Cover Story

2011: 11 Big -ticket Projects

December 2010

Infrastructure development is on a roll and India is ready to add a new chapter to its growth story. CW takes a look at the big ticket projects that will electrify the country in the coming year.

Private investments in India's infrastructure projects crossed the $25-billion mark in the first three quarters of 2009. This improved show by the sector helped the country lead its South Asian neighbours in economic performance. According to a World Bank report, the South Asian region is poised to grow by nearly 8 per cent. India will be at the vanguard of this growth.

According to reports, investment in the infrastructure sector is expected to be around $ 425.2 billion durin...g the Eleventh Five Year Plan (2007-12), as against $ 191.3 billion during the Tenth Plan. Meanwhile, private investment in the sector is also projected to increase to $ 157.3 billion in the Eleventh Plan, compared to $ 47.84 billion in the Tenth Plan. This is likely to be fulfilled through public-private-partnership (PPP) projects that are based on long-term concessions.

Evidently, the country is entering the new decade with a mammoth growth plan for infrastructure development. Following substantial research and discussion, we homed in on a list of the top 11 projects, each from different sectors, to be completed in 2011. We thank SA Reddi, Former Deputy Managing Director, Gammon India, for solving our doubts while short-listing these projects, And RC Sinha, Vice-Chairman & Managing Director, Maharashtra Airport Development Company (MADC), was kind enough to vet our list and give us the green signal. In his words, "I have carefully considered the projects selected by you and feel all the mentioned projects are path-breaking."

Read on to learn more about these big-ticket projects, as well as those facing roadblocks owing to various reasons (Source of research: Project Reporter).


Chennai Airport Expansion

Being undertaken by the Airport Authority of India (AAI) in consortium with Herve Pomerleau International Inc, Canada, the Chennai Airport Expansion Project involves the development of Kamaraj Domestic Terminal Phase II, expansion of the existing Anna International Terminal and a facelift for existing terminals at Chennai Airport.

The 15,700 sq m Anna International Terminal can currently handle 3 million passengers a year - the expansion will incr-ease its passenger handling capacity to 7 million a year. The upgraded international terminal will be able to handle a capacity of approximately 4,450 passengers during peak hours and have eight aerobridges and conveyor belts each. The 13,000 sq m Kamaraj domestic terminal can handle 6 million passengers a year. A new domestic terminal is being built with a capacity to handle 10 million passengers a year. The overall domestic terminal capacity will be augmented to 16 million passengers a year. The project also includes the construction of a parallel runway interconnected by a taxiway, aprons, two multilevel car parking garages with 1,200 spaces each and improvement of roadway access and infrastructure. The airport will also have an integrated cargo complex with ground floor space of 21,000 sq m and first floor area of 12,100 sq m.

The design is a collaborative effort of four firms. The proposed design will be connected with the existing terminal design elements. The new terminal buildings are expected to have an area of about 140,000 sq m with 140 check-in counters, 20 aerobridge and 60 immigration counters. The terminal complex will have a flyover travelator connecting the domestic and international terminal for a distance of about 1 km. It will have an elevated road on the top and a tube below that will have two walkalators. A multi-level car park at an estimated cost of around Rs 132 crore is also being planned in front of the new domestic terminal on a BOOT model.

Size: 1,069.99 acre
Contractor: Consolidated Construction Consortium Ltd (CCCL) in tie up with Herve Pomerleau International Inc
Architectural Consultants: George Hargreaves Associates, Creative Group, Gensler and Frederic Schwartz Architects
Value: Rs 2,300 crore
Commencement: October 2008
Expected date of completion: August 2011

"The new terminals are elegant and modern structures with dramatic, hovering wing-like roof. The super-efficient organisation of security and circulation form the basis of an innovative plan that is centered on two lush sustainable gardens. The secondary runway will be built over the Adyar River by means of a bridge. This makes Chennai Airport, the only international airport in India to have a runway for take-offs and landings across the river."- S Radhakrishnan, Project Director, Chennai Airport


Nemmeli Plant

Chennai Metropolitan Water Supply and Sewerage Board is setting up a 100 mld desalination plant at Nemmeli in Chennai. The project will be executed on DBO basis by VA Tech Wabag, in partnership with IDE Technologies, Israel. The plant will come up on 40 acre on East Coast Road and comprise state-of-the-art units such as disc filters, ultra-filtration membranes and reverse osmosis (RO) membranes. It will convert seawater into fresh potable water, using RO technology and the treated water will be supplied to the southern suburbs of Chennai covering the entire stretch of the IT corridor.

