Yogen Lal, COO, Unity Infraprojects, said for real estate and infrastructure developers, money is still not available as it should be. "However, the progressive steps taken by the government over the past two months are finally beginning to show some results. We expect that in the next month or so liquidity pressures will ease considerably."

Here is a verbatim transcript of the exclusive interview with Yogen Lal's on CNBC-TV18. Also watch the accompanying video.

Q: Let me start with asking you about the liquidity situation. We’ve heard, at least in the last 2–3 months, stories about real estate and infrastructure developers having to take loans at maybe 30–40%. Has that situation eased? Is money easily available out in the market?

A: For real estate and infrastructure developers, money is still not available as it should be. However, the progressive steps taken by the government over the past two months are finally beginning to show some results. We expect that in the next month or so the liquidity pressure will ease considerably.

Q: What is the going rate for real estate developers to borrow in the market? What is the rate at which infrastructure companies can get loans?

A: Good infrastructure projects are currently being financed at around, I think, 13–14%. However, money is not coming in as fast as it should be. However, in real estate, it would depend on the type of market and the type of projects on hand. So, one cannot really place a number because banks are averse to lending to real estate developers.

Q: So, non-bank lending could come even upwards of 25%?

A: I wouldn’t be able to confirm that. But yes these numbers are in discussions.

Q: With respect to your projects and the projects for which you have bid, is there any delay with respect to projects given by private sector?

A: The order book from the private sector has been considerably diminishing. The opportunities also that used to be plenty previously are not seen to that extent nowadays.

However, the infrastructure business continues to be robust and there are a lot of projects that are particularly taking shape in the urban infrastructure space. So that should be some business to look forward to in this fiscal.

Q: What do you mean by slowing down of order from the private sector space? Can you give us an idea?

A: Basically we used to get a lot of inquiries from the real estate sector six months ago. But over the last three months these inquiries have completely dried up.

But the government business, which is the business from the infrastructure segment and the government sectors for whom we work, that business opportunity continues to present itself.

Q: Can you give us some numbers? What was your order book say in June 2008, and what is your order book as of December 2008? How do you see your order book by March or June 2009?

A: As far as our order book is concerned, our order book today stands at around close to Rs 3,200 crore. Somewhere back in June it was around Rs 2,700–2,800 crore. Over that period, we have also executed nearly Rs 450 crore in the first half.

So, if you are looking at net order inflow this year, it has been close to around Rs 1,300 crore or thereabouts.

Q: Are you taking a hit on the margins because the number of contracts are becoming thinner, fewer, there is more competition to go after the same contract. What kind of compression have you seen in margins, if any, as you calculate the cost of doing a project?

A: Margins, fortunately, are not under that sort of pressure as they were, say six months back. This is basically because of the cooling off of commodity prices and the recent excise duty cut of 4% has also helped in cheaper buying.

In addition to that, there has been a lot of relief as far as the HR side of the business, which is the human resource availability is concerned, and also the labour availability, because of fewer projects, resources are available much more easily.

So, I think that whatever has been the negative side, which you mentioned as increased competition, has to some extent been compensated by these positives.

Q: Your order book grew you said by about 30%. How will your order book grow in 2009?

A: We expect to maintain the trend. As I said, there is a lot of visibility particularly in the urban infrastructure segment through the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and a number of these projects are taking shape. I think there should be a lot of bidding in the quarter to come.

Q: Have you looked at getting into BOT contracts, or are you going to remain as a pure play construction, if I can use that word?

A: We are looking at BOT contracts, we are looking at opportunities. However, currently, I think for the next six months to a year, the status of the company is to focus on its core construction business, and then evaluate any opportunities that come their way.