Delhi Government Approves Proposal to Continue 50% Subsidy on Power Bills
Delhi government on Monday approved a proposal to continue 50% subsidy on electricity bills in the national capital. The government’s move came after the Finance Department advised it to approve the subsidy proposal in the Cabinet following which it would “legally” be able to release the amount to be incurred on subsidy to the discoms in the current financial year. The decision was taken in a Cabinet meeting chaired by Chief Minister Arvind Kejriwal at Delhi Secretariat. Sources said the Cabinet approved the proposal to shell out about Rs 1,600 crore on the power subsidy to be given to discoms in the current financial year. In the Budget in March, Delhi Deputy Chief Minister and Finance Minister Manish Sisodia had announced that the AAP government would continue to give 50% subsidy scheme on electricity bills in the 2016-17 financial year as well. In February, the Delhi Cabinet had also decided to extend the power subsidy scheme to domestic consumers using up to 400 units per month to the New Delhi Municipal Council (NDMC) area. As per the scheme, all the consumers whose monthly power consumption do not exceed 400 units get 50% subsidy in tariff and the scheme benefits around 36 lakh or 90% of the consumers in the national capital. During its 49-day stint too, the AAP government had also announced 50% subsidy on power bills following which electricity bills were slashed by 50%. D.J. Augustin Jersey
Centre tells Karnataka to clear land hurdles for Central power projects
The reliability of power supply in Bengaluru and surrounding areas is set to improve in the months to come through reduction in interruptions, as the Union government on Tuesday took the initiative of convincing the State to clear the hurdles for four central transmission projects languishing for years. The State, especially Bengaluru, will get additional power from the Centre after the completion of these Central transmission projects which are struck due to the land-related issues such as want of right-of-way. Union Minister of State for Power, Coal and Mines Piyush Goyal led the initiative by holding day-long consultations with the State government authorities in Bengaluru on Tuesday in a bid to clear the bottlenecks for transmission projects. “The Centre is concerned that people of Karnataka, particularly Bengaluru and neighbouring areas, are still facing frequent interruptions in power supply, when the country has surplus power. This is because the city is unable to get additional power since the process of setting up of five of the new transmission lines connecting it with the grid are pending,” Mr. Goyal later told reporters. Citing an example, he noted that the 400-KV Yelahanka transmission line that got the approval in 2011 was yet to be completed due the lack of right of way for a stretch of just 4.5 km. “The state will get about 600 MW of power after the completion of this project,” he said. Similarly other transmission projects for which the State has committed to remove obstacles include the 400-kv Dharmapuri and Summanahalli transmission line that facilitates flow of power from northern grid to the southern grid; 400-KV Madhugiri-Yelahanka line; and 765-MW Madhugiri-Dharmapuri line. He also announced setting up of Renewable Energy Management Centre in Bengaluru for strengthening the load management and grid connectivity of green energy projects. The minister also assured the state of providing coal linkage to the state’s long-pending project of pit-head power plant to be set up in Chhattisgarh. Pointing out that Karnataka had only partially accepted the Centre’s flagship programme of UDAY (Ujwal Discom Assurance Yojana) — which aims at the comprehensive reforms of the power sector— he said the State would have got benefits to the tune of Rs. 400 to 500 crore if it had accepted the scheme’s financial aspects. Brandon Fusco Authentic Jersey
Chinese corporation to bid for Rs 40,000 crore highway contract in India
China Railway Construction Corporation, one of the largest construction companies in the world, has evinced interest in bidding for Rs 35,000-40,000 crore worth of highway contracts in India. Top executives of the Chinese construction major held a meeting with National Highways Authority of India (NHAI) Chairman Raghav Chandra on Monday to discuss the proposal. “They are keen on bidding for around 3,000-km highway contracts. They will be participating in hybrid annuity, build-operate transfer (BOT) and engineering, procurement and construction (EPC) models,” Chandra said. This would be the single largest foreign investment in the country’s roads sector if the Chinese company succeeds in fulfilling the criteria set by the government. The company could also bid for several expressway projects that are considered to be high traction in terms of return on investment. The Chinese corporation builds 60% of highways and 80 per cent of railway tracks in China. India’s road transport and highways ministry has set a construction target of 40 km per day, or 15,000 km for the current financial year. The target to award highway contracts is 25,000 km. Construction of 15,000 km of highways would cost around Rs 1.5 lakh crore. However, the ministry has received only Rs 57,000 crore as budgetary support and is hopeful of getting Rs 10,000 crore more from the finance ministry. A lot of foreign investors and construction companies have come forward to bid for road projects in recent months. Road transport and highways minister Nitin Gadkari is slated to meet several investment firms, including JP Morgan and Goldman Sachs, during his ongoing US trip. The revival of investor interest in roads sector has been credited to 21 policy changes that the Narendra Modi-led government has introduced in recent months to make investments in the sector more attractive. The changes include relaxing the exit policy for investors and innovative payment methods in hybrid annuity and engineering, procurement and construction models. Investor interest in the sector had weakened drastically after 2010 due to difficulties related to land acquisition and getting various approvals, besides public opposition to toll collection. Projects worth less than Rs 10,000 crore were awarded in FY15. In the previous year, the value of projects awarded to public-private partnerships (PPPs) was less than Rs 1,000 crore, as companies were unable to raise funds. Adam Gotsis Authentic Jersey
