Tweet: Rural infra thrust of Budget potentially transformational for India’s countryside—roads, electrification, irrigation & mkt clusters.
Budget thrust on rural infrastructure: Experts have hailed Budget 2016 for its thrust on rural infrastructure. With the outlay for rural infrastructure pegged at a record high, both job creation and rural consumption demand could provide a big uptick to the economy.
Tweet: Budget attempts to bring back positivism in PPP: Accepts need for Renegotiation & promises Public Utilities Resolution of Disputes Bill.
PPP revival on the cards: The proposal to address issues related to resolution of disputes in infrastructure and guidelines to renegotiate PPP agreements through a Bill is seen as a step in the right direction. It is expected to usher in clarity and give policy stability.
Tweet: Budget: Positive strokes for Infra include a new architecture for Credit Ratings, easing REITs & INVITs & more practical Asset Rec Cos.
Budget boost for REITs: Tax-related issues have hindered the growth of Real Estate Investment Trusts (REITs), which invest in leased offices and retail assets. The Budget announcement of removal of Dividend Distribution Tax (DDT) and measures to promote affordable housing could provide the vital push for real estate revival.
Tweet: Rly Budget announcement of Capex plan of R1.2 lac crores in FY16-17 equivalent to constructing 20,000 kms of roads. Will be imp inv driver.
Tweet: Rly Budget once again underscores the rapid shift in public finances to rely more and more on off-Budget sources for capex funding.
Focus on innovative funding: Railway minister Suresh Prabhu has laid out an ambitious plan of raising capex by 20% over last year. He hopes to achieve this through innovative financing models such as joint ventures with states and rupee bonds.
Tweet: Rlys sets up Nat High Speed Corpn to implement Ahd-Mum Bullet Train. R20,000 cr contrbn by Rlys+Maha+Guj. Balance R80,000 crs by Japanese.
Tweet: Game Changer: Budget of R1 lac cr for the 500 km Ahd-Mum Bullet Train project effectively pegs the minimum cost at R200 cr per km.
Need for speed: The government has set up the National High Speed Corporation Ltd, a joint venture between the ministry of railways and the state governments of Maharashtra and Gujarat, signalling the go-ahead for the Bullet Train project. The entity will have its headquarters in Delhi and the managing director will be selected by a search committee headed by the Cabinet Secretary.
Tweet: Solar hits important milestone—5,000 MW installed capacity in Jan. In perspective, that is just 1,000 MW more than 1 UMPP at 4,000 MW.
Solar energy capacity on the rise: As solar hits the 5,000 MW installed capacity mark, the government is confident of meeting its target of 18,000 MW by end of 2017. The ministry has approved 33 solar parks in 21 states with aggregate capacity of 19,900 MW.
Tweet: Safety++: 150,000 bridges on national highways to be monitored under a centralized data-based program called Indian Bridge Mngmnt System.
Bridging the safety gap: The Indian Bridge Management System, which will be the largest of its kind in the world, is being set up by the Mumbai-based Infrastructure Development and Design Consultancy (IDDC). It is expected to be completed in six months and will go a long way in rehabilitation and strengthening of existing bridges.
Tweet: Getting there: After some false starts, good that NHAI has finally tied up with Nat Payment Corpn as the clearing house for elec tolling.
NHAI’s game plan to incentivise roads sector: The Chairman of National Highways Authority of India, Raghav Chandra stated that the authority will be taking up 25,000-km of road projects through its various programmes over the next six years. The authority is also exploring Infrastructure Investment Trusts to incentivise the roads sector.
—Vinayak Chatterjee is Chairman of Feedback Infra
His Twitter handle: @Infra_VinayakCh
A weekly selection of the author’s tweets—
with a brief backgrounder—in the infra space, by Adite Banerjie