What's new

Indian Economy-News & Updates

How is the plan?

  • Good

    Votes: 161 61.7%
  • Average

    Votes: 53 20.3%
  • Poor

    Votes: 47 18.0%

  • Total voters
    261
For many in India, landfill is a livelihood and a home


NEW DELHI — The children didn't notice the ravens and occasional vulture circling overhead, or the stream of black ooze that flowed nearby, or the inescapable stench of decay. They were squealing over a 4-cent ride on a small, hand-powered Ferris wheel.

The kids are growing up in New Delhi's 70-acre Ghazipur landfill, a post-apocalyptic world where hundreds of pickers climb a 100-foot-high trash pile daily, dodging and occasionally dying beneath belching bulldozers that reshape the putrid landscape.

On "trash mountain," families earn $1 to $2 a day slogging through waist-deep muck. But the residents also marry, have children on their dirt floors, pray and celebrate life's other milestones.

"I am very proud to be a rag picker; we keep you healthy," said Jai Prakash Choudhary, who has spent years scouring Delhi's dumps in search of cast-off bottles, metal, even human hair.

An outgrowth of India's rapidly expanding middle class with its embrace of Western-style consumerism is ever more waste: New Delhi produces about 9,200 tons of trash daily, up 50% from 2007. The garbage is expected to double by 2024, leaving Ghazipur and two other landfills overflowing.

That's afforded the country's 1.7 million rag pickers — with 350,000 in New Delhi alone — more pickings, allowing some to dream of one day joining those middle-class ranks.

Rising expectations and hunger for a better life are seen in small ways at Ghazipur, charity workers said. Children balk at donations of unfashionable clothing. Twentysomethings sport stylish haircuts. Many listen to the latest pop tunes on cheap cellphones.

Choudhary is a symbol of that slow rise to the middle class, the desire for more. The rag picker, who's in his 30s, ran for councilman in this month's municipal elections here. Although he lost, his candidacy is an inspiration to other rag pickers, and he's promised to try again in a continuing effort to fight for their rights.

"Dirt comes from the top," Choudhary said. "Politics is a noble profession, but Indian politicians are not. I won't disappoint people."

The first rung for many, including Choudhary, is trash mountain. Most of those living in the shanties ringing the garbage dump are Muslims from impoverished central Bihar state or illegal immigrants from Bangladesh, who learn quickly which wholesalers will pay the most for their trash, how to scratch out a few feet of living space, where to scrounge for water and power.

In the trickle-down world of trash, they're at the bottom. Because New Delhi has no real door-to-door waste-collection system, the most "desirable" refuse is snapped up by domestic workers or neighborhood pickers, who then take the leftovers to select waste sites around the city. From there, trash trucks dump the rest at Ghazipur, where residents pick over the leavings.

"No one wants to be here if they can help it," said Ram Karan, 35, as several sheep munched on trash nearby. "It's a necessary evil."

Residents jealously guard their small, makeshift homes, including Sheikh Habibullah, who was busy rebuilding his after a fire razed the neighborhood, crafting a door from a Bollywood poster board.

His two-room hut, with dirt floors, rice-bag walls and a palm-leaf roof, houses six family members. Half their $60 monthly earnings go to a local boss for "rent" and permission to siphon off city electricity powering a single light bulb.

"In the slums, you always get ripped off," said Bharati Chaturvedi, director of Chintan, a charity focused on waste-pickers.

Once collected, trash is sorted, often by children, into piles up to 12 feet high: plastic bottles, cups, bottle caps, bent cutlery. Buyers pay 5 cents a pound for plastic bags and $18 per pound for human hair, used in wigs.

Some finer points of picker etiquette: Don't talk to bulldozer drivers — everyone has a job to do — and scrounge only what's in front of you.

"Getting tricky leads to turf fights," said Habibullah, 30, in brown pants, black flip flops and an imitation gold chain. "Otherwise, there's no real skill. It's not exactly silver mining."

Child labor is rife, as is gastrointestinal illness. Cancer, birth defects and asthma rates are high. Milk from dairies ringing the landfill — alongside several slaughterhouses and a crematorium — is tinged with lead and dioxin. Most can't afford a change of clothes, let alone a doctor.

"We bathe under the pump," said Jamshed Khan, 45. "The water tastes metallic, but we drink it."

Even as passing drivers hold their noses en route to call-center jobs in the nearby Delhi satellite of Noida, believing they've escaped Dante's third ring of hell, Ghazipur residents speak of opportunity, the city's allure, liberation from village pettiness.

