Experts monitoring the economy are still trying to find their level of comfort on the GDP numbers released.
Tweets: Infra & core; capital goods; real estate; agri; auto; banking—all not doing well. Where is the 7.3% real GDP growth coming from?
A reputed Govt officer in the statistics system revealed to me that if one followed the old GDP method, then growth was 5.5% against 7.3%.
The numbers game: Experts monitoring the economy are still trying to find their level of comfort on the GDP numbers released. There is scepticism surrounding the statistics as apparently many collateral indicators do not support the growth rate. However, it is believed that the MSME sector is doing far better than large corporates.
Tweet: Death by Discom ~ The great Indian power paradox: No new generation project in last 2 yrs as no buyers for even existing capacity.
A new power crisis unfolds: Even with sufficient installed power capacity, unhealthy discoms are a major cause for concern. The year 2014-15 has recorded the lowest plant load factor in 15 years as gencos are operating at 65% capacity.
Tweet: Finally: NITI Aayog asked to give shape to Infra Regulatory Bill….. to make Reguls more impactful and accountable only to Parliament.
The regulatory reforms Bill gets a new lease of life: Niti Aayog is reviewing the draft Bill prepared by the previous government and will finetune it further. The objective is to formulate a common set of guidelines for all regulators to minimise complications arising out of overlap of multiple bodies.
Tweet: Cabinet clears Rs 4300 crores for DMIC clusters—Dholera & Shendra for commencing trunk infra. It is now 7 years + since these were mooted.
Paving the way for DMIC clusters: Cabinet clearance for two clusters of the Delhi Mumbai Industrial Corridor project paves the way for the development of the corridor as a global manufacturing and investment area. The high capacity 1,483-km long western Dedicated Freight Corridor will provide the backbone.
Tweet: Power Min talks about a ‘Power Fund’ to revive stressed assets. If conditions responsible for “stressing” are not removed, no Fund can help.
Power fund on the cards?: Many power assets have become stressed for a combination of reasons at both input and output ends. It is important that these impediments be removed or it is feared that there may not be sufficient investor interest in such a fund.
Tweet: Power diplomacy bonding neighbourhood: NTPC & Bangladesh Power Board 50:50 partnership ready to commence construction of 2 X 660 MW plant.
Powering friendly relations: A $1.2 billion joint venture in the power sector is all set to strengthen ties between India and Bangladesh. The power plant is expected to start commercial generation by 2018.
Tweet: Vijay Kelkar to head PPP Review Panel set up by Fin Ministry. Members include representatives from IIFCL, IDFC, SBI, NCAER, ++. Much to do.
Recasting PPPs: Former finance secretary and economist Vijay Kelkar will head a panel that has been tasked to reshape the public-private partnership development model. India is one of the largest PPP markets with 900 projects in various stages of development.
Tweet: Sensible: Even with parliamentarians and public pushing hard, Aviation Ministry takes considered decision NOT to regulate air fares.
Aviation ministry takes a prudent call: The ministry’s decision to stay away from air fare regulation is a step in the right direction. In the past it has toyed with several ideas including limiting the highest fare at R20,000 and fixing a lower fare band.
—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