The Land Ordinance has not only eased acquisition process of land for large projects but has also brought in social infrastructure like education and healthcare within the definition of public purpose.
Ordinance broadens definition of public purpose: The Land Ordinance has not only eased acquisition process of land for large projects but has also brought in social infrastructure like education and healthcare within the definition of public purpose.
Tweet: If you believe Infra is imp & if you believe pvt capital is imp for infra then you can’t oppose including PPPs as public purpose in Land Ord.
Terminating ‘dead end’ road projects: A proposal has been mooted by the roads ministry to foreclose projects that have been stalled for a variety of reasons. Foreclosure would allow resurrecting these projects under alternative financial formats.
Tweet: NHAI & Roads Ministry suggest to Govt a bundle of practical measures to help foreclose 86 road projects (PPP & EPC) going nowhere.
Railways: focusing on stalled projects: With states not sanctioning adequate land for rail projects, the value of stalled projects has risen to R2 lakh crores. The railway minister has proposed that the Centre forge partnerships with state governments to focus on unfinished projects and allow for more decentralised decision making in the railways.
Tweet: Clear ~Rlys have R2 lac crores “stalled projects.” Unclear ~ whether part of reported R18 lac cr stock of stalled projects, or in addition.
Tweet: Like Suresh Prabhu’s focus on moving stalled projects rather than announce new projects. Hope this strategy is reflected in his Rail Budget.
Prabhu’s logistics plan: a win-win strategy: Railways has historically lost a large chunk of market share to the roads sector. To get back non-bulk freight, the railway minister has chosen an aggressive path with his proposal of setting up a logistics corporation.
Tweet: To win back non-bulk freight traffic, Suresh Prabhu has innovative plan for a PSU Logistics Corpn supported by PPP Logistics parks and hubs.
Coal-railways collaboration on the anvil: The coal and railway ministries are likely to collaborate and set up a system to facilitate the process of speedy evacuation of coal from mines. This is one of the steps being taken to increase coal production to an estimated 1.5 billion tonnes by 2020.
Tweet: Coal Secy takes a firm grip on a crucial bottleneck ~ identifies 50 critical rail projects for speedy evacuation of coal from mines.
Inflation and toll rates on check: Highway toll rate increases are linked to the Wholesale Price Index. While lower toll rates will provide relief to road users, developers may be negatively impacted as a result of lower growth of turnover and fixed debt servicing obligations.
Tweet: With lower inflation, highway toll rates (which are inflation indexed) poised for only 3% increase this year against 6-7% in last few years.
Dabhol’s fate to be decided by finance ministry: Out of a total debt of R8,500 crore, the Ratnagiri Gas and Power Pvt Ltd has so far repaid R4,000 crore to lenders ever since the project was revived in April 2006. A high powered committee appointed by the Centre is to decide on the way forward.
Tweet: FM to step in to craft solution for Dabhol to avoid R8,500 cr hit to Banks. Nice if stalled pvt projects get similar specific attention.
Tough times for gas-based power plants: Gas-based power capacity has been severely impacted by the lack of fuel availability. The proposed ‘gas pooling’ price mechanism which would have allowed power plants to source fuel at reasonable rates now seems unlikely to happen till 2016-17.
Tweet: Bad news for 24,000 MW of fuel starved gas based power plants. Belying hopes of turnaround, Power Secretary says no additional gas available.
—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