YSR's demise won't impact AP projects: IVRCL

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YSR's demise won't impact AP projects: IVRCL

Commenting on the sudden demise of Andhra Pradesh CM YSR Reddy, Sudhir Reddy, CMD of IVRCL, said, that the projects spear-headed by the late CM will not be affected in any ways.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See latest News about IVRCL See previous management interviews See what other Experts & Brokerages are saying about IVRCL Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

The death of YSR Reddy, Andhra Pradesh's Chief Minister, would not have a major impact on projects speaheaded by him, Sudhir Reddy, CMD of  IVRCL , said. "I don't think we will be so bothered about the business side right now. It is more to do with the loss, which we are all facing here," he said. He added that the projects the late CM was pushing through won't be affected.

"These projects are done on a state-wide basis and more than Rs 100,000 crore of government money has gone into it. I don't think it will be very unlikely that we could have any of those kinds of downturn there."

Here is a verbatim transcript of the exclusive interview with Sudhir Reddy on CNBC-TV18. Also watch the accompanying video.

Q: The news is terribly unfortunate but do you think it materially affects business from the large houses in Hyderabad such as yours?

A: No, this was the government's agenda which the Honourable Chief Minister late YS Rajashekhara Reddy was spear-heading. But these projects are done on a state-wide basis and more than Rs 100,000 crore of government money has gone into it. I don't think it will be very unlikely that we could have any of those kinds of downturn there.

Q: Sometimes dynamic leaders add impetus though to projects such as infrastructure and we know that Reddy was extremely aggressive especially on issues like power. Do you fear that there may be a slowdown in project execution in Andhra Pradesh?

A: They'll go ahead and complete them. But you're absolutely right. In my career, I have come across only this gentleman, who was not an engineer but a trained doctor, who had this vision of how to tap infrastructure from the rural side because anything that happens on the urban side is more cosmetic but the actual work happens on the rural side - that's what he started tackling. Going forward, yes, probably some of the future projects [may be impacted] but the Revenue Minister Mr. K Rosiah or anybody else who is involved with the 'Jalayagnam' - the irrigation projects - will, I am sure, maintain the same impetus.

Q: Have you spoken as well to your peers from corporate India who are based out of Hyderabad? What is the sense over there this morning as we got a confirmation that indeed the Andhra Pradesh Chief Minister is dead?

A: Nobody spoke about business but there is absolutely a stunned silence amongst among the corporates. Nobody discussed about the business or the outcome. It is the life which was more important. I don't think we will be so bothered about the business side right now. It is more to do with the loss, which we are all facing here.

Q: Is there any apprehension that the state of Andhra Pradesh might not move forward economically as fast as it has been moving because you have a point about it being a government and not an individual is taken but sometimes individual Chief Ministers with their kind of dynamic moves do end up making a big difference to how fast things move in a state?

A: Sure. This is the apprehension all of us had when Dr. Reddy came in place of Mr. Naidu where everybody felt Mr. Naidu is the pioneer in this kind of development. Mr. Reddy took it two steps ahead but this is becoming a norm. Almost all the states are talking about development, so whoever comes in next I am sure he is not going to be doing something very new, whomsoever it could be--the Revenue Minister or it could be the present Minister for Urban Development Mr. Jaipal Reddy. If such senior leaders come in I guess the pace will continue.