed to build a huge network of expressways by 2022, also the final year of the 13th Five-Year Plan. However, the plan could not take off because of the paucity of funds. Hence the NHAI is mulling over this idea.

“As a matter of policy, we had decided to build expressways only through private participation. Building one km of expressways will cost around Rs.55 crore. It would require incentives to attract private participation,” said the official.

The UP Government has announced plans to build expressways across the state. Their developers get a longer concession period and pockets of land to develop townships. One such project, the Yamuna Expressway to connect Greater Noida to Agra, being built by the Jaypee Group, saw a lot of resistance from farmers on the terms of government acquisition. NHAI feels their projects would not see such resistance, as they’d allow the concessionaire to acquire land directly from the farmer.

“We have never faced any such resistance while acquiring land. These disputes are also political. We are planning to ask the private developers to acquire land from farmers directly, to avoid any kind of dispute at a later stage,” the official said. He said the concessionaire would also be allowed to decide on the alignment of the project, making their work easier.

The idea has not found much favour among highway developers. “This idea may look good on the paper but not on the ground. Land has become a sensitive issue and developers are facing problems even with Government backing. The investments in building expressways would be huge and one would not like to risk it,” said a Delhi-based developer who has suffered huge loss at the Noida Extension.

In the sixth phase of the National Highways Development Programme, NHAI had planned to build 1,000 km of expressways, and had identified a few stretches, including Vadodara-Mumbai, Delhi-Meerut, Kolkata-Dhanbad and Bangalore-Chennai.

The Government also wanted to form an expressway authority on the lines of NHAI but that plan did not proceed.