Infra projects to drive demand in FY22: Ind-Ra

New Delhi The Central government is expected to keep impetus on roads, irrigation and water works segments for tendering in near term, said India Ratings and Research. "Ind-Ra believes that the incremental order inflows in roads, railways, irrigation, housing development projects and distribution segments would drive the demand forecast for the sector in FY22. "The schemes such as Bharatmala, commissioning of 'Dedicated Freight Corridors', 'Swachh Bharat' mission and 'Jal Jeevan' mission and 'Affordable Housing Schemes' coupled with the 'National Infrastructure Pipeline' would drive the sector order inflows in the medium term," it said. However, continued competitiveness in these segments is likely to result in a moderation of operating margins of EPC players. "Ind-Ra, in its FY22 construction outlook, has revised the sector outlook to improving from negative, based on the rich budgetary allocations which would result in huge order inflows coupled with better execution rates." In FY21, the tenders floated had seen incremental growth, majorly contributed by Uttar Pradesh.