The Union Government is mulling to extend the viability gap funding (VGF) scheme for the PPP projects in health, education and transmission of electricity. This is part of the measures to channelise more funds to infrastructure sectors. A suggestion that while VGF is only given for capital expenditure, the same for social sectors should be extended not only as capital, but also as a recurring amount on an annuity basis, has been welcomed. VGF is a subsidy extended by the Union Government to private infrastructure developers for those projects that need some funding to make the project commercially viable. The sectors where VGF is extended include highways, ports, railways, power and urban transport.

Independent regulator likely for mining sector

The Union Government is mulling to set up an independent regulator for the mining sector to deal with issues such as irregularities and delay in clearances. The proposed Mines and Minerals Development and Regulation (MMDR) Bill, 2010 envisages setting up a technical regulator. Once the MMDR Bill gets cabinet approval, it is likely to be introduced in the current Parliament session. The proposed technical regulator is expected to be like a tribunal outside the Union Ministry of Mining and it will be composed of independent people. The Indian Bureau of Mines is the current technical regulator for the sector. Even the Ministry's orders will be subject to the tribunal that will also act as a quasi-judicial body.

New rules for projects under solar mission

The Union Government has come out with draft guidelines for selection of new grid connected solar power projects under Phase I of Jawaharlal Nehru National Solar Mission (JNNSM) to enhance confidence of project developers and ensure speedier implementation of projects. A bundling scheme has been proposed to bundle the solar power with power from the central unallocated NTPC coal based stations and sell it to distribution utilities at CERC determined prices. NTPC Vidyut Vyapar Nigam (NVVN) is likely to undertake the task of selling this bundled power. NVVN will be nodal agency for sale and purchase of 33 kV and above grid connected solar power projects. For each MW installed capacity of solar power for which a PPA is signed by NVVN, the Union Ministry of Power shall allocate it an equivalent MW, up to a maximum of 1,000 MW capacity.

Road ministry plans two units to speed up land acquisition

The Union Ministry for Road Transport and Highways is to set up two separate divisions to deal with land acquisition problems, in order to help the Union Government acquire over 60,000 ha needed for the national highways development project (NHDP). Of the two divisions, one will deal with land acquisition, while the other is likely to pursue matters like forest and environment clearances, land matters pertaining to defence and railways and shifting of utilities. The government, which needs 63,211.721 ha for expansion of the highways network under NHDP has also set up special land acquisition units besides seeking states' support. The government requires 9,981 ha in Tamil Nadu, 5,862 ha in Madhya Pradesh, 5,630 ha in Uttar Pradesh, 5,148 ha in Haryana, 4,774 ha in Bihar and 4,124 ha in Rajasthan.