There have been lots of orders coming in from state governments especially in the growth areas like state road corporation, the state transmission and distribution, renewable power and irrigation, said Vinayak Chatterjee of Feedback Infra.
Under the new norms, the government will release 75 percent of amount against margin free guarantee in cases where arbitral awards have been given, but have been contested.
The government has, though, tried to expand the tax space, gone in for simplification in tax laws, emphasized on tax dispute resolution and come out with ways to benefit the lower income groups, says Rajiv Memani, Chairman of India Region, EY.
In an interview with CNBC-TV18 he said that PPP model needs to be revitalized and the government should hire an independent regulator for roads.
According to a CMIE report, only 383 projects were announced in Q3FY16 with an estimated investment of Rs 1 trillion, the lowest in the past 5 quarters.
Sources say the order will ensure compensation for land acquired under 13 Acts and will safeguard the rehabilitation of land owners.
Lack of government clearances alone is not to blame for the stalled projects, says broking firm UBS. Three-fourths of the list comprises projects that appear either unworkable, unviable, constrained by promoter funding, or already substantially completed.
There is anecdotal evidence that the stock of stalled projects is declining but there is no hard data on the quantum of decline and the government needs be transparent on that, says Vinayak Chatterjee, Chairman, Feedback Infra.
RS Ramasubramaniam, co-chairman of Feedback Infra, says power requirement has grown by 5 percent in the last 5 years, while availability has historically grown by 6-6.5 percent. Power contraction was around 10 percent in April 2015 versus historical growth rate.
According to a poll, the government still enjoys high approval ratings from corporate India. The two areas where there is clearly some displeasure include maiden Budget and a continuation of tax uncertainty.
Adi Godrej, chairman, Godrej Industries is confident that the constitutional amendment to goods and services tax (GST) will be passed in this Budget session. He expects FY16 GDP to be around 8.4-8.5 percent.
Chatterjee does not see things in the power sector getting better anytime soon despite the reforms proposed by the government
Anil Swarup, Additional Secretary, Cabinet Committee on Investments said the emphasis is now on improving the processes.
RS Ramasubramaniam , co-chairman, Feedback Infra says that while a lot of companies in the infra space are highly leveraged, buoyancy in the merger and acquisition space can be expected in the days to come.
RS Ramasubramaniam, Co-Chairman, Feedback Infra feels post elections, even foreign investors might be willing to invest in the infrastructure space provided some of the issues plaguing the sector – land acquisition, environmental clearances – get addressed.
Vinayak Chatterjee, Chairman, Feedback Infra says there are quite a few reasons why the power sector will do well, going ahead. Apart from that he does not think orders have dried up for the core sector.
In an interview to CNBC-TV18, RS Ramasubramaniam, Co-Chairman, Feedback Infra spoke about his outlook on the infrastructure sector in current environment
Speaking to CNBC-TV18, Vinayak Chatterjee, chairman, Feedback Infra says most of the CCI announcements were largely focused on the power sector and the government is moving in the right direction.
In an interview to CNBC-TV18 Vinayak Chatterjee, Chairman, Feedback Infra spoke about CCI clearing 36 infra projects.
The country has installed capacity of more than 20,000-25,000 MW and only 5,600 MW worth of orders got finalized, hence going forward capacity utilization for all power sector players will be less than 25-30 percent. Shortage of orders is more of a problem for the power sector than execution.
Vinayak Chatterjee, chairman, Feedback Infra, says that land relaxation policy by the government is a welcome and a significant move. This move will cut the project development cycle by six months.