Rajiv Mishra: Clean Ganga projects will not affect IL&FS crisis

Reader's Pick

At a time when the financial market is facing huge liquidity crisis, the Rs 10,000 crore worth PPP projects under the Namami Gange programme by the National Mission for Clean Ganga (NMCG) remains immune to the IL&FS default led troubles in the sector, a senior official said on January 30.

The new hybrid annuity based PPP model adopted by the government has not only created fresh interest among the private sector to bid, but has also prevented the projects from any possible delay in execution, NMCG Director General Rajiv Ranjan Mishra said here.

Of the 261 projects worth around Rs 25,500 crore, close to Rs 10,000 crore worth of projects are being executed under the hybrid annuity based model, he said on the sidelines of “Infra East” – organised by CII.

- Advertisement -

“The PPP projects which would be roughly to the tune of Rs 10,000 crore will not face any problem owing to these crisis,” Mishra said when asked about possible impact of IL&FS crisis on these projects.

Infrastructure Leasing & Financial Services (IL&FS) and its subsidiaries have defaulted on many debt instruments in the past few months due to insufficient funds.

Out of the Rs 10,000 crore, projects valued at around Rs 7,000 crore are under tendering, and Rs 3000 crore would get closed in a month or two, he said.

“Our projects are backed by the government and for the developers, there is not much risk. We are guaranteeing the payments and banks do not see much risk in these projects,” he said.

Assurance to get reimbursement of upto 40 percent of capital cost by completion of the project is an incentive to complete the project in time under the model.

- Advertisement -

Linking of remaining capital cost and maintenance to annuities over 15 years will be able to bind the concessionaire for continued performance, Mishra said.

Pan India, there are 136 sewerage related projects out of total number of projects, he said, adding that there are 20 sewerage projects in West Bengal worth about Rs 3700 crore.

- Advertisement -

Read latest Business News and Startup news on TechGraph. Watch live and latest news on TechGraph TV. Follow us on Facebook or follow us on Twitter and Instagram. Listen audio news from TechGraph Briefings on Spotify, Google Podcast, Amazon Music & on Apple Podcast.

Krishna Mali
Krishna Mali
Founder & Editor of TechGraph.

Latest News

Promoted Links

Related Stories

Bank of Japan keeps monetary policy steady, brings new forward guidance on rates

The Bank of Japan kept its monetary policy steady on Thursday but introduced new...

Employees union seeks FIR against Jet Airways boss Naresh Goyal, Vinay Dube and on SBI Chairman

The employee union of Jet Airways, which is facing its worst crisis, Friday sought...

Japan approves 26 trillion yen as economic stimulus package to combat overseas risks

Japan's cabinet approved an economic stimulus package worth 26 trillion yen ($239 billion) with...

Samsung Electronics asks its shareholders to use electronic voting for upcoming AGM

Technology giant Samsung Electronics has adopted electronic voting for the first time ever for...

Rahul Gandhi hits on RCEP says, ‘Make in India’ has become ‘Buy from China’

Asserting that "Make in India" has become "Buy from China," Congress leader Rahul Gandhi...

CASHe launches WhatsApp-based instant credit line services

India-based credit-led Ai-driven fintech platform, CASHe has announced the launch of Ai-powered chat capability...

Budget 2022-23: Banking, NEO Bank & NBFC Sector Expectations

Banking, Neo Bank & NBFCs sector expectations from Budget 2022: As Union Finance Minister...

Maruti Suzuki plans to increase vehicle prices from next month

India’s leading automaker Maruti Suzuki has decided to increase the prices of its vehicles...

4 Top Challenges in a Small Business

Running a small business is not easy. You will face many challenges along the...

How Ginesys retail ERP Software Can Solve 7 Common Manufacturing Problems

The retail industry is undergoing a massive transformation. Customers nowadays prefer shopping through multiple...

How to choose top payout casinos online

Each casino sets its conditions for the withdrawal of winnings. However, all gambling clubs...

Ampere Electric to setup e-mobility manufacturing plant in Tamil Nadu

Electric Mobility Company Ampere Electric has announced a phased investment potential of Rs 700...

Adtech startup ExperientalEtc raises $200K from StartupLanes

Mumbai-based Adtech startup, ExperientalEtc has raised $200K in series seed round funding led by...

Startups are Eager to Create LGBTQ Friendly Workplace

While the landmark judgment by Supreme Court that abolishes the draconian law encircling homosexuality...