China Rail Construction keen to participate in NHAI projects
Chinese government-owned China Railway Construction Corporation Limited (CRCC) has evinced keen interest in participating in National Highways Authority of India (NHAI) projects, government said today. “A high-level delegation from the CRCC, led by its Chief Economist Zhao Jinuha, met Chairman, NHAI, Raghav Chandra and a team of NHAI officers in New Delhi,” Ministry of Road Transport and Highways said in a statement. Chandra told the visiting team that NHAI has projects lined up for upgradation of two-lane National Highways totalling 50,000 kms, various special expressway projects of around 15,000 kms and a part of the National Highways Development Programme (NHDP), over the next few years. “CRCC expressed keen interest to participate in the upcoming projects of NHAI under both engineering, procurement and construction (EPC) and hybrid annuity model (HAM),” the statement said. CRCC is one of the world’s largest integrated engineering contractor and construction groups with over USD 100 billion of revenue and a market capitalisation of around USD 250 billion. CRCC, apart from being the major contributor to China’s high-speed and normal, alpine and plateau railways, has provided survey and design services for highways, urban rail transit, real estate and other infrastructure projects. The CRCC team had an in-depth discussion on various aspects of such participation in NHAI projects, the statement said, adding that the visiting delegation enquired about the acceptance of Chinese technical standards. “NHAI officials clarified that they would be acceptable only if they are higher than the prescribed standards of Indian Road Congress. “Their queries mostly pertained to finding financial solutions with requisite IRR, addressing the upward price fluctuations during construction of essential materials like bitumen, fuel, steel and cement during the period of construction under the EPC and HAM,” the statement said. The Chinese delegates were also keen on knowing about any restrictions on sources of procurement from abroad, import certifications requirements, whether US dollars could be the currency of repayment (as annuity) and availability of repayment guarantee, it added. NHAI officials also sought details of Chinese policy and models of concessions and funding solutions, the statement said. “NHAI officials presented an overview of policy, procedures and risk and responsibilities distribution between the private and public partners and provided clarifications addressing the queries of the visiting CRCC delegates,” it said. CRCC officials expressed keenness to bid for projects within the framework of NHAI’s transparent and competitive e-tendering process. Abry Jones Womens Jersey
Petrol pump owners seek ‘one nation one rate’ for fuel
Fuel pump owners in the country have demanded ‘one nation one rate’ for petroleum products in order to eliminate disparity in prevailing prices of petrol and diesel. “We are demanding ‘one nation one rate’ for fuel so that there should be no disparity in prices of petrol and diesel in the states. This step will help in controlling prices of this essential commodity,” All India Petroleum Dealers Association President Ajay Bansal said here today. He added that because of different VAT rates prevailing in states, there was a disparity in fuel prices, which vary between 60 paise and Rs 4 per litre in case of diesel and Rs 1 to Rs 7.50 per litre for petrol. Bansal said maximum tax on petrol is levied by Tamil Nadu state, which is about 35 per cent while Goa imposes lowest rate of tax on the commodity. In case of diesel, Haryana charges lowest tax while states like Rajasthan and West Bengal levy 20-24 per cent tax. “We want the prices of fuel which is an essential commodity should be same throughout the country and states should build consensus on the same,” he said. The association, which claims to be a national body representing more than 52,000 petrol pumps in the country has been holding meeting with chief ministers and state finance ministers to convince them to bring parity in retail price of petroleum products. Bansal said: “We also demand that petroleum products be brought under GST to ensure one nation one rate.” But, he said, states are unlikely to agree on the same. Ronnie Lott Womens Jersey
Fuel retailers invite tenders for 20 million litres of biodiesel
