Srei initiative Attivo Economic Zones (Attivo) and the Telangana Government have announced a new cooperation agreement to further accelerate industrial growth and socioeconomic development in Telangana at the recently held construction equipment expo Excon in Bengaluru.
The MoU was signed between Attivo and the Department of Industries & Commerce (I&C), Government of Telangana, in the presence of KT Rama Rao, Minister for Information Technology, Municipal Administration and Urban Development, I&C, Public Enterprises, Sugar, Mines and Geology, NRI Affairs, Government of Telangana; Jayesh Ranjan, Principal Secretary of I&C and Information Technology Departments, Government of Telangana; Sunil Kanoria, Vice Chairman, Srei; and Indranil Dasgupta, CEO, Attivo.
'Telangana is emerging as a preferred destination for the industry,' said Rao at the event. 'Our priority has been to ensure ease of doing business, and we will continue to support business ventures that have the potential to drive industrial growth and economic progress of the state.'
'We believe in driving economic growth through infrastructure development,' said Ranjan. 'And, Attivo's proposed park is a step in the right direction and will help us drive rapid industrialisation in the state.'
As per the MoU signed, Attivo will develop an infrastructure equipment manufacturing park in the National Investment and Manufacturing Zone near Zaheerabad in Telangana. Spread over 500 acre, the park will create a sustainable and comprehensive industrial zone of international standards. Most of the world's leading original equipment makers (OEMs) are expected to set up their units in the park, which has the potential to generate direct and indirect employment in excess of 10,000 over the next 10 years.
Speaking to CW, Kanoria said the proposed park would be the ideal location for all construction and mining equipment manufacturers as a plethora of road, irrigation and mining work is being awarded by the Telangana Government and most contractors and construction companies are based there.
He added, 'It makes great economic sense to set up the manufacturing base in the zone, which will be fully enabled from all infrastructure aspects.' Further, Dasgupta emphasised, 'Attivo's ability to deliver holistic infrastructure facilities has allowed our clients to set up units without incurring huge capital costs. We are confident that the infrastructure equipment manufacturing park will soon become one of the key engines of Telangana's economic progress.'
The industrial park will be well-connected with road and railway networks, allowing OEMs to connect and communicate with different markets across India.
- SERAPHINA D'SOUZA
Water Resource Ministry identifies 10 HAM projects for Ganga Rejuvenation
The mammoth Rs 20,000-crore Ganga Rejuvenation project is gaining some traction. To make the river pollution-free, around 34 projects worth Rs 3,581 crore were sanctioned for cleaning between 2008 and 2014, while 56 projects worth Rs 9,630 crore have been approved since 2014 to date.
'Around 18 of these projects are ready and others will also be implemented by March 2019; most of the projects awarded are sewage treatment plants (STP) in various states,' says Upendra Prasad Singh, Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation. 'We have also taken over sewage plants run by the state governments and are providing 100 per cent funding assistance to them for operation and maintenance for the next 15 years.'
Recently, the ministry awarded two projects for Haridwar and Varanasi under the hybrid annuity mode (HAM) - the first time ever in India that HAM-based PPP has been applied in the sewerage sector. The 50-mld STP in Varanasi was awarded to a consortium led by Essel Infra Projects at an estimated Rs 153.16 crore. In Haridwar, HNB Engineers won the contract for a total sewage treatment capacity of 82 mld (68 mld in Jagjeetpur and 14 mld in Sarai) at an estimated Rs 171.53 crore. The awarded projects would ensure that untreated sewage does not flow into the Ganga, thus supporting India's flagship Namami Gange programme. The construction of these two new, greenfield STPs will commence shortly.
A second set of STPs under HAM is on the anvil. Upcoming projects that have already been sanctioned under HAM are at Naini, Jhusi and Phaphamau along with Allahabad (72 mld); at Unnao, Shuklaganj, and Bithoor along with Kanpur (21.4 mld); at Digha and Kankarbagh in Bihar (150 mld); at Kolkata and Howrah (141 mld); at Farukhabad (30 mld); and at Bhagalpur (65 mld). Tender documents for 10 of these projects are being prepared. The National Mission for Clean Ganga (NMCG) has also appointed strategic consultants for PPP design and transaction advisory support for the integration of sewage treatment infrastructure in Kanpur, Allahabad, Patna and Kolkata.
- RAHUL KAMAT
Panel formed to solve the issue of NPAs in power sector
According to a source in the Ministry of Power, the government recently set up a high-profile panel, chaired by Amitabh Kant, CEO, NITI Aayog, to cater to the issue of stressed assets in the power sector.
As per the Economic Survey 2016-17 released in August, non-performing assets (NPAs) in the area of power generation share 5.9 per cent of the overall outstanding advances of Rs 4.73 trillion in the banking sector.
A source from NITI Aayog, on condition of anonymity, shared with CW, 'The projects were initially identified by the financial services. The government has reviewed 34 coal-fuelled projects, resulting in an estimated debt of Rs 1.77 trillion.
This will also avoid a further debt of Rs 80,000 crore that could result from the NPAs.' Speaking about the cause of the delay, the source pointed out to issues such as demonetisation, GST, lack of funds, lack of coal supply and the absence of fuel security.
The panel is also expected to bring in a channelised method for power projects that will provide relief for the banks affected owing to bad loans. The panel, comprising secretaries from the ministries of power and coal and the department of financial services, will also keep a tab on wilful defaulters and take necessary action. Because of weak financial health, only a mere 1.64 gw of projects were tied up through power-purchase agreements. The panel is looking at long-term loans and PPAs to solve the issue of the 60 gw of stressed assets across fuel sources.
'We are looking at ways to find solutions,' says Kant. When asked about the issues the sector is facing, he refrained from further comment.
Five mega industrial parks to give logistics a push
Real estate and logistics parks developer IndoSpace has recently announced the launch of five new mega parks across the Delhi-NCR region, Mumbai and Bengaluru. These projects, along with the existing Ranjangaon Park in Pune, will add around 10 million sq ft of leasable logistics and light manufacturing space to IndoSpace's portfolio.
The five planned parks will be spread across India's key industrial and logistics hubs at Narasapura (Bengaluru); Badli (NCR); Bhaproda (NCR); and two parks at Khopoli (Mumbai).
The boom in industrial real estate is expected to take the operational and underdevelopment pipeline of IndoSpace to an estimated 30 million sq ft.
The developer will be catering to the rising demand in India for world-class, Grade A warehousing and light manufacturing facilities from companies across multiple sectors. Speaking about the expansion, Rajesh Jaggi, Managing Partner, Real Estate, Everstone Group, said, 'This significant expansion highlights IndoSpace's focus on strongly supporting growth in India's logistics and light manufacturing sector, which will robustly expand owing to improved infrastructure across the nation, the landmark GST reform, and a fast-growing e-commerce sector.'
He further added that the government's move of granting infrastructure status to the logistics sector has strengthened the outlook for IndoSpace as it will help the sector access infrastructure lending at competitive rates. 'Logistics players will also have multiple instruments to raise money, including funds from insurance companies and pension funds with longer tenor,' he said.
According to a recent report by CBRE, GST has already had a positive impact on the warehousing sector, with around 7.4 million sq ft of industrial and warehousing space being leased in H1 2017 across key cities, a 50 per cent jump from H2 2016.
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