Infra sector figuring out net impact of GST. Works Contracts clarity + ive. Lack of pass through in elec/fuels & exemptions removal -ive.
GST to make air travel a bit more expensive on 2 counts: GST on tickets will be higher than current Service Tax + ATF kept out.
GST impact: A mixed bag
The landmark unified tax on goods and services, GST, has been cleared by both Houses of Parliament. Clarity on works contracts is expected to reduce litigation and positively impact the infrastructure sector. According to experts, exclusion of sale of electricity could lead to rising cost of coal-fired and renewable energy for discoms. The consensus is that airlines are likely to be hit as a result of higher ticket costs and the inability to claim credit on the tax they pay on fuel.
Breakthrough financing: MoRTH seeks to raise R80,000 crores by auctioning toll collection & operations of 75 govt highways for 30 yr period.
New path to road construction funding
The ministry of roads has proposed that funding for road construction be raised through monetisation of public-funded national highway projects. The proposed Toll-Operate-Transfer bidding would be for 75 projects that were completed under the engineering, procurement and construction (EPC) route where the government provided the money and a developer executed the project.
Getting serious about “truly independent” Regulators. FM informs RS that NITI Aayog giving finishing touches to Regulator Reforms Bill.
Move to regulate the regulators
The Regulator Reforms Bill will cater to the generic aspects of regulatory commissions that are related to selection and appointment of members, the qualifications of such members, terms of office and other conditions.
Uptick & revival? Infra lead indicators for June: Coal prodn s 12%; Cement output s 10.3%; Electricity s 8.1%. (figures r s on May 16).
Economic revival round the corner?
Manufacturing and infra sectors clocked fastest growth in July, giving a boost to economic revival. Growth of production and new orders strengthened in July.
@PiyushGoyal urging states to set up specialised police force to stop electricity thefts. Without this—distribution reform non-starter.
Cracking down on power theft
The power minister has indicated that states are likely to set up police stations to deal with electricity theft. Goyal also said that the Aggregate Technical & Commercial (AT&C) losses of state power distribution utilities include losses due to illegal connections and other cases of power theft.
Even with mixed experiences, Bus Rapid Transit System (BRTS) gaining traction. 11 cities have 504 km under development.
BRTS network expands
The urban development ministry has provided financial assistance to 11 cities for construction of 504 km of BRTS network. Of this, 222 km already operational.
Call getting louder for setting up competent & empowered Gurgaon Devpt Authority. ‘Gurujam’ trigger for serious institutional intervention.
When crisis triggers action
In the wake of the recent waterlogging and traffic crisis, an eight-member committee is preparing the draft to set up an empowered Gurgaon Development Authority, which is likely to be submitted by August 15. The idea is to empower local corporation and district administration, and enable quick decision-making in Gurgaon itself rather than referring every file to Chandigarh.
The Power of 3: Google chose 100 rly stations for its public wifi program for 3 reasons—reliable power, RailTel fibre & milling crowds.
Wi-Fi connectivity on the right track
Google started offering free Wi-Fi at a dozen railway stations earlier this year, and is believed to have nearly 2 million users accessing the service every month. The service is now being expanded to 100 locations; its target is 400 stations.
(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)