B S | New Delhi February 16, 2013
Key developments
Finance ministry, Government of India, has recently recommended public sector banks to be more cautious before deployment of any credit to the highways sector. It has asked banks to ensure the entire right-of-way is acquired by the National Highway Authority of India (NHAI) before disbursement of loans and promoters bring at least 50 per cent of their contribution upfront in the project
Clearance of the Land Acquisition Bill and setting up of the Cabinet Committee on Investment is expected to fast-track projects stuck due to clearance issues (Click on graphic)
Key issues
Land acquisition; largest roadblock: Of the 226 projects under implementation by NHAI, 58 are delayed due to land acquisition issues
Funding constraints: Despite a 14% y-o-y (Rs 25,360 crore) increase in Budgetary allocation to the Ministry of Roads and Highways in FY12, projects worth Rs 25,000 crore are awaiting financial closure. In FY12, 60 projects were awarded by NHAI, of which 35-40 projects are still awaiting financial closure
Use of PPPs: So far, NHAI has awarded projects on BOT toll/annuity, operation and maintenance and item rate basis. As seen in the recent cases, many projects could not be awarded on a toll basis, and annuity contracts are perceived to be expensive. Addressing this logjam will require re-modelling the PPP approach, and getting a better alignment with the objectives of private sector participation
Press Trust of India | New Delhi February 17, 2013 Last Updated at 12:42 IST
Normal banking operations may be hit as employees unions of public sector banks have decided to join the two-days strike call given by central trade unions beginning February 20 to press for wage hike in the backdrop of rising inflation.
The nation-wide strike call has been given by United Forum of Bank Unions (UFBU) consisting of nine national level unions including AIBEA, NCBE, BEFI, INBEF, NOBW and AIBOC in support of their demand.
Apprehending disruption in their normal banking operation, many banks have already informed their customers about the proposed strike.
"A section of the bank's employees may participate in the proposed strike on the said date, if the strike materialises. In view of the above, it is likely Delhi State Bank Employees Federation, in a statement said, clearing function of RBI will be affected and other banking operations.
Meanwhile, sources said, banks would be taking steps to ensure that public do not face problem at least on the cash front during the strike period.
Banks would be feeding additional cash in ATMs to take care of cash needs of their customers.
Bank unions are pressing for early wage revision of employees, which is due from November 2012, National Organisation of Bank Workers' (NOBW) said.
Also bank unions are opposing banking sector reforms and any plan for merger of banks.
There are 26 public sector banks with employees strength of around 10 lakh.
In December 2012 also four bank unions went on strike in opposition to amendments carried out in Banking Regulation Act and Banking Companies Act, enabling foreign equity in public sector banks.
The bank strike is part of general strike call given by all 11 central trade unions including Indian National Trade Union Congress (INTUC), All India Trade Union Congress (AITUC), Bharatiya Mazdoor Sangh (BMS), Centre of Indian Trade Unions (CITU) and All India United Trade Union Centre (AIUTUC) have already threatened to go on strike.
