Infra firms stay free of note ban effect

As infrastructure, power hardly deal in cash, its paucity has failed to affect their receivables

Infrastructure and power, core sectors considered proxies of economic growth, have remained relatively free from the effects — good or bad — of demonetisation, as can been seen in their financial performances. 

On November 8, Prime Minister Narendra Modi had announced the withdrawal of old Rs 500 and Rs 1,000 notes, sucking out cash from the economy and affecting sectors heavily dependent on it. Core sectors, however, hardly deal in cash, and its paucity in the economy failed to affect their receivables.

“The utilities have lot of money, but since none of them pay us in cash, the receivables continue