Market-making for Municipal Bonds: 26 cities to raise Rs 10,000 crs .FinMin denies tax free status but UrbanMin to give interest subvention
Bonds ahoy for construction
New Delhi, Kolkata, Hyderabad, and Lucknow will be among the 26 allowed to raise Rs 10,000 crore from municipal bonds. While the government plans to add more to the list, it wants cities to undergo ratings before market roll-out. Previous issues have only attracted Rs 1,600 crore, but with interest subventions—the finance ministry has denied tax-free status—there is a chance that munis will garner more.
Balanced: Just-cleared Ken-Betwa river linking project to set aside 5% of project cost for conservation & rehab of Panna tiger reserve
Linking growth and environment
The government has decided to set aside 5% of project cost for rehabilitation of Panna tiger reserve, which will have some parts of it submerged due to river linking. The first phase of the project will cost around `10,000 crore and is expected to help irrigate about 600,000 hectares of land and provide drinking water to 1.34 million people in the two states.
Self-interest is d “sustainable” goal. After stridently lecturing the world on carbon emissions USA to walk out of Paris Climate Accord
Me before we
The US president by pulling out of the Paris climate accords has taken the world back a few decades. In emphasising on the developed versus developing argument, there is a risk that he may throw the debate open on who bears the burden of responsibility for climate change.
Welcome ! Asian Infra Investment Bank (AIIB) debuts in India vide co-financing Andhra Pradesh’s smart grid programme along with World Bank
Andhra gets AIIB boost
With a $160 million loan, China-led Asian Infrastructure Investment Bank is all set to make its debut. Andhra Pradesh would be the first beneficiary of the bank where India is second-largest shareholder. Under the aegis of ‘Power for All’ initiative launched by PM in 2014, the bank aims to strengthen the power transmission and distribution system in AP.
Quite appropriate for PowerMinistry to seek to rejig definition of Group Captive Plants so as to remove possibilities of gaming the system
Clearing the air
The ambiguities surrounding group captive power plants are all set to clear, as the government will soon amend rules for equity holding. Although operational across states, many had blamed these structures for following a lopsided approach for awarding equity and granting voting rights.
Reformatting PPP risk :About time India started using LPVR (Least Present Value of Revenue) scheme whereby market risks get offset by time
Least problematic model
With PPPs becoming the buzzword for investment, it is time the govt adopts a new model. Created in 1998, the least present value of revenue mechanism offers a timely departure from fixed auctions. Under this model, a lower-than-estimated traffic value automatically prolongs the concession period.
Much relief amongst Solar players on clarification that anomaly will be rectified ~ GST on solar panels/modules to be 5% instead of 18%
Panel to ease of panels
The government has said that the 18% tax on solar modules, which many had considered regressive given its plans to adopt clean energy, would be brought down to 5%. The plan to add 175GW of clean energy by 2022 would need more support from the government.
Writer is Chairman, Feedback Infra
Twitter handle: @Infra_VinayakCh