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Siemens Limited approves set for sale of Mechanical Drives business

  • New Delhi (Metro Rail News) – The Board of Directors of Siemens Limited has approved the sale and transfer of its Mechanical Drives (MD) business for a consideration of Rs. 4,400 million (Indian Rupees Four Thousand Four Hundred million) to Flender Drives Private Limited, subject to adjustment for the change in net current assets and capital expenditure, subsequent to June 30, 2020, up to the date of actual transfer of the MD business.

“The consideration has been arrived at on the basis of an independent valuation, recommended by the Committee of Directors and the Audit committee”, a statement by the company said.

“The sale and transfer of MD business is as going concern and on a slump sale basis, with effect from January 1, 2021. The same is subject to receipt of requisite statutory and regulatory approvals, as applicable”, it said.

The MD business within Siemens Limited achieved a Revenue of Rs. 6,838 million for FY 2019 and had an operating loss of Rs. 553 million.

“Potential growth in this business will require substantial Capex and moreover, there are no synergies with the existing businesses of Siemens Limited. Keeping the interests of the shareholders in mind, the Board of Siemens Limited has approved the sale of this business to Siemens AG which has also announced their intention to publicly list this business via a spin-off”, said Mr. Sunil Mathur, Managing Director and Chief Executive Officer of Siemens Limited.

The land was given to Kochi Metro free of cost with permission to sell

Kochi (Metro Rail News): The land which was allotted to the Kochi Metro Rail Limited (KMRL) for compensating their losses due to the Kochi Metro service, has been titled to them for free.

The 17.315 acres of land which is worth Rs 138.38 crore as fair price was given in 2012 based on the condition that they should pay the price after 30 years. This land was titled to them free of cost in 2018.

The actual price of the land is over Rs 200 crore. The condition that the land can be sold only after 12 years also was avoided. Now the authorities are trying to give them an additional 16 acres of land in the same way.

The actions are taken in the name of the agreement with the central government that the state should provide land to KMRL for acquiring Rs 98 crore through land development. The land could have been given for lease.

17 acres of land given for free

Earlier, it was decided that the 17.315 acre out of the 33 acres of land owned by the PWD in Kochi can be titled to KMRL for Rs 83.95 crore. This amount will be considered as a loan granted to the KMRL and will allow moratorium for 15 years. After this, they have to pay an interest of 5 percent. After 30 years, the amount should be re-paid as 5 equal instalments.
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However, KMRL sought permission to sell the land in order to reduce their liabilities. Despite the disagreement from the revenue department, a committee of the secretaries headed by the chief secretary took a decision favourable to the KMRL.

Thus according to the cabinet decision, the land was titled to them without any condition including paying the price. The order was issued in December 2018. The state should have helped the KMRL to earn Rs 98 crore as per the agreement made with the Centre. But the state government gave them land worth over Rs 138 crore for free.

Now, the KMRL has requested 16 more acres of land owned by PWD in Kochi. The rest house and other buildings of the PWD are situated on this land. The concerned departments have opposed the move to grant them 16 more acres of land.

DPR for Varanasi Light Metro in Varanasi to be reviewed in Sept

Varanasi (Metro Rail News): The detailed project report on Comprehensive Mobility Plan (CMP) phase-I, submitted by Rail India Technical and Economic Service (RITES) in December 2019, for an urban Light Rail Transit (LRT) system transit system in Varanasi will be reviewed in the first week of September.

In its report, RITES has proposed a light Metro corridor between BHEL (Tarna) and BHU (Lanka) after the proposal for Metro sanctioned in 2015 was not found feasible for the old city area and was discarded in June 2019.

Since Metro rail was not found feasible and discarded, RITES was asked to suggest alternatives keeping the topography of the city in mind and has proposed light Metro on one stretch.

“As mass rapid transit system projects entail heavy investment, the government wants to ensure it is feasible, effective and serves the needs of people while keeping in mind the ground realities of this congested city so that it doesn’t become a liability,” said Divisional Commissioner Deepak Agarwal.

