RInfra eyes Rs. 14,000cr road projects

Reliance infrastructure (RInfra), which has already won arbitration award for two road projects namely NK Toll Road and DS Toll Road, worth Rs 170cr, is currently in advanced stages of arbitration for various projects entailing a staggering investment of over Rs. 14,000cr, said CEO, Reliance Infrastructure, Lalit Jalan. RInfra has earned revenue of Rs 259-cr in Q1 FY17, an increase of 27% YoY.

Jalan added that the Cabinet's decision to revive construction sector is a "landmark initiative" as an array of measures recently approved by the Cabinet Committee on Economic Affairs (CCEA), including easing of rules for quicker settlement of disputes, pump in liquidity and reinvigorate stalled projects, will revive the sector in a big way. This initiative by the CCEA will boost the stressed infrastructure sector and also help infuse much required liquidity in the system. It is a very positive and bold move by the government to help revive the stalled projects which suffer due to long settlement periods. The CCEA has created an enabling framework for government agencies/PSUs to release 75% of arbitration award to concessionaires/contractors, without worrying about subsequent scrutiny.