Mining and mineral sector impacted due to Covid-19 led slowdown: KPMG

In the construction sector, there is a lack of automation and the resultant dependence on manual labourers. The monsoon is expected to affect the return to normalcy in Q2 of FY21

State and central government exchequers are expected to get affected as collections against statutory levies and taxes are lower due to lower volume of mineral production amid the Covid-19 crisis, professional services firm KPMG said on Friday.

This is due to lower mineral offtake on account of lack of demand from end-use sectors and also non-availability of labour. Besides, the government's plan to auction new coal and mineral blocks is likely to get delayed.

In addition, mine developer operators and mineral operators are expected to face significant challenges due to delayed payments and unavailability of labour.

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