infrastructure opportunities in south india

7/31/2019 Infrastructure Opportunities in South India

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Report on Infrastructure Opportunities in South India

Introduction:

Indias rapidly growing economy has been placing huge demands on power supply, roads,

railways, ports and transportation systems, and infrastructure deficiencies have become

glaring. Overstretched infrastructure is apparent in Indias congested highways, longer

turnaround time at seaports and frequent power cuts. Infrastructure bottlenecks impede

growth of the economy, hamper business activity and raise the cost of energy and logistic.

The government has taken many initiatives to develop the sector. It is also reflected in the

budget 2011-12.

Government initiative for the development of Infrastructure sector

South Indias rapidly growing economy has been placing huge demands on roads,

railways, ports and transportation systems, and infrastructure deficiencies have

become glaring. Infrastructure bottlenecks impede growth of the economy; hamper

business activity and logistic costs, eroding the overall competitiveness.

Confederation of Indian Industry SR has been working closely with the state

governments by way of policy recommendations, investment promotions and

Industry government collaboration for Infrastructure development in the states.This is a compilation of the immense opportunity South Indias Infrastructure sector

presents.

Projected investment required for infrastructure development during the 12th Plan

period (2012-17) is Rs 40.99 trillion.

The infrastructure sector has been allocated Rs 2.14 trillion for 2011-12.

The Energy sector has been allocated Rs 155,495 crore for 2011-12.

Tax free bonds of Rs 25,000 crore, which includes Rail & Road with Rs 10,000

Crore each and ports with Rs 5000 Crores


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Road & MRTS

India has the second largest road network in the world with approximately 3.3 million km.

Roads are the preferred mode of transport, accounting for 85% of passenger traffic and 65%

of freight. The network comprises national highways, state highways, major district roads,

expressways and village roads. National highways comprise only 2% of the countrys road

length but carry 40% of the traffic. State highways and major district roads carry 40% of the

total road traffic and constitute 13% of the road length. The number of vehicles is growing at

a rate of 10.6% annually and inclusive of commercial traffic it is growing at 30% p.a. This

puts enormous pressure on road infrastructure.

Growth in passenger traffic at 85 per cent and freight traffic at 65 per cent will also increase

the demand for roads. Currently, India has among the highest spend on logistics 17 per

cent of GDP. Lack of quality road transport is among the major drivers of this cost. National

highways form 2 per cent of the total road network, but carry 40 per cent of total traffic. Only

25 per cent of national highways are 2-lane or 4-lane and 80 to 90 per cent of highways are

structurally inadequate to support the 10.2-ton permissible load per axle that trucks are

allowed to carry.

Average possible speed on Indian highways is only 30 to 40 km/hour, reducing average

distance travelled by trucks per day to around 200 km compared to the world average of 600

to 800 km.


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The National Highways Development Programme is expected to cover 50,000 km of national

highways, at a cost of USD 65 billion. Of this, about 13,000 km is in South India. In addition

to this, several state highways and port-linkages have to be improved. This will help support

the growth of the high-density industrial clusters and the high-growth freight corridors that

connect these.

Government Initiatives:

The government has announced several incentives:

In the recent Budget 201011, the Government of India has proposed US$

4.1 billion for road transport, representing an increase of 13.4 per cent over the

previous year

Foreign Direct Investment up to 100 per cent in road sector

Government to bear the cost of the project feasibility study, land for the right

of way and way side amenities, shifting of utilities, environment clearance, cutting of

trees, etc

Provision of subsidy up to 40 per cent of project cost to make projects viable.

The quantum of subsidy to be decided on a case-to-case basis.

100 per cent tax exemption in any consecutive 10 years out of 20 years after

commissioning of the project.

Duty free import of high capacity and modern road construction equipments.

The government has also announced an increase in the overseas borrowing

amount of infrastructure sectors, to US$ 500 million from US$ 100 million.


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As per the Economic Survey, the Ministry of Road Transport and Highways,

with a view to expediting the progress of the NHDP, has set a target of completion of

20 km of national highways per day, which translates to 35,000 km at the rate of

7,000 km per year during the next five years (2009-14).

Opportunity in Andhra Pradesh

The GOAP proposed a second project i.e. AP Road Sector Project with the loan

assistance of World Bank for improvement and better management of the roads

chiefly targeted to further strengthen the objectives set forth in the previous project

Cost of the project is estimated at Rs 3165 Crore. Project duration 5 years from

signing of loan agreement (2010-2015)

Construction work on Hyderabad metro rail will start in a month's time. The design

work is being done simultaneously and tendering process for rolling stocks is

currently underway. 200 coaches are required initially. Within 3 to 4 months, orders

will be placed and it will take may take one-and-a-half years for the firm, which will be

shortlisted, to make the coaches and another six months for the trail run.

NHAI is going to take up a pilot project, Vijayawada-Machlipatnam on e-tendering

basis and all tenders beginning from August this year will be through e-tendering

only.

Opportunity in Karnataka

The state has the index to improve from 1.07 Km/Sq. Km to 1.5 Km/Sq. Km( by FY

2020)

The State requires an investment of up to Rs 125000 Crore by 2020.

Karnataka has planned to develop 15,000 km road at cost of Rs 13,362 Crore. The

works included strengthening 1,446 km of roads, widening of 1,054 km, laying 7,500

km of new roads, upgrading 2,000 km of roads.

Provision of Rs 632 crore under State schemes for upgradation of another 5000 km

of rural roads

Karnataka Road Development Corporation Limited is desirous to develop State

Highways and major district roads of about 10,000 km in Karnataka with public -


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private participation.

The Karnataka government has set up a fund for providing financial assistance to

state agencies taking up infrastructure projects under the public-private partnership

(PPP) model. The new fund, called the Karnataka Infrastructure Project Development

Fund (KIPDF), has been created under the department of infrastructure.

The Karnataka government has identified about 25,000 km of the most important

traffic corridors and designated them as the state's core road network. However, 39

per cent of the core road network requires improvement to bring it into good or fair

condition, according to a road condition survey.

Karnataka government has proposed Rs 4,770-crore package to help provide

adequate infrastructure for the growth and development of Bangalore.

The Bangalore Metro Rail Transit System Project (BMRTSP) has a total cost of USD

2.7 billion and is scheduled to be completed in 2013. Besides the ADB loan, the

Bangalore metro project is also being funded by the Japan International Cooperation

Agency.

The government today earmarked a substantial amount to the Urban Development

Ministry for spending on extension of Metro networks in Bangalore in the Budget

2011-12. While the equity to Bangalore Metro's equity is Rs 600 crore in the 2011-12

fiscal.

