Srei may finance upcoming irrigation projects

Kolkata-based Srei Infrastructure Finance Limited, that is into infrastructure equipment financing, is looking at financing all the upcoming irrigation projects in the state. The company has more than Rs 2,500 crore of assets under management and has a customer base of over 6,000.

Speaking to Business Standard, on the sidelines of a press conference organised to announce an event where there would be auction of interest rates, Hemant Kanoria, vice-chairman and managing director of Srei Infrastructure Finance Limited, said, "We have a strong presence in Andhra Pradesh with 97 per cent of the contractors in the state being our clients. Besides, we are expecting to finance all the upcoming irrigation projects in the state. Some companies have already approached us for this purpose."

Around Rs 17,000 crore worth irrigation project contracts are yet to be awarded in the state.

Srei has six branches in Andhra Pradesh employing around 70 people. Besides, it has also set up a subsidiary with the National Academy of Construction, L&T Finance and Nagarjuna Construction Company Limited called National Academy of Construction Infrastructure Equipment Limited. This company, according to Kanoria, is an equipment bank hub that provides equipment on rent.

During the press conference, Kanoria said that they are organising 'Paison Ki Nilami' in Hyderabad where 600 bidders have registered themselves to bid for interest rates for equipment financing.

The event would allow the participant to bid for the lowest interest rates for loan, lease or rent of 500 pieces of infrastructure equipment (worth Rs 250 crore) ranging from excavators and tippers to compressors and crushers.

The company had earlier organised such events in Kolkata and Bhubaneshwar. "Last time, the lowest interest rate that was auctioned was 3.69 per cent," he added. The company has 35 branches in India.

Srei is into construction equipment finance, infrastructure project finance and renewable energy (solar energy) equipment finance.

Around 80 per cent of its business comes from construction equipment finance, with the remaining being from the latter two. It made a net profit of Rs 30 crore last year. While last year, it did new business worth Rs 1,600 crore, in the first quarter of this year, it managed to do new business of Rs 600 crore.