Infratweets – Aviation sector: fog ahead?

Published: January 7, 2015 12:03 AM

The newly formed Niti Aayog seeks to substitute centralised planning with a cooperative federal approach

The newly formed Niti Aayog seeks to substitute centralised planning with a cooperative federal approach.The newly formed Niti Aayog seeks to substitute centralised planning with a cooperative federal approach.

States to play major role in the planning process: The newly formed Niti Aayog seeks to substitute centralised planning with a cooperative federal approach. States will now have more say in setting their development priorities. However, the Niti Aayog will not be vested with the responsibility of framing Plans and allocating funds.

Tweets: The full form of ‘new’ Plng Comm — NITI AAYOG — is ‘National Institution for Transforming India.’ Mandate is in the name itself.

‘Fostering Cooperative Federalism’ is evidently the cornerstone of NITI AAYOG. So, Governing Council has Chief Ministers & Lt. Guvs of UT.

Clearing the way for land acquisition: The Cabinet has cleared the proposed ordinance to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

Tweets: States now reqd to align their land acquisition policies with central law/ ordinance. Rajasthan, first off the block, has issues to resolve.

PPP infra projects get relief with Ordinance whenever land remains with Govt. Consent and Social impact processes not required for acquisition.

Most appropriate that ‘social infra’ has now been included under ‘public purpose’ for land acquisition by Govt … schools, hospitals et al.

Excise duty hike for highway development: The government decision to increase excise duty on petrol is aimed at raising nearly R10,000 crore annually for the construction of new roads. Retail price of fuel will remain unchanged.

Tweets: Public Expenditure led infra revival gains traction as R2/litre excise duty hike on petrol/diesel earmarks funds for road construction.

Aviation sector: fog ahead: Tough financial times faced by private airlines have led to a situation where rapid growth of air traffic needs to be balanced with financial stability.

Tweets: Notwithstanding financial turbulence, liquidity air pockets & foggy forecasts, 6 new airlines to commence operations in 2015. Good luck!

CM Naidu’s capital plans: Andhra Pradesh’s brand new capital region will be located in Krishna and Guntur districts. 29 mandals each of the two districts have been notified for the purpose by the government.

Tweets: Has potential to house India’s 1st real Smart City with Chandrababu’s vision ~ AP Govt notifies new capital region spread over 7068 sq km.

Turnaround spells troubled times ahead?: The decision to re-offer Chennai and Kolkata airports for the privatisation bid has been welcomed by industry. However, the induction of private operators may hit an air pocket with airport unions in both cities reportedly against such a move.

Tweets: In a quick U-Turn, Chennai & Kolkata have also now been included along with Ahd & Jaipur Airports in Invitation to Bid for PPPisation

Haryana’s thumbs up to solar power: Haryana’s order for compulsory installation of rooftop solar systems will set the stage for many other states to follow suit and provide a huge boost to the renewable energy sector.

Tweets: Haryana mandates all residences on >= 500 sq yds plot size and all other major pvt & public buildings to install rooftop solar by Sept 15.

Haryana style order for compulsory rooftop solar should ideally be with ‘net metering’ that allows surplus power to be sold back to grid.

—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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