NGT nod awaited for new bridges on Yamuna; rehabilitation of 500 slums hangs fire
Approval of National Green Tribunal (NGT) to build two bridges on the Yamuna, providing 34 hectares land to Delhi forest department for compensatory afforestation and rehabilitation of 500-odd slums are some of the hurdles that NHAI has to overcome before work can even start on the first part of this corridor. The foundation stone for this ambitious 50-km project was laid by Prime Minister Narendra Modi in December.For fast execution, the government had divided it into three parts. So far, NHAI has awarded work for the first (Nizamuddin Bridge to Delhi border) and the third (Dasna to Hapur) parts. The successful bidders have tied up funds. However, NHAI is struggling to bid out the second part -Delhi border to Dasna -which is the most congested portion. “The lowest bidder had quoted very high cost and it could not be accepted. So, we have re-tendered the package,” an NHAI official said. To expand the existing highway in the Delhi portion, NHAI has to construct two bridges, one on each side of the existing two bridges on Yamuna. Sources told TOI that a 2014 NGT order restricts any construction on Yamuna floodplains without its approval. “We have got the study completed by IIT-Roorkee and environment impact assessment has also been done. We will submit them to NGT’s expert committee,” an official said. The second issue is cutting down nearly 3,500 trees. Since Delhi has a special Act, NHAI has to provide 35 hectares for compensatory afforestation and also has to pay for plantation of 10 trees for each tree cut. Sources said NHAI is in talks with DDA to get the required land and a solution is likely by next month. The third hurdle is rehabilitation of about 500 slums along the existing highway near Patparganj. Chris Godwin Authentic Jersey
India expects higher oil demand growth this year: Petroleum Minister Dharmendra Pradhan
India’s oil demand growth is set to exceed 11 percent this year as the world’s third-largest oil and gas consumer accelerates its economic development, the country’s petroleum minister said on Monday. “The primary prediction for oil trajectory (last year) was 7 to 8 percent but we ended up with 11 percent. This year I am much more hopeful,” Minister of Petroleum and Natural Gas Dharmendra Pradhan told Reuters. “This year (India’s oil demand) will break all the records and prediction and we are prepared.” The growth will be driven by better monsoon rains and an acceleration of economic activity, he said. The minister was speaking in London ahead of a presentation of India’s bid round for discovered small fields which are estimated to hold 625 million barrels of oil and gas. The Indian government plans to launch an exploration licensing round bid in the next financial year as the country seeks to reduce its dependency on imports by 10 percent by 2022, Pradhan said. James Paxton Womens Jersey
US based energy giant, Shell Oil has “clear aspirations” to grow in India
Global energy giant Shell Oil has “clear aspirations” to expand its operations in India as the country’s energy sector expands, the company’s president Bruce Culpepper has said. “By 2050 world energy demand is projected to double, most of that growth will come from developing countries like India as its per person energy use is expected to increase more than 550 during that time frame,” Culpepper said. “About two thirds of the India’s electricity generation is currently coal based. One of the best ways to provide more energy with fewer emissions is to move from coal fired to gas fired power plants,” he said in his keynote address at an event hosted by Indo-American Chamber of Commerce of Greater Houston (IACCGH) here on Friday. “This is one area where Shell can be part of the solution as we are now world’s largest integrated gas player, with unmatched capabilities to produce or acquire natural gas, liquify it, load it to a specialised tanker and ship it where needed”, the Shell president said. “The environment in which we work is changing rapidly, thus creating considerable opportunity. These opportunities exist for the people and economies of Houston and India, fostered by the efforts of the (IACCGH) that has been building bridges between the two countries for last over two decades’, he said. Due to its technical talent and growth, Shell wants to continue to be a trusted partner with the Indian government and the people of India by providing energy solutions. “Shell is the only global oil company with a license to build a network of up to 2000 retail fuel stations”, he said. Shell and JSW Steel were the two companies that participated in the IACCGH programme. Sharing statistics that showcased the tremendous growth in bilateral trade IACCGH President Joya Shukla spoke of the Chamber’s initiative to send business students from Houston to India to intern at companies there to provide a dual perspective on how business is conducted in the two countries. Jonathan Cooper Authentic Jersey
Air India looks to recast loans worth Rs 28000 crore