"It's much freer here," said Sheikh Abdul Kashid, 60, framed by the orange hues of a chemical-induced sunset. "And I've given four children some education. I could never do that back home."

Few issues in India are far from politics, and garbage is no exception. Given an energy shortage, overflowing landfills and a bid for carbon credits under the global Kyoto Protocol climate pact, several trash-to-energy plants are planned, including one at 30-year-old Ghazipur.

Supporters say these will modernize an inefficient system. Critics say they're a plot by hard-line Hindu politicians to keep down Muslims, would release even more dioxin and would destroy rag-picker livelihoods.

Pickers complain that even now they can't keep pace with rising food costs.

"I manage to make enough to feed us," said Habibullah, as a small boy walked by naked except for flip-flops. "But I can never get ahead."

The more ambitious are no longer content to wait for belching garbage trucks, so they head into neighborhoods to get higher-quality waste from residents, earning more money.

"There's a high probability they could be middle class in a generation or two," Chintan's Chaturvedi said. "We can't bring miracles. But as Delhi develops, there's great need for even moderately educated people."

Out on the campaign trail a few days before the election, flanked by hundreds of supporters, candidate Choudhary shook hands, held babies and touched the feet of elderly voters, a sign of humility.

"I will continue to work and spread awareness about rag-picker rights," he said. "I hope I'm an inspiration to others. Can you imagine no one picking up the waste from your house, even for a day?"

For many in India, landfill is a livelihood and a home - latimes.com
 
.
Cairn`s Rajasthan block holds record oil reserve
Cairn India's Rajasthan block was now estimated to hold a record 7.3 billion barrels of oil reserves that could produce 15 million tonnes of oil, the highest by any field in India, the company said. The crown-jewel Rajasthan block is now estimated to hold discovered and yet to be discovered reserves of 7.3 billion barrels of oil equivalent, an increase of 12 per cent over previous estimate, the company said in its fourth quarter earnings announcement.

Of these, 3.1 billion barrels of reserves are yet to be discovered. Considering risk prospectivity, 530 million barrels have potential to be recovered. Cairn India Managing Director and CEO Rahul Dhir said: "The ONGC-Cairn Joint Venture has reached a major milestone of achieving 175,000 barrels of oil per day production from Rajasthan" on April 20. This production comprises of 150,000 bpd (7.5 million tonnes a year) from Mangala and 25,000 bpd from Bhagyam, the second biggest of 25 oil and gas finds in the Rajasthan block.

Azure Power starts rooftop solar power generation
Rolling out the first 2.5 Mw project under Gandhinagar Photovoltaic Rooftop Programme, Azure Power has forayed into rooftop solar power generation. A first of its kind in India, the project entails energy from aggregated rooftop portfolio being sold to one off-taker.
 
.
Revenues cross $10 billion mark in 2011-12

Tata Consultancy Services (TCS) reported a net profit of Rs.2,932 crore for the fourth quarter ended March 31, 2012, a growth of 22.6 per cent over the same quarter of the previous year.

Revenues were up 30.5 per cent at Rs.13,259 crore.

“We have grown 31 per cent for the full year (2011-12) and our profits crossed the Rs.10,000-crore-mark,” said N. Chandrasekaran, CEO and MD, while addressing a press conference here on Monday.

TCS became the first Indian IT company to cross the $10 billion milestone posting annual revenues of $10.17 billion. The revenues of the company were up 31 per cent at Rs.48,894 crore for the year and profits 22 per cent at Rs.10,638 crore. The volume of business also increased 23.05 per cent during the year. Mr. Chandrasekaran said that infrastructure, enterprise solutions and BPO businesses crossed $1 billion each in annual revenues.

S. Mahalingam, CFO and Executive Director, said, “We have grown well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months.” There was secular growth across markets and industries during the last financial year.

North America grew by 29.6 per cent to cross $5 billion while Europe, including the U.K. grew 33.8 per cent. All industry verticals grew in double digits during 2011-12.

Ajoy Mukherjee, Executive Vice-President, Head, Global Human Resources, said “The company's efforts to increase retention by engaging with our employees and offering them a progressive career path are paying dividends with attrition rates falling further to 12.2 per cent. We have successfully undertaken the largest ever hiring efforts in our history by adding and integrating 70,400 professionals in 2011-12. With business demand continuing to be robust, we have made 43,600 offers on campuses for trainees to join us from the second quarter of this fiscal.”