State fuel retailers are seeking to purchase 20 million litres of biodiesel from local manufacturers to blend with diesel. Bharat Petroleum (BPCL) has invited tenders on behalf of all three state fuel retailers to procure 20,460 kilo litres of biodiesel, of which 43% would go to Indian Oil Corporation (IOC) and the balance will be almost equally split between Hindustan Petroleum (HPCL) and BPCL. The fuel retailers will mostly require the supply of biodiesel in Andhra Pradesh, and also in Gujarat and Tamil Nadu between July and September. Vendors will have to submit their bids online by July 25, according to the tender document. The contract for the supply of biodiesel shall be awarded on location-wise lowest net delivered cost basis. Vendors have the option to choose a location and offer a quantity that can’t be less than 500 kilo litres nor more than the requirement in that location. Oil companies started procuring biodiesel, produced from vegetable oil or animal fat, last year for blending with diesel. The government has not set any target for blending biodiesel although it has made mandatory for oil companies to use 5% ethanol, produced mainly from sugar and corn, in the petrol they sell. The companies are yet to meet the 5% target. The National Policy on Biofuels had proposed a 20% blending ratio for both biodiesel and ethanol by 2017 but the lack of supply and pricing issues had held back progress on this. Craig Anderson Jersey
Cairn Energy seeks $5.6 billion compensation from India
British explorer Cairn Energy has sought $5.6 billion in compensation from the Indian government for raising a retrospective tax demand of Rs 29,047 crore on 10-year old internal reorganisation of its India unit. In a 160-page ‘Statement of Claim’ filed with an international arbitration panel on June 28, the Edinburgh-based company sought withdrawal of the tax demand and declaring that India has “failed to uphold its obligations” under the UK-India Investment Treaty by not giving its investments in the country “fair and equitable treatment”. It sought $1.05 billion in compensation for the loss of value its 9.8%-shareholding in its erstwhile subsidiary Cairn India suffered following Income Tax (I-T) Department raising the tax demand in January 2014 and attaching the shares. “In the alternative, and should the (arbitration) Tribunal determine not to order India to refrain from enforcing its unlawful tax demand”, Cairn sought to be compensated of breaches of the investment treaty by being paid for the loss of value of its holding in Cairn India as well as interest and penalties, totalling $5.587 billion (Rs 37,400 crore). The total compensation sought is equal to the tax demand raised and the value of Cairn Energy’s 9.8%-shareholding in Cairn India. A three-member arbitration panel headed by Geneva-based arbitrator Laurent Levy began hearing Cairn Energy’s plea against tax demand in May and the company filed its ‘Statement of Claim’ late last month. The Indian government will file its ‘Statement of Defence’ by November and evidential hearing is expected to commence in early 2017, sources said. The I-T Department had in January 2014 slapped a draft tax assessment of Rs 10,247 crore on Cairn Energy on alleged capital gain it made when, in 2006, it transferred its India assets to a new subsidiary, Cairn India and listed the firm. The British firm sold majority stake in Cairn India to Vedanta Resources in 2011 but still holds 9.8% stake in the company, which was attached by I-T Department. This year, a final assessment order was slapped on it that included a Rs 18,800 crore of interest on top of Rs 10,247 crore principal tax amount. In the ‘Statement of Claims’, Cairn said it had an option to list Cairn India on UK stock exchange but decided to go for a local initial public offering (IPO) with a view to “further Indianising” the business. “To accomplish what was to be one of the largest-ever IPOs in the Indian history, however, Cairn had to reorganise its corporate group structure significantly,” it said. It is in this restructuring that the I-T Department says Cairn made capital gains of Rs 24,503.50 crore. If it had known that India would change rules and retrospectively tax, the company would have restructured business differently and listed the firm on UK exchange, it added. Anthony Duclair Authentic Jersey
Infra sector offers a great opportunity for investors in India: Nitin Gadkari
India, which has set an ambitious target of constructing 40kms of new road per day next year, offers “a great opportunity” to American investors in infrastructure sector, Union Minister for Road and Surface Transportation Nitin Gadkari said today. “Fast track decision making system is there. It is a great opportunity for the investor in the country,” Gadkari said in his address to the Atlantic Council, a top US think tank. Listing out the key accomplishments of his ministry, the senior BJP leader said land acquisition and clearances are no longer a problem and all the contracts are allocated through e-tender system. Gadkari said he has set the ambitious target of constructing 40kms of new road per day next year. In response to a question, he acknowledged that his officials feel that this is not possible, but he exuded confidence that this is achievable. “I have got a political track record in my life, whatever I say, I accomplish. That’s my past, I do not know about the future,” he said during an interaction with Atlantic Council think-tank entitled ‘A Window into India’s Infrastructure Development: A Discussion with Minister Nitin Gadkari’. In his welcome address, Gen (rtd) James Jones said infrastructure development is a central part to the India-US trade relationship. The Minister is currently on a week-long visit to the US with the objective of attracting American investors to India’s infrastructure sector and technology transfer and adoption of best practices from the US. He is scheduled to meet the American businesses and the US Transport Secretary later in the day. Gadkari, who would also visit New York, St Louis, San Francisco and Los Angeles during the visit, rued the large number of deaths in India due to road accidents and described this as his failure. This is one of his priority area and is seeking assistance from the US in this field. “One per cent of the cost of the road we are giving to plantation and one per cent to road safety… we are here to understand the intelligence traffic system for that,” Gadkari said. “Attitude, approach and vision of the department has changed,” he said. “In rural and tribal areas, we have decided to make more national highways,” he said. By developing new waterways, highways with reducing logistic cost would be a game changer for the development of India, he said. Green technologies is another focus for his industry, he added. Brooks Laich Authentic Jersey