Saddled with a debt of almost Rs 50,000 crore, Air India is trying to restructure the Rs 28,000 crore working capital portion of this burden. The airline’s top brass had an informal meeting with State Bank of India management last week in Mumbai where the Maharaja requested that SBI Caps be asked to examine the possibility of converting a part of the working capital debt into equity . A consortium of 19 banks have extended Rs 28,000 crore as working capital loan to the state-owned airline. Of this, Rs 22,000 crore is aircraft purchase related loan, which has been partially raised with guarantee from EXIM Bank from foreign institutions, and rest via NCDs (non-convertible debentures) and bonds. “For the working capital loan, Bank of India and Bank of Baroda have the biggest exposure individually of about Rs 2,000-2,200 crore each. SBI has an exposure of about Rs1,200 crore,” said a senior official. SBI leads this consortium of bankers for taking decisions on AI loans. While no bank has far reacted positively to the idea of converting part of loan into equity -or taking a haircut -the airline management has made it clear that corporate debt restructuring (CDR) is a must for the airline to survive. “Every year, Rs 4,000 crore goes towards debt servicing alone…” AI chairman Ashwani Lohani had told TOI. “Of the Rs 28,000 crore working capital loan, Rs 7,000 crore is NCD. So the issue is of Rs 21,000 crore.Banks will see what part of this amount is sustainable loan -meaning that can be serviced with the cash flows of the company -and what part is un-serviceable (which AI may not be able to service). The non-sustainable portion is about Rs 10,000 crore (which AI wants to be converted into equity),” said the official. AI has long been trying lenders to cut the interest rate on loans of Rs 10,500 crore, on which it is paying 10.1%.The airline had earlier this year pointed out that there were three options for restructuring the loans. One was to get banks to convert a part of loans into equity . The second was to swap the “high-cost debt” with nonconvertible debentures, which AI executives said, would cost 7-8%, resulting in an annual savings of around Rs 200 crore. In the third model, banks could be issued preferential capital with a fixed rate of dividend payable.This way , AI feels, there will be no dilution of equity . Martin Perez Authentic Jersey
Nitin Gadkari lays foundation stones for new underpasses, flyovers in Gurugram
Union Minister for Road Transport and Highways Nitin Gadkari and Haryana Chief Minister Manohar Lal Khattar on Sunday laid foundation stones for the construction of new underpasses and flyovers in gurugram. The function was organised at Tau Devi Lal Stadium in gurugram where Gadkari and Khattar addressed a public gathering. Foundation stones for the improvement and construction of new underpasses, flyovers at Rajiv Chowk, Rao Tula Ram Chowk (Signature Tower) and IFFCO Chowk on Delhi-gurugram Expressway was laid — the projects costing Rs 1,005 crore. Union Minister for State and MP from gurugram Rao Inderjeet Singh and Haryana PWD Minister Rao Narbir Singh were also present. The ground breaking ceremony for four-laning of the 70.178 km long Jind (Haryana)-Punjab border, a section of National Highway 71, costing Rs 1,069 crore in the state of Haryana, was also performed at Jind mini bypass. The projects in gurugram will be completed in a record time of 15 months, an official said. Ryan Goins Authentic Jersey
Ownership transfer is the new normal in infra deals
Transactions that involve the transfer of a controlling stake are increasingly becoming the norm in the infrastructure sector as short-term or private equity (PE) investors get replaced by long-term buyers. At least three-fourths of total deals by value so far in 2016 have constituted a change in ownership, showed data from Equirus Capital Pvt. Ltd, an investment bank. In comparison, less than half the transactions in 2015 involved transfer of control. This trend is in sharp contrast to over five years ago when PE firms were leading transactions and were also willing to invest in a large number of greenfield and under-construction projects. “One of the major avenues for promoters in infrastructure today to obtain liquidity is by selling their operational assets because minority PE investors have vanished from the infrastructure space,” said Ashish Agarwal, director, infrastructure, Equirus Capital. “Investors in infra today want to buy majority stake and hold operating assets and cash flows, which is why M&A (merger and acquisition) is driving the market.” Deals that involved a change in control of assets across roads, power, renewable energy and construction sectors totalled $2.5 billion this year, more than three-fourths the $3.3 billion total deal value, according to Equirus data. For asset owners, trying to exit their mature special purpose vehicles (SPVs), ceding control is the only available option, said Y.D. Murthy, executive vice-president of finance at Hyderabad-based construction and infrastructure firm NCC Ltd. After selling its stake in a 1,320 megawatts (MW) power project to Sembcorp Utilities Pte Ltd and its 51% stake in Western UP Tollways to I Squared Capital-backed Cube Highways and Infrastructure Pte Ltd earlier in 2016, NCC is now in advanced discussions for selling its Bangalore Elevated Tollway highway road project to asset manager IDFC Alternatives, Murthy said. The stress in the balance sheets of infrastructure companies from factors such as delayed projects and land acquisition problems also makes it difficult for them to raise fresh capital. “Most assets are distressed. In that kind of a scenario, M&A seems to be the only option for companies to monetize,” said Vikas Khemani, president and chief executive officer at Edelweiss