Budget incentives & signalling achieves objective in affordable housing. Spike in home loan disbursements in < Rs 30 lacs segment.
Affordable housing to be the new messiah for the troubled housing sector. Govt targeting construction of 51 lakh houses in FY18 will boost demand. With RERA in place sector expected to shed a lot of its legacy issues.
Rly’s Dilemma – Invest in Speed or Safety? Particularly in context when derailments are increasing due to inadequacies in track renewal
After Rail Devpt Authority (surrogate for Indep Regulator), NITI Aayog suggests ‘independent’ Rail Safety Auth. Why not keep under RDA ?
Fast, but safe
The new NITI Aayog Debroy-Desai study shifts the focus back to safety, suggesting appropriations and uses for the newly constituted Rashtriya Rail Sanraksha Kosh. With derailments and level-crossings accounting for 90% of the accidents and 85% of the casualities, the focus is clear. But an independent safety authority besides a Rail Development Authority means a regulator-heavy model.
The great Infra Summer Sale is on. 25,000 MW thermal power plants + 23 ARCs to bid for first round of Rs 6000 cr bad loans. More coming.
In a first, since government accorded more power to RBI via its Banking Ordinance, Andhra Bank and Allahabad Bank are going to put up Rs 6,000 crore of assets for auction to 23 ARCs. Success will pave way for more sales. But new rules asking ARCs to buy half in cash may stump some enthusiasm.
Smart: Listing of state-owned IREDA (Ind Renew Energy DevAgency) cleared by Cabinet. Allows it to raise equity & so leveraged debt too
To boost clean projects further, the govt has given a nod for IPO for renewable energy development authority. This is expected to free up more capital to meet the ambitious 175GW target by 2022. IREDA has sanctioned Rs 37,000 crore of credit for projects releasing Rs 28,000 crore to developers.
Time to shut unviable coal mines; & Coal India does just that. Announces permanent closure of 37 loss-making underground mines.
With costs eating into profits, Coal India, which has already cut its production target by a tenth, is set to shut 37 loss-making underground mines. The company operates 413 mines and is expected to shift 11,000 workers to more profitable ventures, despite protests. But will this have spillover effects on other underutilised and loss-making PSUs?
Triple Whammy : It’s not only coal & gas based power plants that are stressed . Govt now announces Rs 16,000 cr bailout package for Hydro
In resolution of stressed Power projects( aka National Assets ) key is to get RBI to reset d definition of “NPA” in a constructive manner
Two years since a gas-based power plant bail out, the govt is considering one for the hydro sector. A hydro power development fund is expected to provide 4% interest subvention to projects with capacity of 11,639MW. The sector needs a reinvigorated approach (probably an SPV) from RBI.
Timely : NHAI sets up 2 independent panels for dispute resolutions. Both sides will have to eschew law courts & lawyers & abide by verdict
After announcing a renewed approach for new projects—NHAI won’t invite bids till land is not acquired—the agency is looking at cleaning up the backlog. It has set up two panels of six experts to find a way out for Rs 43,000 crore of pending claims from 280 projects.
A weekly selection of the author’s tweets
The author, Vinayak Chatterjee is Chairman, Feedback Infra
Twitter handle: @Infra_VinayakCh