21 September 2019

Table of Contents for Ticker Tapes


L&T to refinance projects

As infra projects gather steam there’s a rush to refinance them, like with L&T. Its refinancing arm L&T Infra Debt Fund (L&T IDF), is raising about Rs.2,500 crore through debentures to provide liquidity for road and renewable energy projects. As on September 30, 2016, its net worth was Rs.660 crore (excluding preference shares), debt was Rs.2,455 crore, and outstanding loan book was Rs.2,942 crore (for 25 projects). The company's overall capital adequacy ratio stood at 45.87 per cent as on September 30, 2016.

Rating agency CRISIL has assigned "AAA" rating for the proposed bond offering, giving refinance support to operational projects like roads, power, renewable energy, ports and airports segment.


UP gets lion’s share of AMRUT funds

The Ministry of Urban Development (MoUD) has approved projects worth Rs.4,239 crore for modernizing urban infrastructure over next the three years in Uttar Pradesh, under the AMRUT scheme. UP now has total expenditure of Rs.11,421 crore, highest among all states, under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) with a central assistance of Rs.4,922 crore for the five-year mission period. AMRUT will provide drinking water, sewerage and drainage networks and non-motorised transport, among others, in the selected 500 cities across India. According to an official release of the MoUD, it has approved AMRUT action plans of Uttar Pradesh (2017-20) in one go involving an expenditure of Rs.4,239 crore.


Scheme launched to develop export Infra

In March government unveiled a new scheme to finance infrastructure creation to boost exports. The ‘Trade Infrastructure for Export Scheme,’ which will be implemented from April 1, will have budgetary allocation of Rs.600 crore for three years with annual outlay of Rs.200 crore. It will provide assistance to set up and upgrade infrastructure projects with “overwhelming export linkages” such as border haats, land customs stations, quality testing and certification labs, cold chains, trade promotion centres, dry ports, export warehousing and packaging, special economic zones, ports and airports. The new scheme follows after an earlier scheme, ‘Assistance to States for Creating Infrastructure for Development and Growth of Exports,’ was stopped.

The new scheme will provide grant-in-aid up to half of equity being put in by implementing agencies, with a ceiling of Rs.20 crore per project and 5 per cent of the grant approved will be used for appraisal, review and monitoring. Beneficiaries will be government agencies, export promotion councils, commodities boards and apex trade bodies, who will most likely also be the implementing agencies


Infra cost overrun touches Rs.1.66 lakh cr

A perennial problem plaguing infra projects is the cost overruns. At last count as many as 287 infrastructure projects worth Rs.150 crore or above each, including those delayed due to various issues, have seen a cost overrun of Rs.1.66 lakh crore. Total original cost of implementation of 1,186 projects was Rs.14,60,099.70 crore and their anticipated completion cost is likely to be Rs.16,26,445.47 crore, which reflects cost overrun of Rs.1,66,345.77 crore (11.39 per cent of the original cost), according to end 2016 reports by the Statistics Ministry. The 1,186 projects in question include 287 that reported cost overrun and 336 time escalation. In April 2016, out of 1,061 projects, 241 reported cost and 326 time overrun while during December 2016, out of 1,186 projects, 287 reported cost and 336 time overrun. The flash report provides details on the status of the 1,186 central infrastructure projects that cost Rs.150 crore and above.


Rs.1,902 cr Clean Ganga projects okayed

The National Mission for Clean Ganga (NMCG) has approved 20 projects worth Rs 1,902 crore to develop sewage treatment infrastructure in various Ganga basin states, including NCR. The Panel sanctioned construction of a sewage treatment plant (STP) of 564 million litres daily (MLD) capacity in Delhi's Okhla at an estimated cost of Rs 665 crore. Two other projects for laying new sewage pipelines in Pitampura and Kondli at an estimated cost of over Rs.100 crore, have also been cleared. Of the total projects, 13 will be developed in Uttarakhand, where new STPs will be set up and existing ones upgraded, at a cost of around Rs.415 crore. Also approved a project to control pollution on the Ganga river in Rishikesh at an estimated cost of Rs.158 crore, and an envisaged construction of a new 26 MLD capacity STP at Lakkar Ghat. Besides, four projects worth Rs 78 crore will be undertaken at Joshimath, Rudraprayag, Karnprayag and Kirti Nagar to control pollution in the Alakananda river, a tributary of the Ganga. All these projects will be fully funded by the Central government, according to the Union Water Resources Ministry.


Metro Man insists Aarey Carshed is eco friendly

With land acquisition hanging fire over environmental controversies over land earmarked for the Metro-3 -Colaba-Bandra-Seepz, India’s Rs.Metro Man' E Sreedharan has written to Maharashtra Chief Minister Devendra Fadnavis, asking him to intervene and clear the decks for the carshed. Sreedharan, has said publicly the Metro-3 is the most difficult Metro project undertaken in this country yet. While seeking the government's final clearance he assured that the Metro projects are environmentally most friendly and setting up a carshed in Aarey is not going to be a threat either to the government or to the eco system. The main objection would be against cutting of trees, for which compensatory afforestation on a liberal scale can be insisted upon. The Metro Man is advisor for all Metro projects in the state.


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