Development of High Speed Rail link to Bangalore International Airport at anestimated cost of Rs 6736 Crore

Development of Monorail in Bangalore at a cost of Rs 3400 Crore

Karnataka has index to improve from 16 rail km/1000 Sq. Km to 32 rail km/1000 Sq

Km by 2020, with a capacity addition of 3407 Km, and required investment of Rs

22000 Crore by 2017

The State requires 134 Km of MRTS, which would require 27,000 Crore by 2017

Opportunity in Kerala


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There are 8 national highways and 76 state highways

The State budget earmarking Rs 202 crore to improve and widen the roads and

junctions in Kochi

The traffic of the state has been growing steadily at the rate of 10 11% every year,

resulting in increasing the pressure on the roads of the state

The productivity loss and increased fuel consumption in Trivandrum-Kochi highway is

estimated about Rs.2700 crore annually due to the congestion and lower speeds of

vehicles.

Opportunity in Tamil Nadu

To upgrade road infrastructure, the State Government is implementing a World Bank-

funded project at a cost of US$ 500 million

The government today earmarked a substantial amount to the Urban Development

Ministry for spending on extension of Metro networks Chennai in the Budget 2011-

12.

The Comprehensive Road Infrastructure Development Programme (CRIDP) scheme

contemplates road improvement and widening works in a massive scale with huge

outlay to a tune of Rs.1000 crore per year.

Under the Chennai Metropolitan scheme of Traffic and Transport Improvement in

Chennai Metro area, improvements to 590 Km length of roads including construction

of Grade Separators, Bridges, Center Medians and Footpath at a cost of Rs. 825

crore has been taken up.

Improvements to Major District Roads and Other District Roads- Under this scheme,

improvements to Other District Roads/ Major District Roads and construction of

bridges have been taken up with NABARD loan assistance for the benefit of rural

sector.

The construction of Road Over/ Under Bridges in lieu of existing level crossings on

government roads are undertaken on priority basis when Train Vehicle Units (TVU)

exceed one lakh per day. The State Government and Ministry of Railways share the

cost equally for construction of Railway Over/ Under Bridges including approach and

service roads.

The government has issued orders for the extension of the IT Corridor from Siruseri

to Mamallapuram as Phase II and has sanctioned Rs.70 crore for land acquisition.

This project covers the stretch from Egattur to Pooncheri near Mamallapuram for a


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total length of 26.80 Km including two bye-passes at Padur-Kelambakkam and

Thiruporur. The land acquisition is in progress.

Projects State-wise

National Highway development projects available for financing in Andhra Pradesh

Project Length(Km) INR in Crore NHDP Phase

Vijayawada - Machalipatnam 63 618 III

Yadagiri-Warangal 96 912 IV

Mah/KNT Border-Sangareddy 145 1378 IV

Vijaywada-Elluru-Rajamundry 198 1980 V

Ichhapuram-Srikakulam-Anandpuram 213 2130 V

Vishakhapatnam-Anakapalli 50 500 V

Anakapalli -Tuni 59 590 V

Tuni -Dharmavaram 47 470 V

Dharmavaram-Rajahmundary 53 530 V

Nellore Bypass 17 170 V

Tada - Nellore 111 1110 V

State Highway development projects available for financing in Andhra Pradesh

Project Name with State Highways No Length

( Km)

Estimated Cost

( Crore)

Two-laning of Mahaboobnagar-Nalgonda 163 571

Two-laning of Rayachoti-Angallu 60 210

Two-laning of Eluru-Machilipatnam 43 151

Two-laning of Kurnool-Guntur 115 403


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Four-laning of AnakapalliAnandapuram 48 368

Four-laning of Gundugolanu-Devarakonda-

Kovvur

68 456

Kadapa-Renigunta Road (SH-31) 137 779

Four-laning of Warangal-Khammam 118 621

Four-laning of PerecherlaThokapalli 133 628

Khammam-Tallada-Devarapalli Road in

Khammam District

172 942

National Highway development projects available for financing in Karnataka

Project Length (Km) INR in Crore NHDP Phase

Mulbagal-Karnataka/AP Border 22 209 III

Hospet-Bellary-KNT/AP Border 93 884 IV

Shimoga-Mangalore 188 1786 IV

Hasan-BC Road 130 1235 IV

Gulbarga-Bijapur-Homnabad 200 1900 IV

Hospet-Chitradurga 119 1131 IV

Hospet-Hubli-Ankola 271 2575 IV

Gundlupet-TN/KNT Border 27 81 IV

Hoskote-Dobespet 89 846 IV

Tamil Nadu/KNT Border-

Bangalore

204 612 IV

Mah/KNT Border-Sangareddy 145 1378 IV

Khagal Belgaum 77 770 V

Neelamangala-Tumkur 35 350 V

DharwadHaveri 95 950 V

Haveri-Chitradurga 135 1350 V


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Tumkur & Chitrdurga Bypass 31 310 V

State Highway development projects available for financing in Karnataka


( Km)

Estimated Cost

( Crore)

Kumta-Tadas (SH-69) 128 Being determined

Yalahanka-Gauribidanur-AP Border (SH-9) 75 150

Kadur-Chikamangalur-Mudigere-Belthangadi-

Bantwal (SH-64)

162 324

Zaheerabad-Nanded, Bhalki-Chincholi,

Wanamarapalli-Raichur,Miriyan-Chincholi,Bidar-

Srimandal (SH-75,04, 15 & MDRs)

215 430

Bidar-Humnabad, Maniknagar-Ghodwadi,Hulasur- 113 226

Kudalgi - Sandur to Torangal 46 158

Sandur - Hospet 27 72

SH-58 near Chintamani -Tadgal cross to AP

Border and Tadgal cross- Govinapalli to AP

Border

58 58

NH-63 near Ginigere-Gangavathi-Sindhanoor 83 83

SH-20 from Lingsugur- Kalmala to Raichur 90 86

Shimoga Honnalli- Harihara 78 78

SH-13 from AP Border near DevsugurChikkasugur Raichur Yergera to Mantralaya

bridge -

58 56

Turuvekere-Sira 85 221

Development of road from NH-63 near Gadag

Mundargi to Koppal

69 145

SH-63 from Sanakanur Bevoor- Rampur to

Kanakagiri

68 140


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SH-35 from Tamilnadu border-Anekal Sarjapur

Hoskote

55 277

NH-4 near Hoskote Santhe circle to Chintamani

and Santhe circle Jangamakote to Chintamani

84 89

Tawaregere Kanakgeri-Gangawati Kampli to

Kudithini

84 241

Hospet Kamalapura- Kampli-Ittigi 44 122

Mysore Malavalli Maddur-Kunigal Tumkur 152 349

Tumkur- Koratagere Madhugiri- Pavagada AP

Border

128 275

Harihara Harappanahalli-Kudalgi 86 140

Some of the upcoming projects are Peripheral road, Construction of Underpass at Magadi

Road - Chord Road junction and many more.

