List of Abbreviations
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List of Abbreviations AASHTO American Association of State Highway and Transportation Officials ADT Average Daily Traffic ATCC Automatic Traffic Counters-cum-Classifier AVE Ahmedabad Vadodara Expressway BCE Bangalore Chennai Expressway BDA Bangalore Development Authority BOT Build Operate Transfer CCTV Closed-circuit Television CRF Central Road Fund CSO Central Statistic Office DBFO Design, Build, Finance and Operate DSCR Debt Service Coverage Ratio DSRC Dedicated Short Range Communication ECB Emergency Call Box EIA Environmental Impact Assessment ETC Electric Toll Collection FS Feasibility Study GDP Gross Domestic Product GE Guidelines for Expressways(Published by Indian Roads Congress in April 2010) GQ Golden Quadrilateral IC Interchange INR India Rupee IRR Internal Rate of Return IT Information Technology ITS Intelligent Transport Systems JBIC Japan Bank for International Cooperation JCIF Japan Center for International Finance JETRO Japan External Trade Organization JICA Japan International Cooperation Agency LOS Level of Service MCA Model Concession Agreement MET Meteorological data system MoRTH Ministry of Road Transport and Highways NH National Highway NHAI National Highway Authority India NHDP National Highway Development Project NSDP Net State Domestic Product ODA Official Development Assistance 1 OMHMCA PPP in Operation &Maintenance of Highways Model Concession Agreement PA Parking Area PCU Passenger Car Unit PFI Private Finance Initiative PPP Public Private Partnership PQ Pre-Qualification PRIDe Peninsular Region Industrial Development Corridor ROW Right-of-way SEZ Special Economic Zone SH State Highway SPCB State Pollution Control Board SPICOT State Industries Promotion Corporation of Tamil Nadu STEP Special Terms for Economic Partnership TIDCO Tamil Nadu Industrial Development Corporation Limited TNRDC Tamil Nadu Road Development Company Limited VMS Variable Message Sign 2 Chapter-1 INTRODUCTION 3 COMPANY PROFILE RITES LIMITED: The Organization RITES is a PSU, which is an arm of the Indian railways. Originally incorporated on April 26, 1974, under the Companies Act, 1956 as a private limited company with the name „Rail India Technical and Economic Service Private Limited‟. Subsequently, the word „private‟ was deleted from the name of the company on February 17, 1976. Thereafter, the name of the company was changed to its present name „RITES Limited‟ on March 28, 2000. The company was converted into a public limited company on February 5, 2008. RITES Ltd. is one of the leading companies in transport infrastructure consultancy, engineering and project management services, with operations in India and abroad. It has the benefit of being associated with the Indian Railways, which is among the largest railway systems in the world under a single management. The company soon transformed itself from a mere railway consultancy firm to the activities connected with other modes of transport, with multidimensional activities. Today RITES Ltd. is a multi-disciplinary organization engaged in various areas related to consultancy at home and abroad ranging from concept to commissioning as well as project management. It gets preference as a consultant for the infrastructure projects of Indian Railways, government agencies and PSUs. Some interesting facts about the company: RITES Limited is the first Indian company to operate railways systems abroad on concession basis. Its services have been instrumental in getting the first ever ISO 9001:2000 certificate in Afghanistan for ARDS. 600 ongoing projects in India and over 30 ongoing projects overseas. One of the consortiums for the Delhi, Mumbai and Kolkata Metro. Its clients include various Central and State government ministries, other government bodies, public sector undertakings including IRCON, NALCO, Konkan Railway Corporation Limited, DMRC, IOCL, NTPC Limited, SAIL and NHAI as well as various private companies including Jindal Steel Limited. 4 As a public sector undertaking, the company has been accorded the „Mini Ratna Grade- I‟ status by the GoI by virtue of operational efficiency and financial status. RITES Limited was upgraded from Schedule „B‟ to Schedule „A‟ on July 11, 2007. Snapshot of evolution of RITES Ltd. Consulting Operations/ value added services/ equity participation Railway Total PMC, Exports P & C Related Transportation O&M 1974 1984 1989 1994 1999 onwards onwards onwards onwards onwards Major revenue generation areas for the company are: Sectorwise Business (%) for year 2012-13 Export & Lease Railways PMC-Building/Power Urban Infrastructure Inspection(Non-Railways) Highways/Ports/Airports 6% 5% 6% 39% 17% 27% 5 INDUSTRY PROFILE Infrastructure is the key to a nation‟s social and economic