Conserving cash is the mantra: Firms put capex plans on hold amid Covid-19

In a two-part series, Business Standard takes a look at the capital expenditure plans of firms in key sectors and how they plan to fund it

The Covid-19 pandemic has prompted India Inc to press the reset button on business plans and one obvious choice is to freeze capital expenditure for growth in the near term.

India's harsh lockdown has left companies grappling with temporary closure, chaotic supply chains and depressed demand. Consequently, business plans have been modified. As corporate India steps into the next phase, with possibly more relaxations, the emphasis is on conserving cash to ensure liquidity in an environment riddled with challenges.

Tata Steel MD and CEO T V Narendran said the focus was on deleveraging over growth. In capex, Tata Steel’s priorities are set.