Although shares of infrastructure companies gained ground over the past two days, industry leaders have reacted with caution.
K Venkatesh, managing director, L&T Infrastructure Development told NDTV that there was a need to speed up Centre-State coordination for infrastructure projects and to check action on the ground.
L&T is expected to benefit from the government plan to launch a 60 km elevated rail corridor in Mumbai and construction of a bullet train corridor between Mumbai and Ahmedabad.
“The government should set milestones for infrastructure projects, which should be monitored,” Venkatesh said.
“This is an excellent development to improve the sentiment across the sector,” said A Subba Rao, CFO, GMR adding that they would wait for the execution of these announcements.
Companies like GMR Infra and GVK Power and Infrastructure are expected to benefit from the announcement of three new greenfield airports in Navi Mumbai, Goa and Kannur and new international airports at Lucknow, Varanasi, Coimbatore, Trichy and Gaya.
“If infrastructure will not grow, the economy will not grow,” he said.
Sanjay Reddy, vice chairman, GVK Power and Infrastructure called the meeting and announcements a positive step. The GVK group has an exposure in airports, power and roads sectors that figured prominently in the prime minister Manmohan Singh’s meeting.