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infrastructure | IST

Execution capacity remains a key challenge for infra sector, says Crisil Infra Advisory

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CNBC-TV18 spoke with, YD Murthy, executive VP-finance at NCC, Kuljit Singh, partner- power & infrastructure at EY and Sameer Bhatia, president at Crisil Infrastructure Advisory to discuss the latest developments in construction and infra space.

CNBC-TV18 spoke with, YD Murthy, executive VP-finance at NCC, Kuljit Singh, partner- power & infrastructure at EY and Sameer Bhatia, president at Crisil Infrastructure Advisory to discuss the latest developments in construction and infra space.
"Execution capacity remains a challenge. Some of the large players are under stress and so not participate and new players are facing capacity constraints. From banking sector perspective, it’s the case of once bitten twice shy – they have in fact been beaten many times and are seriously shy of lending," Bhatia said.
“There is a new breed of risk-averseness in the banking sector and they won’t to go across and make sure that project is de-risked before they extend further exposure to the infra sector,” said Bhatia.
Bhatia expects situation to improve in the coming quarters. “Going forward with all the NCLT and stress being sort of alleviated maybe over next 3-4 quarters, I hope other players will be able to come back into the play and then the situation would be better," said Bhatia.
With regards to order inflows in the infra space, he said, "Roads is the only shining star among all other infra plays. Aviation is the new area that is likely to see lot of action on back of phenomenal passenger traffic growth and would be the shining star of the infra space."
 
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