Jaitley on Land Bill: “Land Ord lapse not a setback but a set-forward. …alternate route, decrease in political cost, increase in flexibility to states.”
Tweet: Another 1st from Suresh Prabhu. With his Power background, now gets Rlys to buy electricity thru competitive bidding. Saves Rs 800 cr/y.
Indian Railways investing in captive power plants: The Indian Railways will procure power through competitive bidding, thus enabling it to save an estimated Rs 2,500 crore for the next three years. Apart from this, Railways is also investing in captive power plants, the first of which will be commissioned in Nabinagar, Bihar, in 2016.
Tweet: Jaitley on Land Bill: “Land Ord lapse not a setback but a set-forward. …alternate route, decrease in political cost, increase in flexibility to states.”
Land acquisition: Changing tactics to break the stalemate: The finance minister asserted that the government’s new approach towards land acquisition demonstrates its eagerness to find a solution. It has already issued an order to include 13 central Acts like national highway and railways Acts to extend benefits to those whose land is acquired.
Tweet: Strange situation—Lack of demand from Power Sector makes pithead stocks pile up. Coal Ministry allows Coal India to increase e-auctions.
Trying to stoke demand for coal: In an effort to raise demand for coal, the coal ministry has further relaxed norms for the power sector to source coal locally. A total of 10 million tonnes of coal, capable of generating nearly 2,000 MW, will be sold via e-auction.
Tweet: Why Govt can spend more on infra: 1. Record dividend of Rs 66,000 crs paid to Govt by RBI. 2. Increase in Indirect tax collections. 3. Decrease in Oil prices.
RBI’s dividend bonanza can boost infrastructure spend: The highest ever payment of dividend in the RBI’s 80-year old history can help the government meet its fiscal deficit targets and provide a boost to planned expenditure that will give the sluggish economy a much needed fillip.
Tweet: Govt examining option of allowing some portion of Gas to be sold at market prices as concerns mount of decrease in production & decrease in exploration interest.
Tweet: Quiet shift to free market regime for Gas: Govt to auction 69 marginal fields of ONGC + Oil India for 20 yrs licence with free pricing.
Gas sector easing up: To address concerns about decreasing interest in the sector and to attract domestic and global investments, the government has allowed explorations of specific hydrocarbon fields. The gas discovered from them will be sold at market prices.
Tweet: Core sector growth only 2.1% in April-July period vis a vis 5.5% same period last year. Slowdown in coal, steel, crude and gas.
Core sector woes continue: The dampening of core sector output continues to reflect the uncertain investment climate in the country. These sectors can revive only if major reforms in the infrastructure sector and the impact of increased public expenditure are felt on the ground.
Tweet: 1st time in NHAI history: Toll hike on Gurgaon-Jaipur Highway rolled back because of unsatisfactory road condition. Kudos to new NHAI Chairman.
Toll hike rollback for Gurgaon-Jaipur highway: The rollback decision was imposed on the developer following NHAI’s direction to first complete the project in a satisfactory manner. The Supreme Court has recently directed that toll should be stopped where road service conditions are grossly unsatisfactory.
Tweet: Cooperative Federalism: Kejriwal seeks PM’s help to cancel existing power purchase agreements at high rates and substitute with lower.
Delhi seeks new power pacts: Scrapping the long-term power purchase pacts is perceived to be critical for lowering of tariff. Delhi discoms have to incur 60% more cost on buying electricity compared with other states because of legacy issues in long-term agreements.
—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