"Chennai's present water requirement including that of industry is 850 mld against the supply of 650 mld," says Mittal. All the existing sources of meeting water needs of the city are monsoon-dependent. With the water demand in Chennai expected to shoot up to 2,248 mld by 2026 and the availability pegged at 1,615 mld it is vital to find additional water sources. Also, the rapid growth in IT, addition of new suburbs, recurring droughts and frequent monsoon failures are factors that have been responsible for water shortage in the metro. The desalination plant is a permanent and alternate source that can be conserved and tapped to meet the water requirements of the southern suburbs of Chennai."

The desalination plant will consume around 16 mw of power per day, which will be supplied from a substation that the Tamil Nadu Electricity Board will set up. There will not be any sludge generated during the desalination process as no chemicals will be used. The residual water with a heavy concentration of salt will be discharged into the sea. The construction of the plant and the pipelines are being funded by the Central Government. The water agency has chosen Mecon Ltd, a public-sector undertaking, for management and supervision of the project till its completion.

Size: 40 acre
Client: Chennai Metropolitan Water Supply and Sewerage Board
Contractor: VA Tech Wabag, in partnership with IDE Technologies, Israel
Project management and supervision: Mecon Ltd
Value: Rs 1,033 crore
Commencement: February 2010
Expected date of completion: December 2011

"Technology is the USP of this project. The desalination plant is designed to be an order of magnitude, reliable, more affordable and more operationally efficient than previous technologies used in the country. This is for the first time in India that disc filters are being used for pre-treatment of sea water. This will enable us to increase operational efficiencies both in terms of cost and time. In addition, we will be able to eliminate/substantially reduce the use of chemicals at the pre-treatment stage."- Rajiv Mittal, Managing Director, VA Tech Wabag


Mumbai Metro Project Phase I

MMRDA is implementing Phase 1 of the Mumbai Metro project in consortium with Anil Dhirubhai Ambani Group's Reliance Energy Ltd (REL) and Veolia Transport Co. The project, worth Rs 2,356 crore, is being implemented on BOOT basis through a PPP. The project involves the construction of the Versova-Andheri-Ghatkopar corridor. The construction work at the site of the second cable-stayed bridge for Mumbai Metro's first line is in full swing. The bridge is coming up over the Jogeshwari flyover on the Western Express Highway. The work on the bridge over the railway lines near Andheri station has not yet received the final nod. The main objective of the project is to provide rail-based mass transit connectivity to people within an approach distance of 1-2 km, and to serve the areas not connected by the existing suburban rail system. The trains in the project will have a stainless steel body. There will also be an anti-train collision system and derailment barriers to stop the train in case of emergencies.

Every coach will have smoke, heat and fire detectors. The trains are designed to be energy-efficient. The AC coach trains will have regulated temperature according to the passenger load. The capacity of metro train coaches in terms of passengers will be 375. They will also feature CCTV cameras and communication buttons to talk to the driver in case of emergency. The project is being funded by the Government of India and MMRDA.