A Peripheral Ring Road of about 110 Km. length is proposed around Bangalore at a

redial distance between 2.80 to 11.50 Km. from the existing Outer Ring Road. The

project involves a land acquisition of about 2050 Acres and is expected to cost Rs.

550.00 crore.

Authority has approved the proposal of construction of an Underpass at Magadi

Road - Chord Road junction at an estimated cost of Rs. 2250.00 lakh with

construction of flyover and other places.

Four-lane road between the twin cities of Hubli Dharwar at an estimated cost of 50

Crore

Other projects are

S No Project Name Length

Km

Estimated Cost

( Crore)

1 Puthalapattu - Naidupet Road 58 306.00

2 Up-gradation and Improvement of road from

Nellore to Gooty Road via Badvel Mydukur

Rayalacheruvu.

194 962

3 Up-gradation of road from Anakapalli to 48 455


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Anandapuram (SH-38) via Sabbavaram

4 Up-gradation of road Gundugolanu -

Devarapalli - Kovveru

68 531

National Highway development projects available for financing in Kerala


Walayar-Vadekancherry 54 513 II

Thiruvananthapuram - TN/Kerala

Border

43 409 III

Kuttipuram-Edapally 116 1102 III

Cherthalai-Ochira 84 798 III

National Highway development projects available for financing in TamilNadu


Madurai Parmakoti -

Ramanathapuram

116 1,100 III

Tindivnam - Krishnagiri 178 624 III

Nagapattnam -Thanajavur 77 268 III

Kerala/TN Border- Kanyakumari 65 618 III

Coimbatore - Mettupalayam 54 513 III

Karaikkudi - Ramanathapuram 80 280 III

Vikravandi Kumbakonam

-Thanjavur

165 495 IV

Thanjavur - Pudukkotai

Sivaganga - Manamadurai

122 366 IV

Dindigul - KNT/TN Border 266 798 IV

Tiruchirapalli Lalgudi -

Chidambaram & Meenusuriti -

135 405 IV


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Jayamkondam - Kootu Road

Viluppuram Pondicherry -

Nagapattnam

194 1,843 IV

Coimbatore-TN/KNT Border 103 309 IV

Walahajapet - Poonamallee 93 930 V

Tambaram - Tindivanam 93 930 V

State Highway development projects available for financing in TamilNadu


( Km)

Estimated Cost ( Crore)

Mettur-Palakkanthu-Oddanchatram-

Dharapuram- Tiruppur (SH-174)

126 Techno Economic Feasibilty

study is yet to be awarded

Erode- Dharapuram (SH-83A) 78 Techno Economic Feasibilty


Arcot bypass road 4 Techno Economic Feasibilty


Erode outer ring road, Phase-II 10 Techno Economic Feasibilty


Chennai outer ring road, Phase-II 33 Techno Economic Feasibilty


To improve the road and bridge infrastructure in fast developing industries in Sriperumbudur

area of Kancheepuram District, the government has sanctioned the following works at a costof Rs. 300 crore.

Widening Singaperumalkoil Sriperumpudur road (SH-57) (24.60 Km) to four lane inthe First Phase and widening Oragadam to Sriperumbudur road to six lane in SecondPhase.

Widening of Vandalur Wallajabad road (SH-48) (33.40 Km) to fourlane.

A Bye pass for Ponthur Village for a length of 2.39 Km in Singaperumalkoil Sriperumbudur Road

Construction of a Grade Separator (over bridge) at Oragadam junction


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Service road for 3 km on four sides of the junction at Oragadam

Ports & Shipping

Indian Port sector consist of 13 Major ports and 176 Minor ports. Ports play a vital role in the

overall economic development of the country. About 90% by volume and 70% by Value of

the countrys international trade is carried on through maritime transport. Development of

Indias ports and trade related infrastructure will continue to be critical to sustain the success

of accelerated growth in the Indian economy.

Shipping sector entails an investment of Rs 5 lakh crore by 2020 to take the Indias ports

capacity to 3,200 MT. Out of which, the port sector entails an investment of Rs 3 lakh crore.

The Major ports alone require investment of over Rs one lakh crore for 352, to expand their

capacity by 767.15 million tons (MT) in the next 10 years. Out of which, Rs 72,878 crore is

expected from the private sector.

The South India consists of six major ports and 56 minor ports. All the states have port

facility in the region. Tamil Nadu alone has three major ports. Kerala has the highest number

of minor ports in the region, followed by Tamil Nadu. (Figure 1)

Figure 1: Number of Major and Minor ports in South India

Government Initiatives:

The government has announced several incentives:


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100 per cent FDI under the automatic route for Port development projects

100 per cent income tax exemption for a period of 10 years

Standardization of bidding documents to ensure uniformity and transparency in the

award of projects

The Model Concession Agreements have been standardized and simplified

The tariff setting mechanism has been modified with tariffs being set upfront by Tariff

Authority for Major Ports (TAMP)

Bidding documents have also been standardized to ensure uniformity and

transparency in the award of projects

Acquisition of all types of ships has been brought under the Open General License.

Formulated plans by major and non major ports to meet the huge traffic are

Development of new terminals

Upgrading existing berths

Modernizing operations by inducting state of the art cargo handling equipment

Need for expansion of ports

Traffic at major and minor ports are expected to grow at CAGR 8 and 16 per cent

respectively, which in turn would reach traffic of 1215 and 1270 MT respectively, in

the year 2019-20.

Considering the objective of 70 per cent capacity utilization, it is necessary to

increase the overall capacity of Indian Ports to 3230 MT by 2020 which is more than

three times the present level of 963 MT

Areas to be focused on

Government should give more attention and policy support to the major state-run

ports, which have seen decline in share in cargo handling compared to the minor

ports.

Ports require infrastructure to handle worlds biggest cargo ships. The trans-shipment

results in additional port fees and delays, all adding to costs on trade. Today, over

40% to 45% of the country's containerised cargo is trans-shipped through Colombo,


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Dubai or Singapore. International Container Trans-shipment Terminal is the initiative

by the government to solve the issue.

The Indian port sector is facing choppy waters as big-ticket expansion projects worth

close to Rs 10,000 crore have been stranded, awaiting environment clearances. The

major port projects stuck due to environmental clearance include the Rs 3,600-crore

container terminal project at Chennai.

Public Private Partnership in Port Sector

Private Capital through PPP projects has been achieved in the Port sector because of a

favorable and investment friendly policy framework that was put in place by Government of

India.

As a result, 24 PPP projects involving an investment of Rs.6,486 crore have been

completed and are under operation. Another 19 PPP projects are under implementation

involving an investment of about Rs.12,498 crore and 21 more projects are under bidding.

These projects include International Container Terminals at JNPT, International Container

Transhipment Terminal (ICTT) at Vallarpadam, LNG Regasification Terminal at Cochin,

Mega Container Terminals at Chennai and Ennore, new coal berths in Paradip, Tuticorin and

Vizag among others.


