Funding constraints to slow pace of construction in FY20: CARE Ratings

Four out of the top 10 states are coastal states with more than two large ports being situated in each of them

The pace of the construction sector is set to face a decline in FY20 on funding shortage for new projects.

Funding will be constrained by the limited number of banks which are in a position to offer credit outside the Prompt Corrective Action (PCA) framework. That apart, tight liquidity in the NBFC (non-banking financial companies) space will constrain further lending and budgetary support may not be able to compensate for this shortfall, a report by CARE Ratings noted.

Eleven state run banks