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NHAI says No funding issues

July 4, 2008

In a pre-election year, in the midst rampant market concerns of an infrastructure capex slowdown NHAI has indicated that it does not foresee any slowdown in spending.

NHAI indicated that public funding is a non-issue due to contributions from various sources 1] Cess on oil bill 2] Funding from multilateral agencies, and 3] Issuance of capital-gains tax exempt bonds under Section 54EC. Moreover as per NHAI, big players like Macquarie, L&T, IDFC and other Middle-Eastern companies have continued to bid and win road projects despite the sharp slowdown in equity markets.

L&T with its healthy balance sheet and superior execution skills is likely to bid and win projects from NHAI. Punj Lloyd in the midcap space is likely to be a tough competitor.

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