Developer: MMRDA, Government of India
Cost: Rs 2,356 crore
Contractors: MMRDA, Reliance Energy Ltd, Veolia Transport Co
Commencement: June 2006
Expected date of completion: 2011


Dadri-Bawana-Nangal Pipeline

The 600-km Dadri-Bawana-Nangal Pipeline, being developed by the Gas Authority of India, will pass through the states of Uttar Pradesh, Delhi, Haryana and Punjab. Out of the total length, 291 km will be laid in Punjab. The estimated investment for the project is to the tune of Rs 2,500 crore. The company recently signed a cooperation agreement with the Himachal Pradesh government to extend the pipeline to the region. Under the cooperation agreement, GAIL will use its technical and commercial expertise to study various options and collate the gas demand potential of the state. The gas pipeline will bring clean and environment-friendly fuel to various consumers in the states, which will include the industrial, domestic and transport sectors.

The availability of the gas will also usher in the use of more efficient energy resources. Otherwise, the industries have to bear huge transportation costs of raw material to and from the market. GAIL has awarded a major turnkey project to Com-mtel for system design engineering, installation and integrated FAT of the entire telecommunication systems. "The supply of the first drop of natural gas in the agricultural state of Punjab will begin an era of new industrial revolution especially as the gas would be used by the existing fertiliser plants at Nangal and Bhatinda as feedstock to manufacture fertiliser," says Karnatak. "Usage of natural gas will lead to cost reduction, leading to reduction in fertiliser subsidy. These companies would even be benefitted by availing carbon credit."

Project size: 610 km
Contractor: Gas Authority of India, Commtel
Cost: Rs 2,500 crore
Completion: 2011

"Till recently, both Punjab and Uttarakhand have been dependent upon coal-based thermal power plants and hydropower for meeting their electricity requirement. The pipeline will also supply gas to power plants planned at Ropar to drive the gas turbines to generate the electricity. This will substantially reduce the emission of harmful pollutants in comparison to coal, thus also reducing the negative effect of global warming. Supply of natural gas in the virgin areas of Punjab will benefit industries, commercial units and households and help the economy of Punjab, thereby aiding the green revolution and making the state a better place to live than ever before."- Ashutosh Karnatak, ED, Projects, GAIL


Karaikal Port

A deep-water port in Puducherry, the Karaikal Port is being developed by Karaikal Port Pvt Ltd, a subsidiary of Marg Ltd, on BOT basis. The project, awarded by Government of Puducherry, is being implemented in three phases. Phase 1 is already operational with two berths for coal and general cargo. The execution of Phase 2 will take the capacity of the port to 21 million tonne per annum and envisages an investment of Rs 1,500 crore. This phase will be complete by September 2011. So far, Karaikal Port has handled cargo such as coal, pet coke, raw sugar, fertiliser, cement, project cargo and construction materials. Containers and liquid cargo are soon to follow. On completion, the port will handle all types of cargo. The port features 2.4 lakh sq m of back-up space and 10,000 sq m of covered warehouse. Its lagoon-type basin protected by breakwaters allows operations all around the year.

"The port will catalyse industrial development in the region with an estimated $ 10 billion worth of investment expected to flow into various port-based industries over the next decade," says Acharyulu. "The port's presence will also enable long pending capacity expansion to be implemented at the nearby oil refinery, which will have a positive multiplier effect on the local economy. The project will lead to large-scale employment generation for the people of the region by means of both direct and indirect employment and the port has the potential to uplift the whole region surrounding the port to new levels of socioeconomic development."

Size: 21 million tonne
Client: Government of Puducherry
Contractor:Marg Ltd
Value: Rs 1,500-crore for Phase-II expansion
Commencement: April 2009
Expected date of completion: September 2011

"Karaikal Port's Phase 2 expansion will enable fully loaded cape-size bulk carriers to berth and discharge their cargo at rates exceeding 50,000 tonne per day using fully mechanised cargo handling facilities that minimise handling loss and maximise throughput while minimising the impact on the environment. Upon completion of the expansion, Marg Karaikal Port will become a full-fledged multi-cargo port with a capacity to handle over 28 million tonne of various types of cargo." - MLN Acharyulu, Executive Director, Karaikal Port Pvt Ltd


Kudankulam Nuclear Power Project

Nuclear Power Corporation of India is setting up a 2,000 MW nuclear power project at Kudankulam, near Chennai, with the help of Russian technology, reactors and fuel. The two 1 gw reactors of the VVER-1000 model are being constructed by the Nuclear Power Corporation of India Ltd (NPCIL) and Atomstroyexport. The project is being implemented by L&T, who was initially involved only in construction of infrastructure facilities and auxiliary buildings. Then, the company secured four major mechanical packages that involve technology certifications.

