Infra sector activity declines 43% in FY20 following March lockdown: Report

Infrastructure sector activity witnessed a decline of 43 per cent in FY20, following financial troubles at the national road builder NHAI and the massive contraction in March due to the lockdown, according to a report.

The problem was more pronounced in the final quarter of the year, as the government contracts came to an almost full standstill as it cut spending to maintain fiscal numbers under check, and the final week saw the entire nation coming to a halt due to the lockdown.

The overall contract awarding activity fell 26 per cent year-on-year in March.

The power distribution contracts plummeted 77 per cent on an annualised basis; real estate awards fell 35 per cent; infrastructure contracts slipped 43 per cent; irrigation awards nose-dived 66 per cent and water supply awards dipped 29 per cent, show the numbers collated by the brokerage Emkay Global.