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Infrastructure push will prop up EPC road contractors: CRISIL SME Tracker

As things stand, SMEs account for 35-45 per cent of the roads and highways sector overall

Road, highways, projects, construction, infrastructure
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National highway projects are executed by larger players, with a small proportion sub-contracted to SME EPC road contractors

Business Standard
Small and medium enterprises (SMEs) engaged as road contractors in the engineering, procurement and construction (EPC) segment are expected to see revenues rebound by 10-15 per cent year-on-year (YoY) in the current fiscal year (FY22), benefitting from sharper government focus on infrastructure to revive the economy and the low base of last fiscal, which had logged a 5-10 per cent decline.
 
Higher spending by states, which account for 60-65 per cent of SME revenues, will lead the improvement. States have announced 25 per cent YoY growth in their budget estimates for roads this fiscal year.
 
The second wave

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