The finance ministry has given an in-principle approval to a new mechanism in which all regulatory clearances are to be obtained by the government before coal blocks are auctioned to state run or private companies, thus concluding the debate on the ‘go’ and ‘no-go’ areas for mining of coal.
The events being played out in the economy are a natural consequence of the action - or rather the lack of it. The Sensex has slipped, the rupee has slipped further and business confidence is sliding down. India cannot afford to grow at less than 7 per cent.
To help real estate sector in the country to get bank finance for restarting work on stalled projects, the Union Finance Ministry is taking initiative and the banking sector is also getting ready for the same.
The Union Finance Ministry has said that the Reserve Bank should allow real estate companies and broking firms to set up banks as adequate safeguards will be there to prevent exposure of promoters to related entities.
The Union Finance Ministry has sanctioned viability gap funding of Rs 1,920 crore for the Mumbai trans-harbour link, the Mumbai Metropolitan Region Development Authority (MMRDA) has said. The project, estimated to cost Rs 9,630 crore, will be implemented on public-private partnership mode. The construction period will be for five years.
The Union Finance Ministry has urged the Reserve Bank of India to consider a change in its stance that treats loans to road projects as unsecured. If the RBI sheds its reluctance to treat highway sector lending as secured loans, credit flows to the fund-starved sector could grow by at least 20 per cent-25 per cent, officials said.
The Government has approved six foreign direct investment (FDI) proposals worth over Rs 732 crore based on the Foreign Investment Promotion Board’s recommendations. The two largest proposals notified by the Finance Ministry include Hyderabad-based Navayuga Road Projects’ plans to make downstream investments in its Special Purpose Companies worth Rs 357.60 crore and SIDBI Social Venture Trust’s submission to bring in foreign investment worth Rs 285 crore by allotting some units of the Fund.
The National Highways Authority of India (NHAI) has suggested the Union Highways Ministry to see that the road project contracts are cancelled amicably than wasting time in trying to revive the projects. And it also urged the Ministry to deal with the developers in a way that the project contracts are cancelled amicably.
The Union Finance Ministry’s decision to permit India Infrastructure Finance Corporation (IIFCL) to become the sole lender even at a pre-bid stage has been welcomed by road developers. However, the road developers stated that the exact impact will come to known only after the finer details emerge.