Unlikely..the winning core team of the India Infrastructure story is resilient and used to challenges

Though Indian operators do not have the habituated brand of global infrastructure giants and are getting preference from the government in financing as they have to use the $3 trillion infrastructure cheque to build India's ports, power plants and many more, we seem to be enjoying their discomfort taking the entire brigade as equal to constructionc ompanies and worse treating them like defaulters from mid cap space even when they include institutions like REC, PFC, PTC and above all IDFC

While one can understand General Kamath's discomfort with the high interest rate regime he stewarded in the 90s , a t that time apart from not having a retail mortgage book we also did not have a tiered strcutre of investors playing cash trades and funding the india story so willingly. Corporate Finance at sub 20% rates may not be repeated in this generation by high interest rates let alone create a sad layer of former infrastructure projects in a BIFR like bundle for happy punting and 89 meter maximums for the sporting traders in the global carry trade economy.

Why it will not happen is also because institutional portfolios like that of IDFC are of much better underwriting strengths than Kamath's ICICI which stil has all the processes in place. However in roads we do have operators without much history and thus much less of a future. those who doubted GMR and GVK are already licking their chops and there remaining leveraged units has not created extra default situations.

In the absence of a larger superset of Billion dollar networth Infra businesses it is probably been more of a handicap for which IDFC and REC have been needed yet Also Delhi metro and others have proven we have the quality of project management required to build the processes within this consistent superstructure for Infrastructure Finance which will continue to stretch banks that want a piece of the lucre fronm the sector and keeps gravitating to construction plays in its corp credit book. 

 

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