Private capex revival: Infra, energy might see another tepid year

An analyst says, due to excess capacity, investment in manufacturing will not be forthcoming

At the start of financial year 2016-17, there seemed to be a government spending push, to thereby revive the private sector’s investment cycle in the infrastructure and energy spaces.

As the next financial year begins, the wait for private investments might stretch by another year, say sector experts.

“In manufacturing, there is excess capacity and so, investment will not be forthcoming. In infra, there is uncertainty; also the issue of funding, with banks wary of lending to projects here, where there is a concentration of non-operating assets,” says Madan Sabnavis, chief economist at CARE Ratings.

In 2016-2017, in addition to