Cabinet approves Major Ports Auth Bill enabling transition to ‘landlord model’ in govt owned ports. Pvt sector operations now possible.
Enabling greater efficiency of ports
The government has approved the Port Authorities Bill that seeks to bring in greater efficiency in the governance of ports and also provide autonomy in decision-making. The boards of major ports can now lease land for port operations for 40 years and for 20 years for other use.
Expway Costs (incl Land): Agra-Luck cost R13,500 crs for 302 kms = 45cr/km. Just announced MSRDC’s 710 km Mum-Nag to cost R46,000 = 65crs/km.
R46,000 cr for 710 km Mum-Nagpur is Civil R24,000 + Land Acq R13,000 + Financing & IDC R6,000 + Node Devpt R2,500 + Utility shifting R500.
Expressway costs escalate
The bulk of the funding for the 710-km Mumbai-Nagpur super-communication expressway will be raised by the Maharashtra State Road Development Corp (MSRDC) from the domestic market and provided by the Asian Development Bank. Evidently, land acquisition now forms a significant part of total costs.
Deep gloom for suppliers to thermal power sector. CEA says no further capacity addition required till 2022. Small mkt remains in R&M.
Lights out for thermal plants sector?
The Central Electricity Authority (CEA) has declared in its National Electricity Plan (2017-22) that the country does not need any more new coal-based power plants. Renewable energy generation is expected to contribute about 20.3% and 24.2% of total energy requirement in 2021-22 and 2026-27, respectively.
Apparently, no dearth of institutional land for industry. DelhiMumIndlCorridor ready to offer 10,050 acres at Dholera, GrNoida, etc.
Land acquisition is no more a hurdle
The Delhi Mumbai Industrial Corridor Corp is gearing up to allot land developed by it at four sites along the proposed 1,504-km so that industrial units can be set up. The Centre has invested R7,000 crore in developing these projects along with matching contributions from the respective states.
Much of construction industry is non-corporate. Offtake of cement from retail trade channels reported 20-50% down due to Demonetisation.
Demonetisation drives down cement sales
Cement sales have been reportedly impacted in the aftermath of demonetisation. CRISIL analysts have pointed out that since the real estate sector buys nearly two-thirds of cement, near-term demand will be affected.
FE carries an encouraging piece on how the PPP Orange City Water Project in Nagpur is getting set to provide 24X7 water to all residents.
A watershed for Nagpur’s civic amenities
In a first-of-its-kind public private partnership, Nagpur’s Orange City Water will provide 24×7 water supply to all residents irrespective of socio-economic status. Over 500 km of the water pipeline network has already been replaced and work on the balance 140 km is expected to be completed in a year and a half.
No fuelling humans. Supreme Court rules that no liquor shops can operate within 500 metres on both sides of state and national highways.
WHO report says 35% road accidents due to drunken driving. Let’s review this 1 yr later after Sup Court ban on booze along highways done.
Saying no to drunk driving on highways
The Supreme Court has ordered closure of all liquor shops on the highways by April 1, 2017. The bench opined that revenue generation could not be the only reason to let vends operate at the risk of drunk driving and consequent fatalities.
Deja vu: 115 mega projects (R1,000 cr) have cost overrun of R1.47 lac crs. Reason-delay in approvals, lack of funds, land acquisition!
Cost overruns pile up for mega projects
According to data from the statistics ministry, these projects are part of a total 339 across sectors such as power, railways and roads.
—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