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

Govt approves new national electronic policy 2019

With an aim to increase electronic manufacturing ecosystem in country, the government has approved a new National Electronic Policy 2019.  The objective of new electronics policy is to create......

Cabinet approves promulgation of amendments in Companies Ordinance 2019

In order to incentivize compliance with law and to extend greater Ease of Doing Business, the Union Cabinet has given green signal to the promulgating an ordinance for companies law amendments. A bill......

RBI to infuse Rs 12,500 crore into system through OMOs to increase liquidity

In order to increase liquidity into the market, the Reserve Bank of India (RBI) said it would inject Rs 12,500 crore into the system through purchase of government securities on February 21, 2019. The......

Top News

View all news

Tata Motors signs LTS agreement with its employees

Tata Motors has signed a long-term wage settlement (LTS) agreement with its employees. Under the agreement, workmen will get a wage rise of Rs 9,000 per month along with other incentives based on performance.......

Canara Bank invites bids from merchant bankers to manage its $350-500 million MTN issue: Report

Canara Bank has reportedly invited bids from merchant bankers to manage its $350-500 million issue of senior unsecured/tier-II capital bonds under its medium-term note (MTN) programme. The issue size may......

Alembic Pharma gets USFDA's nod for Acetazolamide Extended-Release Capsules

Alembic Pharmaceuticals (Alembic) has received approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Acetazolamide Extended-Release Capsules, 500......