Expert Dilip Buildcon’s Rohan Suryavanshi about Infrastructure
Rohan Suryavanshi, head of Strategy & Planning at Dilip Buildcon, in a recent interview he shared some views about the Government’s decision to spend on infrastructure.
What kind of opportunity do you see as a result of the pipeline?
This is a fantastic move by the government, they have already stated that what they want to do in the next 5 years. When I look at the areas that they have decided to invest in detail, all are already working in. Meanwhile, as a company, we look forward to it. I think the government is outlining with a plan ahead and it will give the sector and the border economy, all the investors need confidence that there is a plan in place. In addition, the government plans to start the economy with long term assets.
How much is the reasonable estimate for such a target that has been declined and how do you benefit out of this?
As the Finance minister said that they put 50 crores and a lot of money in infrastructure, I think 70-80 naturals investment can come into the sector. I don’t know 100 lakh road will materialize or not. I think it’s very important how government spending. Moreover, I think it will fair to say that at least that much should be there and that’s why a huge amount of opportunity for all the players in this sector.
Do you think the budgetary support will be enough in order to execute this sort of large CAPEX and estimated which is there for this financial here is almost 41 percent
We have to think about not just the budget report but also other ideas of how they can further raise to do this. Exciting that much needed much comfort that needed for investors whether it’s banking system for us to invest in TPP and additional safeguard that needed. All those things need to done and the bank doesn’t have to push to lend to the sector.
I don’t think it won’t just budgetary support but the extra-budgetary losses plus the private sector investment, all those three things will have to fire and at the same time for this dream to materialize. Let us hope the government work in that direction.
Do you think the government is going to aggressive with regard to private participation spend?
I think if the confidence that is needed and the changes that are needed to be done in the contracting and that can bring more safeguards. In the last few years, we have seen more and more pension funds coming to India to look at buying long term assets. When assets completed, someone like us who comes in a brilliant asset and sells it to large players. Currently, it seems tough or to imagine this kind of investor affluent but if the government takes necessary steps I don’t think it can’t be made in reality.
Do you think the revival of the VOT sort of the structure in its present format?
The plan is about 19 lakh crore, now I do see the revival of beauty but there are a lot of caveats the agreement of PPP Structure to made more balance and when the government says it’s a public-private partnership, they have to work towards the partnership or not let the private purchaser take all the risk which happened in the past.
In addition, it would be tough for me to say how much really can happen and what are the changes that the government brings in when they talk about investor summit that they want to do every year for infra. So I don’t know what kind of positive impact and what kind of interesting might further generate. In order, if they work with a good partnership with the private sector they can achieve a big portion of targets they have.