@Leisure - Vol-38 | srei

@Leisure - Vol-38

Newsletter
 

Recycling Plastics for a Better Tomorrow

What kind of world will we leave to our children? This is a pressing question of our times. According to a study, there are nearly 8 million metric tons of plastic in our oceans; it is estimated that by 2050, there will be more plastic than fishes. We could lament about the environmental disaster facing the planet or we could draw hope by building better alternatives. Recycling plastics offers us a chance to reverse the damage we have already caused to the environment.

Infrastructure building with plastic:

The construction industry is the largest consumer of both man-made and natural resources. However, it is also the construction industry that holds the potential to reuse some of the waste material that the world generates. Plastic waste, which makes up large swathes of the landfills that dot the world today, can be used in road construction.
Plastic or Polythene waste modified Bitumen can be deployed in the building of roads as well as creating flexible pavements. There are other applications of this Plastic modified Bitumen as well; it can be used to make perforated concrete blocks that can be used in rain water harvesting. A government of India order passed in November 20151
makes it mandatory for all road developers to use plastic waste for road construction. In fact, the technology was developed in India by Professor Rajagopalan Vasudevan, Professor of Chemistry at Thiagarajar College of Engineering at Madurai, Tamil Nadu.

Waste Management:

Waste management is also an essential part of recycling materials like plastic. Srei is playing an important role when it comes to solid waste management and recycling sectors in India. The group company ‘Swach’ came to life in 2011 and has been working in the field of recycling and waste management both in India and internationally. India generates 62 million tons of municipal solid waste each year, out of which only 43 million tons is collected and a mere 11.9 million tons is treated. With 31 million tons of solid waste ending up in landfills across the country2, the challenge is to manage municipal waste in such a way that there is minimum waste. Under the smart city project, segregation of waste is to be introduced and the union government plans to eliminate landfills in at least 20 cities.

If we want a better future for the coming generation, we have to change the way we think about waste today. It is important to recycle, reduce and reuse, when it comes to plastics. It is only then we can hope for a Swach India.

 

Creating the road ahead for India, Srei’s road projects:

  • Bharat Road Network Ltd. (BRNL) is a BOT company of the Srei group. The company’s focus is on development, implementation, operation and maintenance of road/highway projects. The company came into being in 2006 and has been working on road and related projects since then. Till date, BRNL has built 2023 lane kilometres of highways in India; the roads that the company has built handle, on an average, 0.91 lakh vehicles each day. The company has Rs. 6,658 crore of road assets under its management.
  • Highlights of projects completed:There are currently six projects that are in operation which span 2022.68 lane kilometres of roads. The company’s BOT portfolio is spread across 6 Indian states which include important industrial and commercial centres, mining regions and pilgrimage and tourist destinations. The life of road assets managed by BRNL is relatively young at 18 years and 10 months. All projects covered by BRNL are of National and State highway stature. Some of the completed projects are four-laning of the Rohtak Bawal Section of NH-71 in Haryana, four-laning of Indore-Ujjain section of SH-27 highway in Madhya Pradesh, four-six laning of Thrissur-Angamali section of NH47 in Kerala, four-six laning of the Ghaziabad Aligarh Expressway of NH-91 in Uttar Pradesh and six-laning of the Chandikhol-Bhubaneswar section of NH5 in Odisha.
  • Emerging Infrastructure under construction: BRNL is also working on infrastructure of national importance. The four-laning of Solapur Maharashtra-Karnataka border section of NH-9 will help the handloom and power loom weaving industries based out of Solapur, Maharashtra. In addition, there is also a Beedi industry in Solapur with over 29 factories. Solapur is a junction of North and South railway lines and there are 98 medium and 8,986 smaller industries present in the district of Solapur. With the completion of this section of the highway, connectivity to Mumbai from Vijayawada, Hyderabad and Pune would be boosted.

Road building is a way to prosperity. A road opens the door to various possibilities where none existed before. Better connectivity, increased reach and better access to markets are all made possible by roads. BRNL is focussed on giving quality roads to Indian citizens so that their aspirations can be realised and their dreams can translate into reality.

 
 

How are Bonds Rated?

When you decide to invest your money, you have to think about the soundness of the investment, your risk appetite and the returns that the investment instrument will give you. In terms of judging the soundness of bonds, the rating of a bond plays a crucial role. In India, various rating agencies like CRISIL, Moody’s Standard and Poor’s, ICRA and CARE provide ratings for bonds. Various bond agencies offer different ratings to bonds using their own devised scale. As an example, a bond rated AAA is extremely unlikely to default whereas one rated D is currently in default.

Information is the key:

When it comes to rating bonds, information is the key. Rating agencies take into account information that is provided by the bond issuer, their in-house databases and data from third party resources which is deemed to be reliable. The purpose of ratings is to establish if the entity that issued the debt is able to meet its financial obligations. In short, it is an assessment of creditworthiness of the issuer. The rating agency may look across parameters such as the resource raising capability, asset quality, quality of management, earnings quality, liquidity, systems and capital adequacy.

What ratings establish:

Ratings look at the ability of the issuer to repay the lenders or investors in a time bound fashion. It is important to understand that while ratings point towards the creditworthiness of a bond issuer,they are not a pointer on the suitability of an investment for a given investor and they do not take into account the investor’s risk appetite. Ratings also do not establish the liquidity of a bond on the secondary markets or point towards any possibility of capital gains for the investors.

The soundness of a bond issuer is something that investors should be aware of before they invest. Rating agencies regularly take information into consideration and update their ratings to give investors a picture of the quality of a bond. Investors should definitely pay attention to bond ratings but also do a holistic assessment of the bond issue they have chosen and their reasons for doing so.

 
 

Buddy Jokes

Jokes / Quotes

"Money is always there, but the pockets change."

The safest way to double your money is to fold it and put it in your pocket.

Sometimes your best investments are the ones you don’t make.

"Price is what you pay; value is what you get.” –"- Warren Buffett

Investing isn’t risky; not being in control is risky.” - Robert T. Kiyosaki

 

Buddy Quiz

1) Plastic can be mixed with Bitumen for the purposes of building roads.
a. True
b. False

2) Bonds with AAA ratings are extremely unlikely to default.
a. True
b. False

3) BRNL’s upcoming road building project is in Bhubaneshwar, Odisha.
a. True
b. False

4) Ratings can help gauge if the borrower will repay in a time-bound fashion.
a. True
b. False

5) 50 Metric Tons of solid waste ends up in landfills in India.
a. True
b. False

Answer:1 – a; 2 – a; 3 – b; 4 – a; 5 – b.