NHAI to introduce New Qualifying Norms for Developer

NHAI is likely to have annual pre-qualification of developers and invite application soon. Under the process, each interested company will be technically evaluated and given requisite points annually. Presently, for each project, the company carries out due diligence at RFQ level and the bidders have to submit documents for technical qualifications, based on which NHAI has to do the calculations and verifications for selection. NHAI can work towards adopting e-tendering at the financial bid level, once the qualifying thresholds are annually evaluated. The new norm is broadly based on recommendations of the BK Chaturvedi Committee on highway projects.

Port Regulatory Authority Bill soon

The Union Ministry of Shipping is likely to bring in the Port Regulatory Authority Bill which proposes to set up Major Ports Regulatory Authority and State-level port regulators. The ministry has released a draft Port Regulatory Bill, on 23 March 2011. Under this, Tariff Authority for Major Ports (TAMPs) will be replaced by the Major Ports Regulatory Authority. It will give freedom to all the major ports in the country to fix their own tariff. With this, the private port terminals operating at the major ports will also have the freedom to decide their own rates. Currently, major ports will have to send the tariff proposals to the TAMPs for its approval.

Guidelines on Approval Process for SEZ Equity Transfer

The Union Ministry of Commerce is likely to come up with Guidelines on the Approval Process for transactions related to Equity Transfer, Listing, and Mergers and Acquisitions (M&As) in notified and operational SEZs. The guidelines are expected to specify that in addition to clearance from the respective regulators, these transactions will need approvals from the Income Tax Department and the Department of Economic Affairs. It is preferable that the concerned holding firms of notified and operational SEZs approach the relevant agencies for disclosing the entire nature of divestment of equity and seek their approvals. Separately, the ministry will also issue general instructions to all the Development Commissioners of SEZs/SEZ developers to report such divestments. So far, there are no explicit provisions in SEZ Act/Rules regarding change of ownership in SEZ developer companies. SEZ Act accords exemption from taxes, duties or cess only to notified SEZs. Barring these exemptions, SEZs are subject to all other Acts - including Income Tax Act, Companies Act, Banking Regulation Act and Foreign Exchange Management Act.

New Ground Handling Policy at Metro Airports

The Union Ministry of Civil Aviation has announced implementation of the Ground Handling Policy from 01 April, 2011. With this new policy, only three ground handlers at each of the six metro airports in the country will be allowed. At present, each airline has its own ground handling staff. Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai airports will have only three ground handlers each. One is to be Air India-Singapore Airport Terminal Services and the other will be the airport operator, in alliance with a ground handling partner. The third handler for these six will be chosen by competitive bidding.

Coal Ministry to set up Committee

The Union Ministry of Coal is likely to set up a committee to speed up land acquisition and statutory clearances for new and existing projects as part of its plan to boost production in 2011. The inter-ministerial committee, to be constituted by 30 September 2011, will have representation from key ministries and state governments. The ministry will also ask states to form their own coordination- cum-monitoring committees by end- 2011. These panels will have representatives from coal companies, state governments and the ministry. The ministry will monitor the progress every quarter.