Securities Ltd. The number of such deals is only set to rise as Indian infrastructure firms continue their struggle with project delays and rising debt. Many have also been hurt by a mismatch in demand estimates, which have not grown as much as anticipated at the start of the project. Naturally, dozens of assets across roads, power and renewable energy, and several others across ports and airports continue to be on the block in the hope of securing attractive valuations, according to multiple people aware of ongoing discussions. Funds such as US-based I Squared Capital, Indian asset manager IDFC Alternatives’ infrastructure fund, Canada’s Brookfield Asset Management and Macquarie Group are among active infrastructure-focused financial investors who have invested in the sector and are looking to buy assets across roads, thermal power and renewable energy to build their own portfolio in India. This new breed of financial buyers, who have a low cost of capital and are willing to buy out 100% in operational projects, provide an avenue for private sector firms to unlock value from existing assets. In August, road developer IL&FS Transportation Networks Ltd agreed to sell its road project in Andhra Pradesh to Cube Highways for Rs140.37 crore. Earlier in May, ITNL sold an additional 15% stake?in?its?Gujarat?road project to Australia’s Macquarie Group Ltd for Rs109.8 crore. Deals, however, are taking longer to close and there are only a handful of serious financial buyers, said Santosh Yellapu, an analyst at Angel Broking. “It’s a buyers’ market, with a lot of assets to choose from.” While PE investors have stayed away from investing in asset-heavy roads or power sectors in the past two years, their interest in the renewable energy sector is on the rise. So far in 2016, three PE deals totalling $393 million have been announced in the renewables sector by investors, including Piramal Enterprises Ltd, along with Dutch pension fund APG Asset Management, GE Capital, Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC. Only one PE transaction took place in the roads sector, where Goldman Sachs agreed to invest $220 million in Essel Highways Ltd in a structured financing deal. Steve Yzerman Womens Jersey
Delay in tariff order can unplug Discoms’ finances
The slow progress in issuing electricity tariff orders for 2016-17 is becoming a major concern for power generators, worried about the load on the financial health of the State distribution companies (Discoms). “Inadequate tariff increase and delay in tariff revision will render bootless the Centre’s attempts to turnaround Discoms through the Ujwal Discom Assurance Yojana,” said a senior official of a private power generator. While 11 States are yet to issue tariff orders for 2016-17, 16 have but with most effecting only a modest increase. “Due to delayed tariff orders, the financial health of the Discoms has further deteriorated. Discoms cannot procure power, resulting into non-availability of supply to consumers and poor service,” he said. So far, States including Tamil Nadu, West Bengal, Assam and Tripura have not filed a tariff petition for 2016-17. In Delhi, the three private sector Discoms — Tata Power Delhi Distribution Ltd, BSES Rajdhani and BSES Yamuna — have filed the tariff petition but the Delhi Electricity Regulatory Commission is yet to. Similarly, in Maharashtra, Haryana, Rajasthan, Kerala and Jammu & Kashmir, tariff orders are yet to be issued despite completion of the public hearing process. Even the increase in tariffs has been small in most of the 16 States that have revised electricity rates for 2016-17. While in Bihar and Odisha there was no increase, Punjab and Gujarat reduced tariffs by 4 and 10 paise a unit, respectively. Uttar Pradesh, Telangana and Karnataka have increased rates by 4-9 per cent. The exception has been Chhattisgarh, which has raised electricity tariffs by 16 per cent for 2016-17. Rating agencies’ concerns Credit rating agencies have expressed concern over the delay/non-filing of tariff petitions. In a recent report, Fitch said: “For the majority of States, tariff increases are required to reach breakeven status even after the other savings to which they are committed are considered. “A meaningful improvement in Discoms’ economics will especially benefit power generation companies via higher utilisation and timely clearance of dues.” ICRA’s Sabyasachi Majumdar said in a recent report that the delay in issuance of tariff filings and tariff orders may be attributed to the UDAY scheme “which resulted in some uncertainty about quantifying the impact of the scheme on the cost structures of Discoms.” Seth Joyner Womens Jersey
SpiceJet to buy more aircraft, ‘not thinking of stake sale’
