India, ADB sign $48 mn loan agreement for Assam
India and the Asian Development Bank (ADB) have signed a $48 million loan agreement towards improving Assam’s power distribution system, an official statement said on Tuesday. “The project will help Assam to enhance capacity and efficiency of its power distribution system to improve electricity service to end users,” the Finance Ministry said. This is the second tranche loan of the $300 million multi-tranche financing facility for the Assam Power Sector Investment Programme that was approved by the ADB Board in July 2014. The first tranche loan of $50 million was signed in February 2015. “This loan will help strengthen the state’s distribution system, improve energy efficiency and reduce technical and commercial losses,” said M. Teresa Kho, country director of ADB’s India Resident Mission. The loan of $48 million from ADB makes up to 80 per cent of the total project cost of almost $60 million, with the state government providing counterpart finance of $12 million. The loan has a 25-year term, including a five-year grace period with an annual interest rate. Bobby Clarke Authentic Jersey
No downgrading in case of loan default: Operational infrastructure projects may get ratings shield
Infrastructure projects that have started commercial operations will not be downgraded to junk ratings if their promoters temporarily default on loan payments, ensuring that the supply of funds does not dry up for developers facing constraints. For this, the government will soon come out with a new ratings methodology that will factor in expected loss and the ratings of such infrastructure projects will only suffer to a limited extent. A senior government official confirmed the development and said that their idea was to prevent the ‘one-day-one rupee’ delay for default recognition that causes lasting damage to a project. “In this scenario, the ratings of the company plummet and it further finds it difficult to service the debt. The idea is to assess the ratings depending upon the project’s viability,” the official said, not wanting to be identified. Finance minister Arun Jaitley in his 2016-17 budget speech had announced that the government was looking to work out a new credit rating system for infrastructure projects that will give “emphasis to various in-built credit enhancement structures” and not rely upon “a standard perception of risk which often result in mispriced loans”. The government official quoted above said that the new rating system would ensure that “if ratings of such a project is marginally impacted, other long-term investors such as insurance and pension funds will still be able to participate in their public issuances”. The official said discussions were on with all regulators including capital market watchdog Securities and Exchange Board of India on the new rating system. Initially, this benefit will only be extended to companies whose projects have achieved commercial operations. “All this will depend on the current and expected cash flow of the project,” said another official aware of the deliberations. “Today, if a company defaults for a day, its account becomes a non-performing asset and it becomes difficult for promoters to salvage it. Such ratings will give them the recourse to approach other financial institutions,” the official said. But all regulators are not convinced. “The viability of these projects will depend upon assumptions that some of them may be beyond the promoter’s control. There needs to a benchmark list on what conditions these projects should fulfil before a new improved rating is assigned to them,” said a senior official from a pension regulator. A senior official with Insurance Regulatory and Development Authority of India (IRDAI) said that it is a better idea to start with projects that have achieved commercial operation declaration. “Since most of the risks occur before implementation, in such projects those causes can be identified and if there is a way out, then only ratings can be assigned,” he said. Vince Carter Jersey
I am minister, you have to do it. You do or die: Nitin Gadkari to bureaucrats
