The target set by the Finance Minister of constructing 3000 kms of roads in the first six month of the current financial year is doable, believes YD Murthy, Executive Vice President-Finance of Nagarjuna Constructions.
He also lauded the Finance Minister for proposal of cabinet committee on investments. The company which is in to several businesses such as buildings and housing, transportation, water and environment, irrigation, power, electricals, metals, oil and gas had an order book of Rs 18,799 crore as of December.
Below is an edited transcript Murthy's exculsive interview on CNBC-TV18
Q: Do you think the target set by the Finance Minister in terms of roads is a doable target? Because even in the previous year there was a large target that wasn't quite met?
A: Yes the current target of 3000 KM of roads in the first six months is an achievable target. That will give an impetus for road construction activity in the country. It is realistic but again the government agencies from their side they should be able to address various issues pertaining to land acquisition and also providing all the clearances to the developers in time otherwise even these things will be difficult to achieve.
Q: At this point for your own company how much of your order book is constituted by road projects and how is that progressing?
A: As of now we hardly have any road projects except one project which is a cash contract, it is hardly 3-4 percent of our order book. Because, we have about five BOT road projects and all of them have completed the commercial operations and revenues are being generated. So roads in our order book are very less at this point in time.
Q: There was also the indication by the FM that a new authority would be set up in order to solve some of these environmental or other issues that road projects are facing, whats your view on the same.?
A: The cabinet committee on investments is a step in the right direction provided they meet frequently and sort out the issues being faced by various developers across the country. Earlier they thought of National Investment Board, now that is replaced with this cabinet committee on investments with Prime Minister as the Chairman. It is a step in the right direction, but in a Public-Private-Partnership (PPP) project the government agencies as a partner of the project must see that they deliver their side of the responsibility in the project.