Breaking News

You are here » Indian-Commodity  :  Economy  :  Ind-Ra maintains 'stable' outlook on India's infrastructure sector for rest of FY19

21-Sep2018

Ind-Ra maintains 'stable' outlook on India's infrastructure sector for rest of FY19

The India Ratings and Research (Ind-Ra) in its latest report has retained its outlook on India's overall transport infrastructure sector including toll roads, annuity roads, hybrid annuity model (HAM) projects and airports at 'stable' for rest of fiscal year 2019 (FY 2019), except for coal-based thermal power, which continues with its negative outlook. The rating agency said that the outlook on airports reflects limited upward rating movements but it expects continued growth in passenger volumes despite capacity constraints. Besides, it expects revenue for toll roads to grow at around 9% y-o-y in FY19, supported by toll rate growth of about 4.2%. 

For HAM projects, it said that although these projects have enabled resumption of private participation, there is some pressure on the financial closure front, as banks, especially public sector lenders, are going slow on financing there projects due to lack of appetite and lending freeze on many of these lenders. Regarding annuity roads, it said that National Highways Authority of India (NHAI) has demonstrated its stable payment track record across the Ind-Ra rated projects over the years.

Ind-Ra stated that the non-pit head plants, for coal-based thermal power, are facing irregular coal supply, leading to a high risk of declaring availability lower-than-required/normative level. It further also added that competition in short-term market is expected to deepen if there are postponement in dealing with these problems and absence of long-term power purchase pacts.


Related News

View all news

CPI inflation hits 6-month high of 2.92% in April

India's retail inflation based on Consumer Price Index (CPI) continued northward journey for third straight month and inched up to a 6-month high of 2.92% in April 2019 due to a spike in food prices, including......

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural......

Banks take 57% haircut in 94 cases resolved in FY19: ASSOCHAM-CRISIL study

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL stated that banks have taken a huge 57% haircut in the 94......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......