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.
For doing Rs 1,000 crore revenues in FY14, Gammon Infra has to do around Rs 250 crore revenues each quarter, which seems challenging with big ticket orders being hard to come by and those in kitty should be completed on time.
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.
Parag Parikh ED & CFO, Gammon Infrastructure Projects, says that the company has posted cash profit of Rs 122 crore for nine months in FY13.