The report cautioned that low capacity utilisation and stressed balance sheets of banks and businesses will prevent a strong investment revival in the short term.
India needs long-term thinking for long-term projects and a better handling of PPPs, says Business Standard.
If the Indian Railways, therefore, wishes to implement its expenditure plans as outlined in the Interim Railway Budget, it has to look for alternative sources of funding. One option under study is to adopt the PPP route to implement new projects. Mamata Banerjee's first Railway Budget in the United Progressive Alliance government, therefore, may outline major PPP initiatives for several new projects, say railway officials.
The Karnataka government will soon select a consortium bidder for the 35-km high-speed rail transport between Bangalore International Airport at Devanahalli and the city centre, a top official said in Bangalore.
The government had planned to complete the bidding process and award the final contract for these projects by December 2008. An official from the National Highway Authority of India said, "Now that PPPAC had given approval to these 21 highway projects, we will be speeding up the bidding process."
The Andhra Pradesh government would develop a tourism project on about 2,000 acre at Gandikota in Kadapa district under public private partnership, said tourism minister J Geeta Reddy.
The consortium beat six others at an auction on Thursday
According to a note prepared by the ministry for these projects, each Indian Institute of Information Technology would be set up at an investment of Rs 200 crore (Rs 2 billion) and the government would bear 85 per cent of the expenditure.
The Election Commission (EC) has raised certain questions on the government's proposal to allow foreign direct investment (FDI) in the construction and maintenance segments of the railways.
If we have to develop this nation, says Railway Minister Piyush Goyal, it can only happen in a public-private partnership, when you and we work together as one.
In a show of solidarity, the CEOs of some 40 top American companies have come together to create a global task force to mobilise resources to help India fight the battle against Covid-19.
The affordable housing segment will offer business opportunities worth over Rs 5,00,000 crore (Rs 5 trillion) as India requires more than ten million houses to be built by 2013-14.
The Union Road Transport and Highways Ministry proposes to build a huge network of expressways by 2022, also the final year of the Thirteenth Five-Year Plan.The ministry plans to build expressways in 3 phases -- by 2012, 2017 and 2022 -- and, accordingly, it has prepared a draft report for a network of the proposed 17,661-km of stretches.The report has suggested the government set up the proposed expressways on both an annuity and a public-private partnership (PPP) basis.
Through two stimulus packages, the Indian government recently allowed IIFCL to raise Rs 40,000 crore through tax free bonds to aid the financing of infrastructure projects which were being carried out as public-private partnerships, the Bank said.
The scheme is expected to activate the measures announced for the housing construction sector under the economic stimulus packages. It will increase the stock of houses ranging from 300 sq ft to 1,200 sq ft plinth area built at affordable rates on land provided by state governments.
The centres will be set up under a pilot project on PPP (public-private partnership) mode across the country, principal advisor (skill development mission) of Planning Commission Jayati Chandra said, adding that these are expected to come up by the middle of the year.
The 'golden share', which will be owned by the government, will ensure that it has a say in all major decisions taken by the private concessionaire. It will also obviate the need for the government to invest in the equity of the company. The proposal has been mooted by the Planning Commission in the new model concession agreement that it has developed for the infrastructure sector. The agreement has been circulated among various stakeholders for consultation.
Under the new norms, if a developer is bidding for a PPP project worth Rs 500 crore (Rs 5 billion), it should have a record of executing projects worth Rs 1,000 crore (Rs 10 billion), or at least double the cost of the new project. Earlier, to qualify, a developer needed to have executed projects one-and-a-half times the cost of the proposed project in the last five years.
The Andhra Pradesh Cabinet has approved a bill to implement Rs 9,696 crore Hyderabad Metro Rail Project which is expected to be completed by 2011.
Decks have been cleared for setting up of 20 new IIITs in the country after differences between industry bodies and the government, over the issue of autonomy, were sorted out.
The company, which is bidding for 16 road projects worth Rs 10,000 crore (Rs 100 billion) this year from the National Highways Authority of India under the public-private-partnership model, intends to invest the money in the form of equity to set up special purpose vehicles to execute new road projects.
The central government's view of exploring public-private partnership (PPP) in the establishment of new institutes of higher learning has a private hand, right from the first step.
In a major initiative to pump prime the economy through public expenditure, the government has decided to inject a whopping Rs 50,000 crore (Rs 500 billion) for funding infrastructure projects.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a five-year-long reform-based result-linked power distribution scheme worth Rs 3.03 lakh crore, for strengthening system of utilities to improve efficiency. Briefing after the CCEA meet here, Power and New & Renewable Energy Minister R K Singh said, "We have done a lot for power distribution reforms. It needs to be strengthened. Today, the Cabinet has approved the new scheme worth Rs 3.03 lakh crore, including Rs 97,000 crore central outlay." He said the funds would be given to power distribution companies (discoms) to strengthen their system.
There is a need to set up independent regulatory authorities on energy, transport and urban infrastructure at the state level to ensure smooth implementation of infrastructure projects, especially those which are taken up on the PPP (public private partnership) model, said Vinayak Chatterjee, co-chairman of the CII National Council on Infrastructure and chairman of Feedback Ventures Limited.
The ambitious Rs 50,000 crore (Rs 500 billion), 3,289 km Dedicated Freight Corridors are a case in point. Although the project started under former railway minister Lalu Prasad and was renamed Diamond Rail Corridors by incumbent Mamata Banerjee, not a single project has been awarded yet.
Union Minister for Shipping, Road Transport and Highways TR Baalu has said the new toll policy has been finalised by the government, while the toll rules are under formulation.
As per the detailed project report, submitted to the Union HRD Ministry by National Association of Software and Service Companies, each new IIITs will come up in partnership with a group of private companies. Each IIIT will have a capital base in which the government's contribution will be less than that of the partnering companies.
Private airport developers under the public-private partnership model will not be able to get additional contracts in and around the airport that are part of the original project by merely matching the lowest bidder without participating in the bidding process.
Jamnalal Bajaj Institute of Management Studies is organising its annual business convention Strategym 2006.
Within the next two years the national capital will have its own IT hub aiming to foster industry-institute partnership in the areas of advanced technology research in the city.
The Rajiv Gandhi International Airport, which is being developed by GMR on the outskirts of Hyderabad, will be the first greenfield public-private partnership (PPP) airport to be operational in March 16.
The biggest constraint to achieve a higher growth rate in South Asia is infrastructure. Growth in the region could have been higher if more investment in infrastructure would have been made, says Patel.
Railway minister Mamata Banerjee fought off criticism on Friday that her Railway Budget was Bengal-centric and said she had kept in mind the entire country.
As the demand for a grand stimulus gathers steam, the government is targeting an investment of Rs 100,000 crore
The I&M programme will entail a nationwide comprehensive programme to test and certify, at frequent intervals, a vehicle's 'road worthiness'. The programme gains importance as more than 100,000 people die each year from road accidents in the country, roughly 10 per cent of the world total.
Railways initiate project for ad revenues of Rs 4,000 cr.
Finance Minister Nirmala Sitharaman on Tuesday unveiled a Rs 39.45 lakh crore Budget with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic. This was Sitharaman's fourth Budget. While the taxpayers were left in the lurch, once again, was she able to cheer Corporate India?
Outlook for the Economic Survey (2006-07) also suggests a promising improvement in infrastructure development.
While the private companies have to spend Rs 8-12 crore (Rs 80 to Rs 120 million) on building and other infrastructure for each school, the government would provide 30-50 acre land free of cost to the developers of these schools.
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