Infratweets: Boosting infra companies

By: | Published: August 5, 2015 12:23 AM

The National Infrastructure and Investment Fund, proposed by finance minister Arun Jaitley in Budget 2015, mimics a Sovereign Wealth Fund with a domestic infrastructure bias.

Tweet: Cabinet clearance for Nat Infra & Inv Fund (equity corpus of R20,000 cr & leveragable 9 times) will now see the biggest off-budget play.

NIIF has the potential to play a professionally transformative role in galvanising public expenditure in infra as well as partnering PPPs.

NIIF mimics SWF with a domestic infrastructure bias

The National Infrastructure and Investment Fund, proposed by finance minister Arun Jaitley in Budget 2015, mimics a Sovereign Wealth Fund with a domestic infrastructure bias. Over and above demonstrating the NDA government’s policy of creatively using off-budget resource raising measures, it is also a relevant vehicle to monetise the goodwill and channelise external investments from Prime Minister Narendra Modi’s very successful diplomatic outreach efforts.

Tweet: Smart City Smart List out: includes all UTs, Kolkata, Mumbai, Lucknow, Jaipur, Ranchi, Bhuv. Surprising absentees~ Gurgaon, Bengaluru, Patna.

Smaller towns & cities now set to achieve their potential: Smart Cities list has BiharSharif, Shivamogga, Dharamsala, Vijaywada, Raipur etc

All smart cities great and small
The list of 100 smart cities was released with some expected and some surprising entries. In the next stage, “Smart City plans” will have to be submitted for each of the nominated cities which will be evaluated by an apex body in the urban development ministry.

Tweet: Practical RBI: Allows NBFCs to extend ‘start date of operations’ upto 2 yrs if infra project stalled for reasons beyond control of Promoters.

RBI relaxes norms for NBFCs
RBI will henceforth allow NBFCs to retain the ‘standard asset’ tag on a restructured loan for an extended period if the infrastructure project is involved in court cases or is stuck for reasons that are beyond promoters’ control. The move is expected to revive stalled projects.

Tweet: Knight Frank report highlights extent of problem in res realty markets of Mumbai & Delhi. Unsold inventory to remain as overhang for 4-5 yrs.

Reality check for realty sector
The realty market is set for grim times ahead. According to a report by Knight Frank India, it might take up to five years to clear accumulated residential inventory in the National Capital Region (NCR), while in the Mumbai Metropolitan Region (MMR) it could take three years to clear the backlog of unsold residences.

Tweet: Govt’s focus on building & upgrading Power Transmission networks beginning to show up in orderbooks of companies involved in this sector.

Revamping power transmission networks
Upgrading the country’s transmission networks is high on the power minister’s priority. To this end a slew of projects amounting to over R1 lakh crore is being sought to be implemented with about a 40% share to be implemented by the private sector.

Tweet: How can the power sector as a whole be remotely viable if only 650 billion units of 900 supplied are billed (63%). Forget non-collections.

Political will key to power transmission reforms
Aggregate technical and commercial (ATC) losses account for nearly 14% in better managed states compared to 30% in other states. Power producers are of the opinion that transmission reforms can happen only if there is sustained ‘political will’. That coupled with technology support can lead to positive results for the transmission segment in three to five years.

Tweet: City Toilet App: Punjab IAS couple develop app that will locate nearest public toilet and provide rating on hygiene, facilities and safety.

A smart innovation
The Swachh Bharat Toilet Locator app, to be launched as part of the Swachh Bharat Abhiyan, is the result of the developers’ futile search for a public toilet in Connaught Place, New Delhi.

—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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