Asset Creation on the Rise

Recently commissioned projects across sectors

Project commissioning has been on the rise across infrastructure sectors in the past few years. In fact, the years 2016 and 2017 witnessed the completion of several projects owing to the government’s thrust on resolving issues related to delayed projects.

India Infrastructure Research identified a total of 399 key projects which were completed between 2015 and 2017. The analysis includes projects costing over Rs 1 billion each. The list comprises only those projects where completion dates are available. Therefore, the list is only indicative and not exhaustive. These projects are valued at over Rs 6 trillion. Most of the projects, in terms of both number and investment, have been completed in the road and power sectors. With regard to the mode of development, engineering, procurement and construction (EPC) was the dominant mode. The majority of public-private partnership (PPP)-based projects were completed in the road sector followed by ports and shipping. In addition, several projects have been implemented on a private basis. Most of these have been commissioned in the power sector.

With regard to the power sector, the past three years witnessed the completion of 124 projects worth at least Rs 4.7 trillion. The majority of these projects have been implemented by the central or state governments. The key projects include four units of the Nashik thermal power plant (TPP) (1,080 MW) developed by RattanIndia Power Limited, the 660 MW Prayagraj TPP by Jaiprakash Power Ventures Limited and the 660 MW SGPL power project by Semborp Gayatri Power Limited in the private sector; an 800 MW unit of the Kudgi super thermal power plant (STPP), the 660 MW Solapur TPP and the 660 MW Mauda STPP by NTPC Limited; and the 660 MW Chhabra TPP by the Rajasthan Rajya Vidyut Utpadan Nigam; and the 800 MW Yermarus TPP by Karnataka Power Corporation Limited in the state sector.

In the hydropower segment, the 1,200 MW Teesta hydro project, which entailed an investment of over Rs 110 billion, was commissioned in 2017. It is one of the largest hydropower plants in the country. Another key project commissioned in 2017 was the 800 MW unit of the Parbati hydroelectric project, Stage II, at an investment of about Rs 78 billion. Meanwhile, nuclear-based capacity witnessed an addition of 1,000 MW with the commissioning of the 1,000 MW Unit 2 of the Kudankulam nuclear plant.

In the road sector, a total of 126 projects worth about Rs 933 billion were completed between 2015 and 2017. Of these, about 40 per cent (in terms of number) have been implemented on a PPP basis. In terms of investment, the share of PPP projects stands at about 50 per cent. Some of the projects entailing high investments are the Agra-Lucknow expressway

(Rs 132 billion) in Uttar Pradesh, the Mukarba Chowk-Wazirabad Chowk elevated corridor project (Rs 8 billion) in Delhi, the Sion-Panvel expressway (Rs 17 billion) and the Mumbai Eastern Freeway (Rs 13 billion) in Maharashtra, the Hyderabad-Karimnagar-Ramagundam four-laning project (Rs 22 billion) in Andhra Pradesh and Phase I of the Chennai outer ring road project (Rs 13 billion) in Tamil Nadu.

On-the-ground progress in the port sector has been slow. Overall, 20 projects entailing an investment of about Rs 155 billion were completed during 2015-17. Over 50 per cent of these (in terms of number) were completed on a PPP basis while the remaining were either funded by the government or were privately funded. Some of the key commissioned projects in the sector are the Rs 13 billion Phase II development of Gangavaram port in Andhra Pradesh, the Rs 12 billion container terminal at Kamarajar port in Tamil Nadu, the Rs 18 billion offshore container terminal at Mumbai port, and the Rs 20 billion Salaya integrated terminal facility in Gujarat.

In the railway sector, about 50 key projects have been commissioned since 2015. The majority of these were new lines, followed by line doubling and gauge conversion projects. Key among these are the Gulbarga (Kalaburagi)-Bidar new line railway project (Rs 15.42 billion), the Vijayawada-Narasapur, Gudiva Da-Machilipatnam and Bhimavaram-Nidadavolu line doubling projects (Rs 14.29 billion), and the Ramanagaram-Mysore line doubling project (Rs 13.09 billion). Some of the other big-ticket projects are the Rs 28 billion Munger rail-cum-road bridge and the Rs 29 billion Digha-Sonepur rail-cum-road overbridge.

According to India Infrastructure Research, nine key projects worth Rs 38 billion were commissioned in the airport sector from 2015 to 2017. Among these are projects entailing the development of a new terminal building at the Cochin international airport and the expansion of Belgaum airport. In addition, the Pakyong, Kishangarh and Shirdi airports were also commissioned.

The urban transport segment witnessed the completion of several major projects in the past two to three years. Key among these are the Hyderabad, Jaipur and Lucknow metro projects. At present, metro projects with a total length of 425 km are operational in 10 cities – Delhi (230 km), Bengaluru (42.3 km), Kolkata (27.39 km), Chennai (28.9 km), Kochi (18 km), Mumbai (11.4 km), Jaipur (9 km), Lucknow (8.5 km), Hyderabad (30 km) and Gurugram (11.7 km).

Between 2015 and 2017, the solid waste and water supply and sanitation sectors witnessed the completion of over 60 projects worth Rs 277 billion. Of these, over 90 per cent of the projects were completed in the water supply and sanitation segment. The majority of these have been implemented on an EPC basis. Some of the projects entailing high investments include the Gundavali-Bhandup water tunnel project in Maharashtra involving an investment of Rs 29 billion, the Vellore combined water supply scheme project entailing a cost of Rs 13 billion, the Bisalpur-Jaipur water supply project entailing an investment of Rs 22 billion, and the Godavari drinking water supply project, Phase I, worth Rs 37 billion.

Conclusion

In the past two to three years, substantial prog-ress has been witnessed on the ground. This is, in part, a result of the policy measures announced by the government since it came to power. These measures have contributed towards both capacity creation and confidence building among stakeholders. The need of the hour, however, is to sustain the momentum of asset creation. Going forward, improved project preparation, timely completion of pre-construction activities and availability of long-term sources of funds will lead to timely award and completion of projects.

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