For several years the Indian government has been promoting infrastructure projects, to maximize growth and development of the economy. At the same time, the balance sheets of many infrastructure and construction companies have shown significant losses and high outstanding debts. This is because the rise in the number of projects has resulted in an increasing number of disputes, primarily because of time and cost overruns, leading to claims for extension and prolongation costs. Non-payment of such claims on time has in turn affected the cash flows of infrastructure and construction companies.
Please click here to read the full article.