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.