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.
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.
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.
In an interview to CNBC-TV18, RS Ramasubramaniam, Co-Chairman, Feedback Infra spoke about his outlook on the infrastructure sector in current environment
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.