During the January-March quarter, the company added 11,832 employees (net), taking its total headcount to over 2.38 lakh, the company said in a statement.
 
. .
Alstom Bharat Forge to supply turbine islands for NTPC Solapur plant

Alstom Bharat Forge Power Limited (ABFPL), a joint venture of Alstom and Bharat Forge, on Tuesday, announced that it had secured an order worth over Rs.1,570 crore from NTPC for supply of two units of 660 MW super critical coal turbine islands for its power plant at Solapur in Maharashtra.

Alstom's share of the contract comes to around Rs. 785 crore. Alstom Bharat Forge Power had emerged as the lowest bidder in NTPC's bulk tender for supply of 11 units of 660 MW super critical turbine generator islands, an official statement said here.

As per the tender conditions, ABFPL is also the top contender for getting an additional order for three units of 660 MW for the Nabinagar site from Nabinagar Power Generating Co. Pvt Ltd (NPGCPL), a joint venture of NTPC and Bihar State Electricity Board (BSEB). ABFPL's scope of work involves engineering, manufacturing, supply, erection and commissioning of five of a total of eleven 660 MW super critical units.

The construction at ABFPL's new manufacturing facility at Mundra, Gujarat, is on at full swing and the operations are likely to commence from 2013. The state-of-the-art integrated plant, set up over 120 acres to manufacture super critical power plant equipment with an annual capacity of 5,000 MW, will be one of the largest integrated facilities for turbines, generators and auxiliaries manufacturing in the country.

“Alstom is now further advancing in the local steam market through its local set-up formed with its joint venture partner, Bharat Forge. This will significantly contribute to providing competitive and clean power solutions for India's energy needs and challenges,” Andreas Lusch, Senior Vice-President of Alstom's Steam Business said in a statement.

The Hindu : Business / Companies : Alstom Bharat Forge to supply turbine islands for NTPC Solapur plant
 
.
India's Growth Story Dims on S&P Downgrade

The Indian growth story took another hit today. Standard & Poor’s announced that it has revised its outlook on India’s long-term rating—which had been stable—to negative. According to S&P, there’s a one-in-three chance of a downgrade to India’s BBB- sovereign credit rating. The threats to India’s rating include a weakening global economy, falling growth prospects for Indian gross domestic product, and political paralysis threatening fiscal reforms. At the same time, S&P revised its outlook to negative for seven “government-related entities,” including the Export-Import Bank of India, the India Infrastructure Finance Co., the Indian Railway Finance Corp., and the Power Finance Corp.

S&P cited what it called “an extremely high likelihood of extraordinary government support” to these PFCs, hence ratings at the same level as the rating on India. S&P also downgraded to negative the outlook for the three top IT companies in the country, Infosys (INFY), Tata Consultancy Services (TCS:IN), and Wipro (WIT).

The news comes as the Indian economy is enduring a significant slowdown in growth. S&P sees India’s economy growing just 5.3 percent in the new fiscal year, which runs from April to March, down from the 6 percent the country has averaged over the past five years and well below the 8 percent it enjoyed before the global financial crisis.

For many economists, India’s government is making the situation worse, with New Delhi running up large budget and current account deficits. “India is all about home-grown, self-inflicted injuries,” says Rajeev Malik, senior economist in Singapore with CLSA Asia-Pacific Markets. He points to policy setbacks, such as a failed plan to open the retail market to foreign investment, as well as proposed changes to India’s tax laws and to corruption scandals.

The government’s latest budget was “disappointing,” says Tamara Henderson, a Bloomberg economist in Singapore. According to an estimate by Finance Minister Pranab Mukherjee, the fiscal deficit for the fiscal year ended March 31 was 5.9 percent of GDP. Mukherjee aims to reduce that to 5.1 percent in the new fiscal year by capping some subsidies and raising service and excise taxes.

Some economists aren’t optimistic. Although the government needs to rein in spending, “this budget targets revenue growth equal to spending growth,” Henderson says. “It’s not a sign of any hard work” by policy makers. Moreover, the policies of the central bank, the Reserve Bank of India, aren’t helping inspire confidence. The RBI recently cut interest rates by 50 basis points, even though the government hasn’t shown a willingness to cut spending.

