Covid-19 wave hits new infra projects in India in December quarter
ECONOMY & POLICY

Covid-19 wave hits new infra projects in India in December quarter

New infrastructure projects in India saw a drop of 6.3% in the December quarter compared to the September quarter in 2021.

The value of new projects in the just-ended quarter was Rs 2.1 trillion, as per the data from the Centre for Monitoring Indian Economy (CMIE), which was lower than the Rs 2.2 trillion witnessed in the September quarter. However, it is higher than Rs 1.5 trillion registered for the quarter ended December 2020, the first year of the Covid-19 pandemic.

This data links with the November data for core sector development, an index of eight core industries, which expanded at its slowest speed since early 2021. It increased by 3.1% in November. Cement output decreased over the previous year.

Other industries covered in the index, like crude oil, coal, fertilizers, natural gas, steel, refinery products and electricity, registered a slowdown blocking fertilizers. It is because rabi crop sowing was presently underway, according to experts.

The value of completed projects increased for the second quarter in a row to Rs 1.4 trillion from Rs 1.15 trillion. The pace moving forward is anticipated to be closely watched amid surging cases of the Omicron variant of the coronavirus. Firms typically fund developing new capacities when present production capacity is anticipated to fall short. Such investments had taken a back seat amid declining demand due to the pandemic. The prior wave in the early part of 2020 had a significant effect on capacity usage.

Reserve Bank of India’s periodic Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the June 2021 quarter said that due to the second wave of Covid-19 pandemic, certain restrictions were inflicted in many areas of the nation, which adversely impacted capacity utilisation (CU) in the Indian production sector; the effect was, however, less severe than that observed during Q 2020-21 in the wake of lockdowns and other constraints during the first wave.

Image Source

Also read: Omicron variant hits global supply chain

New infrastructure projects in India saw a drop of 6.3% in the December quarter compared to the September quarter in 2021. The value of new projects in the just-ended quarter was Rs 2.1 trillion, as per the data from the Centre for Monitoring Indian Economy (CMIE), which was lower than the Rs 2.2 trillion witnessed in the September quarter. However, it is higher than Rs 1.5 trillion registered for the quarter ended December 2020, the first year of the Covid-19 pandemic. This data links with the November data for core sector development, an index of eight core industries, which expanded at its slowest speed since early 2021. It increased by 3.1% in November. Cement output decreased over the previous year. Other industries covered in the index, like crude oil, coal, fertilizers, natural gas, steel, refinery products and electricity, registered a slowdown blocking fertilizers. It is because rabi crop sowing was presently underway, according to experts. The value of completed projects increased for the second quarter in a row to Rs 1.4 trillion from Rs 1.15 trillion. The pace moving forward is anticipated to be closely watched amid surging cases of the Omicron variant of the coronavirus. Firms typically fund developing new capacities when present production capacity is anticipated to fall short. Such investments had taken a back seat amid declining demand due to the pandemic. The prior wave in the early part of 2020 had a significant effect on capacity usage. Reserve Bank of India’s periodic Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the June 2021 quarter said that due to the second wave of Covid-19 pandemic, certain restrictions were inflicted in many areas of the nation, which adversely impacted capacity utilisation (CU) in the Indian production sector; the effect was, however, less severe than that observed during Q 2020-21 in the wake of lockdowns and other constraints during the first wave. Image Source Also read: Omicron variant hits global supply chain

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?