The project consists of two 1,000-mw capacity water-cooled water moderated energy reactors (VVER), which fall under the category of pressurised water reactors and are first of their kind being built in India. The civil works of the entire project were broadly divided into six packages: C1 - earthwork; C2 - subsoil investigation; C3 - construction of reactor building, auxiliary buildings and associated works; C4 - construction of turbine buildings and associated works; C5 - construction of auxiliary buildings and associated works; C6 - construction of hydro technical structures and associated works. HCC is responsible for construction of C3 and C6, while BHEL is assigned the task of erecting equipment other than the reactors.
When completed, the plant will become the largest nuclear power generation complex in India, producing a cumulative 2 gw of electric power. The commissioning of the first reactor is likely to take place in March 2011, while the second reactor will be ready for commissioning by December 2011. Tamil Nadu will receive 925 mw from the project and the rest will be distributed to Karnataka and Andhra Pradesh.

Size: 2,000 mw
Client: Nuclear Power Corporation of India
Contractors: L&T, BHEL, HCC
Value: Rs 13,171 crore
Commencement: 1998
Expected date of completion: December 2011

"This project is unique considering its very large capacity, i.e. 1,000 MW size, new technology, new materials of construction, heavy equipment handling, and different sequencing of erection and installation. The construction of the nuclear power plant, particularly the electromechanical works in the reactor building, posed many challenges with complex and mind-boggling intricacies involved at various stages. The job was successfully executed with the highest standards of quality, safety and workmanship on international benchmarks with our meticulous planning and execution strength. No matter the complexity of the project, we deliver!"- R Anbalagan, General Manager & Head, Nuclear & Defence Business Unit, L&T- ECC Division Real Estate


Janapriya Nile Valley

Janapriya Engineers Syndicate is constructing Nile Valley, a gated community over 24.62 acre near Miyapur in Madinaguda. It's a blend of serenity and life on the move; away from the pandemonium of city life yet close to the business and IT hub of Hyderabad. The project comprises 10 blocks of G+9 floors, with amenities like a clubhouse, gym and healthcare centre. In the first phase of the project, a variety of apartments will be available in 2BHK (940 sq ft to 1,050 sq ft) and 3BHK (1,175 sq ft to 1,500 sq ft). Nile Valley is a partnership initiative of Janapriya Engineers Syndicate and Sun-Apollo.

The approximate area of construction is about 1.6 million sq ft including basements. The company focuses on quality and uses a formwork and shuttering system from Germany.

Size: 24.62 acre
Contractor: Janapriya Engineers Syndicate Ltd
Value: Around Rs 500 crore
Architect consultant: Aslam Architects & Interior Designers
Landscape architect: Dhruva Architects
Commencement: 2009
Expected date of completion: November 2011 (Phase 1)

"Price, quality, fast construction and the use of latest technology is the USP of the project. The sheer size of the project [2,400 apartments] and the modern amenities provided set it apart. The local economy is bound to change as the scope to cater to the needs of the residents, about 8,000 people, is humongous. The area where our project is coming up had no development prior to this. Being 1.5 km off the highway, the infrastructure in the colonies in the road leading to the project has already been ramped up." - K Ravinder Reddy, Chairman and Managing Director, Janapriya Engineers Syndicate Ltd


The Tamil Nadu Road Sector Project

The Tamil Nadu Road Sector Project being implemented by the Highways Department of Tamil Nadu aims to improve the quality and sustainability of the state's core road network. The project will enhance the quality of about 750 km of roads in the core Tamil Nadu network with proper management of social and environmental impact. The project involves widening and strengthening of roads of about 732 km of SH, MDR & ODR. The execution of this project is planned in four packages. So far, around 98 per cent of the work is completed and the rest will be complete by March 2011. The project will deliver major maintenance on about 2,000 km, improve accident-prone locations and improve the management of the network through institutional strengthening, PPPs, and enhanced funding and improved allocation procedures for the road sector.

