Infrastructure Current Affairs

CCEA approves continuation of Pradhan Mantri Gram Sadak Yojana

Cabinet Committee on Economic Affairs (CCEA) has approved continuation of Pradhan Mantri Gram Sadak Yojana (PMGSY) beyond 12th Five Year Plan period ((2012–2017)). It will help in connecting 38,412 habitations at estimated cost of Rs. 84,934 crore. For this, fund sharing pattern between centre and states will be same (Thus, central government share will be Rs 54,900 crore and states’ share is Rs 30,034 crore).

Key Facts

Initially targets of PMGSY were to be achieved by March 2022, however, sunset date of achievement of PMGSY-I was pre-poned to March, 2019, with enhanced fund allocation and changed funding pattern i.e. in ratio of 60:40 between Centre and State for all States except for 8 North Eastern and 3 Himalayan States (Himachal Pradesh, Uttarakhand and Jammu & Kashmir) for which it is 90:10.

PMGSY-II and habitations under identified LWE blocks (100-249 population) covered by March 2020. Under, PMGSY-II, against target length of 50,000 km works of upgradation almost 32,100 km road length have been sanctioned in 13 states, which have transited to PMGSY-II. 12,000 km road length has been completed up to March, 2018 against the sanctions issued.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

The scheme was launched on 25 December 2000. It aims to provide single all-weather road connectivity to all eligible unconnected habitations in rural areas with population of 500 persons and above  (in plain areas) and 250 persons and above (in hilly states, desert areas, tribal areas and selected tribal and backward districts). Union Ministry of Rural Development is nodal ministry for implementation of Scheme.

For this scheme, 75  paise  per  litre  has  been  earmarked out  of  cess  levied on high speed diesel. It considers habitation as unit for providing connectivity and not revenue village. The scheme encourages use of green technologies and non-conventional materials (like waste plastic, geo-textiles, fly-ash, iron and copper slag etc) for constructing rural roads.

Month: Categories: India Current Affairs 2018

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NHAI ink MoU with SBI for Long Term, unsecured Loan of Rs 25,000 crore

National Highways Authority of India (NHAI) has singed Memorandum of Understanding (MoU) with country’s largest lender State Bank of India (SBI) for long term unsecured loan of Rs. 25,000 crore for 10 years with 3 years of moratorium on repayments. This is SBI’s highest long term unsecured loan to any entity and also largest loan ever sanctioned to NHAI in one stroke by any institution.

Key Facts

The loan sanctioned by SBI is unsecured. It has no principal repayment liability for initial three years. But after three years, repayment will be done in 14 equal half yearly installments. The total loan tenure is 10 years. NHAI can repay or prepay it at any time without any prepayment penalty. The rate of interest will be based on one month marginal cost of funds based lending rate (MCLR). Interest accrued on amount actually outstanding will be paid on monthly basis.

Background

NHAI traditionally relied on borrowing through long term bonds issued to various investors, including LIC, EPFO and other qualified investors and Tax Free bonds and Masala Bond issued in year 2017. But recently it had invited Expression of Interest (EoI) from Scheduled Commercial Banks (SCBs) to fund Rs. 25000 crore as unsecured loan for 10 years with 3 years of moratorium on repayments. In response to this EoI, SBI had offered to fund t entire requirement of Rs. 25000 crore based on one month MCLR.

National Highways Authority of India (NHAI)

NHAI is an autonomous statutory agency of Central Government, responsible for management of network of over 70,000 km of national highways in India. It was established through NHAI Act, 1988. In February 1995, it was formally made an autonomous body. It is nodal agency of Ministry of Road Transport and Highways. It is responsible for development, management, operation and maintenance of National Highways. It is headquartered in New Delhi.

Month: Categories: India Current Affairs 2018

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