NH toll plazas to issue FASTags on the spot Realty sees 115 insolvency cases, $1 bn stressed deals

National Highway toll plazas will issue FASTags on the spot for vehicles entering dedicated lanes from December 1. They may be charged a double penal fee for entering dedicated lanes without FASTags.

The National Highway Authority of India has initiated daily trial runs for the implementation of National Electronic Toll Collection (FASTag) mechanism at National Highway toll plazas across the country from the December 1, this year.

While reviewing the progress of the project, Union Minister for Road Transport & Highways and MSME Nitin Gadkari was told that a provision for issuing on-the-spot FASTags is being implemented. The minister wanted that on-the-spot mechanism for issuing FASTags for the vehicles entering dedicated FASTag lane should also be put in place so that the road users have a choice of either obtaining the FASTag or paying the double penal fee for using FASTag lane, a government release said.

NHAI also has identified dedicated FASTag lanes and are being enforced during the daily trial runs. The minister asked all efforts to be made on war footing to address any issue arising at the daily trial run initiated by NHAI.

He directed the ministry officials that regular review at the highest level in NHAI may be undertaken for ensuring smooth rollout of the scheme.

The real estate sector has filed 115 insolvency cases till September and $1 billion has already been transacted under stressed asset deals in 2019.

Corporates saddled with huge debt have been increasingly liquidating real estate assets and investors are evaluating options including acquiring non-performing assets, distress sale and entity level stake. Around $1 billion has already been transacted in the current year, as per the data from JLL India.

Some of the recent stressed asset deals include sale of an IT park in Bengaluru by Café Coffee Day Enterprise for $385 million to reduce its debt. Blackstone and Salarpuria Sattva Developers have acquired the 90-acre, ITfocussed Global Village Tech Park. Similarly in hospitality sector, Brookfield has received approvals to acquire assets of Hotel Leela Venture comprising key hotel properties in Delhi, Bangalore, Udaipur and Chennai for $564 million.

As per the Insolvency and Bankruptcy Board of India, a total 115 insolvency cases have been filed as of September 2019 under real estate category. Of these 87 cases are under process while 28 are closed.

Residential real estate segment presents the maximum number of stressed assets. India’s residential sector has been reeling under the pressure of delayed/stalled projects with 4.54 lakh units running behind their completion dates. Some of them are already under bankruptcy proceedings. The value of these projects is estimated to be $66 billlion, according to JLL.

“The capital commitment by institutional investors gives comfort to the lenders leading to faster resolution in these deals. Such deals also provide opportunity for investors to optimise their returns in line with underlying risks,’ said Ramesh Nair, CEO and country head, India, JLL.

Though government has announced a special fund to infuse liquidity into the sector, it will fall short of meeting the entire requirement. So, several projects will move into insolvency process, providing an opportunity for investors.

New Delhi, Nov 20: India's sugar production declined 64 per cent to 4.85 lakh tonnes till November 15 in the current marketing year that started last month, as mills in Maharashtra have not yet begun their operations, industry body Isma said on Wednesday.

The sugar marketing year runs from October to September. "As on November 15, 2019, 100 sugar mills were crushing sugarcane, as compared to 310 sugar mills last year on November 15, 2018. During the current 2019-20 sugar season, sugar production as on November 15, was 4.85 lakh tonnes as compared to 13.38 lakh tonnes produced as on November 15, 2018, in 2018-19 sugar season," the Indian Sugar Mills Association (Isma) said in a statement. It attributed the reason for fall in production to sugar mills in Maharashtra not yet starting their sugarcane crushing operation this season. The state had produced 6.31 lakh tonnes till November 15, 2018. Production in Uttar Pradesh, however, increased to 2.93 lakh tonnes from 1.76 lakh tonnes.

Sugar output in Karnataka has fallen to 1.43 lakh tonnes from 3.60 lakh tonnes during the period under review as lesser number of mills have started operations so far.

"Maharashtra and Karnataka faced drought last year, because of which the area planted under sugarcane therein has dropped by about 30 per cent as compared to last season,” Isma said. —PTI