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Investment Opportunity in the Major Ports of South India

Figure 2: Investment Opportunity in Major Ports of South India, Source: Maritimeagenda 2020, Ministry of Shipping

The investment plan of Visakhapatnam Port Trust is Rs. 3373.22 crore for 27 projects in

phase I, Rs. 6465.00 crore for 19 projects in phase II and Rs. 4100.00 crore for 10 projects

in phase III. Of the above investment plan, the private investments have been earmarked as

Rs. 2262.08 crore in phase I, Rs. 3830.00 crore in phase II and Rs. 1000.00 crore in phase

III.

Ennore Port has envisaged an investment plan of Rs. 1636.92 crore for 6 projects in phase I,

Rs. 3622.00 crore for 5 projects in phase II and no project for phase III. Of the above

investment plan, the private investments have been estimated as Rs. 100.00 crore only in

phase II.

Chennai Port has chalked out an investment plan of Rs. 5224.04 crore for 9 projects in

phase I, Rs. 4231.00 crore for another 13 projects in phase II and Rs. 1125.00 crore for 7

projects in phase III. The investments from Private Sector for the three phases are Rs.

4262.24 crore in phase I, Rs. 2911.00 crore in phase II and Rs. 795.00 crore in phase III

respectively.


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Tuticorin Port has envisaged an investment plan of Rs. 1154.55 crore for 7. projects in

phase I, Rs. 1444.32 crore for 6 projects in phase II and Rs. 3907.00 crore for 11 projects

under phase III schemes. The provisions of private sector investment for the above projects

are Rs. 873.08 crore in phase I, Rs. 664.32 crore in phase II and Rs. 1200.00 crore in phase

III.

Cochin Port has envisaged an investment plan of Rs. 511.00 crore for 6 projects in phase I,

Rs. 2371.40 crore for 18 projects in phase II and Rs. 3999.10 crore for 14 projects in phase

III. The investments from private sector have been planned as Rs. 397.00 crore in phase I,

Rs.1840.00 crore in phase II and Rs. 2900.00 crore in phase III.

New Mangalore Port has envisaged an investment plan of Rs 378.90 crore for 3 projects in

phase I, Rs. 1147.00 crore for 3 projects in phase II and Rs. 390.00 crore for 1 project in

phase III. The private investment for phase I and phase II have been projected as Rs.

299.73 crore and Rs. 850 crore respectively. No private investment has been planned in

phase III.

Investment Opportunity in the Minor Ports of South India

Southern Maritime states have 56 non major ports. It has drawn ambitious programmes to

create additional capacity during 2010-11 to 2019-20.The states have identified projects for

development of non major ports at an estimated cost of Rs 49107 crore for creation of

additional capacity of 316.82 million tonnes. Private sector is envisaged to fund most of the

projects through PPP or BOT or BOOT basis. It is envisaged that private sector will meet

96.1% of the cost of development. Remaining requirement is planned to be contributed by

State Governments through Internal Resources / Gross budgetary Support/ Internal Extra

budgetary Resources.


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Figure 3: Traffic Forecast of Minor Ports in South India, Source: Maritime agenda 2020,Ministry of Shipping

From the traffic forecast chart above, it is apparent that minor ports of Andhra Pradesh

would see a huge volume of traffic in 2019-20. The traffic volume of Andhra Pradesh,

Karnataka, Tamil Nadu and Kerala would be 202.04, 67.4, 45.4 and 27.27 MT in the year2019-20.

Thus Andhra Pradesh ports require a huge volume of capacity addition in order to face the

demand. The state is followed by Karnataka and Tamil Nadu.

Figure 4: Capacity addition in Maritime states of South India, Source: Maritime agenda2020, Ministry of Shipping

In terms of investment, Andhra Pradesh requires around Rs 33540 Crore by 2020. Tamil

Nadu, Karnataka and Kerala require Rs 7576 Crore, Rs 6831 Crore and Rs 1160 Crore

respectively.


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Figure 5: Investment Opportunity in Minor Ports of South India, Source: Maritimeagenda 2020, Ministry of Shipping

The investment required is also very huge, compared to other three states.

Business Opportunity

Shipping Corporation of India plans to acquire 110 vessels of 5.21 million gross

tonnage (GT) at an estimated cost of Rs 27,668 crore in next 10 years. The Shipping

Corporation is likely to place orders for 26 vessels by 2011-12.

Government is preparing a policy to bring in private players in the sphere of

underground excavation in the marine sector; thereby ending the monopoly of the

state owned Dredging Corporation of India DCI.

The Visakhapatnam Port Trust will award contracts worth Rs 2,000 crore in thecurrent fiscal for mechanisation and dredging to help augment the capacity of India's

second-largest port by 36%.While six projects would be taken up to develop berths

through public-private partnership, two are dredging projects using internal

resources.

15 projects are under development at the three major ports of Tamil Nadu -- Chennai

Port, Ennore Port Ltd Tuticorin Port, at an estimated cost of Rs 3,952.75 crore. The

government has approved three more projects at these three ports with an envisaged

investment of Rs 665 crore

The Public sector Cochin Shipyard Ltd is proposing to expand its existing capacity

through a shiplift system with an investment of Rs 500 crore. The new system is

likely to come up at the northern end of the CSL estate and would be 120 metres

long and able to accommodate ships up to 6,000 tonnes.

New Mangalore Port Trust will build a new berth and invite the private sector to install

the necessary infrastructure for handling container cargo. Besides, it has also

decided to float fresh tenders from the private sector for providing infrastructure like

cranes and other equipment for handling container cargo separately. The cost of

building the new berth is estimated at Rs 50 crore.

The Kerala Government is expected to request Petronet LNG Ltd to enhance the

installed capacity of its LNG Terminal in Kochi to 15 MMTPA from the existing

5MMTPA.

The Industry expects the demand of LNG would be 25 MMTPA in the year 2015,

while supply from LNG terminals in Dahej, Surat and Kochi will be in the range of

17.5 MMTPA.


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The Gangavaram Port is about to increase its capacity from 31 MT to 45 MT, by

spending Rs 1200 Crore. It has planned to raise Rs 900 crore through lenders and

Rs 300 crore by promoting equity.

