Higher public spending key to economic growth: As private investment continues to be weak, the government’s chief economic adviser has recommended higher public spending to boost economic growth and proposed a re-evaluation of private-sector-led infrastructure model.
Tweets: CEA, Dr. Arvind Subramanian, now puts his seal of approval on strategy to revive economy thru a public expenditure driven infra revival.
Public exp-led infra revival not necessarily a burden on the fisc – bilat/multilat, cash rich PSUs, state Govt’s, tax free infra bonds etc.
Confidence in PPP still down: The bid process outcome of the EPE once again confirms that Indian construction/developer companies are not keen on PPP, thus reaffirming the need for public-expenditure-driven projects in the short run.
Tweet: 167 bids for R4500 cr Eastern Peripheral Expressway (in NCR) under EPC model. Zero bids were recd when it was offered under BOT – PPP.
RBI’s life-line: According to one estimate, Indian banks’ exposure to the beleaguered infrastructure sector amounted to R8.8 lakh crore as on October 31. The new RBI norms, including the new 5-25 format, will help restart stalled projects and provide relief to banks and promoters.
Tweet: RBI shows empathy in allowing selective restructuring of stressed infra loans. Recognizes factors beyond reasonable control of promoters.
Zero tolerance for wilful corporate defaulters: Recent developments point towards RBI taking a tough stand on wilful defaults by troubled companies. This issue has once again come to the fore in the domestic aviation sector.
Tweet: Whatever be the situation, RBI should censure any ministerial attempts to hustle public sector banks to lend more to a beleaguered company.
PPP revival strategy: Most analysts are of the opinion that the PPP model needs a complete overhaul. Its revival would depend on a number
of measures, including setting up independent regulatory authorities to create a level-playing field.
Tweet: Independent Regulators very clearly a necessary pre-requisite for reviving PPP sentiment. This horse has to be put before the PPP cart.
Gadkari’s grandiose plans: The transport minister’s plan of constructing a tunnel ring road to improve connectivity may face some technical hurdles. With three to four underground Metro routes already on the anvil, BMC officials feel that a ‘tunnel road’ might not be feasible.
Tweet: Gadkari throws up another mega project idea – R90,000 crores underground ‘tunnel ring road’ in Mumbai to connect up with Ahd-Mum Highway.
NCR’s rapid transit advantage: The Gurgaon-Faridabad Metro link along with the planned RRTS (Regional Rapid Transit System) is expected to elevate the Delhi National Capital Region into one of the best networked cities in India in terms of urban rail mass transportation.
Ttweet: Haryana CM announces intention to link Gurgaon & Faridabad by Metro. Good idea. Will positively impact realty landscape too.
WiFi to keep New Delhi Railway Station abuzz!: The law of unintended consequences is at work: Indian Railways is increasing amenities for passengers and non-passengers alike. Similar facilities were introduced in Bangalore recently.
Tweet: Indian ingenuity! Rlys report non-passengers visiting New Delhi station to avail 30 minute free WiFi. Adding to already crowded situation.
—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
