The Hindu Business Line : ‘Rising interest rate a dampener’

Kolkata-based SREI Equipment Finance Pvt Ltd said rising interest rates and high inflation has dampened the demand for construction and infrastructure development equipments. In the last two months, there has been a reduction in purchase of these equipments by 15 per cent to 20 per cent, said Mr D.K. Vyas, Chief Executive Officer, SREI Equipment Finance. For most of the companies in these sectors, the input costs have gone up, and this has reduced their cash flow. The incr ease in interest rates has also added to the problems, he said. SREI Equipment Finance, a joint venture between SREI Infrastructure Finance Ltd and BNP Paribas Lease Group, has organised an auction of interest rates for these equipments across nine cities in India. Mr Vyas said customers who have registered as bidders will bid for the interest rate. It is a reverse auction of interest rates, he said. SREI Equipment Finance has partnered with equipment manufacturers such as Tata Motors, JCB, Caterpillar, Volvo and others, Mr Vyas added. The equipment manufacturers are getting bulk volume from this event, which reduces their cost of sales. So they would be able to offer discounts, said Mr Vyas.

— Our Bureau

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