As this week has seen some important developments, related to economy and infrastructure related investments, wherein, PM Modi pitched Atmanirbgar Bharat to 20 of top global investors, and government has fast tracked 50 major infra projects to stimulate demand in pandemic hit economy, despite bleak times, India has not given up its attempts to mobilise global supply chains towards India, we provide more news and details throughout the newsletter.
Why It Is Difficult To Work Out Air India’s Valuation
The change, by the government’s own admission, is driven by changing geopolitical and macro-economic risks emanating from the Covid-19 crisis. The valuation requires multiple perspectives — all to be layered in at the same time and unlike a pure business valuation, Air India necessitates factoring in non-measurable parameters such as market access, potential for government intervention, talent, tradition and technology.
But that is easier said than done. So, how does one value Air India? (read full article)
Road & Railways
L&T Is Lowest Bidder In Another Bullet Train Project
L&T is all ready to bag another project in Mumbai Ahmedabad High-Speed Rail Project (MAHSR), after it emerged as the lowest bidder in design-construction of 88 Km viaduct of the 508 Km Mumbai-Ahmedabad High Speed rail stretch.
Technical bids for Tender were open since September 25, wherein, L&T bid the lowest estimation at Rs. 7,289 crore. (read full article)
Farmers’ Stir Causes Heavy Loss To Railways As Agitation Continues At 32 Places In Punjab
With the farmers’ agitation still continuing at 32 places on rail premises and tracks across Punjab, train operations remain forcefully suspended in the state causing inconveniences to the people and revenue loss to Indian Railways.
As agitators have continued dharna at platforms and near tracks, more than 2225 freight rakes could not be operated upon carrying vital commodities resulting in heavy losses in goods earnings.. (read full article)
NIIF Master Fund Acquires Roads For The First Time, Two Major Toll-Way Roads From Essel
National Investment and Infrastructure and Fund Ltd. (NIFF) will acquire two major toll-way roads from Essel, this is first of its effort to build a Road and Highways portfolio, once acquired, these toll-ways will be managed by Aathang Infrastructure, said NIIF in a press release on November 2.
NIFF will acquire Essel Devanahalli toll-way which is part of NH44, a 22 Km, six lane highway connecting Bangalore to Devanahalli airport, and Essel Dichpally in Telangana state, a 60 Km four lane highway, which lies between two industrial hubs, Hyderabad and Nagpur, and serves commercial traffic.(read full article)
Punjab BJP Leaders Seek Restoration Of Train Services
After a high level delegation from Punjab meeting the Railway Minister Piyush Goyal seeking restoration of train services in the state, Indian Railways has requested Capt. Amrinder Singh government to lift the rail blockade put up by agitators so that services can resume.
The ongoing Kisan agitation in Punjab especially targeting rail property has severely affected passenger and goods train services in the state for the past month. As a result the state is now experiencing a huge crunch of coal, fertilizer, cement, petroleum, container and steel, adversely affecting the functioning of thermal power plants and other industries. (read full article)
Water & Energy
CCEA Chaired By Prime Minister Modi Approves Rs. 1,810 Crore Worth Hydropower Project In Himachal Pradesh
Cabinet Committee on Economic Affairs (CCEA) headed by PM Modi, approved to invest Rs. 1,810 crore in Luhri stage-1 hydropower project, in state of Himachal Pradesh.
Luhri stage-1 is 210 Mega Watt (MW) project, which will generate 782.20 units of electricity annually.
The construction of project will generate 2000 jobs, and the families effected from project will be allotted free electricity of 100 units every month for 10 years, from the date of implementation of project. (read full article)
100 Per Cent Tax Exemption On E-Vehicles, To Attract Manufacturers To Tamil Nadu
Tamil Nadu state government has announced 100% tax exemption on e vehicles, this will apply on commercial e-vehicles as well, from date of announcement i.e. November 3, 2020 to December 31, 2022.
Several manufacturers welcomed the move, Hyundai Vice-President BC Datta said, 100 per cent tax exemption was in line with.
Some of the companies have shown clear interests in manufacturing in Tamil Nadu, likes of, two-wheeler e-vehicle (EV) manufacturer Okinawa and Ampere, and swappable battery manufacturer and charging infrastructure developer, SUN Mobility. (read full article)
Infrastructure & Finance
PM Modi Pitches Atmanirbhar Bharat Strategy To Global Investors
Addressing Virtual Global Investor Roundtable (VGIR) 2020 on Thursday, Modi pitched the idea of Atmanirbhar Bharat to top global investors, said it is not mere a mission and desire, it is a well-planned strategy, to combine our business capabilities and worker’s skills to make India global manufacturing house.
VGIR was organised by Ministry of Finance and National Investment and Infrastructure Fund (NIIF), the event was attended by top 20 global investors, from USA, Europe, Middle East, East Asia, and Australia. (read full article)
Government Plans Big Infra And Big Employment Push Via National Infrastructure Pipeline
The simple Keynesian economics suggests that, this infrastructure stimulus, when given as wages to those employed in infrastructure sectors, who, upon spending will stimulate economy, by consuming other goods, and generating demand in other sectors, which will further have multiplier effect.
Following the above-mentioned principles, the Narendra Modi Government has opted to stimulate economy using 50 major infrastructure projects to be executed on a high priority basis, the sole intention being employment generation. (read full article)
FICCI: India’s COVID Strategy Paid Off, Economy Set To Bounce Bank
FICCI President Sangeeta Reddy on Sunday said that India’s strategy to deal with pandemic crisis has paid off, and economy is set to bounce back.
Emphasising on strategy, she pointed that, while governments across world has faced dilemma between saving lives against livelihoods, while India was clear since pandemic broke out, imposing a lockdown, then upgrade health infrastructure and safety equipment in mean time.
There also has been growth in e-way billing volumes, revenue earning from freight of major commodities, and September GST collections are close to pre-COVID-19 levels for first time.. (read full article)
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