Road safety highest priority, US assures all help: Nitin Gadkari
The US will cooperate with India in making its roads safe by offering a range of innovative technology and software in intelligent traffic management to reduce road accidents in the country, Union for Road and Surface Transportation Nitin Gadkari has said. Acknowledging that road safety is a “big problem” in India, Gadkari said every year more than 150,000 people are killed in five lakh road accidents. “We are taking the co-operation of the US Government in particularly in road safety and intelligent traffic management system, which we are also going to implement in India,” he said. “I am very much disturbed (by the status of road safety),” he said. Gadkari said the US has also promised to give “all technical co-operation for standardisation of our Indian code” for road construction, bridges and flyovers. “Their experience and their present rules and regulations, codification, all the manuals are there and they are ready to share all types of manuals, code and rules and regulations with us,” he said. “In India we are critically facing the problem of road accidents. We have 96,000 kms of road length as national highway and 40 per cent of national traffic on this two per cent of road. We are facing a lot of accidents on national highway,” he said. “Road safety is highest priority for our government,” Gadkari told Indian journalists during a media round-table after his-day long meetings including that with US Transportation Secretary Anthony Foxx and American business community. “Today we discussed all our problems related to road safety with the (US Transportation) Secretary. The good thing is the Secretary promised me all types of co-operation with the rules, regulations, the software they have already developed, the system, the technology, the innovation. They are ready to co-operate with us in everything,” Gadkari said. During the meeting, the US also promised full co-operation in the development of inland waterways. The Minister also spoke on new highways under construction in the country, financing mechanisms under PPP models, framing policies for logistics parks, modernisation of roads, building intelligent traffic systems for road safety and further innovation and technology to India’s logistics sector. Rohit Kumar Singh, Joint Secretary, Ministry of Road Transport and Highways, highlighted specific investment opportunities in the highways sector whereas Alok Srivastava, Additional Secretary, Ministry of Shipping, shared details on the Sagarmala Program – the Ministry’s flagship port-led development initiative to bring down logistics cost and boost investment, exports, and jobs. “India needs USD 1 trillion for developing new roads, ports, rail lines, and airports over the next few years and US companies can provide the necessary expertise as well as capital to enable the robust growth of this sector,” he said. Lawson Crouse Womens Jersey
Centres sanctions ₹658 cr for 5 projects to decongest Delhi
Union Urban Development Minister M Venkaiah Naidu on Monday announced that ?658 crore had been sanctioned from the Urban Development Fund for five projects to decongest the national capital. The five projects are construction of flyover and underpass connecting Mahipalpur, Aerocity, Airport and NH-8; and construction of flyover-cum-road overbridge near Narela for providing direct access from NH-1 to Bawana Industrial Complex. A skywalk and foot overbridge near ITO for safety of pedestrians going to offices located in and around ITO will be constructed apart from building an up-ramp and widening of road near Kashmiri Gate and Nigam Bodh Ghat. A 1.6-km-long Grade separator at Rani Jhansi Road will also be constructed. “The source of the Urban Development Fund is onetime charges for conversion from leasehold to freehold in properties leased by DDA,” Naidu told reporters here. A High Powered Committee on ‘Decongestion of Traffic in Delhi’ set up by Naidu had submitted a 126-page report, and its findings were released in June. Land premium rates Naidu also approved the rates of premium for lands allotted for institutional purposes by Delhi Development Authority (DDA). The rate for land required for health services such as medical institutions, hospitals, dispensaries required by the Centre and the Delhi government has been reduced to a nominal charge of ?1 a year. Moreover, rates for land to the Delhi government for un-remunerative uses such as maternity centres, night shelters and orphanages etc have also been reduced from earlier rate of 50 per cent of ‘no profit, no loss rate’ to ?1 a year. Similar decisions were taken for rates for land for DTC depots, staff quarters for schools and hospitals of local bodies, land for roads, graveyards and crematoria, playgrounds and parks, water supply and drainage for DDA colonies, etc. Tre Boston Jersey