The project commenced with World Bank assistance at an estimated cost of Rs 2,160 crore. The current revised estimate of the project is Rs 2,442 crore, of which the World Bank loan component is Rs 1,903 crore and the remaining Rs 539 crore is funded by the Tamil Nadu government.

Developer: Highways Department of Tamil Nadu
Contractor: JV of KMC, Oriental and BSCPL; Ircon; L&T; R&J; JSR; IVRCL and Dodla.
Cost: Rs 2,442 crore
Funding: World Bank
Expected date of completion: September 2011

"The entire project is divided into two major parts. One is Arcot to Thiruvaroor, other is Nagapattam to Thuttupodi. It contains 13 bypasses for 13 stops. The total cost is Rs 2,442 crore. The funding is through World Bank. There are seven contractors for the project. IVRCL is constructing a bridge in Kanyakumari district; Dodla is the contractor for the Kumbakonam bypass -4.1 km; JV of KMC, Oriental and BSCPL is working on 373 km; Ircon on 114 km; L&T on 100 km; R&J on 118 km; JSR on 10.4 km."- An official from Highways Department Of Tamil Nadu


Jamshedpur Plant Expansion

Tata Steel is undertaking the brownfield expansion of its existing steel-making facilities in Jamshedpur. The global steel major is enhancing its production capacity from 6.8 mtpa to 10 mtpa, with an investment of Rs 15,000 crore. The project is being implemented by the Indian arm of Italy-based Paul Wurth, along with L&T. It includes the development of iron ore mines and other raw materials sources including coal and logistic linkages, in addition to the installation of a new blast furnace by L&T, a pellet plant with a capacity of 6 mtpa, thin slab casters and rolling mill, and two new lime kilns.

The company will also ramp up its production capacity of flat steel items to 5.83 mt from the current 3.04 mt. The expansion will enable Tata Steel to strengthen its market share in the flat products segment and simultaneously reduce the operating costs over a large volume of production. The expansion is part of the steel major's plans to take its annual capacity to 16 million tonne by 2014 at an investment of around Rs 40,000 crore.

The project will be funded by a mix of debt and internal accruals. A consortium of 16 banks led by the State Bank of India has agreed to lend the money. The country's largest bank alone is learnt to have committed around 30 per cent of the aggregate loan amount that will help the steel maker expand its low-cost manufacturing operations in Jharkhand. Other public-sector banks such as Punjab National Bank, Canara Bank and Union Bank of India are also part of the consortium.

Size: 10 mtpa
Client: Tata Steel
Contractor: Italy-based Paul Wurth and L&T Ltd
Value: Rs 15,000 crore
Commencement: November 2008
Expected date of completion: December 2011


The Mumbai Sewage Disposal Project

It is estimated that over 50 per cent of Mumbai's 1.35-crore population lives in slums without adequate access to toilets. The Mumbai Sewage Disposal Project (MSDP) of the Municipal Corporation of Greater Mumbai (MCGM) is an ambitious programme launched in 2001 with the assistance of the World Bank to substantially alter the face of slums in the city of Mumbai. It is aimed at building over 10,000 toilet seats in the city and meet the target of one toilet per five households. The corporation has now taken up the implementation of Phase 2 of the project The works of this stage are divided in five stages; those in the first two are called 'Priority Works', amounting to Rs 2,065.88 crore.

