Gold
Toll collections to grow 10-11% in FY22 despite Covid: Care Ratings
A recent study by Care Ratings pointed out that Care Ratings’ investment grade toll road portfolio is likely to deliver a stable credit performance, despite Covid. 47 out of 56 Care rated investment grade operational projects are likely to be stable from credit perspective, despite possible shocks of traffic disruption. This is on account of resilient toll collections, adequate debt coverage indicators and presence of liquidity buffers. For these projects, Care Ratings expects a debt service coverage ratio (DSCR) of at least 1.10 times for FY22, coupled with a liquidity reserve equivalent to one quarter of debt servicing amount. Balance nine projects are likely to be supported with need-based liquidity backup from the sponsors.
Toll Collections: Change in axle norms, traffic leakages to alternate routes and Covid-19 outbreak in March 2020 led to minor year-on-year (Y-o-Y) degrowth of 2.5% during FY20. In a bid to evaluate the overall sector performance during FY21, for operating toll roads in particular, Care Ratings assessed performance of 105 toll road projects (including rated by Care Ratings) admeasuring 38,000 km spanning across 15 states.
Toll revenues witnessed Y-o-Y degrowth of 10.23% in 9MFY21 as against 9MFY20 on account of the severe impact of lockdown during Q1FY21. The strong recovery in toll collections from Q3FY21 is likely to restrict the decline to 5.50% on Y-o-Y basis as against earlier expectations of over 20% degrowth for FY21.
With the onset of the second wave of Covid-19 and stringent guidelines announced by some states, passenger vehicular traffic is expected to witness a decline again in Q1FY22 after reaching closer to pre-covid levels in Q4FY21. Nevertheless, electricity consumption and Goods and Services Tax (GST) e-way bill collections, which are proxy for economic activity and movement of goods, have remained higher than Q1FY21 levels.
Read the full Care Ratings report here
BBMP Pledges Faster E-Khata Processing Amid Citizen Complaints
Facing mounting complaints over delays in e-khata issuance, the Bruhat Bengaluru Mahanagara Palike (BBMP) has promised to resolve the issue within 10 days. BBMP Chief Commissioner Tushar Giri Nath assured citizens that efforts are underway to expedite processing rates from the current 2,000 to a target of 10,000–15,000 applications daily. "We have cleared 90% of the 90,000 pending applications, leaving only 4,500 to process. To meet the demand, over 800 additional staff and assistant revenue officers (AROs) have been deployed to manage applications in each ward," Nath stated. Persistent Dela..
Delhi HC Orders DDA to Assist CBI in Housing Lapses Probe
The Delhi High Court has instructed the Delhi Development Authority (DDA) to fully cooperate with the Central Bureau of Investigation (CBI) in its probe into alleged lapses in the construction of 336 high-rise HIG/MIG houses at Signature View Apartments, north Delhi. Justice Chandra Dhari Singh emphasized that DDA must furnish information about any internal inquiry and the officials involved to facilitate the investigation. The court noted CBI’s submission that DDA had not responded to multiple reminders since July, delaying the probe. The CBI is investigating allegations of "cheating, crimi..
Mahindra Lifespace to Appeal Tamil Nadu GST Tax Demand
Mahindra Lifespace Developers Ltd has announced a tax demand of Rs 20.9 million imposed by the Tamil Nadu GST department, including interest and penalties. The order, issued by the Assistant Commissioner of State Tax, Chengalpattu, cites an alleged shortfall in GST payments under Section 74 of the GST Act, 2017. The realty firm refuted the allegations, stating, “Based on the company's assessment, there is no noncompliance, and a general penalty has been imposed.” The company plans to appeal the order, expressing confidence in a favorable resolution. Mahindra Lifespace assured stakeholders ..
