He also lauded the decision-making of several authorities for revival of the sector. "Seventeen of the 24 fuel supply agreements (FSAs) have been signed in the past two weeks, which is fantastic, Ramasubramaniam says. Also, the Cabinet Committee on Investment (CCI) has been going a good job for clearing project bottlenecks and all of these will reflect in about six months," he says in an interview to CNBC-TV18.
Also read: No revival till 2014 polls; rate hike to hit infra: Gammon
Below is the edited transcript of his interview to CNBC-TV18.
Q: What is your view on the RBI monetary policy and how would you rate it?
A: Raghuram Rajan stated that between the impact of the reduction of the Marginal Standing Facility (MSF) interest rate and the hike in the repo rate and doesn't take that this should impact the overall cost of fund of banks lending to infrastructure. I tend to agree with that.
Chairman of the Indian Banks Association had also made a stated that they would prefer to wait and watch in terms of looking at whether the cost of funds for banks are actually going to go up; what will be the liquidity pressures and whether they actually intend increasing the cost of debt for the infrastructure sector as a whole. I don't think there should actually be an increase in the cost of funds for the infrastructure sector.
There was a study by the RBI last year on the impact of a hike or a decrease in the interest rate for the infrastructure sector. They studied the decrease in investment in the sector in 2013 as compared to 2012 and came up with this interesting finding. It is not so much the interest rate hike or cut that impact it as the larger forces that play out in the infrastructure sector.
So how is the credit policy for infrastructure sector? It actually bodes good for the long-term, given the inevitable tapering off of the Fed Quantitative Easing (QE) three. What is good for the macro economy will certainly be good for the infrastructure sector. It is good for the overall infrastructure sector.
There are other factors playing out which actually bode good for the infrastructure sector in the coming few months. I am actually looking at the six month outlook for the infrastructure sector.
The current bottlenecks for the power sector, there were 24 projects that went under the project monitoring growth set up under the cabinet committee on investment (CCI). Out of 24 projects that were put up for FSA, 17 of those have been signed in the last two weeks. Three more have to be signed in the next 10 days.
We are waiting for some announcement on the highway developer concession agreements that have gone up and are between the finance ministry and the planning commission. If we can get word of that, it will bode well. If the bottlenecking of infrastructure projects is announced in the next six months and the project monitoring committee under CCI is doing a good job of that; it is good for the sector.
We are waiting for about Rs 1.7 lakh crore projects awards to be announced before March 2013 in power, in highways and expressways, in Ultra Mega Power Projects (UMPPs), in the airport five OMTs that are on the corner.
Overall, the credit policy, I don't think is negative for this sector. Whether it is good or not will be determined by forces beyond the credit policy which is really the debottlenecking of the sector as well as the award of contracts which are scheduled till March 2013. So net-net, positive on the policy and subsequent action that the government is taking.
Anda sedang membaca artikel tentang
Don't see rise in interest rates for infra sector: Feedback
Dengan url
http://kebugaranhidup.blogspot.com/2013/09/dont-see-rise-in-interest-rates-for.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Don't see rise in interest rates for infra sector: Feedback
namun jangan lupa untuk meletakkan link
Don't see rise in interest rates for infra sector: Feedback
sebagai sumbernya
0 komentar:
Posting Komentar