KK Mohanty, managing director, Gammon Infra says the company currently has a debt of Rs 4,000 crore. However, he hopes to be cash surplus post the 9 assets' stake sale to Brookfield.
The bank has lent close to Rs 2000 crore to the infra company.
Kishor Kumar Mohanty, Managing Director (MD) of Gammon Infra said the move is a positive one as it will help in reducing halted projects and add to revenue in long run.
Gammon Infra Managing Director KK Mohanty expects to get the capital from the deal in the next 30-45 days, adding that the company is currently awaiting shareholders approval for divesting the assets, he adds.
Speaking to CNBC-TV18, YD Murthy, Executive Vice President-Finance, NCC Limited says that he is confident of getting substantial orders for the smart city project and is looking forward to the new capital city of Amravati.
The traffic growth of Indira Container terminal is likely to be around 15 percent, said KK Mohanty, MD, Gammon Infrastructure.
KK Mohanty, MD of Gammon Infrastructure said 50 percent of the company's total debt is in operational projects. However, servicing the same is not a big challenge.
In an interview with CNBC-TV18‘s Ekta Batra and Anuj Singhal, KK Mohanty, Managing Director, Gammon Infrastructure, discussed state of the infrastructure sector and the company‘s own projects.
Discussing the details of the deal, Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.
MD KK Mohanty said the cost of funds is a critical aspect to make industry globally competitive. The company is on the verge of completing three projects and has operational assets worth Rs 2,500 crore.
KK Mohanty believes the scheme will be more effective at lower interest rates.
Because of the negative economic environment, it will be difficult for banks to fund the large ticket infrastructure projects.
Gammon Infra feels that the infrastructure sector may see no recovery till 2014 polls as there will be political indecisions and lack of stability. The PPP projects may also see a rise in debts in case banks decided to pass on rate hikes to the customers.
In an interview to CNBC-TV18, Kishor Kumar Mohanty, MD, Gammon Infrastructure projects speaks about the Land Acquisition Bill and why it needs to be implemented properly.
Parag Parikh, ED & CFO of Gammon Infra believes that the new exit norms are a welcome move by CCEA. He told CNBC-TV18 that it is not a solution for projects, which are not viable fundamentally. However, substitution is open for all viable commissioned projects, he added.
While commenting on the future of his company, KK Mohanty of Gammon Infrastructure said, "We are intending to put three more projects into operation. We will be completing Godavari Bridge, Patna-Hajipur Highway and one of the power project or port projects". These projects will be completed from quarter three onwards.
Gammon Infrastructure Projects has received financial closures for five road projects spread across different states. The company received a total grant of over Rs 1,000 crore for these projects.
In an interview to CNBC-TV18, Parag Parikh, ED & CFO, Gammon Infrastructure spoke about the new projects of the company and how their execution has increased the debt levels.
Gammon Infrastructure bagged order worth Rs 871 crore for four laning of Sidhi - Singrauli stretch from Madhya Pradesh Road Development Corporation on BOT basis.
Infrastructure company heads tell CNBC-TV18 that the biggest beneft of RBI’s decision to cut CRR will be far easier access to banking funds.
Five of our assets, four of road and one of port, will start generating revenues over the next five quarters, says Parag Parikh, chief financial officer of Gammon Infrastructure.
In May this year, Gammon Infrastructure had announced plans to raise close to Rs 200 crore from a rights issue. Chief financial officer of the company, Parag Parikh tells CNBC-TV18 that they plan to completely retire the debt of the company through this issue.
Parag Parikh, director and chief financial officer of Gammon Infrastructure and Arun Maira, member of the Planning Commission join CNBC-TV18 to debate the new Land Acquisition and Rehabilitation Bill.
Gammon Infra expects average toll collections from Mumbai-Nashik toll road from Rs 16.75 lakhs a day to over Rs 30 lakhs a day.
The infrastructure space is in the news today with talk about new orders being handed out by NHAI this week. The projects are valued at more than Rs 3,500 crore, says Parag Parikh, CFO, Gammon Infrastructure.