Slowdown seen in infra sector orders

Mumbai : Reduced spending by govts, high interest costs for firms blamed. Trouble in the infrastructure sector has started showing, with order inflows taking a hit this quarter. The construction industry is seeing a slowdown in not only power and roads but also irrigation and water supply, forcing them to look for more building contracts.

“Orders from state governments have reduced in the last few quarters, as there has been a deficit in spending. Many EPC (engineering, procurement, construction) orders from the hydro sectors also got delayed because of projects being stuck due to environmental clearances," said Abhinav Bhandari, research analyst at Elara Capital.