Kolkata based infrastructure financer and developer, Sunil Kanoria, Vice Chairman, SREI Infrastructure Finance believes that activity in the infra space has started gaining pace but there is scope for further amendments.
He said the problems of the road sector were seen getting resolved in the last one year, adding that new projects in the engineering, procurement, construction (EPC) and hybrid annuity model are being awarded. “Activities on the ground have started, companies have started to mobilize equipment and people on site, and work has progressed, so cash flow should start come from this quarter onwards,” he added.
There has been an uptick in demand for road equipment segment and so for SREI, the focus going forward would be on equipment business, said Kanoria.
To seen an overall sentiment for the sector he suggested resolving the disputes pending in the arbitration, which could help bring back resources to the system; banks could again start lending and support these companies, so that the revival would be faster. Now with the new Arbitration Act, the process could be expedited, he said.
Meanhwile, if products like performance bonds (surety bonds or bid bonds) are developed and given by insurance companies in India, like they are in the western countries then the pressure on the banking system would be reduced. Moreover, it it being an insurance product the risk would go into the market. These are some suggestions to augment the capacity creation and growth in the infra sector, said Kanoria.
For the entire interview, watch video.
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