On Friday, the government tabled the Specific Relief Amendment Bill in parliament. The amendments in the bill, if approved, will make it easier to enforce infrastructure contracts. That's not all, the amendments also provide for specific relief to select categories of infrastructure projects.
In an interview to CNBC-TV18, Satish Parakh, MD of Ashoka Buildcon and Alok Deora of IIFL Wealth discussed this Specific Amendments Bill.
Parakh said this is an encouraging step taken by the government because normally projects get stalled due to unnecessary injunctions. Talking about orders, he said we expect National Highways Authority of India (NHAI) to bid out 6,500 kilometers (KMS) of orders by end of March.
He further said that many states like Maharashtra are coming out with huge projects; in fact, the state is coming out with Rs 30,000 crore worth of hybrid annuity model (HAM) project. We have bid for 8 projects of about 2,500 kms in last one month, said Parakh.
IIFL Wealth's Deora said that this bill will be positive for the entire construction sector. He also said that smaller companies used to face several protests and injunctions.
Deora is bullish on road infra companies and like; Sadbhav Engineering and KNR Constructions and the target price for Sadbhav Engineering is at Rs 490 per share, he added. He expects NHAI order for FY18 to be 6,000-6,500 kms. According to him, competitive intensity will decline significantly in the coming orders.
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Moneycontrol