IVRCL Ltd Management Discussions.

Industry Overview

Infrastructure industry has been a keen area for economic development of the Rural India by creating opportunities of jobs, mobility, and access to modern technology thereby leading to ease of living, amassing larger population to participate in striding growth of Indias economy. The sector is highly responsible for propelling Indias overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.

Besides, Green Energy generation and Ecological Conservation have been prioritized to reduce the Carbon intensity to 33% by 2030.

In the Union Budget for 2020-21, the Government has given a massive push to the infrastructure sector by allocating Rs. 1,69,637 crore (US$ 24.27 billion) to enhance the transport infrastructure. The logistics sector in India is growing @ 10.5% annually and is expected to reach US$ 215 billion in 2020. India was ranked second in the 2019 Agility Emerging Markets Logistics Index.


The fatal health hazard due to COVID-19 Pandemic has forced the migrant workforce at the Projects to undergo volatile and hasty return to their homes. The subsequent lockdowns and various types of restrictions to constrict the spread of the Pandemic have severely affected the progress in the project works. Even after relaxations in the lockdown FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at US$ 25.78 billion and US$ 17.22 billion, respectively, between April 2000 and September 2020.

Private sector is emerging as a key player across various infrastructure segments, ranging from roads and communications to power and airports. Private investment into physical and social infrastructure is key to putting India in a high growth trajectory.

The COVID-19 Pandemic has slowed down the pace of activities in the Infrastructure Sector from March 2020 but the efforts of Governments at State and Central, in close co-ordination with various segments of Frontline Warriors, has astounding results in confining the spread and damage. The untiring aspiration of scientists in discovering vaccine for COVID-19 is predominant in bringing back the economical activates on to tracks, resulting 13% higher expenditure than budgeted during 2020-21. and restrictions, the workers have seldom reached the project sites in apprehension of resurgence of pandemic and in the absence of life saving medications. There have been no splendid achievements during the financial year to have an elaborative write-up on Vertical-wise Performance.


The Company is under Liquidation as going concern and there has been no new contract during the period. Efforts have been put in for effective performance in completing the Projects on-hand and O & M Business so as to maintain the Companys Pre-qualifications and retaining the talented Technical Manpower.

Soon after resuscitation of the Company, IVRCL shall endeavor into the new opportunities of Services & Solution across the Industry and Country.


In view of the delayed process of sale of the Company as going concern, and in wake of severe cash crunch, the projects in hand are being executed with enhanced & minutely monitoring team from Head Office.


IVRCL has been maintaining effective system of internal control for facilitating accurate, reliable and speedy compilation of financial information, safeguarding the assets and interests of the company and ensuring compliance with all laws and regulations, keeping the Certification of Integrated Management Systems (IMS) intact.


Await the opportunities to participate in bidding of new projects where IVRCL has acquired exceptional skill and prequalifications across several sectors in the EPC domain, in collaboration with the financial qualifications of the successful bidder in the prevailing sale process of IVRCL through Liquidation as going concern.

There is a threat of lapse of most of the pre-qualifications during the prolonged Liquidation as going concern processes and due to non-addition of new orders during the said periods.


With the lasting repute IVRCL could retain and kept the faith of a good number of long-serving employees with key area of expertise and thereby keeping the on- hand orders valid, even when the company is passing through Liquidation as going concern.


The company has a prolonged period of Liquidation as going concern process and awaiting successful completion of the sale process.

With the Governments target investment of 100 Lac Crore in Infrastructure Industry by 2025, the environment for Civil & Contracting companies has been looking up to be more prospective and encouraging