MUMBAI: The 21-day, countrywide lockdown, aimed at containing the spread of Covid-19, is a far more complex problem for the infrastructure sector than other large industries.
Since it is a labour-intensive sector and relies on contractual workers, largely comprising of migrant population, the lockdown could severely impact projects underway. "Due to the Holi holidays the labour force had reduced to 60-65%, since then labourers have extended their holidays," a report by HDFC Securities Ltd said.
Also, suppliers may take time to resume work and may prefer to wait-and-watch for normalcy to return, as liquidity tightens across the economy.