Infra Tweets: Discoms lit with cash

By: |
November 23, 2016 6:19 AM

Discoms report surge in cash collections as +ive fallout of Demonetisation. Includes arrears, disputed amounts as well as advance payment!

InfratweetsThe move to reduce the price of natural gas by 18% to $2.5 per million British thermal unit (mBtu) on gross calorific value basis for the period October 1, 2016 to March 31, 2017 is seen as a setback to public sector and private producers.

Discoms report surge in cash collections as +ive fallout of Demonetisation. Includes arrears, disputed amounts as well as advance payment!

Demonetisation proves to be a boon for discoms Defaulters are coming forward to clear arrears as well as make advance payments. At one of Uttar Pradesh’s five state-owned discoms, the collection was around R500 crore in four days, which is 10-times more than normal.

ICRA estimates toll loss in select 115 NHAI projects at R460 crs for 10 day period. Could be double taking balance NHAI + State + urban roads.

NHAI clarifies will make good loss of R75 cr toll collection per day. Quick & hassle-free disbursement will add greatly to credibility.

All’s not lost on the toll front Revenues from toll collection have been estimated at roughly between R60-75 crore per day. NHAI has proposed to compensate up to 75% of the losses due to suspension of toll collections following demonetisation.

More inter-state issues likely: To meet Supreme Court requirement, Cabinet yday cleared a “Special Committee for Inter-linking of Rivers”.

River connections The status and progress report of the Special Committee will be submitted bi-annually to facilitate faster decision-making and enable monitoring of inter-linking of river projects to be carried out under the government’s National Perspective Plan, 1980.

Another Asset Recycling scheme in the works. MSRDC seeks to monetise Bandra Worli Sealink with Canadian Pension Funds. Good initiative.

Exploring monetisation options Maharashtra State Road Development Corporation is looking to raise resources to fund the Bandra Worli Sealink. The project’s cost is estimated at R7,500 crore for which the state’s road planning and development authority requires a margin amount of at least R2,500 crore.

CRISIL says India needs R43 lac crs over next 5 yrs for infra. Seems an underestimate as 12th Plan (2012-2017) predicted R56 lac crs.

Infrastructure investment: uphill task According to rating agency CRISIL, 70% of the R43 lakh crore will be needed in three sectors, including power, transportation and urban infrastructure. It pointed out that there is a strong need for innovative mechanisms in order to reduce risk in infrastructure projects and make them more investor-friendly.

14 AAI airports turn in a profit. Top 3 r Chennai, Kolkata, & Lucknow. Why not divesting under stated Asset Recycling policy?

Would be a good idea for AAI to sell off its 26% stake in Delhi and Mumbai airports and use proceeds for regional connectivity.

AAI airports: pockets of profit Out of 122 airports run by the Airports Authority of India, only 14 posted profits while 93 are reeling under losses. Chennai, Kolkata and Lucknow airports reported profits of R451.2 crore, R108.1 crore and R72.1 crore respectively.

Rlys worrying about further passenger traffic erosion as regional air connectivity kicks in. ‘Reverse surge pricing’ to fill empty seats.

Railways’ pricing tactics for premium trains Railways minister Suresh Prabhu has instructed officials to ensure that no berths go empty on Rajdhani, Shatabdi and Duronto trains. As a result, a mechanism is sought to be put in place to reduce fares a day or two before so that all unreserved seats are filled.

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

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