After YSR demise, cos hope govt infra thrust to continue

YS Rajasekhar Reddy's regime saw Andhra Pradesh's gross state domestic product growing at nearly 10% between 2004 and 2008. A figure higher than the national GDP growth of 7% plus. Corporate Andhra may be stunned into silence with YSR'S demise, but companies hope the infrastructure thrust of the government will continue. CNBC-TV18’s Ashwin Mohan reports on YSR's thrust on infrastructure projects in the state.

Here is a verbatim transcript of his comments on CNBC-TV18. Also watch the accompanying video.

YSR is the man credited behind the rise of many Andhra Pradesh based infrastructure companies.

His policy of creating infrastructure has transformed many Andhra based companies to national infrastructure providers. GVK Power, GMR, Maytas Infra, IVRCL, Gayatri Projects and Nagarjuna Constructions to name a few, the projects awarded to these companies during YSR's regime include a mixed bag of engineering, procurement and construction (EPC), Build Operate and Transfer (BOT) and irrigation contracts. Andhra Pradesh witnessed gross state domestic product growing at 10% at a time when the national average was 7%.

Sudhir Reddy, CMD, IVRCL said, "This is something which is done on a state-wide (basis) and more than Rs 1,00,000 crore of government money has gone into it. I don't think we can see a downturn here. Going forward probably, as you know, some of the future projects may be impacted but the revenue minister Mr Rosiah or anybody who is there, are involved with the process of Jalayagnam which is irrigation projects and I am sure the same impetus will be maintained.

Companies like IVRCL gets 60% of its order book from Andhra Pradesh. Gayatri Projects and Jain Irrigation have large exposure to Andhra based irrigation projects. Nagarjuna Construction, Madhucon, GVK, GMR Group have emerged as key players in ports, airports, road and highway projects and power projects. Among others big players there are Navayuga, Sew Infra and Soma Infra which are emerging as key infrastructure players.

TV Sandeep Reddy, MD, Gayatri Projects said, “Now, Kamal Nath has come forward with lots of plans. We would look at bidding a number of highway projects going forward in this year. But as of now, like last quarter, we received a number of orders from the government before the elections, which we are now going to execute in the next five years.”

Corporate Andhra may be stunned into silence with YSR's demise, but companies hope the infrastructure thrust of the government will continue.