1. Infrastructure: Jawaharlal Nehru in today’s world

Infrastructure: Jawaharlal Nehru in today’s world

Under the new restructuring formula, PSUs will assume the mantle of reviving companies in distress. Maharatnas are all set to get a new meaning, even if with reluctance.

By: | Published: June 21, 2017 5:25 AM
nehruvian planning, PSUs stressed assets, CleanUP, PWD contracts Under the new restructuring formula, PSUs will assume the mantle of reviving companies in distress. Maharatnas are all set to get a new meaning, even if with reluctance.(PTI)

PSUs re-occupying Nehruvian “commanding heights.” They hold d keys (not available to pvt cos) to facilitate revival of stressed assets
– Bringing back Nehruvian legacy
Under the new restructuring formula, PSUs will assume the mantle of reviving companies in distress. Maharatnas are all set to get a new meaning, even if with reluctance.

Welcome CleanUP: UPGovt seeks to keep out undesirable elements frm bagging PWD contracts by strictly blacklisting players with FIR record
– Reviving UP
UP has made sure none of the criminals—those who have FIRs against them—get PWD contracts. It has brought the review system of character certificates from three years to a year, tightening the noose on granting of contracts to criminals.

ET reports—61 UP cities eager to use ‘Value Capture Financing’ to fund their projects. Should be forewarned; VCF a very complex scheme
– Complex yet simple
UP, with 61 cities, has emerged as the leading state, tripping AP (33), in implementing value capture financing model for urban infrastructure. But given ULBs’ past performance and the model’s sheer complexity, it will be tough to implement.

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Glad to note that “Bad Bank” is still very much under active consideration of Govt—as informed by Shri Jaitley yesterday at IIT-Delhi
– Still bankable
Many were dismayed with the govt not acting on the idea of bad bank, but the FM announced it is under consideration. The idea supported by RBI Deputy Governor Viral Acharya and the Eco Survey in different formats entails an ARC-styled bank taking over the bad apples from commercial banks.

India’s Renewables story has a sizzling appeal. But some leading states do great disservice by reneging on contracts & delaying payments
– Need a renewed interest
The Centre is vying for 175GW of power from renewables by 2022, but states seem less enthusiastic. Maharashtra has halted signing of PPAs from wind manufacturers for two years, TN has asked them to back down on production, and Karnataka has barred discoms to buy more power.
Whilst fashionable world over to shift away from Coal, makes little sense for countries like India & Indonesia where it’s abundant & cheap
– Green, but equitable
Solar is the new power source, and more so in keeping with the environment, but abandoning coal may not be a sound strategy for countries like India and Indonesia where it is abundant. Though 73% of 18,532 villages have power supply, only 8% have electricity. India needs a balanced energy mix.

Uttar Pradesh now beneficiary of enthusiastic Central funding ~ National Highways + Waterways + infra for 2019 Kumbh festivities in Allahabad
Dependant Federalism: UP requests Centre for a host of infra investments (Expways, Ring roads, Kumbh-related etc) as own funds dry up
– Competitive or dependent
With UP expending Rs36,539 crore for farm loan waivers, it was obvious the state would need funds for infra and other works. The state getting central grant for highways, waterways and Kumbh-related infra shows its dependence on the Centre.

Indian Port Rail Corp—the new PSU—has started delivering on its mandate. Rail corridors, decongesting flyovers, ROBs, rail yards et al
– A new ratna in the making
India’s newest PSU, the Indian Port Rail Company Ltd (IPRCL), registered in July 2015, is on track to being a high-performing company. IPRCL, till December 2016, had commenced work on eight projects worth Rs159.24 crore and had a plan to start process of contracts in 17 others at a cost of Rs5,125.14 crore.

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