The next review is scheduled in the first week of September and will be attended by principal secretary (housing) Deepak Kumar, UPMRC managing director Shri Kumar Keshav, officials of RITES and local authorities according to sources.

Hyderabad Metro loss estimated at RS 260 Crores

Hyderabad (Metro Rail News): As a result of nationwide lockdown, the Hyderabad Metro officials had to suspend its operations on May 22. However, no one knew that it would take such a long time for operations to resume again. Metro operations across the country continue to remain suspended owing to the COVID-19 pandemic. However, Hyderabad Metro officials are eagerly waiting for the Centre’s nod to begin operations.

L&T operates the Hyderabad Metro Rail project. According to the annual report of L&T Metro Rail (Hyderabad) Limited, the revenue from operations and other income for the financial year 2019-2020 under review stood at Rs. 598.20 crores (including fare and non-fare revenue). This means Rs 1.63 crore was the daily revenue generated in the 2019-2020 financial year. Until Saturday, L&T has its operations suspended for a total of 160 days and counting, which translates to an estimated loss of more than Rs 260 crore.

In the annual report, it is also mentioned, “The impact of the lockdown owing to COVID-19 pandemic currently can’t be assessed as on the date of closing of the books of accounts as the lockdown is still continuing and there is no clarity on the resumption of operations and amidst with what restrictions. Also, the consequent impact on the financial position and results of the Company for future periods cannot be assessed at present.”

With around 160 days having passed since the Metro operations were suspended in Hyderabad, the L&T staff are eagerly waiting for the Centre’s nod for operations to begin. “We are waiting for the required permissions to begin operations. Even if asked to resume operations from tomorrow, we are ready”, said one official.

While the losses are mounting, it is important to point out that it is likely that L&T Metro Rail (Hyderabad) Limited may invoke the force majeure clauses of the Concession Agreement.  In the annual report it is mentioned that the company is protected by the force majeure clauses of the Concession Agreement.

Manipur, Mizoram and Nagaland to get rail connectivity by 2023

New Delhi (Metro Rail News): The North-east Frontier Railways (NFR), which has already connected Assam’s main city Guwahati (adjoining capital Dispur), Tripura and Arunachal Pradesh’s capital cities, is laying tracks to connect the capital cities of three more north-eastern states Manipur, Mizoram and Nagaland by March 2023.

The first train in the north-east region chugged out from the industrial city of Dibrugarh in eastern Assam 138 years ago. NFR’s General Manager Sanjive Roy said new railway lines were laid to extend the railway lines in three more capital cities of northeast India Imphal (Manipur), Aizawl (Mizoram) and Kohima (Nagaland) excluding Meghalaya’s Shillong and Sikkim’s Gangtok.

“The work to lay the broad gauge railway line has been progressing well in Manipur, Mizoram and Nagaland. There are some land-related and other environmental problems in Sikkim and Meghalaya, causing the delay in extending the railway networks in the two hilly states,” Mr. Roy was reported saying.

The NFR General Manager said that the government had sanctioned electrification of railway lines in the region and tender-related work was being undertaken for the purpose. He said, “The works for the 12.23-km Agartala (Tripura)-Akhaura (Bangladesh) new railway lines are underway and it would be completed by March next year.”

The Agartala-Akhaura railway line would facilitate ferrying of goods to and from both the countries and greatly benefit India’s land-locked north-eastern states. The journey time between Agartala and Kolkata via Bangladesh would be reduced by a third, from 1,613 km through mountainous terrain to only 514 km.

Linking with the existing Agartala railway station, of the 12.23 km India-Bangladesh new railway line, 5.46 km railway tracks were laid in India (on the outskirts of the capital city Agartala) and 6.57 km railway line laid on the Bangladesh side.

The Rs 972-crore project was finalised in January 2010 when Bangladesh premier Sheikh Hasina met the then Indian Prime Minister Manmohan Singh during her visit to New Delhi.

Spending Rs 1,150 crore, the NFR had extended the railway lines up to two bordering sub-divisional towns — Sabroom and Belonia — both cities situated along the Bangladesh border, facilitating the link with the railway networks of the neighbouring country.

