A healthy share of capital outlay for roads sector in Budget 2017 bodes well for construction companies, according to Nagarjuna Construction Company’s (NCC) management.
The Ministry of Finance lined up a massive capital expenditure worth Rs 2.4 lakh crore for transport sector for FY18 when Arun Jaitley presented Union Budget on Wednesday. Of this, Rs 64,900 crore has been allocated to the highways sector. "In the road sector, I have stepped up the budget allocation for highways from Rs 57,976 crore in budgetary estimate 2016-17 to Rs 64,900 crore in 2017-18," Jaitley had said in his speech.
The investment lined up for roads sector along with coastal roads development plan is a step in the right direction, said YD Murthy, Executive Vice President, NCC, told CNBC-TV18.
As part of road development and Pradhan Mantri Gram Sadak Yojana (PMGSY), the government plans to build 2,000 kilometres of roads in FY18.
Jaitley had said on Wednesday: “We have committed to complete the current target under PMGSY by 2019. I have provided a sum of Rs 19,000 crore in 2017-18 for this scheme. Together with the contribution of States, an amount of Rs 27,000 crore will be spent on PMGSY in 2017-18.”Watch video for more...
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