Development of Port at Tadadi, Uttara Kannada at an estimated project cost of Rs

3000 Crore

Projects:

Some of the port projects under planning/bidding through BOT structure are

Project Name Department/Agency Est. Cost (In

Rs Crore )

Installation of Mechanised handling facilities for

fertilizers at EQ 7 in the Inner Harbour

Visakhapatnam Port 217.58

Development of WQ 7 for handling Import Dry bulk

cargo


Development of WQ 8 for handling break bulk cargo

and export bulk cargo


Installation of Mechanised Iron Ore handling

facilities at WQ-1) in the northern arm of Inner

harbour of VPT for handling Dry bulk cargo


Creation of Mega Container Terminal Chennai Port 3686.0

Development of RO-RO cum multi-purpose berth &

car parking at Bharthi Dock

Chennai Port 100.00

Development of Barge jetty at Bharthi Dock Chennai Port 25.00

Construction of Shallow draft berth for handling

cement

VOC Port, Tuticorin 86.17

Upgradation of mechanical handling equipments in

berth no.1 to 6 and berth no.9


Constn. of shallow draught Berth(2 Nos) for handling

construction materials


Conversion of berth no- 8 as Container Terminal VOC Port, Tuticorin 312.23


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Development of NCB-III for handling thermal coal &

rock phosphatat V.O.C. Port Trust


Development of NCB-IV for handling thermal coal &

Copper concentrate.


Container of container truck parking terminal, CFS &

Elevated Express way


International Bunkering Terminal - Construction of

Multi-purpose Liquid Terminal

Cochin Port 206.30

Source: Ministry of Shipping

Civil Aviation

Indian aviation sector is one of the fastest growing aviation in the world. The open sky policy

has led to many overseas players entering the market and industry has been growing both in

terms of players and numbers of aircrafts. Indian Civil aviation is the 9 th largest aviation

market in the world. It is predicted that international passengers are expected to grow up to

50 million by 2015.

The Vision 2020 statement created by the Ministry of Civil Aviation, envisages creating

infrastructure to handle 420 million passengers by 2020. Investment opportunities of US$

110 billion envisaged up to 2020 with US $ 80 billion in the new aircraft and US $ 30 billion

in the development of airport infrastructure.

Government initiatives

The Government of India (GoI) has approved the policy for Greenfield airports in April

2008 to enable the development of Greenfield airports in the PPP mode.

The Planning Commission has also developed a model concession agreement

(MCA) to enable state governments to develop Greenfield airports under the PPP

mode.

The GoI has allowed 100 per cent FDI under the automatic route for Greenfield

airports.

For existing airports, 100 per cent FDI is allowed. However, for FDI exceeding 74 per

cent, approval is required from the Foreign Investment Promotion Board (FIPB).


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The capital expenditure is funded through private equity, borrowings, and internal

resources of joint venture companies.

As per the Economic Survey of 2010-11, out of 35 airports granted in 2006, 11 have

been completed, while the remaining are under implementation.

The adoption of Open Sky Policy has resulted in the entry of several new privately

owned airlines and increased frequency / flights for international airlines.

South India- performance and future

For the past four years, South India is the only region which is dominant in handling Aircraft

traffic. (Figure 1).The region handled nearly 4.5 lakh of aircraft during the financial year

2010-11. It is followed by western region and northern region, who handled nearly 4 and 3.5

lakh aircrafts during the same period. But, for the past two years, Unlike in Northern region,

there is no prominent growth in the aircraft traffic in the south India. It is a sign of maturation,

and it could be handled by expanding the airports, in order to increase more aircraft

movement in the region. Northern region is having enormous growth in handling aircraft

traffic.

Figure 2: Aircraft traffic in various region of India. Source: AAI

Revenue is generated by the passenger traffic and freight traffic in the region. In terms of

passenger traffic, there is a close completion between the southern region and western

region (Figure 2). For the past too years, there is a huge growth in the passenger traffic in

the entire region of the country. It shows the interest of the travelers in choosing aircraft as a

mean. This is the right time to develop and expand airports, for exploiting the opportunity.

The Southern region handled passenger traffic of around 45 million.


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Figure 2: Passenger traffic in various region of India. Source: AAI

In term of freight traffic, again there is a competition between southern and western region.

Until July 2009, the western region performed well in handling freight traffic. It does not last

for long. Since the period, Southern region dominated the freight market. The southern

region handles nearly 8 lakh tons of freight traffic, which is followed by western region who

accounts for around 7.5 lakh tons, during 2010-11. ( Figure 3)

Figure 3: Freight traffic in various region of India. Source: AAI

South India- International Airports & their share


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South India consists of three international airports, three joint venture international airports,

three Custom airports and few more domestic airports. Joint ventures in development of

airports have been successful in South India. Out of six joint venture airports, three of them

are in South India.

The International airports in South India accounts for 90 per cent of South Indias passenger

traffic and 98 per cent of the regions freight traffic. So, let us track the performance of these

six airports, in order to explore new opportunities.

Figure 4: Passenger traffic in International Airports of South India. Source: AAI

In terms of Passenger traffic, Chennai and Bangalore international airport are having a close

competition for the past four years. As on March 2011, Chennai airport lead the Bangalore

airport in terms of passenger traffic. The passenger traffic of Chennai and Bangalore Airport

is around 12 million and 11.5 million respectively. Hyderabad Airport is also showing a

positive sign for picking up.


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Figure 5: Freight traffic in International Airports of South India. Source: AAI

With respect to freight traffic, Chennai Airport is the leader in South India. The Airport

handles nearly 3.9 lakh tons of freight, during 2010-11. It is followed by Bangalore airport

with around 2.2 lakh tons during the same period.

State- wise Airport and their expansion plan.

Andhra Pradesh has 6 functional airports. The development of Hyderabad International

airport has been developed on PPP mode as Greenfield airport

Begumpet airport is suitable for operation of aircraft B747. Apron has enough space to park

13 aircraft at one time. Hyderabad has got a new airport managed by GHIAL.

Rajahmundry Airport can support operation of aircraft up to ATR72. Apron has space for

parking 2 ATR72 at one time. With construction of new terminal building at the airport, the

peak hour capacity will increase to 336 from current capacity of 120. Recent development is

construction of an air traffic control tower and a fire station

Tirupathi airport can support operation of aircraft up to A321s. Apron can park two A321s

and one ATR72 at one time. The current terminal building is suitable for 250 passengers at

one time; the new integrated one which is under construction would have a peak hour

capacity of 700. A new instrument landing system is being installed. An air traffic control

tower and a fire station is at the planning stage

Vijayawada airport can support operation of aircraft up to B737. The old Apron can park two

A320s at one time and the new apron can accommodate five A321s. Peak hour capacity the

terminal building is 75 passengers


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hours. The parking space is sufficient to house three ATR-72-500s at one time. New air

traffic control tower is being constructed.

Tamil Nadu has six airports. Modernization of Chennai airport was under way with theAirports Authority of India (AAI) spending an estimated US$ 446 million, respectively.

In Chennai airport, Flights leave for 21 international and 24 domestic destinations from

International Airport at Chennai. It has runway suitable for operation of aircraft up to B747.

Apron has total parking space of 66 aircraft on domestic side and 10 on international side.

Peak hour capacity to handle customers is 96 in Kamaraj Domestic Terminal, up to 2300 in

Anna International terminal and 3300 in integrated new domestic terminal. A new integrated

cargo complex is in the last phase of construction.

