The Empowered Inter-Ministerial Group constituted by the Cabinet Committee on Infrastructure  vide office memorandum dated April 30, 2014 has approved the MTA, for take-out financing of Public Private Partnership ("PPP") projects in the Ports Sector.The said approval can be termed as a parting gift by the outgoing government. Though, currently it is applicable to only major ports but being based on a model concession agreement for the private sector projects in major ports, it is touted to be a major advancement for low cost and longer tenure financing in the port sector.

The MTA empowers Infrastructure Debt Funds ("IDF") to take over loans extended to developers of major port projects for financing of such projects. If a project whose debt service obligations have not been waived, rescheduled, etc. but has completed one year of commercial operations, the project developer would be permitted to issue bonds in accordance with the MTA.

This initiative of the government will go a long way in boosting investor confidence by facilitating the refinancing of existing short term/ high cost bank funds with longer tenure / low cost funds through investment by IDFs. Such refinancing will reduce the cost for infrastructure projects and also provide additional liquidity by freeing up bank funds for newer projects.
Government of India announces steps to remove investment hurdles in the Power Sector

Power, Coal and Renewable energy minister on June 20, 2014 announced a host of innovative measures to address the slump in investment in power projects, following an hour-long meeting with the heads of major power companies.

Major decisions announced on June 20, 2014 included reducing the quantity of e-auction sales by Coal India Ltd ("CIL"), rationalising existing coal linkages to save rail freight costs and free rail capacity, asking CIL to provide fuel linkages for commissioned plants, allowing surplus coal with companies to be transferred to CIL, requesting the environment ministry to allow additional production from operational mines, third-party inspection of coal despatches at the loading (mine) end, and setting up an inter-ministerial panel to discuss issues in this segment.
Source: Seth Dua & Associates