The COVID-19-led slowdown is likely to hurt the prospects of infrastructure players severely. Companies, which were already feeling the heat on project execution and project closures, may face more uncertainties related to project completion, new project financing, and future order flows.
The recent channel checks by HDFC Securities show that the call for janata curfew has resulted in project sites staring at closure. Players in the engineering, procurement and construction (EPC), transmission and distribution (T&D), road construction and building segments are all seeing their projects’ progress getting impacted with the Central and state governments’ directives for lockdowns and curfews.
Companies’ focus on employee and labour safety amidst coronavirus pandemic is another reason for project commencements taking a back seat.
