Credit risks rising for infrastructure sector in India

25 Nov 2020 CW Team

India’s infrastructure sector will not cease to suffer from the post-Covid heat in 2021 due to increasing debt, difficulty in refinancing and weakening of counterparties, as reported by global credit rating agency Standard & Poor’s. In a presentation titled “India’s infrastructure recovery won’t be quick”, they stated that refinancing for speculative grade-rated issuers will remain strenuous.

Thanks to the quick recovery in the roads segment post the steep fall, road projects are expected to be safeguarded from traffic risk. However, the airports segment’s recovery seems improbable before 2024. The refinancing risks in this sector are cause by excess capital expenditure and regulatory delays. According to the report, with high fixed costs as well as limited operating levers, the profitability will come under pressure.

With three consecutive months of demand growth, the demand recovery in the power segment appears to be sustainable. Despite heavy overdue receivables, the segment will be operationally resilient..

The weak companies in the distribution sector(discoms) have been adversely affected by the massive increase in overdue receivables post-March. The structural issues faced by the sector cannot be overcome despite the provision of the liquidity relief loan. The report also said that the States’ inadequate support to these discoms adds to the strain.

Gradual recovery is expected for ports, in tandem with the gross domestic product.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..