The 21-day lockdown is a far more complex problem for the construction sector, than other large industries. Since the sector relies heavily on contract labour, the suspension of trains and bus services has restricted the mobility of the workers. “Due to the Holi holidays, the labour force had reduced to 60-65%, since then labourers have extended their holidays,” said HDFC Securities Ltd in a recent report.
Also, suppliers may take time to resume work and may prefer to wait and watch for normalcy, as liquidity tightens across the economy. Some infrastructure firms also highlight that it would take weeks after the lockdown is lifted to ramp-up execution and for billing to resume.
