Tweet: Const & Capital Goods cos linked to infra were first expecting a hockey-stick uptick from Divali. Got shifted to Q4. Now moved to Q1/16-17.
Hopes of economic revival in the construction sector
The government’s emphasis on kickstarting the economy through public expenditure on infrastructure development has raised hopes of revival among construction and capital goods companies linked to infrastructure sector. Whilst major programmes are works in progress, increases in order books and liquidity are still to happen.
Tweet: Sec 107 of 2013 Land Act does not allow states to enact a land law that reduces any benefits provided in the Act. So Central Act still needed.
Land Law Tussles
The continuing stalemate in Parliament over the Land Bill has led to the Centre encouraging states to draft their own legislation. However, experts feel that a central Land Act would still be necessary to provide a framework for Presidential assent.
Tweet: Govt “asks” Airport Regul to bring down airport charges by using ‘normative’ instead of ‘cost-plus.’ Issue of Regulatory Independence?
Seeking To Lower Airport Charges
The government has recommended that airport operators change their method of applying airport charges so as to be less onerous for airlines. Operators have been complaining that Indian airport charges, particularly in the metros, are much higher compared to international rates.
Tweet: Truancy by Contractors: Main reason offered by MoRTH for increase in delays in highway projects across most states. ‘They, not us’ syndrome.
Road Construction: Logjam Ahead
Road projects across several states have been delayed. While there exist well known problems such as land acquisition, lack of environmental clearance and unfavourable market conditions, the government appears to be putting all the blame on private contractors.
Tweet: As per CEA ~ India’s thermal power PLF was 59% in June 15, its lowest in over a decade. Reason—Lack of demand by cash-strapped Discoms.
Power Sector: Tangled Wires
Even though power generation has increased and there is new installed capacity of 12,000 MW, lack of power purchase power agreements continues to keep plant load factor at its lowest. Capacity lies idle while nearly one-third of the population goes without electricity.
Tweet: Pvt sector involvement in Electricity distribution is Rajasthan’s self-medication. Of R3 lac crore Discom debts, Rajasthan has R90,000 crs.
Rajasthan’s Cure For Its Growing Discom Debt Malaise
In a move that appears to be a precursor to electricity distribution reforms, Rajasthan State Electricity Board (RSEB) is pushing for increased private sector participation in the distribution of power across its major towns and cities. It hopes this will enable it to reduce losses in future.
Tweet: Wind-power producers are quite despondent as they are struggling to sell their power. Discoms not buying; e. g. Maha regulated rate is R5.75
Few Takers For Renewable Power
In spite of the government’s huge expectations from renewable energy, operators are struggling to sell power. With thermal energy’s PLF down to 59%, there seems to be few takers for higher priced renewable power.
Tweet: Smart Puduchery: first city to file its application to Urban Ministry for being selected under the central scheme.
Puducherry First To File For Smart City Nomination
The Union Territory of Puducherry nominated itself for inclusion in the 100 smart cities mission, taking a lead over other contenders. The UT has performed well in the first stage of evaluation, scoring 75 out of 100 marks.
—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