NBFC crisis could slow down projects, derail India's robust growth story

A fall in economic growth would be a blow to Prime Minister Narendra Modi and the ruling Bharatiya Janata Party, which is already under pressure from protests over rising fuel costs

Manzoor Ahmad lost his job as an electrician and is struggling to make ends meet after a crucial road tunnel project shut down in Srinagar, the summer capital of Jammu and Kashmir state in the north.

Construction of the Z-Morh tunnel came to a halt two months ago after Infrastructure Leasing & Financial Services (IL&FS), one of India's top infrastructure funding companies which was helping build the project, stopped paying contractors in the face of a severe cash crunch.

"I have no work since work on the project was stopped in July," said Ahmad, 34, who was earning about Rs 30,000 ($413)