Citizens' Issues
HC stays Andhra's Swiss Challenge method for development of new capital
The Hyderabad High Court on Monday stayed the Swiss Challenge model proposed by the Andhra Pradesh government to award construction projects for its new capital Amaravati.
 
Admitting a petition filed by Aditya Constructions and NVN Engineers challenging the government's decision to adopt the Swiss Challenge model, Justice M.S. Ramachandra Rao directed the state to file its response and adjourned the hearing till October 31.
 
The High Court of Judicature in Hyderabad is the common high court for both the states of Telangana and Andhra Pradesh.
 
Under the Swiss Challenge model, the government or its agency invites a developer to present a bid. Other prospective developers are then asked to offer counter bids. If their bid is lower, the first bidder is asked to submit a fresh bid.
 
If the first bidder comes up with lower bid, it gets the project, and if it fails, the one with lower bid wins the project.
 
The state cabinet in June approved the controversial model for awarding the capital city's development project to the Singapore consortium of Ascendas-Singbridge and Sembcorp Development Ltd.
 
The government had subsequently floated a special purpose vehicle -- Amaravati Development Company -- to take up various works for construction of the greenfield capital city on the banks of the Krishna river in Guntur district.
 
The Singapore consortium has 58 per cent stake in the SPV while the remaining 42 per cent is held by the Andhra Pradesh government.
 
The Swiss Challenge mode has come under criticism in various countries, as well as opposition parties in the state, who alleged that it lacks transparency and favours a particular company.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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BMC Corporator helps find a 2.50 lakh litre water tank lying unused in South Mumbai Museum
Professor Avkash Jadhav, Shiv Sena's nominated councillor in the Municipal Corporation of Greater Mumbai or BrihanMumbai Municipal Corporation (BMC) has chanced upon a massive 2.50 lakh litre water storage tank lying unused on the premises of Chhatrapati Shivaji Maharaja Vastu Sanghrahlay (formerly Prince of Wales Museum) in South Mumbai. 
 
Prof Jadhav, who is nominated as Trustee of the Museum, in a Facebook post describes how he discovered the tank. He says, "Few months back while doing inspection around the Museum, I came across a display board of BMC. This Board triggered more inquisitiveness in me and I started inquiring further on the relevance of this board bearing name of BMC there. I was informed that there is neglected water tank around and that Board is for the reference."
 
"I found out that, the said water tank 'A-4' as stated on the board, has an unimaginable storage capacity of 2.50 lakh litres and is lying unutilized for many years. Apparently, it was constructed during the pre-independent era and is primarily to be used for any kind of emergencies. I was immediately reminded about the latest fire that gutted Metro building and also recently even the Express towers, and how our Fire Brigade Department was struggling to get enough water supply in South Mumbai," he added.
 
According to the nominated councillor, there are seven such static water tanks in A ward alone (which is the post south Mumbai area of Churchgate, Nariman Point, and Fort), and all of them may be hidden like the one in Museum and are not placed on the BMC records.
 
Prof Jadhav said he further informed the Director of the Museum and called Assistant Municipal Commissioner (AMC) from A ward as well as officials from the Maintenance and Water Supply Department of BMC. He also visited the spot along with these officials and requested the AMC to take charge of this water tank and also to locate other tanks in the ward.
 
"The visit instantly put the BMC department in active mode and they have taken cognizance of my request and were equally happy to know about this new exploration. I am sure the other water tanks would also be of the same size, so we might hit the jackpot, if we find all the seven water tanks we may get the water storage capacity of minimum 10 lakh litres (it could be more depending upon size of all tanks) in A ward alone," Prof Jadhav says.
 
The discovery comes soon after the Maharashtra Governor discovered a 150-meter long underground bunker at the Raj Bhavan, his official residence. The British era bunker, discovered in August this year, has been lying closed and walled up for decades. Yet, it was found to be in remarkably good condition covering over 5000 sq feet underground, with several hallways and 13 rooms with provision for fresh air and water. 
 
In 2010, the efforts of Mid-Day newspaper led to the discovery of an underground tunnel under the General Post Office (GPO) near the majestic Victoria Terminus station (now Chhatrapati Shivaji Terminus). It was subsequently discovered that this was just one among a maze of well-preserved underground tunnels that were probably built in the 18th century. They include a tunnel under St George Hospital at Fort, which probably leads to the Gateway of India.

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COMMENTS

manoharlalsharma

5 months ago

while NMMC Corporator gearing up redevelopment of a society promoted by himself in the year of 1992-93 with the tag of APMC and sold to non-APMC peoples then in the year and received an o.c. in 1996 with the prepossession from developers blocked the membership of the peoples who bought the flats from developers and keeping aside all regularities even the final order to change byelaws and make members but it brought the STAY from HC/Bombay WP-8508/2003 and then it made business of NOC and still going on.

Nearly half of Indian banks risk breaching capital triggers: Fitch Ratings
Nearly half of the Indian banks run the risk of breaching the capital triggers owing to the progressive increase in minimum capital needs under Basel III norms, said credit rating agency Fitch Ratings.
 
According to Fitch Ratings, the government-owned banks are more at risk due to their poor existing capital buffers and weak prospects for raising capital from the market.
 
Analysing 27 Indian banks with outstanding hybrid capital instruments, Fitch Ratings said at the end of June, the total capital adequacy ratio (CAR) for 11 banks was at or lower than the minimum of 11.5 per cent required by end-March 2019 (FYE19).
 
"Of these, six did not have enough capital to meet the minimum required by FYE17. The minimum total CAR is a prerequisite for payment of coupons on both legacy and Basel III perpetual debt capital instruments," it said.
 
According to the credit rating agency for Basel III perpetual instruments, coupon deferral is also linked to banks meeting both minimum regulatory common equity tier 1 (CET1) ratio and Tier 1 ratio. More than half of the banks currently have a CET1 ratio that is below the required eight per cent minimum that will be applied from FYE19.
 
Fitch Ratings estimates the Indian banks would need around $90 billion fresh capital by FYE19 to meet the Basel III standards, with the state banks accounting for about 80 per cent of the total.
 
The government has already earmarked Rs 700 billion ($10.4 billion) for capital injections into state banks through to FYE19 and in July, it announced that Rs.229 billion ($3.4 billion) was being frontloaded.
 
According to Fitch Ratings, capital injections may not be sufficient to address their ongoing capital needs to meet required provisions and to support balance sheet growth.
 
As it stands, state banks are heavily reliant on the government for new capital. Sharply deteriorating financial profiles have raised the standalone credit risks of state banks over the last year and equity valuations have suffered as a result. Most continue to trade at heavy discounts to their book value, which acts as a significant constraint on raising new core equity.
 
The State Bank of India's proposed $1 billion issuance of dollar-denominated Additional Tier 1 (AT1) instruments will be the first cross-border deal, and Fitch Ratings believes the issuance will serve as a pricing benchmark for other banks keen to access the dollar AT1 market.
 
The Reserve Bank of India's recent proposal to allow banks to issue "masala bonds" - rupee-denominated bonds issued in offshore capital markets - could also help widen the investor pool and ultimately deepen the market for AT1 bond issuance, it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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