Page 14 - Infrastructure

Ind-Ra expects stable operating performance for most infra projects in FY25

India Ratings and Research (Ind-Ra) expects stable operating performance for most infrastructure projects in the current financial year. The rating agency on Thursday maintained its stable outlook on the infrastructure sector, including the transport segment which signifies low chances of rating changes for the sector in the near to medium term. The rating agency assigned a positive outlook on the airport segment which means there are high chances of rating upgrades in the near to medium term. Ind-Ra stated that the stable outlook on the infrastructure sector factors in the likelihood of a stable operating performance for most projects, long-term revenue visibility under concession agreements and power purchase pacts and expected improved cargo and traffic volumes. On the power sector, the rating agency said it expects total capacity installed to reach about 476 GW in FY25 against 440 GW as of March 2024. In a virtual press meet, Bharat Kumar Reddy, Associate Director at India ..

MG Motor India signs pact with Vertelo to deliver 3K EVs in phased manner

MG Motor India on Thursday said it has signed an initial pact to deliver 3,000 EVs to integrated fleet electrification platform Vertelo in a phased manner. Both the entities have signed a memorandum of understanding to this effect. The partnership will focus on providing sustainable mobility solutions to riders and will also work towards establishing a robust EV charging infrastructure in the country, MG Motor India said in a statement. "This partnership between MG India and Vertelo demonstrates a shared vision for a green and sustainable future with decarbonisation in India. We also believe that this collaboration will augment our endeavours to offer advanced e-mobility solutions for passengers and boost faster adoption of EVs in the country," MG Motor India Chief Growth Officer, Gaurav Gupta said. Vertelo is a fleet electrification platform that aims at providing end-to-end solutions to operators and corporates. It has been established by Macquarie Asset Management and has receiv

US investing $3.8 bn to meet India's renewable energy, infra goals: Envoy

Moreover, he added that the two nations are not just moving forward on development, but are moving forward on technology. You know, technology will define our lives, he said

Infra visions in manifestos

What is said, or left unsaid, reveals insights on the infra-agenda of political parties

2024 Lok Sabha elections: Infrastructure dominates Mumbai's discourse

Candidates woo voters amid a political tug-of-war for claiming credit for major projects

The 'default' path: PSBs classify Reliance Infrastructure's SPV as NPA

Recently, RBI proposed to increase standard asset provision requirements for project loans during the construction phase to 5% from 0.40% now

BMC asks railway authorities to remove hoardings of above 40x40 feet size

In the wake of the Mumbai billboard collapse incident that claimed 14 lives, the Brihanmumbai Municipal Corporation (BMC) has issued notices to the administrations of the Central Railway and the Western Railway for removal of oversized hoardings erected on their land. In a release issued on Wednesday evening, the Mumbai civic body said that under Section 30 (2) (V) of the Disaster Management Act, 2005, the notices have been issued to the authorities of both the zonal railways for removal of hoardings above 40 x 40 feet size. "Taking into consideration the geographical position of Mumbai, the coastal region, its weather and wind conditions, the civic body has decided not to permit erection of hoardings larger than 40x40 feet in size," the release said. On Monday evening, a 120x120 feet hoarding collapsed on a petrol pump at Chheda Nagar in Ghatkopar area of Mumbai due to gusty winds and unseasonal rains, claiming the lives of 14 persons and injuring 75 others. According to the civic

Despite 3-year low, project delays remain higher than pre-pandemic levels

Railways have incurred the highest cost overrun

Evaluation of infra needs for $1 tn exports by Aug-Sep: Official

A study to assess required infrastructure and identify main industry clusters for achieving the USD 1 trillion merchandise exports target by 2030 may be submitted by August-September to the commerce ministry, an official said. The official said that the Asian Development Bank (ADB) is doing that study for the ministry. In 2023-24, India's merchandise exports dipped by over 3 per cent to USD 437 billion. Imports during the last fiscal dipped by 5.7 per cent to USD 675.4 billion. By 2030, the ministry is aiming to more than double the country's outbound shipments of goods. Explaining the rationale behind the exercise, the official said that to take the exports to USD 1 trillion, there will be an import of about USD 1.5 trillion, so to handle USD 2.5 trillion worth of trade "we need" additional infrastructure and logistics capacity at roads, ports, airports and railways. "If exports will increase, imports will also increase. There is a correlation between higher exports and imports.

