Tweet: Public Expenditure on Capex via Capital Mkts: 7 CPSUs to raise R40,000 crs thru tax free bonds. NHAI, IRFC, HUDCO, NTPC, REC, PFC, IREDA.
Boon for investors: Tax-free infrastructure bonds are indeed an attractive way to channelise retail and institutional savings into infrastructure investment. This is also in line with the government’s desire to rely even more on off-Budget ways of raising finances for pursuing the route of public investment in infrastructure projects.
Tweet: Accu loss of Discoms ~ March 2014 is R3 lac crores. RBI says R53,000 crs close to becoming NPAs. Nation cannot afford business as usual.
Discoms in distress: Even as discoms’ losses continue to balloon, state governments appear to be dragging their feet on a slew of measures required to put the discoms back on track. Some of the states that had initially agreed to the FRP (financial restructuring program) have reneged. This is leading to increased load-shedding and inability to lift power from generators.
Tweet: EnvMin set to amend CRZ rules to allow construction of roads on land reclaimed from sea (read Mumbai Coastal Road). Environmentalists upset.
Clearing the coast for road construction:In a move that helps transportation links, but tends to upset environmentalists, the Union environment ministry has published a draft notification to amend the Coastal Regulation Zone (CRZ) Notification 2011. This is meant to enable state governments to build roads on reclaimed land. Currently, only roads on stilts are allowed.
Tweet: Mobile call drops ~ Delhi situation: Cellular tower installations increased 1.75X , but voice traffic ^ is 2X and data traffic ^ 3.5X.
Telcos’ tower troubles: More spectrum and tower installations are critical but given the annual levies, high spectrum costs and non-availability of adequate urban spaces, it appears that telcos will have an uphill battle in bringing about the desired improvement in services.
Tweet: Slow down in China should lead to further reduction in international coal prices. Good for dom power but bad for overseas mine investments.
The dragon slows down: As India will continue to rely on large amounts of imported coal for the foreseeable future, the slowdown in China augurs well for coal import prices, thereby reducing the pressure for tariff increase. However, some large Indian corporates have made significant investment in overseas coal mines and question marks now hang over their viability.
Tweet: Capex green shoots reasons : (1) Faster Env Clearances (2) Govt spend on infra (3) debt restructuring (4) Revival of mining (5) Renewables.
Hope of economic upturn blossoms: Reports from Centre for Monitoring Indian Economy (CMIE) and RBI’s observations point to the possibility of an upturn in the capex cycle.
Tweet: “Perspective Transmission Plan for 20 years” under preparation with realisation that transmission bottlenecks could erode generation gains.
Plans afoot to tackle power transmission issues: In a bid to help transmission keep pace with power generation, the government is set to unveil a 20-year plan. The draft proposal envisages an investment of R1.6 lakh crore from states and R1 lakh crore from the Power Grid Corporation of India Limited.
Tweet: Chandrababu Naidu is certainly doing very well on networking. After Singapore, Japan also offers financial & technical help for new Capital.
Capitalising on Japanese assistance: The Japanese government wants to be a key player in the construction of Andhra Pradesh’s new capital, Amaravati. Chief minister Chandrababu Naidu has sought Japanese collaboration in development funds, technical assistance, technology collaboration and skill development.
– Vinayak Chatterjee is Chairman of Feedback Infra
His Twitter handle: @Infra_VinayakCh
A weekly compilation of the author’s tweets—
with a brief backgrounder—in the infra space, by Adite Banerjie