SpiceJet reported a stellar set of Q1 numbers with revenues growing 37 per cent to ?1,521.53 crore and profits more than doubled to ?149 crore. Speaking to BTVi, SpiceJet Chairman Ajay Singh said the airline has grown its profits despite keeping fares steady in a challenging environment. It is also in advance stage to acquire more aircraft as it expects the aviation sector to grow 25 per cent. SpiceJet reported a fantastic set of Q1 numbers. What has led to the growth and how are things looking like at this point? We do not like to give guidance on quarters but in a challenging environment we think that we are growing responsibly and profitably. As you have seen that in this quarter, SpiceJet grew 37 per cent, which was the fastest by any of the major carriers in the country. Our capacity and revenues increased by 37 per cent. Our profits have more than doubled — they have gone up by 104 per cent. So, I think, we will grow profitably and that growth should not come at the expense of revenues or profits. Despite high aviation turbine fuel prices, your margins have continued to increase as well. Can you take us through the mathematics there? Well, firstly if you have noticed the unit revenue as well as the unit fares dropped marginally by about 2 per cent or so. The load factor has gone up by about 2.5 per cent. So, that has neutralised the impact on revenue and revenues have grown at the same level as capacity growth. In addition, we have been able to keep fares pretty much where they were despite a challenging environment. Ancillary revenue has grown by 64 per cent. So, all these factors have contributed to the margins that you see. Can you also tell us a little bit more on plans in regards to fleet addition? We will continue to explore opportunities of growth in the short-, medium- and long-term. We feel that there are certain opportunities and certain markets that we would like to enter and as a consequence, there will be a growth in our capacity in the winter quarter. We are also looking at placing orders for aircraft and that is at a very fairly advanced stage at this time. And we hope to complete that process over the next few weeks. Are there any requirements for funding or are you well placed there? Well, profits have been strong. We expect that the profits will remain strong for the year the cash position is also very strong. We don’t believe at this level of performance, we need to get any external financing or dilute our equity. We also feel that this is not an appropriate valuation for SpiceJet stocks. We will take calls as we progress down this journey. But at this time SpiceJet is in a very strong position in terms of the financial ability to place orders and move forward. Keenan Allen Jersey
Half of NHAI’s 600 contracts disputed, chief seeks remedy
With the highway authority finding half of its 600 contracts in the last 10 years locked in disputes, its chairman has exhorted National Highways Authority of India officials to take a leaf off private developers to see how they can minimize such legal challenges. NHAI chairman Raghav Chandra was referring to the fact that private developers have been more nimble in strengthening their legal cells unlike the highway authority. NHAI has 123 cases for a claim amount of more than Rs 25,000 crore pending before arbitration tribunals. Another 30 cases involving disputed amounts of Rs 14,500 crore are pending before its internal dispute resolution committees. There are also over 2,000 cases that are pending before different high courts and the Supreme Court. Nearly 43,000 cases, mostly related to land acquisition, are pending in different lower courts across the country. “It’s a mammoth task as the number of litigations is increasing. We have to find ways to minimize them at every level from the field officers to those sitting at the headquarters,” said an NHAI official. Speaking at the inauguration of a conference organised by the highway authority , Chandra said disputes in highway projects should be resolved expeditiously and ideally always on the ground. “The fewer the disputes, the faster they are resolved, the better the governance,” he said. Cameron Payne Womens Jersey
New highway to cover Delhi-Jaipur in just two hours: Nitin Gadkari
Union minister for Road Transport Nitin Gadkari today said a new access control highway would be constructed between Delhi and Jaipur which would reduce the travel time between the cities to just two hours. The 270-km distance takes over six hours by road now. The Minister also said an “intelligent transport” system – with CCTV cameras installed to monitor the traffic rule violators – would be put in place on NH-8. Speaking after laying the foundation stone for improvement work on three junctions on NH-8, at an estimated cost of Rs 1,005 crore, Gadkari said the work would be completed in 15 months instead of the originally planned 30. Referring to the new Delhi-Jaipur access control highway, Gadkari said the project would cost Rs 16,000 crore and work on it will be started in January, 2017. The land acquisition process for the new highway would be started soon. On plans to ensure seamless traffic flow on NH-8, he said work on the flyover at IMT Manesar Chowk would be completed soon. He said four underpasses and as many flyovers would be constructed to make the traffic movement seamless. Gadkari said work on the Dwarka Expressway had commenced and it would be completed soon. Chief Minister Manohar Lal Khattar urged him to get the 1.75-km stretch of this expressway, which falls in Delhi area, done quickly. Gadkari said the junction near Ambience Mall would also be improved. In addition, he assured to start construction work on the Manesar-Gurgaon bye-pass in near future. The pilot project of Metrino System between Dhaula Kuan in Delhi and Manesar had been cleared and work would be started soon, he said. Gurgaon MP and Union Planning, Urban Development, Housing and Poverty Alleviation Minister, Rao Inderjeet Singh demanded waiving of the toll charges for the residents of Gurgaon at Kherki Daula Toll Plaza on the pattern of Gujarat. Derek Forbort Authentic Jersey