Tweet: Finally! : CM Haryana announces formation of Gurgaon Devpt Authority. Eliminates getting approvals from Chandigarh + holistic approach.
Tweet: Good decision? Charter of new Gurgaon Dev Auth to be infra-building (like DDA) & not unified administration like NOIDA. Prefer NOIDA model.
Gurgaon Development Authority Set For November Launch
The Gurgaon Development Authority is all set to be in place by November 1. The Haryana chief minister ML Khattar has given his formal approval and a senior IAS officer will be put in charge as the vice-chairman.
Tweet: Litigation nightmare at NHAI: 300 of 600 contracts in last 10 yrs in dispute. 2000 cases in High & Supreme Courts. 43,000 in lower courts.
NHAI: Seeking A Way Out Of Legal Troubles
NHAI has 123 cases for a claim amount of more than R25,000 crore pending before arbitration tribunals. Thirty projects with disputed amounts of nearly R14,500 crore are also pending before its internal dispute resolution committees.
Tweet: Real Estate slowdown alarming: BusStd headlines that unsold inventory touch all-time high at estimated R6 lac crores. Mostly debt funded.
Realty Sector: Reality Bites
According to a recent survey, unsold inventory in the real estate sector stood at 1.2 billion sq feet at the end of the April-June quarter. Delhi-NCR tops the chart with 366 mn sq ft of unsold stock in June 2016, followed by Mumbai Metropolitan Region, with 267 mn sq ft, and Bengaluru with 178 mn sq ft.
Tweet: Gas-based power plants gradually sputtering to life. Latest is that 9 such stranded plants in South India are getting some gas allocations.
Good News For Gas-Based Power Plants
Nine gas-based power plants in South India that were stranded due to non-availability of fuel will get about 10 million standard cubic metres a day (mmscmd) of imported natural gas. They will also get financial support of R187 crore.
Tweet: Finally CEA wakes up and asks for removal of 25 MW cap on declaring hydro power projects as ‘Renewable.’ What took it so long??
Giving Green Energy A Boost
The Central Electricity Authority has proposed that the 25 MW cap on hydro power projects be removed for them to be considered sources of ‘renewable’ energy. The renewable tag, it feels, will encourage investors to set up hydro projects.
Tweet: SEBI now takes a hard look at Municipal Bonds as a result of SmartCity fund-raising plans. Insists on double entry accounts & other norms.
Transparency In Accounts Will Bring In Investors
SEBI has urged civic bodies that are looking at raising funds through issue of municipal bonds to become more transparent in their accounting practices. Only a handful of urban local bodies have raised a total amount of R1,750 crore through municipal bonds so far.
Tweet: Long term foreign investors show clear preference for running ‘brownfield’ Infra projects. Govt should move on asset recycling strategy.
Need To Rework Government Strategy
There are all round recommendations to the government to speed up its work on divesting operating public utilities like roads, power plants, ports, airports, transmission lines, etc. as an immediate and practical solution to generating interest in public private partnerships. There are also suggestions to provide fiscal and tax incentives to states and PSUs who sell such assets and plough the proceeds back into public works.
—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