Within the Power sector the Transmission & Distribution (T&D) sector merits equal if not more attention. The more serious problem is one of under-investment in the T&D sector. For the last 50 years, India has been able to investment barely half of the desired level of investment in the T&D sector. Transmission lines in India are loaded up to 90 per cent in India against the world standard of 60-65 per cent.
Tag: infrastructure projects
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SFIS licenses should be transferable | Budget 2013-14
Applicability of MAT on companies during tax holiday Re-introduction of sec 10(23 g) so that interest is tax free to lenders of infrastructure projects Currently port services are considered as 'technical services' and thus fall under 194J for TDS purposes. Both 'port services' as well as 'revenue share' should fall under 194C.
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Remove bottlenecks | budget 2013-14
Given the backdrop of a modest 5.5 per cent GDP growth expected in FY13 and uncertainties on a global economic recovery, Union Budget 2013-14 assumes immense importance. It is imperative to stimulate domestic demand, that too through infrastructure creation because of its huge multiplier impact in terms of creating new jobs, enhancing productive capacity of economy and promoting inclusive growth.
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Sebi clears $1 bn IDF of IIFCL
SK Goel, Chairman and Managing Director of India Infrastructure Finance Company (IIFCL) said that the firm got Securities and Exchange Board of India's (Sebi) nod to launch $1 billion infrastructure debt fund (IDF). IIFCL expects to operationalise the fund in a month. Of the $1 billion corpus, 50 per cent would be contributed by Indian investors and 50 per cent by foreign investors, he said at the launch of first credit enhanced infrastructure bonds.
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Uttarakhand to set up committee for PPP projects
Uttarakhand government would take a decision on setting up an Empowered Committee on Infrastructure (ECI) and an Empowered Group of Ministers (EGoM) to clear key PPP infrastructure projects. Even though the state government announced a new PPP policy last year, it has not yet set up the above bodies.
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TN govt notifies Infrastructure Development Act
The Tamil Nadu government framed rules and notified the Tamil Nadu Infrastructure Development Act 2012. The state government has created an institutional framework through this law and it encompasses over 25 social and physical infrastructure sectors.
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Restructuring must be done only when viability is not in question
Rather than having viability problems, infrastructure projects are typically “front-ended”, so it is often the mismatch between the lending and the project’s revenue-making tenures that lead to an increased likelihood of restructuring, says Arundhati Bhattacharya, MD & CEO of SBI Capital Markets in an interaction with Sumantra Das.
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Risk Management: Mitigating delivery flaws
Infrastructure projects, by their very nature, are long duration and capital intensive. Keeping in mind the nature of infrastructure projects, both the companies and governments involved in the development of infrastructure have to devote significantly high investments, and human and technical resources.
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IDFs are yet to take shape in the country
It would be purposeful for taking steps towards simultaneously developing IDF and bond market, says SK Goel, Chairman & Managing Director, IIFCL, Infrastructure Debt Funds (IDFs) are yet to take shape in the country as the infrastructure bond market is in its nascent stage. Till infrastructure bond market develops, IDFs may not find adequate avenues for investment and on the contrary till IDFs evolve, the infrastructure bond market may find it difficult to attract sufficient investments.
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PPP and water management still don't jell
Private players have been shying away from PPP in water management due to lack of transparency in the system, longer gestation of return on investment and above all RoI is much lower compared to other infrastructure projects. With upsurge in economic activities and rapid growth in urbanisation, proper water management system has to be in place. According to a recent PwC report, almost 590 million people are expected to live in Indian cities by the year 2030.