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Economic Policy Updates
New highway bidding scheme to save time

Under a new policy, all road highway projects are to be earmarked from the beginning to one of three processes of bidding, on the basis of its financial viability. This pre-selection is estimated to save up to 18 months of time.

Earlier, every project was first put under the build operate and transfer (BOT) toll bidding process. If there was no positive response, it was put under the BOT annuity bidding process, where the contractor is paid every six months and the toll is collected by the government. A third option was an engineering procurement and construction (EPC) contract.

However, the process of trying different bidding processes would take about six months at every phase, and so, an escalation in project cost. And, the government failed to meet the target date of completion.

Under the new plan, all projects are divided into three categories — BOT-toll, BOT-annuity or EPC — even before the bidding process starts.




 
 
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Economic Indicators Value
Stock Market  
Sensex
(03.09.10)
18238.31
  (32.44)
Nifty
(03.09.10)
5479.4
  (-6.75)
Dow Jones
(02.09.10)
10320.1
  (50.63)
Nikkei-225
(03.09.10)
9062.84
  (135.82)

Monetary Latest
Inflation  
WPI (July 2010) 262.5
  (9.97)
M3growth (%y-o-y) 14.7
Repo-Rate (%) 5.75
Reverse-Repo(%) 4.5
CRR 6

Forex Latest
Exchange Rate  
Rs./U$ (03.09.10) 46.67
  (0.11)
Foreign Exchange Reserves (as on 30.07.2010 US $ Bn.) 284.2
Oil  
Brent (U$/bbl.) (03.09.10) 73.87
  (-0.96)
 
* Figures in bracket indicates change over previous value. In case of WPI it is y-o-y change.
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