Infra space will face challenges for some time: Ramesh Bawa, IL&FS Financial Services

In a chat with ET Now, Ramesh Bawa, MD & CEO, IL&FS Financial Services Ltd, shares his views on the market and some sectors. Excerpts:

ET Now: What, in your view, are the market expectations from assembly elections?

Ramesh Bawa: The market is hoping for a government that can deliver. For instance, that can take decisions, can take the country and the economy forward. But, right now, the atmosphere is very unpredictable. Therefore, let us hope that we have a bit more clarity in the next few weeks.

ET Now: Why are the valuations of infrastructure companies so depressed at this point in time?

Ramesh Bawa: Challenges will persist for the infra space for some more time, since they are not getting the quantity of investment that was expected. At the domestic level, every segment of the infrastructure sector - be it power or energy – is not getting flows from the overseas market at the expected level. Therefore, it affects the infra space very badly.

ET Now: GMR will receive $180 million from a consortium led by Tamasek. To your mind, which are the sectors that will be selling out assets due to high debt?

Ramesh Bawa: In the power sector, basically a lot of projects are stuck and investors are looking for a sell-out. So is the case in the energy sector and the road sector. Therefore, it is largely in these three sectors where a number of projects have been stuck up for want the equity and required facilities.