According to CRISIL Ratings, around 7,500 km of highway projects -- 5,100 km under construction and 2,400 km operational – awarded mostly between fiscals 2010 and 2012 on a build, operate, transfer, or BOT, basis, are at high risk today. "But recent government initiatives, lower interest rates can stem further slippage", says the report.
Around 50 per cent of the projects under-construction are at high risk of not being completed because of significant cost over-runs and weak wherewithal of sponsors.
In an interview to CNBC-TV18, Sudip Sural of Crisil Ratings, discuss the gas bidding process for stranded power plants Tuesday. It may be recalled the auction was postponed twice in less than 2 weeks.
While the SBA does provide temporary respite to fertiliser manufacturers in the form of cash-flow relief and lower interest burden, CRISIL believes the problem of under-budgeting, especially when the urea subsidy bill is likely to bloat in the next fiscal, will need to be addressed.
Telecom: Revenue contribution from data and value-added services could touch 20 per cent in the medium term from 16 per cent in the last fiscal with large telecom players having seen data usage more than doubling in the first half of this fiscal, year-on-year, says CRISIL Ratings.
CRISIL believes that the Government of India's (GoI's) fertiliser subsidy is unlikely to reduce even after new plants are set up under the New Urea Investment Policy (NIP) 2013.
CRISIL Ratings has come out with its report on telecom sector. As per the rating agency telecom players' profitability may improve by 500 bps.