SURESH PRABHU TO PRESENT RAILWAYS ‘MINI-BUDGET’ TODAY
Railways Minister Suresh Prabhu is set to launch on Thursday an Indian Railway Freight and Passenger Business Action Plan for 2017-18, which his officials are terming a “mini-budget”. “Traditionally, a normal Railway Budget has about 135 pages, of which about 100 pages are on the action plan for the financial year. With the Budgets (rail and general) getting merged, we are unable to present it before Parliament. This launch is like a mini budget,” said an official. The Narendra Modi government has broken a 92-year tradition of presenting a separate Railway Budget from this year. SHINE JACOB reports
After much delay in the formation of the National Investment and Infrastructure Fund, a beginning is set to be made with India holding last-mile discussions with the United Arab Emirates (UAE) and Qatar. Some half a dozen road projects are likely to be put on offer to the NIIF in the first lot.
The UAE, through its sovereign fund, the Abu Dhabi Investment Authority (ADIA), will invest in the NIIF.
“Talks with the UAE are nearing finalisation. A team from the NIIF had recently visited Abu Dhabi. After the UAE, Qatar is likely to subscribe to the fund,” said a senior government official.
The setting up of the NIIF was delayed because the ADIA had insisted on a nongovernment company structure for it. Since now the NIIF is in place with Sujoy Bose, former director and global cohead, infrastructure and natural resources, International Finance Corporation, as its chief executive officer, the formal subscription to the fund is expected to happen soon.
The ministry of road transport has shortlisted 111 road projects for monetisation. Of those, four to five, of about ~2,000-3,000 crore, would be bundled in the first tranche, said an official. These projects will be leased on a transferoperate-transfer (TOT) basis.
The NIIF, incorporated as The UAE, through its sovereign fund, the Abu Dhabi Investment Authority (ADIA), will invest in the NIIF The setting up of the NIIF was delayed because the ADIA had insisted on a nongovernment company structure for it a company, will be the investment manager of the National Investment and Infrastructure Fund. An initial budgetary allocation of ~4,000 crore was made for 2016-17 but the money remained unutilised. On February 1, 2017, the Union finance minister reduced the allocation to ~1,000 crore. A similar allocation has been made for 2017-18. The allocation will be utilised to meet the government portion of the funding. The NIIF will have 50 per cent government equity The NIIF, incorporated as a company, will be the investment manager of the National Investment and Infrastructure Fund An initial budgetary allocation of ~4,000 crore was made for 2016-17 but the money remained unutilised with the remaining coming from investors like the ADIA and Qatar Investment Authority.
Highway stretches in the Kolkata-Chennai corridor, mainly the ones passing through Andhra Pradesh, will be in the first lot to be monetised.
The funds raised by leasing these highway projects will be utilised for financing other projects to be built under government-funded and hybrid-annuity modes.
According to a joint statement On February 1, 2017, the Union finance minister reduced the allocation to ~1,000 crore. A similar allocation has been made for 2017-18 issued in August 2015, the UAE-India collaboration is aimed at reaching a target of $75 billion for expanding next-generation infrastructure, especially in the railways, ports, roads, airports, and industrial corridors and parks. In August 2016, the Cabinet Committee on Economic Affairs had approved the monetisation of highway projects that were operational and generating revenue for at least two years. This would be on the strength of toll receivables.