development. It includes everything from buildings to bridges, roads to railways and irrigation to telecommunications. Infrastructure inadequacies in rural and urban India are a real threat to continued growth. Until now, lack of political will, constrained financial resources and years of underinvestment have been the biggest impediments for infrastructure development. More recently, the government has recognized that physical capacity must be created to ensure 9% GDP growth as envisaged in the XIth Plan period. Some key measures initiated by the government include, greater and focused expenditure on infrastructure and setting up of nodal agencies such as the National Highways Authority of India (NHAI), to provide a regulatory framework and to ensure efficient and timely implementation of projects. The Planning Commission suggests, “Investments will need to increase from 4.6% of GDP to between 7% and 8% in the XIth Plan period”. This would entail an outlay of USD 500bn across the XIth Plan period (2007-2012), of which about 30% is expected to be in transportation, including both roads and railways. 6 Project Site Map and Pictures 7 8 9 10 11 Summary 12 Primary Objective Evaluate and estimate the project and perform feasibility study Secondary Objectives Developing implementation strategies Performing socio-economic evaluation of the project Assessing traffic demand Developing cost effective alternatives Performing financial cost benefit analysis Primary Data: Qualitative Data (experts view) Secondary Data: DPR (similar projects) and budgets Industry data relating to project for designing layout of project Economic data for risk analysis of inflation and cost overruns Research Methodology Preparing project layout, WBS & Gantt Chart and demand analysis report Preparing reports of alternatives for the project Preparing forecasted statements of project to be undertaken and estimating working capital requirements of project Risk Analysis of Project (qualitative techniques & quantitative techniques) Use of PERT & CPM Scenario analysis to check impact of economic effects Probable Outcome (s) Solution to viability of project Decision criteria on accepting or rejecting a project Impact of inflation and cost overruns Performance of project in respect of industry Duration of operating and toll collection 13 Justification, Objectives and Necessity of the Project India has approximately 340 million km total road length, making it one of the largest road networks in the world. However, most of its regional roads are still unpaved. About 75% of traffic occupies either the national highways or state highways, which is 2% and 5% of the total road length, respectively. The modal shares of freight and passenger by road transportation have been greatly increasing after the year 2000. Therefore, strengthening of road networks is a very important issue for the economic growth of India. The Government of India has prioritized the road sector in their 10th Five Year Plan (2002–2007), 11th Five Year Plan (2007–2012) and 12th Five Year Plan (2012-2017). The expressway networks development are desired to ensure high-speed and safe travel between major cities in India. The expansion of Chennai – Bangalore highway and connecting it to Poonamalle and Walajapet is one of the high priority project. National Roads No. 4, No. 7 and No, 46 serve as links between Bangalore and Chennai. National Road No.4 runs through the north region while the route of National Road No. 4 – No. 7 – No. 46 runs through the southern region between both cities. Based on results of traffic counting survey on four locations conducted in 2013, the road capacity at three locations is forecasted to reach its saturation capacity in the near feature. Hence, the existing road networks do not satisfactorily serve the road users at present. As of August 2013, more than 400 foreign companies have established their business around Bangalore and Chennai area, respectively. This means that 30% of the total number of MNCs are concentrated near the vicinity of Chennai–Bangalore corridor. Hence, the Bangalore–Chennai Expressway is expected to bring great benefits to the foreign companies as well as to Chennai–Bangalore economic corridor. 14 Basic Principle to Formulate the Project To forecast traffic demand along Bangalore–Chennai Expressway, the past traffic data from the Ministry of Road Transport & Highway (MoRTH) and the latest socio-economic data from the Central Static Center were collected. The results of such traffic demand forecast in the previous study by the Government of India was then reviewed to carry out the traffic count survey in the Study. For the expressway facilities, interval, size and type of facilities are designed to basically follow the Guideline of Expressway 2010 by MoRTH. Furthermore,