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EPC Companies Point Out Longer Payment Cycles for Water Projects
Business Standard
|February 21, 2025
The country's engineering, procurement and construction (EPC) firms have highlighted longer payment cycles, and related working capital cycle deterioration in the water segment.
With the election season ending and an extension and budgetary allocation for the Jal Jeevan Mission scheme, industry executives see this as a short-term pain, with payments picking pace in the March-2025 quarter.
"Since funds were stopped for some time with respect to water projects funded under the Jal Jeevan Mission, there were some stoppages," said a senior executive from Larsen & Toubro (L&T), in a post-earnings call in January, adding, the fund flow started December onwards and they "expect a revival in momentum to happen."
According to Puja Jalan, director, CareEdge Ratings, the payment cycle under the Jal Jeevan Mission (JJM) was previously 2-3 months but has now stretched to 4-5 months during FY25.
This story is from the February 21, 2025 edition of Business Standard.
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