Rating agency ICRA has announced it will maintain a stable year-end outlook for two major infrastructure sectors — roads and power.
While there is a marginal increase in bank credit towards both the sectors, the agency noted that with banks facing a huge stressed asset problem, their ability to extend credit to the already-stretched sectors, such as infrastructure, will remain constrained.
In the road sector this poses a set of challenges, as developers need to raise debt to be able to participate in hybrid annuity model (HAM) projects tendered by the government.
This model, along with the engineering, procurement and construction (EPC) model will dominate the awarding of new projects going forward, experts believe. Read More