policy risk and their current debt levels.
Why do you think existing players will not invest when they see the opportunity?
they may expand their current facility but new ones, they’d rather wait for GOI to put the roads, env clearance, and paperwork for the whole area before coming in.
Won’t the private players become even more defensive when the competitor is the government?
Yes but unlikely as GOI employees simply suck out the profits/unionise to make nothng profitable in the long run. Even highly successful monopolies like HAL, BEML, BDL dont scare private investment in defence and heavy industry
Is the Capex connected with policy uncertainties or technology uncertainties?
policy. Karnataka Gov has stopped all payments till review of infra work of prev gov is completed. AKA, reroute bribe to us to continue work.
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