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.
Tag: infrastructure projects
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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.
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The renewed imperative for projects
Is the government going slow on PPP projects? More infrastructure projects are being commissioned in the country on EPC
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We are not yet at the professional entrepreneurial stage
Can second generation infrastructure projects sustain the spirited start that the sectors got because of visionary leadership?
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EPC’s short term quality makes it attractive
Whether the defect liability clause is faulty or not, whether L-1 continues to be debated as the sole criterion in government awards
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Union cabinet to decide on land policy
A new land policy, that may clear land acquisition hurdle for existing and new infrastructure projects, would go to the union cabinet for approval. Land acquisition remains a major concern. Last year, a ban was imposed on the transfer of government land to other entities. If any department had to implement a project that required alienation of land (through lease, licence or rent), it had to seek the approval of the cabinet.