The modernization and expansion of Chennai airport is in full swing. In all probability the new

facilities at the revamped Chennai airport is likely to be thrown open to the travelling public

by the last quarter of 2011 as work is going on great speed. The project cost has been

revised to Rs 2015 crore and will include a new domestic terminal spread over an area of

76,000 sq mt and an international terminal in 68000 sq mt even as the existing terminals will

continue to be used for passenger traffic.

Coimbatore airport is a customs airport and is suitable for operation of aircraft up to A321.

International flights leave for two destinations from this airport: Sharjah and Singapore.

Apron can park three aircraft on domestic and international side each. Peak hour capacity at

the existing domestic terminal is 240 passengers. International terminal is under construction

and will have a capacity of 385 passengers once completed.

The construction of a new terminal building for international operation in Madurai, which can

accommodate 700 passengers during peak hours, has just been completed. Construction of

a new ATC building and fire station has been planned. The runway at this airport is capable

of operation of aircraft up to A321s. Seventy-three weekly flights are being operated by

different service providers for the destination: Bengaluru, Chennai and Mumbai. The old

apron can park five aircraft at one time and the new one can park two A321s. The present

terminal building can house 108 passengers during peak hours.

In Salem, the major development works, extension of runway and allied facilities has been

planned. The Present runway can handle operation of aircraft up to ATR72s. The apron at

this airport can park two ATR72s at one time and the terminal building can house 83

passengers at most.


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Tiruchirapalli airport is a custom airport. Several airlines operate 24 domestic flights for the

destination: Chennai and Trivandrum. At this airport, 47 international flights are also being

operated. Runways at this airport can support operation of aircraft up to A321-200s or B767-

200s. The terminal building can house 471 passengers during peak hours. Domestic apron

can park three A321s at one time and the international one has space for four aircraft.

Award of Greenfield Airports

S No Name of the Project Name of the

Promoters

Estimated

Investment (Rs. in

crore)

1 Bijapur Airport, Kamataka State Government 24.31

(Initial phase)The Steering Committee has granted "in-principle" approval to Bijapur project subject to

conditions that Standard Operating Procedure (SOP) would be formalized between DGCA,

AAI and Ministry of Defence regarding air space management for the airport at Bijapur in

view of the existing defence operations at Pune and Bidar. The SOP is under finalization.

The land acquisition is under process.

2 Gulbarga

Airport,

Kamataka

State Government 13.78

(Initial Phase)

The Steering Committee has granted "in-principle" approval to Bijapur project subject to

conditions that SOP would be formalized between DGCA, AAI and Ministry of Defence

regarding air space management for the airport at Gulbarga in view of the existing defence

operations at Pune and Bidar. The SOPis under finalization. The required land for project in

respect of Gulbarga has been acquired by the Government of Kamataka.

3 Hassan Airport, Kamataka State Government

State Government has acquired the required land for the airport project.

4 Simoga Airport, Kamataka State Government 38.91

(Initial phase)

The required land for project in respect of Simoga airport has been acquired by Government

of Kamataka.

5 Kannur International Airport,

Kerala

M/s KINFRA Rs.929.50

The project is being implemented through a separate corporate entity in which the

Government or Government agencies have 26% equity holding, 74% of the equity is to be

held by the developers or a consortium with the principal developer as the consortium leader.

M/s KINFRA has intimated that the final proposal for selection of Technical, Financial and


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Legal Consultants for preparation of RFP/RFQ documents for selection of Joint Venture

Developers has been submitted to State Government in April, 2009 for approval, which is

awaited.

Monitorable Targets & Milestones for 2010-11 -Infrastructure sector: Planning Commission,

Government of India

Telecom

The Indian Telecom sector has witnessed a laudable growth over the past 2 years. It has an

overall subscriber base of 787.29 million and a tele density of 66.17%, at the end of

December, 2010. With the urban tele density reaching approx 150%, the market has been

showing signs of maturity. Rural India is the key target market likely to drive the next round

of growth, particularly for voice based services. It is envisaged that rural tele density of 40%

would be reached by end of 2014.

3G and BWA are expected to reinvigorate the maturing urban markets and help in bringing

balanced growth of economy. The aggressive growth observed by mobile services is yet to

be replicated in case of broadband service, where the subscriber base currently stands at

about 11 million. The successfully concluded auction of the BWA and 3G spectrum will

enhance the wireless broadband penetration across the country and help to connect the

remotest locations across India. The government has a vision to provide telephone

connection and broadband facilities on demand across the country and at an affordable price

and it strives to achieve the same.

Achievements of Indian Telecom Industry

India has the second largest wireless network in the world after China.

The target of 600 million telephones by the end of 11th five year plan has been

achieved in February, 2010 itself.

Performance of the private players

The share of private sector in total telephone connections is now 84.60% as per the

latest statistics available for December, 2010 as against a mere 5% in 1999.

The fruits of the liberalization efforts of the Government are evident in the growing

share of the private sector.


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Focus area to tap

Data based services like third-generation (3G) and Broad band wireless

access( BWA) for matured urban market

Voice based services for rural Market

Subscriber base in South India

Figure 3: Subscriber base in South India, Source: Department of Telecommunication, ason December 31, 2010

Percentage of Share

State/ Region

Share of Wire

line in the

Country

Share of

Wireless in the

country

Andhra Pradesh 6.8 7.6

Karnataka 7.8 6.1

Kerala 9.4 4.0

Tamil Nadu 10.0 8.9

Southern region 39.9 33.8India 100.0 100.0

Source: Department of Telecommunication, as on December 31, 2010

South India has a share of nearly 40 per cent of the countrys wire line connection and one-

third of wireless connection. The region has wire line and wireless connection of around 13.9

million and 254 million respectively. It has played a significant role in the growth of the

country.

In south India, Tamil Nadu is the leader in wire line connection, which accounts for 10 per

cent of the nations wire line connection. The state is followed by Kerala, Karnataka and

Andhra Pradesh with 9.4, 7.8 and 6.8 per cent respectively.


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Similarly, Tamil Nadu is the leader in wire less connection, with a share of 8.9 per cent of the

nations wire less connection. Now, Andhra Pradesh overtook Karnataka and Kerala with a

share of 7.6 per cent. Karnataka and kerala account for 6.1 and 4 per cent respectively.

Wire line Vs Wire less

Share of Wire line in the state Share of Wireless in the state

Andhra Pradesh 4.0 96.0

Karnataka 5.6 94.4

Kerala 9.9 90.1

Tamil Nadu 5.0 95.0

Southern region 5.2 94.8

India 4.5 95.5

Source: Department of Telecommunication, as on December 31, 2010

Figure 2: Share of Wire line and Wireless Connection, Source: Department ofTelecommunication, as on December 31, 2010

94.8 per cent of South Indias subscribers have wire less connection, against the nations

share of 95.5 per cent. Andhra Pradesh is the state, which has the highest per cent of

subscribers using wire less connection in the south India. Nearly 96 per cent of the

subscribers use wire less connection.