449 infra projects hit by cost overrun of Rs 5.01 trillion in March: MoSPI

As many as 449 infrastructure projects, each entailing an investment of Rs 150 crore or above, were hit by cost overrun of more than Rs 5.01 lakh crore in March 2024, an official report stated. According to Ministry of Statistics and Programme Implementation (MoSPI), which monitors infrastructure projects worth Rs 150 crore and above, out of 1,873 projects, 449 reported cost overrun and 779 projects were delayed. "Total original cost of implementation of the 1,873 projects was Rs 26,87,535.69 crore and their anticipated completion cost is likely to be Rs 31,88,859.02 crore, which reflects overall cost overrun of Rs 5,01,323.33 crore (18.65 per cent of original cost)," the ministry's latest report for March 2024 said. According to the report, the expenditure incurred on these projects till March 2024 is Rs 17,11,648.99 crore, which is 53.68 per cent of the anticipated cost of the projects. However, the number of delayed projects decreased to 567 if delay is calculated on the basis o

Higher provisioning may slow infra sector, but good for long term: Industry

While some other executives from the power industry say it may be too early to gauge any impact, some highway contractors refuse to comment on the move

IRB Infra Q4 results: Net profit jumps 45% to Rs 189 cr, revenue up 27%

Co's toll revenue increased by 29 per cent in April, earned Rs 503 crore from its highways

RBI provisioning norms singe PSU banks, infrastructure financers

Move will impact RoE, networth, say analysts

Construction equipment sales rise 26% to 135,650 units in FY24: ICEMA

India's construction equipment industry witnessed a 26 per cent rise in sales to 1,35,650 units in the 2023-24 fiscal on the back of the government's infrastructure-led growth agenda, a report said on Monday. As per the data released by the Indian Construction Equipment Manufacturers' Association (ICEMA), the construction equipment (CE) industry had sold 1,07,779 units in the previous fiscal year. "With total equipment sales crossing 1,35,650 units as against 1,07,779 lakh units in FY23, the Indian Construction Equipment industry has recorded a 26 per cent increase in overall sales volume for the financial year 2023-24, surpassing all projections," it said. The statement further said the government's infra-led growth agenda and pre-election impetus on projects in the pipeline triggered positive growth in all five major construction equipment segments. "The industry's excellent annual performance has been a result of significant increase in demand for construction equipment observed

Infrastructure output in March rises 5.2%, cement production up 10.6%

Infrastructure output, which accounts for 40% of industrial production, measures activity in eight sectors, including refinery products and electricity

Realtors retool pricing strategies amid rising cost of construction

The higher costs in Mumbai can be attributed to the increased prices of essential construction materials like cement, reinforced steel, structural steel, and stones

Construction sector firms' revenues to see 12-15% growth this fiscal: ICRA

India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps, rating agency ICRA said on Monday. It further said that the government's infrastructure push will result in double-digit revenue growth for the construction industry in FY2025. The rating agency said it maintains a stable outlook on the sector with steady growth in operating income, moderate leverage, and healthy coverage metrics. "The aggregate order book-to-sales ratio of ICRA's sample set of companies stood at around 3.9x as of December 2023 (compared to 3.4 times during March-2023), thereby indicating a healthy revenue growth prospect over the medium term," ICRA vice president and co-group head - corporate ratings Ashish Modani said. He said, ICRA expects the revenue growth in FY2025 to remain healthy at 12-15 per cent on a year-on-year basis, albeit slightly lower than the 18-20 per cent revenue expansion assessed for FY2024

Private investment push: 200 more Gati Shakti terminals on the cards

77 of the first 100 GCTs announced have already been commissioned at a cost of Rs 5400 crore, says official

Sebi allows AIFs to pledge shares in companies that invest in infra sector

To facilitate ease of doing business, markets regulator Sebi on Friday allowed AIFs (alternative investment funds) to pledge their shares in investee companies in the infrastructure sector. The regulator has also provided additional flexibility to AIFs and their investors to deal with unliquidated investments of their schemes. "Category I and Category II AIFs may create an encumbrance on equity of investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub-sectors," Sebi said in a circular. The move will provide ease of doing business and flexibility to such AIFs. Experts believe that allowing AIFs to create an encumbrance on their equity investments in infrastructure sector companies for the purpose of project finance is essential for infrastructure development. Earlier, pledging of securities held by an AIF in investee companies for loans availed of by the investee companies violates provisions of the AIF ...

Embassy REIT Q4 results: Net operating income up at 13% to Rs 766 cr

Embassy Office Parks REIT on Thursday reported a 13 per cent increase in its net operating income to Rs 765.6 crore and announced distribution of Rs 494.8 crore to unit holders in the fourth quarter of the last fiscal year. Its net operating income stood at Rs 680.2 crore in the year-ago period. According to a regulatory filing, Embassy REIT has posted an 8 per cent annual increase in its net operating income to Rs 2,981.9 crore during the last fiscal year. Its net operating income (NOI) stood at Rs 2,766.3 crore in the preceding year. The Board of Directors of Embassy Office Parks Management Services, which is manager to Embassy REIT, declared a distribution of Rs 495 crore or Rs 5.22 per unit for Q4 FY24. With this, the cumulative distribution for the entire 2023-24 totals Rs 2,022 crore or Rs 21.33 per unit. "FY2024 has been a blockbuster year for Embassy REIT. We leased a record 8.1 million square feet to leading corporates, the majority of which were GCCs, we delivered 2.2 .