Webinar on-Infrastructure Opportunities & Challenges-Developers Angle

Webinar on-Infrastructure Opportunities & Challenges-Developers Angle

June 15, 2020 Admin
Webinar Session ResurgentIndiaKnowledgeSeries InfrastructureOpportunities Challenges DevelopersAngle

Resurgent India Knowledge Series Presents

Webinar on-“Infrastructure Opportunities & Challenges- Developer’s Angle”

Moderated By- Mr. K.K. Gupta, Director- Resurgent India Limited
Speakers- Mr. Vinod Kumar Agarwal, MD-G R Infraprojects Ltd, Mr. Nitin Agarwal, MD- PATH(India) Ltd, Mr. Anand Rathi, CFO-G R Infraprojects Ltd

Premise

  • Discussing opportunities and challenges of the Infrastructure sector
  • Lenders perception on funding the sector
  • Suggestions by experts in boosting the sector

Key Takeaways:
Outline

  • Infrastructure plays a key role in developing economies of the world. Ahead of the COVID-19 crisis, the sector was already facing knee-deep problems like lack of support from the state government. Bias from the lenders, several issues from labor unions, etc. The government, state, and central should come up with regulations to resolve these concerns of developers.
  • Any company should be strong enough to sustain any heavy cyclical or economical blow for at least a period of 2-3 months.
  • OMT Model adopted by the NHI for toll collection has proven to be a success which has enabled not only maintenance but also assured revenue and provides utilities like ambulance and cranes to the public.
  • Electronic tolling has improved collection efficiency. With proper and strict law enforcement by the government will further help rally efficiency
  • NHAI as a federation has come out supporting the developers in this sector and has been continually in talks with authorities regarding several issues and making a representative case for the developers.
  • Highway and Railway are two of the most important sectors that should be prioritized in terms of development. 
Webinar on-Infrastructure Opportunities & Challenges-Developers Angle

Suggestions

  • RBI, like central governments of the US & UK, in order to revive the economy should make direct investments in the bonds of the companies. Banks at such times are risk-averse and are not willing to take the leap of faith.
  • Authorities should promote investments in infrastructure to the retail long-term investors. They should popularise investments in this sector through the bond market. Banks’ source of capital is also retail deposits which they lend forward, so instead, those retail investors with a long term horizon should be redirected to infrastructure.
  • The secret to success in this sector is that companies should focus on projects that they can manage to develop, complete it on time, and deliver quality work. Assessment of projects at the time of the ‘bidding’ is a crucial exercise. Incorrect bidding may endanger the credibility of the company.
  • Government expenditure on infrastructure will have a positive impact on all the allied and related industries. It will ultimately boost the economy towards greater heights.
  • Technological advancement & automation of toll collection has impacted the style of work positively to a great extent. The timely intervention of technology has made the sector reliable and successful than older generations were reluctant about
  • The government should determine, prioritize projects and channelize their attention and focus on their completion. They should concentrate on projects that are nearing the completion and fund them in order to reap benefits out of it. Continuity in projects from inception to timely completion and subsequent operations can be extremely fruitful.
  • The resistance that country has shown towards this crisis is remarkable. Ensuring the safety of labor and workers is the prime objective during such times. It is crucial to keep the morale of every worker in the organization high to reduce any type of resistance from them.
  • HAM (Hybrid annuity model)model in infra is a riskless opportunity for the lenders with up to 40% participation by the government from the total project cost. It is about time that the notions seeded in the mind of the lenders related to the infra projects evolve and become a little optimistic.
  • They should otherwise take the assistance of technical experts to appraise the project in a rightful manner.
  • We can turn this crisis into an occasion if we opportunities this time. We can lead India to USD 5 Tn economy sooner, if we correctly spot and create investment options, create the right avenues for flow of foreign capital which will ensure growth, stimulate jobs and shape the overall economy.
  • The government has to take a stand, build a proper model of their spending to encourage further spending habits of the sector, industries, and public.

►Watch the webinar here: https://www.youtube.com/watch?v=jevgUlLdYlo&t=7s

Featured blogs

Any Query ?
Any Query Call Now