Current Scenario: Indian railways in millions of tonnes have carried 89.56 million tonnes worth of goods in the month of April 2015 and have registered 1.16% improvement over the same month last year. In terms of freight earnings Indian railways has registered Rs. 9270.01 crore in the month of April that is equivalent to 14.55% of growth over the same month previous year. Number of passengers travelling through Indian railways; however, has declined by -3.8% in comparison with the same month previous year to register 658.29 million. Passenger earning has increased by 19.35% over the same month previous year to register Rs. 3908.43 crore. As a whole, gross receipt of Indian railways has accounted for Rs. 13773.05 crore, in the month of April 2015 and has registered a growth of 15.37% over April, 2014. Equipment failure however has declined in April 2015 over April 2014.
In the month of April-June 2015 apart from JNPT, Vishakhapatnam and New Mangalore all other major ports of India have registered an increase in traffic handling over April-June 2014; measured in thousand tonnes. Over all traffic handling in major Indian ports has also increased by 4.49% in April-June 2015 over April-June 2014. Figure 1 depicts the traffic comparison in major Indian ports. Kandla, Paradip and JNPT; have successfully managed to occupy the first three spots among major Indian ports in terms of traffic handling.
As on 31.05.2015 total installed capacity of electricity in Mega Watt in India was 272502.95 MW. Figure 2 depicts the mode of electricity in absolute terms. It is obvious from figure two that coal is still the prime source of electricity in India; followed by Hydroelectricity. The most promising fact is that electricity from renewable energy sources in India is growing fast and might easily be the future of electricity in the country. However, North-East India flaunts only 1.2% of the national capacity. The Eastern India does not portray any brighter picture as it has 12.23% of the national capacity. Among the East Indian states West Bengal has 9563.84 MW of installed capacity as on 31.05.2015.
Future Trend: The goods carriage by Indian railway is expected to grow by 1.15%-1.25% in month of June 2015. Freight earnings are also expected to grow by 14.5%-15.5%. However, passenger carriage is expected to decline by 3.5% – 4.5%. However the passenger earnings are expected to increase by 19.5% to 20.5%. Gross receipts of the Indian railway are expected to rise by more than 15% in month of May.
The major ports in India are estimated to have witnessed a 5.4 per cent growth in cargo traffic in 2014-15 after subdued cargo movement in the preceding four years. Cargo traffic is expected to remain healthy in 2015-16 as well. Cargo volumes are expected to grow by 7.1% to 627.2 million tonnes during the year. In 2016-17, cargo traffic is likely to further increase by 7%.
Installed electricity generation in India is expected to decrease below 272500 MW by the end of June. However, the electricity situation in North East India and in East India will remain more or less similar to the previous month.
Policy news: The government’s proposed National Infrastructure and Investment Fund (NIIF) to back new and stressed projects may help restart the investment cycle. The government will look to leverage the Rs.20,000 crore corpus as equity to raise incremental funds from the markets. Macquarie Infrastructure and Real Assets (MIRA), which manages over $100 billion in global assets through various funds, is set to close its second investment in India this year. Modi beating Indonesia’s Joko Widodo in fulfilling infrastructure promises. India’s annual infrastructure output growth slowed to 3 percent in June, on the back of a sharp slowdown in electricity production. Brookfield Asset Management, one of the world’s largest investors in infrastructure and real estate, is in talks to acquire a large stake in the debt-laden GVK Power & Infrastructure for as much as $1 billion, two people familiar with the matter said. Pink city express might be completed by October this year. BRIC bank might take proactive stance in infrastructure projects in India. India could offer stakes to overseas pensionfunds, endowment funds and government-owned funds in the proposed National Investment and Infrastructure Fund(NIIF) that will be operational by the end of this year. Construction major Shapoorji Pallonji Group has issued Rs 2,610 cr of bonds at an average price of 9.15%, making it one of the biggest asset-backed infrastructure projects financing in India. Government today cleared the utilisation of India’s capital contribution to SAARC Development Fund (SDF) for promoting cross-border infrastructure projects, trade and growth.
IRB Infrastructure Developers Ltd today said its subsidiary has tied up Rs 1,400 crore funds to execute a project awarded by National Highway Authority of India. Telangana State Medical Infrastructure Development Corporation (TSMIDC) failed to increase the bed capacity in the hospitals identified in the last one year. Poor infrastructure may dash Kolhapur’s smart city dream. Infrastructure financing firm IDFC Ltd today said the Reserve Bank of India (RBI) has granted banking licence to IDFC Bank for undertaking banking business. The Gujarat government has decided to undertake a project to relocate existing electricity infrastructure, such as poles and transformers, at a cost of Rs 100 crore. National Highways and Infrastructure Development Corporation aims to award Rs 48K crore highway projects next fiscal. Andhra Pradesh to create ‘equipment bank’ in infrastructure push. India should consider making 100 existing cities smart instead of building new ones. A shortage of funds with the government for infrastructure development may usher in the private sector in works like maintenance of roads, and construction of flyovers and foot overbridges. The ITO decongestion plan is set to become the first project in which the government will outsource planning and construction.