Infrastructure may not pick up yet: Ind-Ra

Hyderabad: Poor performance of toll roads and thermal power will act as a drag on the overall infrastructure sector in the country in the next financial year, said an India Ratings and Research (Ind-Ra) report on Monday.

“The government’s policy interventions across the sub-sectors aim to resolve several teething problems; however, the results are likely to be harvested over the intermediate term,” the firm said.

Hyderabad is a hub to several infrastructure companies as any impact on the sector will affect the fortunes of many city-based companies.

Explaining further, Ind-Ra feels that toll roads will continue to feel heat of negative inflation — revisions in toll rates are linked to movements in WPI inflation — and subdued traffic movements, cost overruns, while power sector is still grappling with the issues.