Don’t hold your breath waiting for improvement. “We expect only modest progress in fiscal and public sector reforms, given the political cycle—with the next elections to be held by May 2014—and the current political gridlock,” S&P said in its statement. “Such reforms include reducing fuel and fertilizer subsidies, introducing a nationwide goods and services tax, and easing of restrictions on foreign ownership of various sectors such as banking, insurance, and retail sectors.”

Some problems might even get worse. CLSA economist Malik forecasts that the current account deficit will hit 4 percent of GDP in the new fiscal year, up from 3.8 percent in fiscal year 2012. He also expects the government to miss its budget target, with the fiscal deficit coming it at 5.5 percent. That’s largely because lawmakers looking ahead to new elections are unlikely to take politically unpopular moves, such as cutting subsidies for gasoline, diesel, and kerosene. Those subsidies amount to 2.5 percent of GDP, says Malik.

While governments in Southeast Asian countries such as Indonesia and the Philippines have made progress in addressing such problems as corruption and deficits, India’s government has not, he adds. “The Indian government is a bit like a quadriplegic,” says Malik. “It can think great things—but when it comes to implementation, it can’t move its legs.”

India's Growth Story Dims on S&P Downgrade - Businessweek
 
.
Spring Air announces its Rs 500 cr investment into the Indian market

Plans to set up manufacturing plants in Mumbai and Kolkata; New Collections Will Offer Comfort and Support of USA's Most Highly Recommended Bed Pan-India.

Spring Air, USA's leading manufacturer, marketer and distributor of premium mattresses and pillows worldwide, announced its investment plan of INR 500 crore into the 3,000 crore Spring and Premium Mattress Indian market in the capital. Headquartered in USA, the company plans to strengthen its presence in India with several new product launches and a high impact advertising and marketing strategy including signing up as a sponsor for a yet unnamed IPL team.


It has been learnt that the company plans to open up two manufacturing plants in Mumbai by this year & in Kolkata by next year, thereby enhancing its production capacity to meet the increasing demands of its Indian consumers. With rising luxury demand and a regular efflux of health conscious Indians in mind, Spring Air India had successfully launched their second factory in South India near Bangalore (post the first in Noida), to provide support and comfort for consumers searching for an answer to their sleepless nights.

"Spring Air new collections will offer Comfort and Support of USA's most highly recommended Bed Pan-India" said Mr. Ashok Sharma, CEO, Spring Air Middle-East & Indian Sub Continent. Also, all collections including Europedic, Comfort Rest & Orthomedical have been developed through extensive research and a deep understanding of what Indian consumers want most in a mattress - luxury and support, without the problems they experience with traditional coir or cotton mattresses, "he added".

Credited with the most unique products in the orthopedic mattress portfolio and backed with the most celebrated technology compositions like the NASA embedded technology in Europedic range of mattress; the multi-crore investment in India, is intended to reach out to the niche customers of the fast pacing Indian society. Also, the Company aims to be the market leader in Spring and Premium Mattress segment thereby achieving business of more than 300 crores in the next 3 years.

With 4 billion dollars worth of Spring Air sleep sets already sold at retail worldwide over the past 10 years, Spring Air has stayed true to quality, innovative design and value. Post years of consumer research and product development, including more than 25,000 consumer prototype evaluations, Spring Air India launched successfully in 2009 and has aggressively grown in retail and the institutional sector.

About Spring Air
Spring Air Bedding Co. (India) Ltd. is a leading and amongst top 10 manufacturers of bedding products in the world specializing in orthopedic beds and based in USA. With their extensive global presence in the Bedding Industry, they have manufacturing units all over the world and has marked their presence in India as well.

Spring Air has earned a reputation over the years for continuous product improvement. Their free-end offset coil design, which adjusts each sleeper's sleight, is today the most copied design in the industry. The company carried innovation a step with its Health Centre Mattress, featuring zones of comfort for different areas of the body.

Spring Air Bedding Co.( India) Ltd. is jointly promoted by W.J. Towell & Co. (OMAN) and Ashok Sharma a well known bedding professional in Middle East and India. W.J. Towell & Co. is 145 years old leading business house from OMAN having sales of more than US$ 1 Billion. Ashok Sharma is CEO of Spring Air Middle East and India sub continent.

Today Spring Air distributes bedding internationally, with plants in the US, Canada, England, Ireland, Australia, Argentina, UAE and India.
 
.
SAIL, Nalco and JSP among 6 Indian companies in race for Afghan mines
NEW DELHI | KOLKATA: A consortium of four state-owned Indian companies - SAIL, Nalco, Hindustan Copper and Mineral Exploration Corp - has been shortlisted to invest in new gold and copper deposits in Afghanistan.