From the table, it is evident that, Kerala is the only state in southern region which has nearly10 per cent of wire line connection and 90 per cent of wire less connection. The share of

wire line connection is relatively high, compared to the other south Indian states. It could be

due to the inadequate participation of private players in the state.

Number of Subscribers in Urban and Rural part of South India


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Figure 3: Telephone connection in Urban and Rural region of South India, Source:Department of Telecommunication, as on December 31, 2010

Note: Chennai is considered as a separate circle. * Chennai is excluded.

In South India, Tamil Nadu has the large number of subscribers, followed by Andhra

Pradesh, Karnataka and Kerala with around 59.4, 48.7 and 33.4 million subscribers.

Tele Density in Urban and Rural region of South India

Figure 4: Tele density in Urban and Rural region of South India, Source: Department ofTelecommunication, as on December 31, 2010

Tele density of South India is higher than that of India. Kerala has recorded 96.67 per cent of

overall tele density, 228.94 per cent of urban tele density and 51.26 per cent of rural tele

density. Lowest tele density was recorded in Andhra Pradesh with an over all tele density of70.27 per cent.


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Growth of Tele density in South India

Tele density in south India is growing at an enormous speed. The following charts show the

growth of tele density in the past nine months, from March 2010 to December 2010.

Figure 5: Growth of Tele density in just 9 months, Source: Department of

Telecommunication, as on December 31, 2010

In terms of Overall tele density, all the south Indian states show a rapid growth in the overall

tele density. When it comes to urban tele density, Kerala is showing enormous growth,

compared to other South Indian states.

Figure

6: Growth of Urban Tele density in just 9 months, Source: Department of


Even in the case of rural tele density, there is good growth rate. It shows the uniform growth

of the sector in all the parts of the region.


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Figure 7: Growth of rural Tele density in just 9 months, Source: Department of


Number of villages with direct access to telecom facilities

Fi

gure 8: Percentage of Villages covered by VPT, Source: Department of


In South India, 97.8 per cent of villages are covered by village public telephone facility,

against the nations share of 96. Andhra Pradesh is the only state in South India, where only

89 per cent of the villages have the facility though they are backed up by the private players


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with 1408 connections. Remaining states are doing exceptionally well, by covering 99 to 100

per cent of the villages in their respective region.

Opportunity

The telecom ministry is likely to provide rural wireless broadband connections to over5 lakh villages all over the country in one-and-a-half years and will provide a subsidy

to both state-owned and private service provider operators from the Universal

Service Obligation Fund for this purpose.

The sector will witness up to US$ 55.95 billion investments and the market will cross

the US$ 100 billion mark in 5 years. The industry will grow at 12-13 per cent annually

The share of Value-Added Services (VAS) in wireless revenue is likely to increase to 12-13

per cent by 2011. Currently it accounts for 10 per cent of the total revenue from wireless

industry, with a share worth US$ 2.45 billion-US$ 2.67 billion.

Power

South Indias total power demand is currently 33 GW, while available capacity is 31 GW.

However, there has been limited addition to the total capacity in the last three years. For

instance, Tamil Nadus power generation capacity has remained flat at 5,600 MW from 2007

to 2010, while demand has grown at an average of 12 per cent annually. Further, the high

prices of coal and LPG over the past 3 years have made captive power plants expensive

and unviable for industries.

The total installed capacity of India is 174361.4 MW as on April 30, 2011. The southern

region accounts for 27.6 percent of it.

The region is the market leader in the diesel thermal generation and renewable energy

source with an enormous share of 78.3 and 50.6 per cent respectively. Tamil Nadu acts as a


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role model to the nation in the development of renewable energy sources. The share of

Tamil Nadu alone is 31.50 per cent of the total countrys share. Renewable energy source,

which is also called as clean energy source is very much welcomed by the nation, to keep

the environment clean. Power generation through Hydro, which is also considered as a

renewable source is adopted in the region, whose share is 30 per cent. Andhra Pradesh and

Karnataka are two states in the southern region, who are dominant in the generation of

Hydro power generation.

REGION Share of South India in Per cent

THERMAL

Coal 21.6

Gas 26.5Diesel 78.3Total 23.0

Nuclear 27.6

HYDRO (Renewable) 30.1

R.E.S.@ (MNRE) 50.6

TOTAL 27.6

RES -Renewable Energy Sources includes Small Hydro Project(SHP), Biomass Gas(BG),

Biomass Power(BP), Urban & Industrial waste Power(U&I), and Wind Energy.
mailto:R.E.S.@%20(MNRE)mailto:R.E.S.@%20(MNRE)


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The Southern Region has 48073.3 MW of power generation capacity. Tamil Nadu leads by

contributing 34 percent of generation capacity of 15515.43 MW, which is followed by Andhra

pradesh, Karnataka and Kerala, with 33, 25 and 8 per cent respectively.

Exhibit 1.2: Source: CEA Exhibit 1.3: Source: CEA

Nearly 30 percent of the regions generation capacity is contributed by the private sector.

The contribution of private sector is in a growing phase.

Supply- Demand statistics gives a clear picture of the need for more private players in the

sector. The State wise peak deficit is as follows. The Peak deficit of Tamil Nadu is very high

compared to other southern states, with a peak deficit of 11 per cent. It is followed by

Karnataka with 7.3 per cent of deficit. Andhra Pradesh and Kerala have a deficit of 6.3 and

5.8 per cent respectively.


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Similarly, State wise energy deficit is tabled below. The Energy deficit is high in Karnataka

with 7.6 percent, followed by Tamil Nadu, Andhra Pradesh and Kerala, with 6.5, 3.2 and 1.4

percent respectively.

Due to the rapid increase in demand and slow increase in the supply, the southern region is

facing load shedding problem. For an instance, during the month of April 2011, Southern

states includes Andhra Pradesh, Karnataka, Kerala, Pondicherry and Tamil Nadu had load

shedding up to 1808, 1250, 300, 44 and 3191 MW respectively.

On the overall view, Southern region has an energy deficit of 5.2 per cent against the

nations energy deficit of 8.5 per cent. Similarly, the region has the peak deficit of 6.4 per

cent against the nations peak deficit of 9.8 per cent. The region accounts for 14 and 15 per

cent of Indias energy deficit and peak deficit respectively.


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With per capita power consumption slated to grow from 900 KWh to 1,400 KWh, base

demand for power in South India is likely to be around 50 GW, peaking to 75 GW in 2020.

Satisfying this incremental demand will require an investment of USD 50 billion to USD 70

billion. Tamil Nadu will lead the demand for power and the 2530 GW need requires a USD

20 billion to 25 billion investment. Similarly, Andhra Pradesh will require 2530 GW and USD

15 billion to USD 20 billion, Karnataka 1015 GW and USD 10 billion to 15 billion, and

Kerala 510 GW and USD 5 billion to USD 10 billion.

