Tweet: Latest CMIE Report indicates that strategy of public expenditure on Infra projects is beginning to have effect on investment cycle uptick.
Rise in number of projects under implementation: According to the Centre for Monitoring Indian Economy, government investment accounted for the entire increase in projects under implementation since the beginning of 2014-15. Private sector projects in the same category declined during most of the quarters since 2012.
Tweet: Different strokes: RBI Guv advises builders with stuck inventory to reduce prices. Realtors respond~ reduce home loan rate & give tax break.
Realty sector—the stalemate continues: The industry’s response to RBI Governor’s call for a reduction in housing prices doesn’t give much hope for a turnaround in the real estate sector any time soon. While they cite high input costs as the reason for high prices, the housing consumer continues to stay away.
Tweet: Next BIG transportation opportunity: Inland water transport as % of total ~ China 47%, Europe 44%, India 3%. India has 14,500 kms available.
Tweet: Inland waterways: A mid-sized barge has the capacity equivalent to 50 trucks or 10 railcars.
Inland waterways—opportunities and challenges galore: The government has been focusing attention on development of inland waterways and has also introduced a Bill in Parliament. However, many challenges remain, including slow progress on operationalising waterways and keeping them navigable. Funding is another grey area: an estimated investment of R35,000 crore will be needed in the next two years.
Tweet: Positive federal cascade: Maharashtra plans state support for own set of “smart cities” from amongst those not selected in central list.
Maharashtra to develop its own smart cities scheme: Maharashtra government has decided to launch its own smart cities scheme which will be modelled on the lines of the central scheme. The state government is working on the funding modalities to enable many of its cities that didn’t make the cut to fulfil their aspirations.
Tweet: Final?! Another in series of iterations by Civ Av Min. Latest is “no touching Chennai & Kolkata” for PPP but Pvt O&M for Jaipur & Ahd..
Tweet: No rational explanation is forthcoming as to why Govt suddenly decided to ditch the privatisation of Kolkata/Chennai/Ahd etc Airports.
Airport privatisation—full stop?: There have been many false starts in the privatisation of India’s next batch of airports after Delhi, Mumbai, Bangalore, Hyderabad and Cochin. However, the Airports Authority of India earned over Rs 10,000 crore in the last few years as its share of revenue from these privatised airports which allowed it to modernise many of the airports under its direct control.
Tweet: Power demand &/or Discom health? Raj Govt set to terminate 7 of 9 PPAs signed in 2013 as demand projections turning out to be unrealistic.
PPA cancellation gives new twist to power sector woes: Rajasthan discom has been struggling to stay afloat with outstanding loans of R73,000 crore and accumulated losses of Rs 69,000 crore. The termination of PPAs is seen as an attempt to rescue the debt-ridden discom but this will only leave several gencos high and dry.
Tweet: orld Bank to assist Rlys set up a long-term debt fund for accessing capital from foreign insurance & pension bodies. Good off-budget move.
Railways seeks a new funding track: In a move aimed at meeting the Indian Railways’ massive capital requirements, a debt fund will be set up with the World Bank providing the seed capital. The idea is to provide a level of comfort to potential foreign investors to invest in Railways’ projects.
—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