FM’s Reforms a big step in the right direction to de-stress operating environment for construction and infrastructure companies

New Delhi: The Confederation of Indian Industry, on Friday, welcomed the Government of India’s push for reforms for key growth sectors in the country. Taking up the positivity from the Finance Minister’s comments, especially for the infrastructure and construction sectors, Mr. Vinayak Chatterjee, Chairman – CII Infrastructure Council & Chairman - Feedback Infra, welcomed this move and said "The infrastructure sector is particularly pleased on the key aspects of the FM’s announcement. It is heartening to note that the government recognises the issues of delayed payments as a significant pain point of industry and that the Department of Expenditure, Ministry of Finance will be monitoring delayed payments from government and central public sector enterprises going forward."

The infrastructure and construction sectors in India have been reeling under the multiple impacts of money stuck in disputes, which even after prolonged and expensive arbitration, get challenged all the way up to Supreme Court. CII has been actively advocating the need of the industry sectors to bring about reforms and changes in the arbitration law procedures and for the strengthening public contracts.

Commenting on the FM’s Reform Agenda for releasing 75% of arbitration awards expeditiously Mr. Arjun Dhawan, Group CEO/Whole-Time Director, Hindustan Construction Co Ltd said, “We welcome the Cabinet’s oversight into mechanical challenges of Arbitration Awards – which should be reserved for the rarest of rare circumstances. An immediate payment of these money decrees is essential without imposition of Bank Guarantees, which in turn would also free the Banks’ capacities to finance India’s enormous infrastructure requirement.”

The infrastructure sector in India has been plagued by the issues of liquidity and finance crunch, and CII applauded the setting-up of an inter-ministerial Task Force to finalise the pipeline of infra projects whose financing and execution are to be put on the fast-track. Highlighting the positivity that would be ushered in by the FM’s reform agenda, Mr. Anil Sardana, Co-chairman, CII Infrastructure Council and MD & CEO – Adani Transmission Limited said, “The slew of reforms announced would bring about a positive change in the demand intensity of the nation – and give the infrastructure sector in India, the much needed positive push by creating multiplying effect in consumption as also in job creation, thus helping address all round growth.”

“All these reforms are heartening as they signal a desire to significantly improve the enabling and operating environment for construction and infrastructure companies,” Mr. Vinayak Chatterjee added.