Changing power equations: The new Delhi government plans to reform the power sector and has sought a coal block from the Centre to help supply cheap and affordable electricity to Delhi citizens.
Tweets: By asking Centre for a coal block for a dedicated power plant, Delhi Govt now escalates ‘cheap power’ to a Centre-State issue. Touche.
Policy makeover—city gas gets top priority: Natural gas allocation norms are set to change with the government deciding to remove ‘anomalies’ and rationalising utilisation of gas. City gas for transport and cooking find favour over other uses.
Tweet: Proposed Gas Allocation policy bad news for Power. Priority is City Gas followed by Atomic Energy, Urea plants ~ then Power and domestic LPG.
Renewables revolution—reality or hype?: With reduced interest in major coal and gas thermal power projects in the recent past, renewables have grabbed the attention of investors, developers and government. Hugely ambitious targets are being discussed, and concerted action on the ground towards their implementation will be required to meet these.
Tweet: Excessive hype on Renewables. Solar targeted at 100,000 MW by 2022, and now developers say ALL renewables at 260,000 MW in next 5 years!
Budget GIFT for finance SEZs?: Finance special economic zones (SEZs) are expected to get a big boost in the upcoming Budget with the Gujarat International Finance Tec-City first off the block. Some of the proposed recommendations include full capital convertibility for the rupee and tax breaks for financial firms that set up offices in these zones.
Tweet: GIFT City in Ahmedabad likely to be the first beneficiary of a possible budget package for setting up Finance SEZs.
Changing track to attract investment: In a bid to revive private sector investment in the roads sector, the government has introduced a new model which will lower risks for developers. Investors will have to contribute only 60% of total project cost. Traffic risk has been eliminated and financing ability vastly enhanced as government will now make periodic payments.
Tweet: Hybrid Annuity Model for Roads sector very well received by industry and lenders. Push to have this model in other infra sectors as well.
Government paves the way for land act: The Centre is all set to replace the Land Ordinance with an Act during the Budget session. It is taking on board various reactions to the changes impacted by the ordinance including PPP, public purpose definition, consensus and social impact assessment.
Tweet: Centre’s poser to states ~ If you think Land Bill is conducive to getting economic dev moving in your state feel free to oppose Ordinance.
Call to action—clean up business environment: The decision to act against corporate espionage has sent signals that the government is not ready to tolerate corruption. Many feel this is a step towards more transparency in the government’s interactions with business houses.
Tweets: Crackdown on corporate espionage creates level playing field for those who did not indulge in such practices. Many good apples there too.
Leaks & emissions of classified documents from Ministries now clearly recognised as the more hazardous and troubling pollution in New Delhi.
Can pilots rescue Air India?: Shortage of pilots has been identified as the key reason for Air India’s dismal on-time performance record. Recruitment of co-pilots is expected to ease the situation.
Tweet: Reported ~ Air India is to recruit 100 pilots to lift punctuality performance from current 51%. Operating with this high level of shortage!
– Vinayak Chatterjee is Chairman of Feedback Infra
His Twitter handle: @Infra_VinayakCh
A weekly compilation of the author’s tweets— with a brief backgrounder—in the infra space, by Adite Banerjie
