Shares of infrastructure companies, which have presence in Maharashtra, fell sharply on Wednesday as the Shiv Sena-led government in the state decided to review some of the ₹7 trillion projects approved by previous rule in the last six months.
Shares of Larsen & Toubro, IRB Infrastructure Developers Ltd, Capacite Infraprojects Ltd, ITD Cementation India Ltd, Ahluwalia Contracts India, Dilip Buildcon, PNC Infratech Ltd, and Sadbhav Infrastructure Projects fell 1-5%.
Around ₹7 trillion rides on the Shiv Sena-led Maharashtra government’s decision to review several high-profile infrastructure projects approved by the previous government, with a state cabinet meeting on Tuesday putting many of them under the scanner.
Maharashtra chief minister Uddhav Thackeray had said on Sunday that his government has ordered a review of infrastructure projects as part of a wider audit and to determine priorities for his new government.
The government has already indicated that it is not keen on the ₹5 trillion refinery and petrochemicals complex in Raigad and the ₹1.2 trillion Mumbai-Ahmedabad bullet train.
Other projects under review are the Aarey metro car shed project (over ₹15,000 crore), Mumbai-Nagpur Samruddhi Corridor ( ₹46,000 crore), a coastal road connecting south Mumbai with the city’s western suburbs ( ₹12,000 crore), and a third bridge on the Thane Creek ( ₹800 crore), reported Mumbai Mirror.