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videos | IST

Budget 2021: Need boost; non-availability of bank guarantees stifling, says construction companies

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As the countdown to the budget 2021 begins, CNBC-TV18 get in touch with players from different sectors to get a sense of what they are expecting from the finance minister and infrastructure sector is on the radar today.

As the countdown to the budget 2021 begins, CNBC-TV18 get in touch with players from different sectors to get a sense of what they are expecting from the finance minister and infrastructure sector is on the radar today.
The availability of bank guarantees is the biggest issue for construction companies, said YD Murthy, Executive Vice President-Finance at NCC, on Friday.
Speaking in an interview to CNBC-TV18, Murthy said, “Banks have their own issues because there is a lot of stress for the banks as far as construction business is concerned because of corporate debt restructuring (CDR) followed by SDR by major construction companies during last 10-years. Banks have suffered a lot and they are not very keenly coming forward to provide an additional bank guarantee.”
He said the Insurance Regulatory and Development Authority of India (IRDAI) is looking in if insurance companies can come up with bonds to meet the requirement.
Meanwhile, Vinayak Chatterjee, Chairman of Feedback Infra said, “There is a clear need to use infrastructure and public expenditure as a single largest lever to pull the economy back into a revival cycle.”
For entire discussion, watch the video