PM: Indian Railways will not be privatized
The Prime Minister, Narendra Modi, declared categorically that the Indian Railways would not be privatized. He was addressing a gathering in Varanasi after the commencement of expansion of the Diesel Locomotive Works. He asserted that his aim was to ensure that the modernization and growth of railways is facilitated through private investment, and not through public funds which are the property of the poor, and should be used to fulfil their basic needs including health and education. He said private investment would be used to modernize Railways and make it service-oriented, so that it could become an engine of growth for the nation.
Narendra Modi said 4 rail universities would be established to ensure proper and well-trained human resource for the Railways. He said the Railways should not be seen as just a means of transport, but should become the backbone of economic development. He exhorted Railway workers to ensure that the best service in India is provided by the Indian Railways.
The Prime Minister, who earlier flagged off the new high horsepower diesel locomotive, described this as an example of India`s indigenous capabilities, and an illustration of his vision of Make in India. He recalled former Prime Minister Lal Bahadur Shastri`s slogan of "Jai Jawan, Jai Kisan" and said the slogan had inspired farmers to make India self-reliant in food production. He expressed hope that "Make in India" would inspire us to become self reliant in all our needs.
The Prime Minister also said the postal and railway networks of India could be leveraged to become drivers of rural development.
MEP Infra receives SEBI nod for Rs. 360 cr IPO
MEP Infrastructure Developers has received Securities and Exchange Board of India’s approval to raise Rs. 360 crore through an initial public offer (IPO), according to reports.
Report stated that the company had filed its draft papers with SEBI for the proposed public offer in September.
The proceeds of the issue would be utilised for repayment of certain loans and for general corporate purposes.
There are reports that the issue is being managed by IDFC Securities Ltd, Inga Capital Pvt Ltd and IDBI Capital Market Services Ltd.
Madhucon Projects clarifies on stake sale plan
The Exchange has sought clarification from Madhucon Projects Ltd with respect to disclosure dated December 23, 2014 stating "Madhucon Projects Limited a flagship Company of Madhucon Group has entered into a term sheet with TRIL Roads Pvt. Limited to disinvest its subsidiaries Madhucon Infra Limited and Madhucon Toll Highways Limited's 74% stake in Madhucon Agra-Jaipur Expressways Limited (Step down subsidiary of Madhucon Projects Limited), a National Highway Authority of India's Road Project."
With reference to the disinvestment of Madhucon Agra-Jaipur Expressways Ltd, Madhucon Projects Ltd had been requested to provide clarification for the non-disclosure of consideration in the disclosure dated December 23, 2014 to the Exchange.
Madhucon Projects Ltd replied stating "It is clarified that the term sheet signed between Madhucon Infra Limited (Subsidiary of Madhucon Projects Limited) and Madhucon Toll Highways Limited(Subsidiary of Madhcuon Infra Limited) on 22nd December, 2014 stipulate the Gross consideration of the Road Project deal is around Rs.250 Crores including NHAI grant of Rs.15 Crores for acquisition of 100% equity stake in MAJEL. This is proposed to be in 2 trenches.
74% equity stake in MAJEL owned by the current shareholders along with all associated rights and obligations within 60 days from the date of signing Term sheet, subject to due diligence and execution of Definitive Agreements (Trench I closure).
Main activity on balance roads to commence early next year: Satish Chandra
The National Highways Authority of India was constituted by an act of Parliament, the National Highways Authority of India Act, 1988. It is responsible for the development, maintenance and management of National Highways entrusted to it and for matters connected or incidental thereto.
In an interview with Satish Chandra, Member Finance, NHAI, said that as of now, NHAI has 20,000 kms balance road length which is yet to be awarded out of this 8,500 kms would be awarded in the current year, including NHAIs 5,500 and the ministry’s 3,000 kms. Next year the remaining length of 12,000 kms would be awarded in 2015-16 out of which NHAI target is about 9,000 kms.
Talking about the current projects that have put out for bidding and investments in these projects, he said, "In the current financial year we had a target of 5,500 kms out of which 3,500 was to be done under engineering, procurement and construction (EPC) and the remaining 2,000 under build–operate–transfer (BOT). For BOT the response is not much, we have been able to award only 500 kms or so and 2,500 kms of EPC projects are under bidding in the month of December and January and we are quite hopeful of awarding the entire 5,500 kms length by March 2015.
According to the reports, recently, NHAI has received 167 bids for the proposed Rs 4,500-crore eastern peripheral expressway, in what could be a sign of revival of private sector interest in road projects.
GMR – Megawide achieves financial closure for Mactan-Cebu International Airport
GMR-Megawide Cebu Airport Corporation (GMCAC) a joint venture between GMR Infrastructure Ltd (40% shareholding) and Megawide Construction Corporation (60% shareholding) has signed financing documents of its Mactan Cebu International Airport located in Cebu, Philippines. The financing will fund 70% of its total project cost of Php 33 billion (approximately US$ 750 mn)
BDO Capital & Investment Corporation acted as Lead Arranger to the transaction. The loan is being financed by a consortium of six banks.
Total equity contribution of GMR to GMCAC will be approximately US$ 90 mn, out of which GMR has already invested US$ 48 mn and do not envisage any further investment in the near future.
GMCAC shall be responsible for construction, development, renovation, expansion and operation of the Mactan Cebu International Airport for a period of 25 years as provided in the Concession Agreement.
This marks a key milestone for GMCAC in its journey to transform MCIA into a world class airport. MCIA is the first airport in Philippines to be privatized under the administration’s ambitious PPP programme aimed at modernizing key infrastructure assets.
5:25 structure for the existing projects is a landmark judgement: Sunil Kanoria
SREI Infrastructure Finance Limited has been a pioneer in infrastructure financing in India, steadily contributing towards infrastructural development. In over 25 years of operation, the company has empowered more than 30,000 entrepreneurs through their services in the infrastructure sector: Infrastructure Project Finance, Advisory and Development, Infrastructure Equipment Finance,Alternative Investment Funds, Capital Market and Insurance Broking.
The stock of the company is trading firm as Srei Infra might sell a part or its entire stake in telecom tower company Viom Networks early
next year, says media report.
In an interview with CNBC TV18, Sunil Kanoria, Vice Chairman, Srei Infra said that the company has appointed bankers and are looking for the options. Some of the companies have approached but Bharti Infratel is not one of them. Earlier, the company was also looking at International listing, but as the India market improved, the company is not considering that option. He said, "We are evaluating strategic investors as well as financial investors. We have a group of shareholders with whom we are discussing. and hope to do something".