This is the government's great Indian infrastructure dream. But the ground reality is a rude awakening. With a slowing economy, high interest rates and more importantly delayed decision making, infra projects and infra companies face an uncertain future.
As Pranab Mukherjee gets ready to present Budget 2012 the message is clear - jump start the investment cycle, focus on accelerating infrastructure spending and break the policy logjam.
But does the government have the political capital to deliver on the infra promise?
Rajiv Agarwal, member, CII National Committee on Infrastructure, and the managing director and CEO of ESSAR Ports takes CNBC-TV18 through his budget expectations for the infrastructure sector.
Q: Specifically, from your own industry's perspective, what is it that you would like the Finance Minister to address?
Agarwal: I would like the cost of borrowing to come down because with the current cost of borrowing in the infrastructure sector, it is extremely difficult especially things like ports, roads etc which take a very long time to come about.
I would say that if some means of making maybe refinancing of the existing loans possible where they have announced some 25% of the ECB raised to be used for refinance, maybe up to 100% of the earlier loans to be refinanced if that is possible, at least the cost of funding will come down. That's something which we will definitely look at and of course the money has to be made available easily in the sector because these are the two things which will also improve the climate and also the returns and investments in this sector.
Q: Do you believe that Budget 2012 could perhaps address some of the woes that this space is faced with at this point in time?
Agarwal: Time is ripe. We really need some hope. The Budget is not necessarily the only time that action can be taken but definitely we over the years have been expecting something positive to come in the Budget. It also kind of sets the tone for the year. I think its one document which everyone awaits and whether one is hopeful or not hopeful, it is always good to have something positive coming in the Budget.
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