Almost 35-40% of business comes from rural areas: Sadbhav Engineering

Sadbhav Engineering has received provisional certificate for completion of 170 km of Mysore-Bellary Highway.

In an interview with CNBC-TV18, Nitin Patel, ED of the company spoke about the latest happenings in his company and sector.

Mysore-Bellary is a hybrid annuity project of government of Karnataka and we won this project in 2014. The construction of that project is over and now the company will start getting the revenue, he said.

As per the concession agreement, the company will get around Rs 142 crore revenue on an annualised basis for next seven and a half years which will be partly utilised to repay the facilities that the company has taken from the banks, also to pay the interest facility and remaining will be the margin of the company, he added.

Seeing some traction for river connectivity project. There will be a big opportunity compared to the other infrastructure projects so long as government’s focus on rural will continue to increase for coming period of time, said Patel.

Large part of highways are in non-urban areas. In total, around 35-40 percent of our business comes from rural areas, he further mentioned.

For full interview, watch accompanying video...