Page 14 - BANKING FINANCE MARCH 2024

ROUNDUP

national highways crossed the Rs 1 tril- retail segments including rooftop solar "The challenges of debt sustainability
lion mark after the National Highways installation and electric vehicles (EV). in an environment of high interest
Authority of India (NHAI) raised Rs Speaking at a panel discussion on green rates and low growth at the global
15,624 crore in the third round offering financing, at the second CII India Eu- level can become new sources of
for its infrastructure investment trust stress. Reducing debt burdens is nec-
rope Business & Sustainability Con-
(InvIT), the highway authority said. essary to create fiscal space for new
clave, CMD IREDA Pradip Kumar Das
investments in priority areas, including
This is the highest value realised in a unveiled plans for establishing a subsid-
green transition," Reserve Bank of In-
single InvIT round by NHAI. The iary to cater to retail projects encom-
dia Governor Shaktikanta Das said.
amount was generated by offering 10 passing rooftop solar, PM-KUSUM,
highway stretches spanning 890 electric vehicles, and other business-to- "As regards India, given the fiscal con-
kilometres (kms), according to NHAI. consumer (B2C) segments. solidation path as well as improving
With the fiscal year nearing its end, A statement quoting him said IREDA growth prospects, we expect the gen-
eral government debt to gradually
officials said that the proceeds of the can set up a wholly-owned subsidiary
come down," he said.
InvIT round are expected by March. to meet the needs of retail segments,
The monetised sections in the latest subject to government approval. According to International Monetary
round include Chichira-Kharagpur, Das further said that IREDA is commit- Fund, India's government debt eased to
Orai-Bara, Rewa-Katni-Jabalpur- ted to making various renewable en- 81% of GDP in 2022 and is projected to
Lakhnadon, Kachugaon to Rakhaldubi ergy technologies bankable, including decline to 80.5% in 2028 as compared
Bus Junction and Rakhaldubi Bus Junc- emerging ones like EVs, green hydro- with 88.5% during the pandemic year
2020. India's external debt to GDP ra-
tion to Kaljhar, Kaljhar to gen, and offshore wind.
Patacharkuchi, Lakhnadon to tio fell to 18.6% at the end of Septem-
He also highlighted the role of micro, ber 2023 from 20% at end-March 2022.
Mahagaon, Mahagaon to Khawasa, small, and medium enterprises (MSME)
Hubli to Haveri, Davangere to Haveri, in environmental sustainability and The debt service ratio rose to 6.7%
and Davangere to Chitradurga. emphasized the importance for from 5.2% during the same period.

"During FY24, NHAI has already MSMEs to improve their ratings and
awarded and executed Concession governance, in order to facilitate their Rs 1 lakh limit per indi-
Agreements for four TOT Bundles, access to finance for renewable energy vidual for withdrawal of
which include toll-operate-transfer projects, at competitive interest rates. old tax demands
(TOT) bundles 11, 12, 13, and 14 for a
IREDA signed a memorandum of un- The government has begun getting rid
total value of Rs 15,968 crore, which
derstanding with Punjab National Bank of old outstanding small income tax
is higher than its monetisation target to collaborate on financing renewable
of Rs 10,000 crore for the current fis- energy projects across the country. demands after setting a ceiling of Rs 1
cal year," officials said. lakh per taxpayer. Taxpayers can check
the status of the demands by logging
Since the start of the national India's debt levels reduc- on to the income tax portal online. The
monetisation pipeline in 2021, the min- scheme will be implemented by the
istry has brought private investment ing as Govt sticks to plans Bengaluru-based Directorate of In-
worth Rs 42,334 crore through TOT, Rs on fiscal consolidation come Tax (Systems) at the Centralised
26,125 crore through its InvIT, and Indian government borrowings, in Processing Centre (CPC), preferably
raised debt worth Rs 42,000 crore. sharp contrast with elevated debt lev- within two months. It will be limited to
els in the West, are gradually reducing Rs 1,00,000 per assesse.
IREDA planning arm to fi- as a percentage of national output as During the interim budget, Finance

nance rooftop solar, elec- the North Block sticks to its announced Minister Nirmala Sitharaman had an-
fiscal consolidation roadmap, aided by
tric vehicles robust growth that promises to raise nounced that the I-T department will
withdraw small outstanding direct tax
IREDA is planning to set up a subsid- state revenues while obviating the demands of Rs 25,000 or less which
iary to finance business to consumer or need for more public debt.
pertained to the period up to FY10

BANKING FINANCE | MARCH | 2024 | 13