NFR’s Chief Public Relations Officer (CPRO) Subhanan Chanda said although the NFR has been able to make headway in most of the N-E states with rail connectivity, Sikkim was still left out of the Indian railway map.

“Work for providing rail connectivity was sanctioned for Sikkim way back in 2008-09. The work could not make much headway due to various environment-related issues as the proposed railway line would pass through the Mahananda wildlife sanctuary. This is a national project and is very important for overall development of the state of Sikkim. Once completed it is expected to boost connectivity of the land-locked state which shares its border with three neighbouring countries — China, Nepal and Bhutan — apart from being strategically important,” Chanda said.

According to the CPRO, of the 44.96-km stretch, 41.55 km fall in West Bengal and 3.41 km in Sikkim. The entire section is being constructed using the latest technology so that trains can run at a speed of 100 kmph. The anticipated project cost would be nearly Rs 8,900 crore of which nearly Rs 335.52 crore have already been utilised till July 2020.

Yediyurappa to Flag off First RORO Train from Bengaluru to Solapur on Sunday

Bangalore (Metro Rail News): The proposed ‘Roll On Roll Off’ (RORO) train between Bengaluru and Solapur in Maharashtra consisting of the open flat wagon on which trucks with goods are loaded is scheduled to start from Sunday, the South Western Railway said in a statement. In a statement, the SWR said Karnataka Chief Minister BS Yediyurappa will flag off the RORO train from Nelamagala station on the city outskirts at 9:15 am on Sunday.

He will be accompanied by Union Minister of State for Railways Suresh Angadi, State Revenue Minister R Ashoka and senior Railway officials. The SWR said, “The driver and cleaner of the lorries sit in their vehicles. They are dropped at a particular pointfrom which they drive off.”

As many as 42 trucks with goods can be carried at time in this train. The train will run via Dharmavaram, Guntakal, Raichurand Wadi to reach Bale near Solapur in Maharashtra.

According to SWR, the RORO service reduces accidents on the road, improves safety, saves fuel, and foreignexchange.
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It ensures faster transport of essential goods, perishables, food items and smaller cargo, it said.

While it facilitates large-scale movement of goods and reduces pollution, the cost of transport is lesser than transport by road.

West Bengal Government Writes to Railway Board for local trains

Kolkata (Metro Rail News) – The West Bengal government has written a letter to the Railway Board, stating that metro and local train services can be resumed in a limited manner in the state but with all health safety protocols. The government also requested the board to put in place the required logistics for smooth operations of the services.

In a letter to the Railway Board chairman, state Home Secretary Alapan Bandyopadhyay said, “This is to bring to your notice that state government is of the view that metro and local train services can be resumed in Bengal in a limited manner maintaining the norms of physical distancing and health hygiene protocols.”

Before resumption of the services, the required modalities and logistics to ensure smooth operation may be worked out in consultation with the state government, the letter, sent to the board on Friday, said.

West Bengal Chief Minister Mamata Banerjee had on Wednesday said her government is willing to allow one-fourth of suburban trains services and full Metro Railway services with adequate safety protocols, including social distancing from September 1.
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GMRC completes tunnel-digging work

AHMEDABAD (Metro Rail News): The GMRC (Gujarat Metro Rail Corporation) on Friday completed the tunnel-boring work and two machines finally surfaced at the Shahpur end of the 6.5km tunnel from Shahpur to Apparel Park.
When the three-year toil of the two tunnel-boring machines (TBMs) ended, workers chanted celebratory slogans and waved the tricolour. 

In February 2019, two TBMs had emerged near the Kalupur station. Eighteen months later, the other two pushed themselves out in Shahpur near the riverfront. A ceremony was held at the Kalupurmetre gauge railway station at which the GMRC announced the completion of the tunnel. The Apparel Park to Shahpur stretch has four stations: Kankaria East, Kalupur, Gheekanta, and Shahpur. 

