will government's massive surge in investment ... - Myiris.com

Apr-Jun 2013 Earnings Preview
Security clearances for Port Infrastructure
projects to be granted within 12 weeks
flat‐ to expedite investment in this crucial
sector
In its endeavor to improve port infrastructure, modernize existing facilities and
increase the capacity & draft at ports, the government has been promoting
enhancement of capacity at major ports through the PPP mode for construction of
berths/terminals/jetties and mechanization of berths for cargo handling. In FY13, 32
projects were awarded resulting in capacity addition of 136.75 MTPA involving
investment of Rs 67.65 bn. CCI directed all security agencies to adhere to the
timeline of 12 weeks for grant of security clearances for port infrastructure
improvement projects. Security clearance once granted would be valid for 3 years
unless there is a change in shareholding pattern. This is expected to expedite
investment in this crucial infrastructure sector.
Two Major Ports entailing investment of Rs
158.2 bn approved in West Bengal and
Andhra Pradesh
The government has cleared proposal to set up two Major Ports at Sagar in West
Bengal and as-yet-not-finalized location in Andhra Pradesh through PPP mode at a
total cost of Rs 158.20 bn. The port at Sagar will have a capacity of Rs 54 mtpa and
cost Rs 78.20 bn while the one in AP will cost Rs 80bn with a capacity of 50 mtpa.
The new ports will cater to growing imports of coal and oil besides boosting local
economy and generating jobs.
Important Bottlenecks holding up fasttrack
implementation of National
Highways Development Projects removed
Many important bottlenecks holding up fast-track implementation of National
Highways Development Projects (NHDP) have been removed. Special exemption has
been granted under Forest Act for strengthening and widening of National Highway
projects specifically pertaining to diversion of protected forest land, treating
strengthening & widening of national highways infrastructure different from new
projects, ceiling of 4000 km of 4-laning of National Highways enhanced to 8000 km
on BOT mode only, considering debts due to the lenders as ‘secured’ loans in case of
PPP projects and 4000 km of roads to be taken up on EPC basis in FY14.
Rs 231 bn Mumbai Metro line‐3 project
cleared. Centre shows its commitment by
agreeing to invest equally as the State of
Maharashtra
The Cabinet has cleared 33.5 km, fully under-ground Mumbai Metro line-3 project
(Colaba-Bandra-SEEPZ) with an investment outlay of Rs 231.36 bn to be completed
by March 2019. The Central government has affirmed its commitment to the project
by forming a 50.50 JV with the State government. Once completed, the project
would provide much needed transport infrastructure to the commercial capital.
Independent Regulatory Authority for Coal
sector set up
An Independent Regulatory Authority for Coal sector has been set up which would
regulate and conserve coal resources and benefit all the stake holders. The Regulator
would specify methods of testing for declaration of grades or quality of coal, monitor
and enforce closure of mines, specify principles and methodology for price
determination of raw and washed coal and adjudicate on disputes between parties.
Modification of delegation of powers for
expeditious approval & appraisal of
National Highways projects without
compromising on due diligence & physical
prudence
CCEA modified delegation of powers for approval and appraisal of National Highways
projects to expedite approval process without compromising on due diligence and
physical prudence. Projects above Rs 5 bn would be now cleared by a Committee
under Expenditure Secretary rather than coming to CCEA and those below Rs 5 bn by
Committee under Secretary- Road Transport.
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