The civic body proposes to complete these two phases by 2011. These include augmentation of the sewage network from Vile Parle to Dahisar, construction of a marine outfall at Malad, micro tunnelling, pipe bursting, rehabilitation of sewers and a screening arrangement at the drop shaft. Upsizing of sewers and pipe bursting will curb overflows and screens will be fixed at drop shafts to run the tunnel to its full capacity by arresting floating material before tunnel entry. New sewer lines are being laid that are linked to the mains. Slums have also been included as most lack proper channels of sewerage disposal. Old sewer lines are being reinstated, as most existing sewer lines are not in the best of shape. At Versova, the aerated lagoons treat 90 mld of the 200 ml of sewage discharged daily. Under MSDP Phase 2, capacity will be enhanced to treat 350 mld and will serve both Andheri (east and west), Vile Parle (east and west) and parts of Jogeshwari. The project is divided into several packages that have been awarded to different contractors. When completed, the project will provide sewage network access to over 60 per cent of the slum population.

Client: Government of Maharashtra
Contractor: Municipal Corporation of Greater Mumbai
Value: Rs 2,065.88 crore
Commencement: October 2010
Expected date of completion: November 2011


Cauvery Stage IV, Phase II

The Bangalore Water Supply and Sewerage Board is developing Phase 2 of Cauvery Stage IV. The project, worth Rs 3,383.70 crore, involves fabrication and laying of a clear water transmission main from TK Halli to JK Doddi including associated works and construction of a surge tank at JK Doddi. It also involves laying of a pipeline with a diameter of 2,600 mm from Shiva Anicut to a new water treatment plant at TK Halli. The pipeline will carry 500 mld of Cauvery water to the plant. Another 12 pumps are likely to be installed to pump the clear treated water from the new treatment plant to the city. A 2,300-mm diameter pipeline will carry the water from the new treatment plant to seven proposed distribution reservoirs in Bengaluru and the pipes will run approximately around 70 km.

The scheme consists of 13 water supply contracts and 11 sewerage contract packages apart from the distribution and management improvement components. IVRCL Infrastructures and Projects bagged an order valued at Rs 210.61 crore for raw water transmission system of the project. Around 38 per cent of the work is completed and the rest will be complete by October 2011. Subhash Projects and Marketing Ltd (SPML) has won an order worth Rs 150.71 crore for fabrication and laying of clear water transmission main from TK Halli to J K Doddi including associated works and construction of the surge tank at J K Doddi. The proposed pipeline commences from the proposed TK Halli Pumping Station and runs up to the proposed surge tank at JK Doddi Village.

Developer: Bangalore Water Supply and Sewerage Board
Cost: Rs 3,383.70 crore
Contractors: IVRCL Infrastructures and Projects, Subhash Projects and Marketing Ltd
Expected date of completion: October 2011

Hitting a Roadblock

Here are some projects caught in a delay:

Posco's Steel Plant

Where: Orissa
Value: Rs 54,000 crore
Why: Eco-clearance pending

Vedanta alumina refinery expansion

Where: Orissa
Value: $ 9.5 billion
Why: Violation of forest laws

Nalco's Aluminium project

Where: Orissa
Value: Over Rs 10,000 crore
Why: Awaiting environment clearances

The Airport Authority of India's cargo hub project

Where: Surat, Gujarat
Value: Financial viability issues

22 power plants

Where: Andhra Pradesh (21 projects in Nellore and one in Vizianagaram)
Value: No green nod for coal

Polavaram Dam Project

Where: Andhra Pradesh
Value: Rs 16,010 crore
Why: Environmental clearance withdrawn

Lafarge cement plant

Where: Meghalaya
Value: Rs 1,000 crore
Why: Eco-clearance pending

Vedanta University project

Where: Orissa
Value: Rs 15,000 crore
Why: Land acquisition issues

Flashback 2010

From the launching of the longest road tunnel project in Rohtang to granting of the environment clearances to the Navi Mumbai airport, the year 2010 was power-packed with loads of action happening on the construction front.

There were a few glitches too, like the Mangalore Airport crash, which left around 159 dead and many others injured or Commonwealth Games scam, which threatened to tarnish the image of Indians on the global front. But the year, on the whole, ended on a positive note with the Centre for Monitoring Indian Economy predicting 9.2 per cent GDP growth in FY 11.