The central government's Eleventh and Twelfth Plans envisage USD 350 billion to 400 billion

investment in the power sector for India. These investments will generate 100 GW of

additional capacity, and while India is expected to be base demand surplus, it will continue to

have a peak demand deficit in 2020. This trend will continue in South India too, and willrequire a concerted set of actions to be undertaken by the State Electricity Boards (SEBs)

and government. There are multiple ways to overcome the peak demand deficit as follows:

Relax cap on power trading margins to see increased liquidity and allow many

merchant power licensees to start trading operations.

Remove transmission bottlenecks by allowing open access to merchant power selling

outside the state.

The Kerala Government will also formulate proactive measures for setting up a 1200 MWpower plant using LNG as the feed stock in Kochi.

State run Rural Electrification Corp has invited technical bids from domestic andinternational developers to award Rs 1,300 crore contract for laying transmission system inAndhra Pradesh.


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Introduce measures to improve SEB profitability (e.g., removal of pump set

subsidies).

Encourage the addition of peaking hydro-power capacity and scale up the addition of

renewable energy beyond wind power, particularly solar energy.

Address transmission and distribution losses through the creation of franchisee

models in distribution (e.g., Maharashtra State Electricity Distribution Co. Ltd

selected Torrent Power Company as a franchisee in 2007 to distribute electricity in

Bhiwandi, Maharashtra for 10 years).

Contribution of Private players

Private players accounts for 37496.19 MW of generation capacity in India. Out of which,

39.75 percent are in Southern region. It shows the interest of private sector players in

starting a power generation plant in southern region.

Karnataka has the index to improve from 700 KWH/Capita to 1400 KWH/Capita (by

FY 2017)

Capacity addition from 12146(FY 2011) MW to 18500 MW (by FY 2020)

Required Investment: Rs 80,000 Crore by FY 2020


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Source: CEA Exhibit 1.6 Exhibit 1.7

In southern region, Private players were keener in printing their foot step in Tamil Nadu. 48

per cent of generation capacities of the private players from southern region are in Tamil

Nadu. They showed more interest on Renewable energy source with 5812.61 MW of

generation capacity.

Contribution of Private Players in Southern region in terms of generation capacity (MW) is as

follows.


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The above diagram clearly explains that, private players are dominant in generating

renewable energy source in the state of Tamil Nadu and Karnataka with a share of 83 and

55 per cent respectively. These players were very keen in generating power through thermalsource with gas as fuel, in the state of Kerala and Andhra Pradesh with a share of 89 and 84

per cent respectively. Private players should come forward to produce power through

renewable energy sources in Andhra Pradesh and Kerala. Nowadays, electricity through

renewable energy is very much welcomed in the country, because of its positive impact on

the environment.

Opportunity

Power Transmission

India aims to add 17,000 MW of renewable energy in the 12th

Five-Year Plan,which would require Rs. 1.5 trillion ($33.6 billion).

The country offers cheap loans to companies building alternative energy power

plants and provides tax breaks and tariff subsidies to encourage development of

the renewable industry.

India could produce 45,000 MW of additional solar power, taking total solar

power generation to 67,000 MW, by 2022.

Solar power prices may drop by 7% a year over the next decade. Cheaper solar

power will help cut coal imports by 30%, or 71 million tonnes a year.

Karnataka have been identified as the states that receive enough sunlight

throughout the year to merit large commercial solar plants. Coastal parts of

Kerala, Andhra Pradesh are ideal states to set up small plants for domestic use.


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The requirement for power transmission in southern region is also in demand. The following

table gives you an overview of the target fixed by the respective states in laying transmission

lines for the year 2011-12.

RESULT FRAMEWORK DOCUMENT (RFD) TARGET 2011-12: TRANSMISSION LINES

SUMMARY

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual

Andhra Pradesh 60 56 254 144 514

Karnataka 61 584 653 0 1298

Kerala 0 12 40 54 106

Tamil Nadu 79 290 0 280 649

Southern Region 200 942 947 478 2567

Opportunity

Power Transformation

The following table gives you an overview of the target fixed by the respective states in

adding transformation capacity for the year 2011-12.

RESULT FRAMEWORK DOCUMENT (RFD) TARGET 2011-12: TRANSFORMATION

CAPACITY

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual

Andhra Pradesh 200 160 680 0 1040

Karnataka 200 300 600 0 1100

Kerala 0 0 200 450 650

Tamil Nadu 100 630 200 100 1030

Global tariff bids to award contracts for laying five mega transmission lines worth Rs 6,485

crore.

The projects would be bid out by state-run Power Finance Corporation (PFC) and

Rural Electrification Corporation (REC).

It includes transmission systems to evacuate power from projects at Nagattipatnam in

Chennai and Vemagiri in Andhra Pradesh to Kolhapur in Maharashtra and Jabalpur in MP.
http://economictimes.indiatimes.com/power-finance-corporation-ltd/stocks/companyid-4519.cmshttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/rural-electrification-corporation-ltd/stocks/companyid-4616.cmshttp://economictimes.indiatimes.com/power-finance-corporation-ltd/stocks/companyid-4519.cms


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Southern Region 500 1090 1680 550 3820

Opportunity

Projects

S No Power Projects Estimated Cost

1 Ennore SEZ Thermal Power Project (2X800 MW) Rs.8000 crores

2 NCTPS Stage III Thermal Power Project (1X800 MW) Rs.4000 crores

3 Nagapattinam Ultra Mega Thermal Power Project (4000 MW) Rs.20000 crores

4 Cheyyur Ultra Mega Thermal Power Project (4000 MW) Rs.18000 crores

5 Thiruvadanai Thermal Power Project (2 x 800 MW) Rs.9600 crores

6 Utharakosamangai Thermal Power Project (2 x 800 MW) Rs.9600 crores

7 Udangudi Thermal Power Station- 2 x 800MW Rs 9083 Crores

8 Kattupalli TPS at SEZ in Tiruvallur District (2X800MW) Not Available

9 Ennore annexe (1X600 MW) Not Available

10 700 MW Gas based power project - I: Davangere Rs 2800 Crore

11 700 MW Gas based power project - II: Belgaum Rs 2800 Crore

12 700 MW Gas based power project - III : Gadag Rs 2800 Crore

The Koodankulam power plant (2X1000 MW) and Neyveli thermal power station stage II

expansion are yet to be commissioned.

The TANGEDCO has proposed to raise funds by way of private placement of bonds for

Rs.500 Crores with option to retain over subscription up to Rs.900 Crore throughTANGEDCO Bond Series 1/2011-12 with Government Guarantee for the Financial Year2011-12 to invest in the capital expenditure of on going Generation, Transmission andDistribution Network.

infrastructure opportunities in south india

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