India’s plan to sustain its position as the world’s fastest-growing major economy hinges on availability of cheaper funds for the road and port builders, the country’s transport minister Nitin Gadkari said. “Interest rate to infrastructure projects is 11% and it is not good for the sector,” Gadkari said at a Bloomberg event in Mumbai on Monday. “The ideal interest rate to infrastructure sector should be less than 7%.” Prime Minister Narendra Modi’s administration is stepping up construction of roads, ports and airports as part of plans to fulfil his 2014 election pledge of boosting economic growth and improving ease of doing business. High interest rates at home makes borrowing overseas cheaper at a time when government plans to triple spending on the sector compared to the average of the past three years. The roads ministry is aiming to boost network of highways covering the vast South Asian nation to about 200,000 kilometres by the end of December, Gadkari said. Eyeing overseas investors, the government will monetize 101 toll roads, he added. Road construction is key to creating jobs crucial for Modi ahead of key state polls next year and a general election that’s due by 2019. Only about 55-60% of India’s roads are paved, while more than a third of China’s 4.5 million kilometers (2.8 million miles) are fully built, based on Bloomberg Intelligence analysis. India’s gross domestic product is expanding at a more than 7% pace and Gadkari said boosting country’s infrastructure, whose quality is ranked below that of China and Indonesia, is key to improving economic sentiment. The government aims to build about 40 kilometers of roads a day in the year ending March 31, according to the roads ministry. As many as 95% of stalled road projects are back on track now, the minister said. A project logjam had slowed the pace to about 3 kilometers when Modi’s government took office just over two years ago. “It is my responsibility as minister to give them a big target and to ensure it is done,” Gadkari said, adding that he has to sometime coax reluctant officers to achieve them. “I tell them I am minister, you have to do it. You do or die.” New England Patriots Jersey
Toll plazas may see trucks pile up on currency freeze
Trucks on the highways may come to a standstill if the toll plazas are to stop accepting ?500 and ?1,000 notes with effect from tonight. “Truckers should be allowed to exchange ?500 and ?1000 at toll booths over the next two-three days. For truckers on the road, toll booths are like petrol pumps and hospitals,” said SP Singh, Senior Fellow, Indian Foundation of Transport Research and Training (IFTRT). The National Highways Authority of India (NHAI) Chairman Raghav Chandra said the authority will do whatever is required to protect the interest of commuters and within the legal framework. Railway counters will accept the ?500 and ?1000 notes. However, people travelling in long distance trains could face problems. “Passengers can use ?500/1000 notes to buy train tickets or food from railway catering,” Mohd Jamshed, Member-Traffic, Railway Board. Steve Yzerman Authentic Jersey
India mulls more flexible dry-lease regulations
India’s Directorate General of Civil Aviation (DGCA) has outlined proposed new legislation that would pave the way for the importation and dry-lease of foreign-registered aircraft by Indian operators using Indian crews. A government gazette issued Monday, November 7, says the revised legislation aims to foster growth in India’s fast growing market. “[The] operation of foreign-registered aircraft is ideal and convenient for start-up airlines, when exploring new routes or during seasonal fluctuations and sudden peaks in demand,” the DGCA said. “In addition, operation of foreign-registered aircraft arguably also fulfills the interim needs created by long-term fleet expansion plans, while maximizing market share in the immediate term.” Ronnie Stanley Authentic Jersey
Bhubaneswar Airport to be fully functional by 2nd quarter of 2018
The Biju Patnaik International Airport in Bhubaneswar is expected to be fully functional and declared as an operational airport by April or May 2018, said Guru Prasad Mohapatra, chairman of Airport Authority of India (AAI). Talking to media persons soon after his arrival at the city airport from New Delhi today, Mohapatra said be it a domestic flight or international flight, resumption of flight service is the lookout of the concerned airlines. Under its hub and spoke model, the Air India at present conducts passengers, customs and immigrating checking at the old terminal of the Biju Patnaik International Airport in Bhubaneswar for its international fights. Talking about the development of the city airport, Mohapatra said the Government of India has relaxed international flight regulations. “AAI has collaboration with the state governments which have provided land and financial assistance. Initially, there were problems in the resumption of work. But now the work is going on smoothly. We are expecting that by April and May, 2018, the Biju Patnaik International Airport will be fully functional and declared as an operational airport,” Mohapatra said. Justin Blackmon Jersey
West Bengal government accepts Centre’s air connectivity scheme with rider
