Cement, Energy and Environment

Project agreements were signed by representatives from Ministry of Rural Development (MoRD) and respective concerned agencies from the five states. MoRD is the executing agency for the project at the central level while the respective state rural roads development agencies will be the implementing agencies at the state level. "The first stage of this loan will invest in physical infrastructure and strengthen institutional arrangements , business processes, road safety and asset management," Kim said. The first phase of the project is expected to be completed in December 2015. The first tranche from the ordinary capital resources of ADS has a 25-year term including a grace period of 5 years. It has a commitment charge of 0.15 per cent per year. The interest rate has to be determined in accordance with ADS's LIBOR-based lending facility, it said. Courtesy: The Financial Express, New Delhi, 03.04.2013 MAJOR PUSH FOR CORE SECTOR GROWTH The Budget has rolled out an aggressive road map for meeting the $1-trillion investment plan for infrastructure in the current Plan period. It provides for fresh impetus to financing by additional bond issues, enhanced credit, and for the setting up of dedicated funds to allow capacity creation in roads, ports, power, petroleum and urban development, among others. "We need new and innovative instruments to mobilize funds for this order of investment," Finance Minister P. Chidambaram said while presenting the Budget, India met around 92 per cent of the targeted Rs. 20,56,000-crore investment in infrastructure during the last Plan period, with major slippages in port and road sectors. The fund mobilization measures to come into effect in 2013-14 include setting up Infrastructure Development Funds (IDFs). These will provide long-term low-cost debt for projects and higher credit offering by India Infrastructure Finance Corp for companies willing to tap the bond market. The FM also allowed institutions to raise up to Rs. 50,000 crore by issuing tax-free bonds next financial year and raised the corpus of the Rural Infrastructure Development Fund to Rs. 20,000 crore. The Budget also provides Rs. 5,000 crore to the National Bank for Agriculture and Rural Development for financing warehousing capacity. The FM announced setting up of a regulatory authority for the road sector. He said the move was aimed at add ressing challenges, including contract management disputes, high construction risk and financial stress due to the long gestation periods. He said the new Cabinet Committee on Investment will take up projects stalled due to regulatory hurd les. The Budget also provides for an investment allowance to new high value projects, to quicken the pace of implementation. A company investing Rs. 100 crore or more between April 2013 and March 2015 will be entitled to deduct an investment allowance of up to 15 per cent. The Budget also proposed taking up two new cities - Dholera in Maharasthra and Shendra Bidkin in Gujarat - under the Delhi Mumbai Industrial Corridor Project. He added the government would provide additional funds for the project in 2013-14, if required. Two new industrial corridors, connecting Chennai-Bangalore and Bangalore-Mumbai, will also be taken up shortly. The Budget also promised a gas pricing policy and clearing New Exploration and Licensing Policy blocks and the five-million-tonne-a annum Dhabol LNG terminal. The ports sector, which managed to meet a fiscal 42 per cent of investment target in the 11 1 h Plan period , witnessed a major push. The FM announced the creation of an additional 142- million tonne (mt) cargo handling capacity -100 mt through the creation of two major ports in West Bengal and Andhra Pradesh, and 42 mt through the setting up of an outer harbour in Tamil Nadu at an estimated Rs. 7,500 crore. Chidambaram also said the government will set up a Rs. 1,840 crore power transmission line connecting Srinagar with Leh next financial year. He urged state governments to adopt the financial restructuring plan for ailing electricity distribution companies. It also focused on selecting barge operators through competitive bidding to transport bulk cargo on national waterways. Courtesy: The Business Standard, New Delhi, 01-03-2013 42