Power biz to see $500-m worth opp in next 5 yrs: IDFC SSKI

Shirish Rane, Infrastructure analyst of IDFC SSKI said that despite the concerns which the markets had on the power sector, people are convinced on the potential of the sector. They are seeing USD 500 million-worth opportunities in the power sector over the next five years.

Excerpts from CNBC-TV18’s exclusive interview with Shirish Rane:

Q: How are investors feeling about what’s gone by in these past few months in power and what kinds of valuations should be attached to it and whether this, as a sector can outperform from here on?

A: Despite the concerns that the markets had on the power sector, people seem very convinced on the potential of the sector. However there have been concerns on the execution challenges faced by the companies; people were worried about how to fuel security and land acquisition. Overall people are convinced that this is a great sector to be in and long term potential seems to be very good. People are worried because of the macro concerns in the market right now. But I think people are comfortably investing in power stocks.

Q: What is the feeling about our infrastructure story compared to the infrastructure stories of various other emerging economies?

A: As far as our infrastructure story is concerned, people are looking at a USD 500 million-dollar opportunity over the next five years. A lot of people believe that we are accelerating our investments in infrastructure and other emerging markets The size of our country and the execution charges would be different and each country has a different set of challenges and upside potentials. So it's not fair to compare gross other countries. People are bullish on what can be done in Indian infrastructure and the kind of investments one can make in this sector.

Q: Do you have a couple of pure construction companies that you are profiling there?

A: We don’t have a pure construction company. We are mainly focusing upon the public private partnership players and the power companies.