₹98,000 in the June quarter from 2,500 new projects valued at ₹3.86 trillion in the same period last year.States that make up for over half of government-funded capital expenditure in the economy, accounted for the worst of this fall.According to a May Icra report, the capex budgeted by states for FY21 was around ₹5.7 lakh crore, having grown from ₹5.1 lakh crore in FY20.
Predicting a steep capex cut by states, Icra estimated that not only would awarding activity fall, the receivable cycle would also lengthen, triggering a vicious cycle on the cash flows of contractors."On the ground, we’re seeing a delay when many of the tenders that were supposed to be floated in March/April have got pushed to June/July or later and a few of them have.