Infra tweets: NIIF-DP World to fund ports

NIIF does well in forming a joint platform with Dubai-based DP World to invest in ports, terminals & logistics.

infra tweets, infrastructure vinayank chatterjee tweets, niif ports funding plan
Transportation sector choice is appropriate as it’s booming & provides enough inv choices. $3 billion platform is impactful & all eyes now on real investments. (Representative Image: Reuters)

NIIF does well in forming a joint platform with Dubai-based DP World to invest in ports, terminals & logistics. Transportation sector choice is appropriate as it’s booming & provides enough inv choices. $3 billion platform is impactful & all eyes now on real investments

NIIF-DP World platform to fund ports & logistics
The platform will also consider infrastructure projects like river ports and transportation, freight corridors, port-led SEZs, inland container terminals and cold storages.

Civil Aviation Ministry, which had a sluggish start, has emerged as a late bloomer. The UDAN scheme has demonstrated how a creative PPP format can transform a sector in a short time. Best part is that it is moving out from a subsidy-based kick-start to independent viability

UDAN gives aviation sector wings
The chief of a prominent domestic carrier has said UDAN is working even without VGF on some routes since passenger load on some regional routes has been in excess of 90%.

The new Metro Policy announced by Urban Ministry lays great stress on PPP formats. Yet, Phase II of Hyderabad Metro (the only PPP metro) is moving inexorably towards public systems development & financing. Signal is that it is only O&M that is possibly amenable to PPPisation’

Telangana eyeing alternatives to PPP for Hyd Metro
Hyderbad Metro Rail, the nodal agency for `14,132 cr project, is preparing a DPR for phase II. Telangana govt is in talks with the Japan International Cooperation Agency for funding.

Investors in gas-based power plants continue to be miffed with step-motherly treatment. After all, investment & borrowings from Banks etc were done under govt frameworks with full assurance of adequate gas supplies. Solutions exist—but need to be pursued purposefully

Gas-power investors protest auctions
Gas-power investors protesting call for tender for 55 blocks. They borrowed over `40,000 cr from banks on the basis of assured supply. With production at KG-D6 falling, a capacity of 14,000 MW of a total of 25,000 MW is not being utilised.

Hydro Power much cheaper than coal in d long run. However in first 8 yrs of Hydro, the cost curve is higher than thermal because of depreciation & interest. To get Discoms to buy Hydro, policy interventions required to flatten the cost curve in the first decade of project

Hydro uptake requires policy push
There is a proposal to make it mandatory for discoms to buy hydro power; govt is mulling tradable certificates for states that can’t meet the requirement. Govt could look at defraying interest cost for hydro-project loans to bring down tariff.

Domestic air traffic was 117 million in 2017: and it’s clearly a sign of an aspirational India with monthly growth rates ranging from 17-23%. 117 million translates to 3.2 lac passengers per day. Sobering to note that Railways ferries 230 lac passengers every day!

India takes wings
Low-fare airlines and focus on regional connectivity have given air travel a big boost. But going forward, there will be challenges on the infrastructure front if airport capacity in major cities is not expanded at a faster beat.

New Port to take shape at mouth of d Subarnarekha river in Balasore district of Odisha. All permissions reportedly in place for an all-weather, deep-draft facility with an initial capacity of 10 mtpa. Also reported in BuStd that Tata’s may take up 51% in the new port SPV

Port BOOST for Odisha
The port will be built under the build, own, operate, share and transfer (BOOST) model. The developer will share revenue with the state govt at the rate of 5% (year 1-5), 8% (year 6-10), 10% (year 11-15) and 12% for the remaining 15 years.

Current scenario where Roads is seen to pump-prime d economy may soon be replaced by Railways in the top slot. BusStd reports that d rly establishment is working on an aggressive capex plan to raise investments frm current Rs 1.31 lacs/yr to Rs 2.5lacs/yr in foreseeable future

Railways’ ambitious capex plan
Railways is finalising a “Rs 35.3 lakh-crore investment by 2032” plan. Asset monetisation will be key, with the share of non-fare revenue likely to rise to 20% from current 4% over 12 years.

A weekly collection of the author’s tweets—with a brief backgrounder—by Sarthak Ray

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