Positive to be recognised for Rlys is that Capex is indeed being revved up. From R0.59 lac crs in 2014-15 to R1.21 lac crs in 2017-18.
Railways speeding ahead on capex
Despite challenges on the operating ratio front, the Indian Railways is going full blast ahead on network decongestion, network expansion and railway electrification. Order books of companies operating in these areas are beginning to show a healthy uptick.
India historically under-utilised its entitlements under Indus Water Treaty. Now 1856 MW Sawalkote hydro project cleared in J&K by Env Min.
India moves to claim its water rights
The Jammu and Kashmir State Power Development Corp project is estimated to cost over R22,000 crore. The clearance is in line with the government’s decision to step up exploitation of India’s share of water under the Indus Water Treaty.
24,000 MW of sputtering gas-based power plants need a long term solution. Surely we cannot continue to allow these assets to waste away.
Gas-based power plants face a tough future
The government is unlikely to extend the subsidy support scheme—for stranded and under-utilised gas-based power stations—which comes to an end in March. The scheme enabled these plants to partly meet their debt service obligations as they operated at low plant load factors of 30-50%.
Smart: Govt has noticed that developers most comfortable with Solar Park format. So, quick Cabinet decisions to 2 X Solar Parks initiative.
Big boost for solar parks
Solar parks have emerged as the flavour of the season. The government has doubled the capacity target to be achieved by solar parks to 40GW by 2019-20. The projects will be set up with the Centre’s financial support of R8,100 crore.
Trendsetter: Delhi to get its 3rd & largest 24 MW Waste-to-Energy plant when Narela starts in March. Will process 2000 tonnes waste/day.
Turning garbage to power
The Narela plant will generate 24MW of energy which could power the Civil Lines and Rohini zones. The plant will, however, need clearance from the Delhi Pollution Control Committee before it gets the go-ahead to begin operations.
Bullet Train visibility: (1) Ground breaking when Japan PM visits later this year (2) Construction start – end 2018 (3) Operational by 2023.
Bullet train project to move at top speed
The NITI Aayog recently reviewed the progress of the much-anticipated Bullet Train project which will link Ahmedabad and Mumbai, and cost an estimated R97,636 crore. The high-speed train will cover 508km in about two hours, running at a maximum speed of 350kph and an operating speed of 320kph.
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Electricity rates & political economy: Rajasthan Govt rolls back 25 paisa of power hike for farmers. Cost to state exchequer – R500 crs.
Power politics
In a major concession to farmers, the Rajasthan government has agreed to charge them at the earlier tariff rate of 90 paise per unit instead of R1.15. The power minister said that the government would bear the additional burden.
Generate but not Make in India: WTO ruling & intense competition from China has virtually killed the domestic solar equipment mfg sector.
Overcast skies for solar equipment makers
The government is trying to boost domestic manufacturing of solar equipment with a 20-25% capital subsidy and incentives such as interest-free loans and tax breaks. However, low-cost imports and lack of scale are among the major challenges that the sector faces.