1 billion US $ loan negotiation at Delhi with World Bank

I'm going to Delhi on Monday (2nd May) to participate in loan negotiation with World Bank at North Block, Ministry of Finance where MoEF will also be there. There will be 4 other states too.

Key Take-aways from 7-day Training at IIM-A on PPP

1. PPP is not only for Physical Infrastructure like Roads but also being made applicable to social sectors like school education and district hospitals. Planning Commission is in an advanced stage in finalising CBSE English Medium Class 12 models. Also for Rural roads.
2. All projects may be theoretically done through PPP in the Annuity Model (PFI) but as a rule of thumb, not more than 16% payments through Annuity should be encouraged.
3. PPP are infrastructure service contracts. The Private Player capital should also be at risk. JVCs are discouraged. However, guidelines also exist for JVCs. For 11% equity, a Director is there on Board. For 26% equity, a blocking resolution strength occurs.
4. Even State Govt PPP projects are encouraged to be subjected to GoI Committee approval. This is a must if VGF is sought for.
5. Termination arrangements typically envisage 90% of outstanding debt after construction phase is over. Cocession period is sometimes extended by 1 year if traffic volume is less by 1%, subject to a max. Revenue share if more traffic growth occurs.
6. PPP projects take about 1 yr to finalise & award concession agreement but another 6 months for financial closure.
7.  EPC, as distinct from Item Rate Contracts, are also emerging where output standards (eg roughness of road or 'no-more-than-5-vehicles-in-queue-at toll-plaza ) type can be specified and tenders obtained. Some guidelines are available on Planning Commission website.
8. OMT Contracts for 15 year periods are also emerging.
9. A specialised PPP cell in State Govt needs to be activated
10. Land is not leased or mortaged in PPP projects. Land must come back to Govt at end of Concession Period.
11. For delay in handing over land, Rs. 50 per day per 1,000 sq m is sometimes paid by govt
Road density is 111/100 sq km in India (2009).
12. In PPP, Govt is not the Employer.
13. Regulators can be regulated too; rent seeking is a problem
14. Competitors in bids should not have more than 5% common equity
15. Traffic risk should be with conessionaire; VGF for equity support
16. 3Is: Instruments, Institutions, Individuals
17. There is great disparity in PPP norms across sectors
18. Time keeper & monitoring, monitoring outputs key element of contract: constant watch
19. In pvt sector, construction efficiency is better with a time-bound cost plus strategy (GMR)
20. Force Majeur is not defined anywhere; it is different in each agreement
21.

1 Week Course at IIM Ahmedabad 18-23 April, 2011

I reached Ahmedabad yesterday, a Sunday. I am in IIM. There is an one-week course on PPP organised by Planning Commission and IIM, Ahmedabad. It will continue till Saturday, 23rd April.
The training reminds me of the one at Harvard. We start at 8.30 am every day. There is a 15 minute "reflections" by a group on what happened the day before. There is group assignment after dinner, at 9 pm.. Today, Mr Gajendra Haldea of Planning Commission took the first two sessions.

Dedicated Registered Body for Clean Ganga

I went to the Ministry of Environment & Forest today. West Bengal is among the first few states to constitute the Programme Management Group that will be dedicated to NGRBA. I was advised to expedite formation of the JV Co that will be one of the Project Implementation Agencies.

I proposed that a workshop may be arranged to finalise the bid documents for a DBO (Design Build & Operate) contract with 5 year  O&M for already-sanctioned STPs (Sewage Treatment Plants). I said that we'll need help of consultants from the Ministry. This was agreed to in principle. I'll give a formal proposal on my return to Kolkata (I'm in Delhi airport now, waiting for the 8.50pm Jet flight to Kolkata)

Resignation of Chairmen

Due to elections, Asok Bhattacharya has resigned from the posts of Chairman KMDA and Chairman SJDA. The state govt has nominated the Divisional Commissioner Jalpaiguri as the new Chairman of SJDA and the Principal Secretary UD (that is, me) as the Chairman of KMDA for now.

The New Financial Year 2011-12

FY 2010-11 is just over (31st March year-ending hangover has barely ended).
FY 2011-12 will be important in more ways than one:  this is the last year of the 11th FiveYear Plan Period and the last year of JnNRUM and the Elections will bring in a new government to West Bengal.
**
I am holding a meeting of all Development Authorities and Statutory Authoritiesof UD Department on 8th April to review the performance in FY2010-11 and to plan for physical and financial achievements for FY2011-12. Participants have been advised to make powerpoint presentations.

I will also hold a similar meeting on 12th April for the Fisheries Department.
**
I have also just completed one year in the UD Department (I joined on 1st April 2010). I was thinking of some initiatives where I played a role. Some of these have been incorporated in the foreword that I have written for the Annual Report of UD Department for 2010-11. I hope to put it up here soon.
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Lift commissioned for Nagarayan Building

Last Friday, on 25th March, the new lift was commissioned. It took a considerable time, but now it is there. We can now commission the 4th floor of UD Department Building called Nagarayan.

I took this photo in Panoramic Mode with my Sony h55 camera. No wonder, I'm not there :)



Salt Lake Plot Lottery Application After Elections

I'd mentioned in an earlier post that we'd referred the matter of Salt Lake Lottery to the Election Commission. I received their decision yesterday. The Commission has directed that the matter may be deferred till completion of the elections in the state.
So we are not proceeding in the matter now.
Here is a link that leads to a story in today's Bartamaan:
http://bartamanpatrika.com/content/kolkata.htm

4P: Public, Private, PEOPLE Partnership

I addressed a CII group recently. I referred to the Amul example and said that industries should compute the full economic value of land - and not merely its present market value - by sharing with landowners future profits derived from the land. Bengal Post carried a story.