Two private players - Monnet Ispat & Energy and Jindal Steel & Power - have also made the cut, opening up the possibility of a public-private partnership for a strategic bid by the Indian metals majors.

The Indian companies are among the 25 chosen from 41 firms from the US, UK, Australia, Canada, UAE, Turkey and Afghanistan.

Government to fork out $11 billion for higher IMF quota
NEW DELHI: India's mission to sit at the high table of global finance is going to cost a pretty packet.

The government will shell out over $11 billion to buy a bigger quota in the International Monetary Fund, or IMF. This will give India a greater say in the affairs of the multilateral lender.
12872366.cms


Spectrum sale can fetch government Rs 7 lakh crore in 10 years
MUMBAI: The government's attempts to repair its finances could get a shot in the arm with the proposed roadmap for the sale of spectrum that could net it at least Rs 7 lakh crore over the next ten years. The government has budgeted a fiscal deficit of 5.1% of GDP for 2012-13 entailing a net borrowing of Rs 4.7 lakh crore that experts say could test the markets.

The telecom regulator has put out a roadmap for spectrum auction along with the base prices that could fetch the government Rs 7 lakh crore in the next ten years. In the current year the government has budgeted over Rs 58,000 crore from its various telecom assets, including Rs 40,000 crore from sale of spectrum.
 
.
Indian shares falter; outlook still weak

MUMBAI, April 26 (Reuters) - India's main indexes fell for a
second session in a row on Thursday, as investors booked profits
in recent outperformers such as Hero MotoCorp, reflecting the
deepening caution from investors after S&P cut the country's
outlook.
Indian stocks have fallen since their late February peak, as
the optimism at the start of the year has been replaced by
concerns about risks such as the widening current account
deficit.
On top of this, foreign investors are facing uncertainty
about their taxation, further clouding the markets' outlook.
They were net sellers during each the previous three days, for a
combined net total of around 15 billion rupees, and remain net
sellers for April.
The Standard & Poor's cut in India's outlook was seen as the
latest negative action, at a time when trading volumes have also
been falling since peaking in late February, in yet another
troubling signal.
"What worries me is not so much volumes but India's fiscal
situation and other macro and environmental issues," said
Sandeep J. Shah, CEO of Smapriti Capital, a wealth management
and investment advisory firm.
The benchmark 30-share BSE index fell 0.12 percent to
17,130.67 points, while the 50-share NSE index ended
down 0.25 percent at 5,189 points.
Recent outperformers were among the biggest decliners for
the day.
Two-wheeler major Hero MotoCorp fell 3.3 percent,
after hitting on Wednesday an all-time high, w hile HDFC Bank
lost 1.13 percent after making its all-time high last
Friday.
Among other decliners, Yes Bank, lost 2.3 percent
after Rabobank sold a majority of its stake in the
bank at a 2.5 percent discount to Yes' closing price on
Wednesday.
Shares in Nestle India ended down 4.06 percent
after its Jan-March net profit rose 7.8 percent from a year ago,
disappointing investors.
However, among gainers, shares in Infosys gained
0.3 percent after Citigroup upgraded the software services
exporter to "buy" from "neutral and raised its target price to
2,750 rupees from 2,700 rupees.


Indian shares falter; outlook still weak | Reuters
 
. . . .
PM inaugurates Rs. 21,500-cr refinery in Bathinda

This village, located 40km from Bathinda town witnessed history on Saturday. The Rs. 21,500-crore Guru Gobind Singh oil refinery, Punjab's biggest-ever project in terms of investment, was dedicated to the nation by Prime Minister Manmohan Singh.

The project is a joint venture of the government-owned Hindustan Petroleum Corporation Limited (HPCL) and steel magnate Lakshmi Mittal's investment firm Mittal Energy Limited.

Besides the PM, the inauguration was be attended by Punjab chief minister Parkash Singh Badal, union oil minister S Jaipal Reddy, HPCL chairman-cum-managing director S Roy Choudhury and Lakshmi Mittal.
Back in 1963, India's first Prime Minister, Jawaharlal Nehru, had dedicated Punjab's maiden mega project, the Bhakra Dam, to the nation. The dam has been the state's lifeline all these decades.

