The policy makers, regulator and CGD companies must come together and work towards bringing about positive changes in the sector to maintain its attractiveness, writes Samrat Chauhan.
Tag: NHAI
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Infrascape 2013 | PPP is the way forward
Realising the importance of nation building, our planners and policy makers are targeting a whopping US$ 1 trillion of infrastructure investments durĂÂing the XII Plan period. With the combined Central and State deficit at over ~11 per cent of GDP, and national debt at close to 90 per cent of GDP, government finances are seveĂÂrely constrained.
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Tight liquidity scenario and toll non-compliance governed the road sector performancey
As against the target of 9,000 kms, during the first six months of 2012-13, NHAI managed to award only six projects. These six projects incĂÂluded two large-scale projects Ăâ Mega Maharashtra Highway (484 kms; Amravati-Jalgaon-Gujarat) and WalajĂÂahpet PoonĂÂamallee (93 kms). However, these projects were bid out at seemingly aggressive prices.
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Investors would love to invest in India if we get our act right
There are mainly three reasons. First and the most immediate one is government departments are not paying in time. For instance, NHAI dues are aggregating upwards of Rs 25,000 crore. Some are disputed and others are not. If you ask NHAI they will deny any payments are due, but that is not the [right] answer. The government will need to be practical, in that somebody has done the work and money has been spent.
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Cost escalation ruins infra firms' hope
The rising finance cost has eaten into the profit margins of major infrastructure firms in the first half of the current fiscal year. Infrastructure companies have witnessed a sharp increase in their finance cost during April-September 2012. An analysis of the financial statements of 16 infrastructure firms shows financial cost going up because of huge debt, tight monetary policy and high risk perception.
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IDFC eyes stake in Gurgaon expressway project
Infrastructure Development Financial Company (IDFC), which is one of the lenders for the Delhi-Gurgaon expressway project, is in the process of picking up stake in the project, reports suggest
The concessionaire of the project-- Delhi-Gurgaon Super Connectivity (DGSCL) --can reduce its share from 100 percent to 26 percent two years after tolling starts and has to report to NHAI in such case, according to an agreement with NHAI.
IDFC is the lead financial institution in a consortium of lenders
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NHAI gives more time to secure funding for highway project
Owing to delay in securing statutory clearances, the National Highway Authority of India (NHAI) allowed the concessionaire of the Kota-Jhalawar highway project in Rajasthan to take more time for financial closure. The lenders of the highway project asked for all the clearance to be on the safer side. The approvals from seve
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Four projects get NHAI’s extension for funding
The National Highways Authority of India (NHAI) has given a breather to four companies which are on the verge of losing their contracts. Several projects of NHAI have been facing failure to achieve financial closure.
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Road projects in limbo
Slow progress in project execution coupled with subdued interest in bidding for new projects under current policy frame may give alternative option to call for revaluation or fresh bids for already allocated road projects. In order to avert this situation, a Performance Review Unit (PRU) proposed by the Planning Commission needs to be endowed with power to gather information from nodal agencies on clearances and incentivise or to regulate, writes Sumantra Das.
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Reinventing IndiaĂâs road infrastructure
Highway award and implementation has faced a major slowdown this fiscal, but most of the factors are the usual suspects. Then why is this year different? Rohit Chaturvedi and Tejaswi Subramanian explain the potential pitfalls and silver lining in the sluggishness. After a year of aggressive bidding and flourishing business, the road sector has seen a marked slowdown this year in the number of allotments made or expected to be made by the National Highways Authority of India (NHAI).