The West Bengal government today accepted the regional connectivity scheme in civil aviation as proposed by the Centre, but at the same time, threatened to pull out of it if the state had to bear in excess of the 20 per cent share as has been committed by the Centre under the Viability Gap Funding (VGF). “The VGF is to be shared between the Ministry of Civil Aviation and the state governments in the 80:20 ratio. We shall pull out of the scheme if the state has to bear in excess of the 20 per cent share as committed by the Centre,” state Transport Secretary Alapan Bandyopadhyay said while briefing reporters on the outcome of a meeting of the Parliamentary Standing Committee on Transport with the state government. “The chief minister has discussed several issues relating to our state at the meeting. She has urged the MoCA to restrict the flight fare from un-served and under-served airports to Rs 2,500. The Centre will have to bear 80 per cent, while for the state, it will be a maximum of 20 per cent if the fare exceeds the limit,” Bandyopadhyay said. Stephen Gostkowski Jersey
GMR inks deal with Goa govt to develop Mopa airport
Bengaluru-based GMR Airports, a subsidiary of GMR Infrastructure, today signed a concession agreement with Goa government to develop and operate greenfield airport project at Mopa in North Goa. State Chief Minister Laxmikant Parskear was present for the event during which the government and GMR Airports formally signed an agreement to design, build, finance and operate the international airport for 40 years with the extension option for another 20 years. The first phase of the project is expected to be completed by financial year 2019-20. “GMR is proud to be associated with the new airport. I am sure this airport is going to create new landmarks in terms of performance,” said Srinivas Bommidala, Chairman-Airports, GMR Group. The company has a track record of sticking to the deadlines, he said, adding that the Mopa airport will be completed in time. Zach Werenski Jersey
New Goa airport at Mopa to be ready by 2020
GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Limited, today signed the agreement with Government of Goa for the development and operation of north Goa’s Greenfield International Airport at Mopa. GMR Airports Ltd (GAL) a subsidiary of GMR Infrastructure Ltd, is one of the largest airport developers in the world; handling more than 70 million passengers per annum both in India & Overseas. GMR will design, build, finance and operate the international airport for 40 years with extension option for another 20 years. The construction period for the first phase of the project is three years from the date of financial closure and is expected to be operational by mid of 2020. Srinivas Bommidala, Chairman-Airports, GMR Group, said, “We are excited about the project and the opportunity to partner with the Government of Goa.. Goa is the marquee beach tourist destination of India. Given our vast experience in the airport space, we are confident that we will deliver an airport which not only reflects the rich cultural heritage & ethos of Goa but also augments Goa’s standing as the leading tourist destination of choice in Asia while boosting jobs for the local community and bringing economic benefits to the state of Goa.” Cory Schneider Womens Jersey
Adani inaugurates 100 MW solar power plant in Punjab
Adani Enterprises Ltd today said it has inaugurated Punjab’s largest solar power plant of 100 megawatts (MW) at Sardargarh and Chughe Kalan, Bhatinda, with an investment of around Rs 640 crore, set by its subsidiary Adani Green Energy Ltd. The company said it is using top notch technology to set up the entire 100 MW solar plant project which has started commissioning almost six months ahead of schedule. “Indirect and direct employment opportunities were created for a total of around 300-400 personnel, who worked diligently to achieve this feat ahead of its time,” Adani said in a release. Adani further said the solar plant is not only the largest project in Punjab but will also prove to be the largest tracker-based solar project in the country. The technology used for setting up this plant includes Poly Crystalline Silicon PV Modules and Horizontal Single Axis Tracker (HSAT). This plant will be India’s biggest HSAT plant at a single location. The plant spreads over approximately 641 acres of land with the evacuation of 132 kV Balluana Substation through Double circuit 132 KV transmission line. The annual energy yield is expected to be approximately 88,000 Mwh/ annum. Apart from the 100 MW Solar Power Plant in Bhatinda, Adani has a 40 MW solar plant at Bitta, Gujarat and has also recently unveiled a 648 MW solar power project at Ramanathapuram district in Tamil Nadu which is the world’s largest solar power plant in a single location. Moreover the company has also signed a JV with the Rajasthan government to develop the country’s largest solar park in the state with 10,000 MW capacity. Darrin Walls Jersey