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Last month, in a swift move at the recommendation of NITI Aayog, the government reversed the misery of construction and infrastructure companies. In this column last month, I had pitched for a resolution to the impasse on matters stuck in arbitration, disputes and appeals. So while the ruling has now provided that the company in question is not squeezed to death of its finances and left to dry, and this takes care of the financial disease such companies come down with, the core attitudinal shift causing this legal pileup has not been addressed. That said, the ruling has led to the rerating of construction and infrastructure stocks at the bourses. Companies planning InvITs will see better valuations. Huge funds are likely to come back into the system to companies like HCC, Patel Engineering, Sadbhav, IRB, etc. While this augurs well for equipment companies, there is also likely to be a shift in the list of bidders for EPC and hybrid annuity contracts issued by MoRTH and NHAI. Meanwhile, real-estate companies are experiencing rough weather as the consumer protection movement is gaining momentum. Several companies like Unitech, Supertech and Parsvanath have been instructed by courts to return the money invested by those who have booked flats where either the companies have not presented a ´true and fair´ picture of the offering when they raised investments from buyers or violated deadlines for delivery. The Real Estate Regulation Act (RERA) has sent a shiver down the spines of developers as rulings have begun to send developer after developer behind bars for violations and misrepresentations, non-delivery and unfair practices. Consolidation is already in progress in this sector as several stressed developers have made alliances with financially stronger partners to bail them out. Ajay Piramal´s real-estate fund initiatives have rescued many of them too. New money is coming in under changed conditions seeking fresh rules for play. The Smart Cities mission has released 27 additional cities, taking the total number of cities selected under the mission to 60. The new cities are from 12 states and have proposed to invest a total of Rs 66,883 crore under their respective city development plans. The amount includes Rs 42,524 crore in area-based development (79 per cent of the total) and Rs 11,379 crore (21 per cent) in technology-based pan-city solutions. With this, the total investment proposed for the 60 cities selected has now gone up to Rs 144,742 crore. Several of these cities are now readying DPRs; RFPs for some projects have already been readied and launched by Pune, Jaipur, Ahmedabad, etc. Another Rs 45,935 crore has been approved by the Ministry of Urban Development under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). In addition to 68 projects launched in 14 smart cities this June, another 134 projects have been identified, of which 114 are under bidding. The pace of urban renewal has been stepped up under these initiatives and is likely to accelerate in the coming year. Growth has been initiated by eliminating bottlenecks and making structural changes. Liquidity released through the Pay Commission, OROP and government spending will add to the buoyancy likely to emerge as a result of the above normal monsoon, which will hopefully provide a bountiful harvest in the coming season. Obstacles are being eased with the initiatives enumerated above and the scenario is set for a revival. It indeed augurs well for the festive season ahead - Happy Diwali!