Bengal Post

I

Income Tax by Development Authorities

I held a departmental meeting today. I have asked two Accounts Officers to prepare me a note on the tax liability of Development Authorities. I mentioned that as a govt department, we must insist that all our attached offices should pay taxes & duties as per law. In fact I was shocked to learn that Asansol Durgapur Development Authority had their bank accounts attached by the Income Tax Authority at Durgapur who later has forfeited Rs 24 crores.
Today's Statesman carried an editorial; I reproduce a part of it:
***
That ADDA simply got away without paying tax for the past 30 years is a puzzle that may not be easy for the next government to work out. The present never had the inclination ~ and now doesn’t have the time ~ to get to the root of the default. ADDA’s explanation that it is engaged in development and not to earn profit sounds contrived and feeble; rightly has it cut no ice with the Union ministry of finance.
(The Statesman dt 21 March 2011)
***
I have also come to know that KMDA receives IT notices and they are in touch with legal firm. I was told that SJDA's accounts were also attached some time back. *
     Strangely, and pitifully, there is no file or reference in the UD Department. No officer seemed to know anything about it, not to speak of the IT Tax Amendment carried out in 2002 or so that withdrew the exemption given to Development Authorities.
    I hope the Accounts Officers come up with a clear note soon.

(*HDA is sending a note to me; I have deleted the reference to HDA)

Kolkata Metro Board Meeting Postponed

I received an SMS today that the meeting of the Board of Directors of Kolkata East West Metro is cancelled. I was supposed to fly to Delhi today evening. The meeting was supposed to be held at 10 am on 18th March at Nirman Bhavan, Delhi.
No reasons were given.
I wonder if it has something to do with the following news that appeared on the Indian Express few days ago.
http://www.indianexpress.com/news/rly-ministry-refuses-to-take-over-eastwest-metro/761474/

* * *

There was another press report today on East West Metro in today's Bartamaan. Here is the link
http://bartamanpatrika.com/content/rajya.htm

Seminar at Silver Spring on Free and Fair Elections on Monday, 14th March

I was a panelist in the day-long seminar on Free & Fair Polls. It was organised by an NGO called FAME. My former boss Mr N Gopalaswamy was also there. I'd had a good conversation with him the day before.

Few links are as follows:

http://epratidin.in/Details.aspx?id=7363&boxid=25222937

http://bartamanpatrika.com/content/rajya.htm

http://epaper.timesofindia.com/Repository/ml.asp?Ref=VE9JS00vMjAxMS8wMy8xNSNBcjAwNTAw&Mode=Gif&Locale=english-skin-custom

Reference to Election Commission

Many people are asking me about the fate of Salt Lake Group Housing Lottery scheme that was announced on 28th Feb.
Since the Model Code of Conduct came into force the very next day, we have referred the matter to the Election Commission.
Till we hear from them, we cannot move forward.

e-Tender

Recently, I am again receiving some queries from Development Authorities as to whether they should go for e-tendering or not.
In June 2010, there was a meeting of all Development Authorities where it was recorded that all must introduce e-Tendering procedures using NIC software or otherwise as soon as possible. This was to bring in transparency and wider participation from bidders.
Subsequently, the Information & Cultural Affairs Department issued a GO stating that copy of tenders must be sent in hard and soft forms to them by email.
KMDA has already made some good progress.
I would urge all Authorities concerned to switch to e-tender norms as soon as possible.

Meeting at Haldia

I accompanied Chief Secretary Samar Ghosh - who is also the Chairman of HDA - to Haldia. The meeting was routine as most proposals were deferred in view of the Model Code of Conduct. But the time spent on the journey was enjoyable, learning from the insights of the top civil servant of the state whom I admire and respect a lot.

Model Code of Conduct comes into effect

Feedback Ventures and Ghosh, Bose Associates made a presentation today to Chief Secretary at Writers' on the plans for Baruipuur district HQ project.
The general consensus was that the design was too corporatised and unsuitable for govt requirements.
I will hold a review.
* * *
After the meeting that ended at 6 pm, I accompanied Chief Secretary to his room. Few other Secretaries also trooped in. We saw TV announcement of poll schedule.
The Code of Conduct starts.

Seminar on GIS and Remote Sensing

I inaugurated a seminar organised by the Institution of Surveyors. The topic was "Role of GIS and Remote Sensing in Surveying and Land Management".

I asked why we cannot start upwards, adding value, to digitised maps available in the public domain like google maps but must always re-invent the wheel by starting from NRSE data/ maps.I asked why there is such a disconnect between institutes and departments who use GIS.

The seminar was in the new auditorium at Nalban. It was made by BENFISH. It is called Rabindra Kanan Hall. Fairly OK, air-conditioned hall.

Sewage Fed Fishery at Kalyani

Today I went to Bhatpara and Kalyani to see site of proposed Sewage Treatment Plant Projects. At Kalyani, I saw how sewage water was being used for fish cultivation. Synergy between th two depatments I now hold !

I am Secretary of Fisheries too !

Today afternoon, I took charge of Principal Secretary, Fisheries Department. This is in addition to my existing charge of UD

Meeting with Statnding Committee of Parliament on Tuesday last

I attended the meeting with the Committee of Parliament on Minority Affairs. Chief Secretary represented the state govt; I and other secretaries were also there. This was on the 14th Feb, Tuesday.
In the report by UD Department, we indicated that in the 10 towns (other than Kolkata) which had Minority Population more than 20%, the percentage of minority beneficieries in BSUP houses was 22%