Rupee fall on infrastructure projects

According to Mr. Wilfred Aulbur, Managing Partner of Roland Berger Strategy Consultants, the Indian infrastructure is seeing tough times. Infrastructure sector are facing certain key challenges related to land acquisition, debt funding from banks and environment clearances. Access to funds from banks are limited since the banks are reaching their lending limits. Interest rates do not seem to come down in the near future. Moreover, there have been delays in land acquisition and environmental clearances, cost overruns and scope of projects. This increased risk makes it difficult to gain bank loans. Private equity firms are already facing a tough situation due to the slow economy, Hence, equity finance is almost impossible.