Tweet: 2015 Infra will be remembered for absence of domestic uptick, interest by PE Funds & focus on roads, renewables, rlys, coal & discoms.
A slew of plans, projects given shape: 2015 was significant for the government push-ahead on its public expenditure-led revival strategy in a situation where PPP interest was at low ebb. To deploy public funds, a slew of plans and projects were given shape in specific sectors. Various measures to rekindle interest in PPPs were also announced.
Tweet: Madhya Pradesh gets infra booster from Gadkari. 3782 kms of state roads to be converted to Nat Highways with an investment of Rs 30,000 cr.
MP’s road and rail network to get a boost: Infrastructure development to the tune of Rs 80,000 crores in Madhya Pradesh will result in increasing the total length of the state’s highways to 8,976 km. The road transport minister also announced that the development of the much-delayed Indore-Manmad railway line will be initiated in conjunction with the Railways.
Tweet: Falling solar prices were celebrated as bringing renewables closer to grid parity. Now low solar tariffs scaring away serious investors.
Concerns over aggressive solar bids: There has been a consistent decline in the cost of developing solar projects. However, according to experts, competition has led to extremely aggressive bids. Due to perceptions of an unfavourable risk-reward ratio, it is feared that many of the commitments may face significant operational stress.
Tweet: Sensible of Coal Min to NOT allow any private JVs with States—now that states are being allowed commercial mining. Huge cronyism earlier.
Coal block conditions tightened: State governments that will be allotted coal blocks will not be permitted to issue coal selling rights to private parties. This has been done to prevent the recurrence of private mining operators from cosying up to state governments and acquiring contracts in a non-transparent manner.
Tweet: NITI Aayog reportedly back to making Plans. Difference? 10 yrs instead of 5. Bottom-up instead of top-down (coop federalism). Deja vu?!
Planning redux: NITI Aayog’s move is aimed at shifting long-term planning to a bottom-to-top approach in order to incorporate decentralised planning. This will synchronise state-level objectives with national programmes and social priorities.
Tweet: Enthused that Chairman NHAI has now become Chairman of stillborn Nat Hway Mngmnt Co. Expect serious action now on electronic tolling et al.
New lease of life for IHMCL: The Indian Highways Management Co Ltd (IHMCL) was set up in end-2012 as a partnership between NHAI, banks and private developers for speedy rollout of electronic tolling nationally and achieve significant improvements in highway operational matters. Unfortunately, the company was not able to take off in the manner envisaged. With the NHAI chairman taking up the chairmanship of the entity, it may get a new lease of life and start delivering on its charter.
Tweet: Road to Perdition: MoRTH Secy warns of termination of 19 BOT projects worth R20,000 cr if Promoters + Bankers “fail to mend their ways.”
Cracking the whip: The ministry of road transport secretary Vijay Chhibber seems to have reached the limits of his patience. He has now warned this set of specific developers and their bankers that the government will terminate their contracts and look at other means of developing them.
—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