The refinery project was announced in 1995; then Prime Minister Atal Bihari Vajpayee laid its foundation stone in 1998. The HPCL acquired 2,400 acres in Bathinda district in September 1998 for the project, which remained on the drawing board for several years after 1999.

In 2007, the Shiromani Akali Dal-BJP government put the project back on track by signing a deed of assurance with the HPCL. The project was to be completed by November 2010, but the refinery finally became fully operational on February 24 this year. It stands seventh in the country in terms of capacity (9 million metric tonnes per annum).

It is India's 22nd refinery and the third in the northern region after the ones at Panipat (Haryana) and Mathura (Uttar Pradesh). In terms of annual turnover, Rs. 30,000 crore, it stands fifth in the country.

Punjab deputy chief minister Sukhbir Singh Badal said, "It is the biggest-ever investment in Punjab. It will transform the state's economy. It will have a multiplying effect in establishing ancillary units and subsidiary industries."

The refinery will produce 1.8 lakh barrels of fuel everyday. The total crude oil processed and refined will include 3.7 million metric tonnes (MMT) diesel (nearly 41%), 1 MMT petrol (11%) and 0.7 MMT LPG (8%).

Everyday, about 400 truckloads of various fuels would roll out of the refinery for different destinations in north India. Railway wagons - for which five dedicated tracks have been laid - and a 260km pipeline will be the other modes to carry the refined fuel.

Mittal Energy Limited, a Luxembourg-incorporated company, is wholly owned by Lakshmi N Mittal and his family. It holds a substantial share holding in its flagship company, ArcelorMittal, the world's largest steel producer.
 
. .
India ships in 10% less Iran oil in March vs Feb-trade
NEW DELHI: India shipped in about 10 per cent less oil from Iran in March from the previous month, Reuters data showed, its second straight cut since the United States urged consumers to rein in purchases to pressure Tehran over its nuclear programme.
India's imports from Iran were up a hefty 89 per cent in the month from a year ago, however, contrary to deep cuts effected by China and Korea, as refiners made up annual term purchases that were disrupted last year by payment problems.

New Kolkata airport terminal to be commissioned in four months
KOLKATA: The new terminal building of the NSC Bose International Airport here with four million passenger capacity would be commissioned within four months.

"The ongoing modernisation of the airport here is nearing completion and the new terminal building with increased capacity of four million passengers from the existing one million will be commissioned well within four months", Civil Aviation Minister Ajit Singh said here today.

NALCO’S Smelter Project
Minister of Mines (Independent Charge), Shri Dinsha J. Patel informed Rajya Sabha today in a written reply that National Aluminium Company Limited(NALCO’s) proposal to set up the Rs 16,500 crore aluminium smelter and captive power plant project has been approved by Indonesian Investment Coordination Board. A non-binding Memorandum of Understanding to set up the project in East Kalimantan Province has been signed with Government of East Kalimantan .

He further informed that NALCO has prepared the Detailed Feasibility Report for the project. Land has been identified in East Kalimantan Province for the project. Consultants have been short-listed for Environment Impact Assessment and Financial Advisory Services.

Funds for Power Sector in 12th Plan
The Working Group on Power for formulation of the 12th Five Year Plan has estimated total fund requirement of Rs.13,72,580 crore for the power sector. The details are as under:

Generation : Rs.6,38,600 crore
Transmission : Rs.1,80,000 crore
Distribution : Rs.3,06,235 crore
Others* : Rs.2,47,745 crore
Total : Rs.13,72,580 crore

*Others include R&M, R&D, DSM&EE, HRD &Training, Renewable Energy & Captive etc.

The National Electricity Fund (Interest Subsidy Scheme) has been approved by Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 13.12.2011 to provide interest subsidy aggregating to Rs.8,466 crore on loan disbursement amounting to Rs.25,000 crore to the State Power Utilities – both in the public and private sectors, to improve the distribution network.

Rural Electrification Corporation (REC) is the Nodal Agency to operationalize the scheme through which funds for interest subsidy scheme would be provided, under the guidance of the Steering Committee formed for National Electricity Fund (NEF) Scheme.

During the Twelfth Five Year Plan, the main sources of financing are commercial banks, public financial institutions, dedicated infrastructure/power finance institutions, insurance companies, overseas markets, bilateral/multilateral credit, bond markets and equity markets. In addition, steps have been taken by Government to make available funds through Credit Enhancement Schemes and Infrastructure Debt Fund etc.
 
.

Pakistan Affairs Latest Posts

Back
Top Bottom