Government to take over 3 stuck highway projects of IL&FS

Source: The Economic Times, May 22, 2019

NEW DELHI: The government will take over three under construction national highway projects that were being executed by debt-ridden IL&FS Group.

The projects in question will be owned by the ministry of road transport and highways after the parties reached a settlement of about Rs 200 crore with the group’s lenders. The projects will be re-tendered for completion of the remaining work, an official familiar with the development said.

This out of court settlement has been reached under a new framework.

The highways ministry had in March issued a set of guidelines for salvaging ‘stuck’ national highway projects under execution. Read the rest of this entry »

Bank credit to infra sector grows 18.5% in FY19: RBI data

Source: LiveMint.com, May 20, 2019

MUMBAI: Bank credit to infrastructure sector grew by 18.5 per cent to ₹10.55 lakh crore as of 2018-19, the highest since 2012-13 fiscal, RBI data showed.

Outstanding bank credit to the sector was ₹8.91 lakh crore as at March 2018.

In the fiscal year ended March 2013, loans to infrastructure sector had grown by 15.83 per cent to ₹7.29 lakh crore.

In FY18 and FY17, growth in bank credit to the sector was negative at 1.7 per cent and 6.1 per cent, respectively.

“Just because banks are sitting on pile of bad loans from the infrastructure sector, we cannot completely stop lending to the sector. There are couple of companies in the sector that are doing well,” said the head of a public sector bank.

Since the growth in the manufacturing sector is subdued, banks are also willing to lend to the infrastructure segment, he said. Read the rest of this entry »

NMDC to invest US$1 billion on infrastructure, says official

Source: IBEF.org, May 14, 2019

Hyderabad: National Mineral Development Corporation Limited (NMDC Ltd) is in the process of investing about USD one billion on infrastructure in the next three years to help ramp up iron ore production, a senior official of the public sector undertaking has said.

Director (finance) of the company Amitava Mukherjee said the cost of the upcoming three-million tonne capacity steel plant would go up to Rs 19,000 crore against the estimated over Rs 15,500 at the time of conception.

The iron ore miner has already invested nearly Rs 14,500 crore on the plant. Read the rest of this entry »

NHAI tweaks strategy for Rs 3 trillion projects under Bharatmala scheme

Source: Business Standard, May 13, 2019

Mumbai: High land acquisition costs have forced the National Highways Authority of India (NHAI) to tweak its strategy for project implementation. The NHAI has decided to consider only those projects that require minimal land acquisition as it finalises highway contracts worth about Rs 3 trillion under the Bharatmala scheme.

Reprioritising its execution strategy, the Authority will change the weight it gives to different factors while planning projects. Earlier, freight movement and revenue from projects were given precedence over land acquisition. This essentially means existing projects that need expansion may get priority over new ones.

“This will help in getting a better fix on viability. Projects that have financial viability will be considered,” a senior NHAI official said, adding these projects were part of the broader Bharatmala scheme.

Asked whether the other factors (freight and revenue) would be overlooked, the official said those aspects would not be ignored but the land component would be given more weight. Read the rest of this entry »

Infra sector has PE/VC inflows jumping 79% in Apr at US$ 4.4 b

Source: IBEF.org, May 10, 2019

Mumbai: Private equity (PE) and venture capital (VC) inflows rose to USD 4.4 billion in April, a clipping at a healthy 79 percent growth over USD 2.4 billion in same month last year, but down 41 percent on a month-on- month basis, says a report.

In the reporting month, there were 11 large deals, with value of USD 100 million each aggregating to USD 2.9 billion compared to eight large deals worth USD 1.9 billion in the year-ago month, according to the deal data compiled by consultancy EY.

The number of deals announced in the month were the highest ever at 102 for any month, compared to 75 in the same period last year and 92 deals in March.

Infrastructure was the top sector for the second consecutive month with USD 1 billion inflows on account of the USD 929-million ADIA, NIIF-GVK deal, the report said. Read the rest of this entry »

ADB to fund Delhi-Meerut rapid rail link, 4 metro projects

Source: The Hindu Business Line, May 01, 2019

Nadi: The Asian Development Bank (ADB) has given in-principle nod for financing four metro rail projects and a ₹30,000-crore rapid rail corridor between Delhi and Meerut as part of its efforts to improve urban transport system in India.

Simultaneous discussions are going on with other multi-lateral funding agencies for co-financing of these large urban transport projects including Bhopal and Indore Metro projects, ADB Director-General (South Asia) Hun Kim said on Wednesday.

In addition, other projects especially expansion of Chennai and Bengaluru Metro are also under consideration, he said at the Annual Meet of ADB here. Read the rest of this entry »

205 railway projects report cost overrun of Rs 2.21 lakh cr

Source: The Hindu Business Line, Apr 21, 2019

New Delhi: National transporter Indian Railways account for nearly three-fifths of 344 central sector projects that are facing huge cost overrun due to delay in implementation for various reasons.

Total cost overrun of 205 delayed railway projects is whopping Rs 2.21 lakh crore, the latest flash report of the Statistics and Programme Implementation Ministry (MOSPI) for December 2018 showed. The MOSPI monitors central sector projects involving an expenditure of Rs 150 crore and above.

According to the report, the total original cost of these 205 projects was Rs 1,68,116.34 crore, up to December 2018. The total anticipated cost of these projects is estimated at Rs 3,89,745.97 crore, which indicates overall cost escalation by 131.83 per cent. Read the rest of this entry »