Amit Gupta, the chief general manager of the GMRC was stated saying, “the tunnelling work was completed in three years and four TBMs were deployed. In all, 52,000 cubic metres of concrete was used for the construction of the tunnel”. 
GMRC officials said that tenders were issued for the project in March 2017, and the first machine was lowered in April 2018. The second was pressed into service in June 2018.

Officials said that the second machine completed the work in time as it had data collected by the first machine, which was moving 100 metres ahead. An official said that along the entire project stretch, four incidents were reported — foam had gushed into some houses and a portion of a building had collapsed in Maninagar. 
The officials said that the work to install signalling systems, tracks, and power lines will take about 18 months. 

Unlock 4: Metro services to resume from Sept 7

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NEW DELHI (Metro Rail News): The Ministry of Home Affairs has taken a decision to continue unlocking the economy amid the deteriorating conditions of Coronavirus spread. Although the cases continue to spike, the government is in no mood to rethink on its decisions and in the same move, it has issued Unlock 4.0 guidelines.

Although the schools and colleges along with all other educational activities have been kept under lockdown till 30th September, the government has decided to open up the Metro. The move will help Delhi Metro, Noida Metro, Lucknow Metro, Kolkata, Bangalore and Kochi metros to resume their operation. However, there are speculations whether the metro services are going to resume in Mumbai and Nagpur. According to the sources familiar with the matter in Maharashtra, the state government may even not allow the services.

“Metro rail will be allowed to operate with effect from 7th September 2020 in a graded manner, by the Ministry of Housing and Urban Affairs (MOHUA)/ Ministry of Railways (MOR), in consultation with MHA. In this regard, Standard Operating Procedure (SOP) will be issued by MOHUA”, Said the statement released by MHA in evening.

The things may vary from state to state as the state governments will have enough powers to impose localised lockdowns. The move is, however, being welcomed by the Metro Corporations across the nation. The most challenging thing will be the execution of the phase-wise reopening of metro networks.

“As per the latest guidelines issued by the Ministry of Home Affairs under Unlock-4, the Noida Metro Rail Corporation (NMRC) will be resuming its services on the Aqua Line for the public from 7th September 2020 onwards in a calibrated manner. Further details on the Metro functioning and its usage by the general public will be shared once the detailed SOP on Metros is issued by the Ministery of Housing and Urban Affairs (MoHUA) and the Uttar Pradesh Government in the next few days” said Ritu Maheshwari, Managing Director of Noida Metro Rail Corporation.

“Metro Rail will be allowed to operate in a graded manner from 7 September 2020 by @MoHUA_India and @RailMinIndia, in consultation with Ministry of Home Affairs. SOP will soon be issued in this regard”, said MoHUA in a tweet.

“As per the latest guidelines, Delhi Metro will be resuming its services for the public from 7 September 2020 onwards in a calibrated manner. Details on the Metro functioning & its usage will be shared once the detailed SOP on Metros is issued by MoHUA”, said DMRC in a statement.

“As part of the nationwide Unlock 4.0, Kochi Metro services to resume operations from 7th September 2020”, said Kochi Metro in Tweet.

Amid the rising number of cases in national capital, it can be a risky game for DMRC as well. The things now depend upon execution of the plans.

Kolkata Metro invites Rs 526 crore bid for New Garia corridor

Kolkata (Metro Rail News): The Kolkata Metro has invited a bid worth Rs 526.62 crore for construction of viaduct, ramp & underground RCC box (cut & cover, box pushing) including related works.

The tender has been invited for 3.520 km length from ch. 25891.527 to ch. 29410.989 between existing pier cp-760 (near City Centre-II) to merging point with the metro railway at Biman Bandar station yard including two stations (Rabindra Tirtha & VIP ROAD).

The works also include all allied works like architectural, electrical, mechanical, heating, ventilation, air conditioning, fire detection, fire suppression system & public health engineering works in New Garia Bimanbandar Metro Corridor of Kolkata Metro railway line.

“The bid will help to provide pace to the development of Kolkata Metro, ” an official said.