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Union Budget 2021: Government increases allocation to infra projects; L&T, KNR Constructions, Sadbhav Engineering may benefit

The move announced in Union Budget 2021 is expected to be positive for companies like L&T, KNR Constructions, Sadbhav Engineering, Ashoka Buildcon, PNC Infratech and JMC Projects.

February 01, 2021 / 12:17 PM IST

Giving a big boost to infrastructure projects, Finance Minister Nirmala Sitharaman in her Budget 2021 speech announced a National Bank for Financing Development (NaBFID) to help in the process of infrastructure financing in the country.

As much as Rs 5 lakh crore will be lent by developmental finance institution over three years, the FM said.

"We will also introduce a bill to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects. This developmental financial institution will play a key role as an enabler for infrastructure financing in the country," the FM said.

The minister said the National Infrastructure Pipeline has been expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline.

The FM announced the FY22 CAPEX target at Rs 5.54 lakh crore against FY21's Rs 4.39 lakh crore.

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A sharp increase in capital expenditure is positive for the market as it was a key ask of the markets for reviving growth.

Shares of HG Infra, Bharat Road Network and Anubhav Infra jumped up to 5 percent in intraday trade today.

The government increased funding towards infrastructure development significantly as this would not only boost the economy but generate employment also which has been severely impacted due to COVID-19.

Follow Moneycontrol’s full coverage of Union Budget 2021-22 here

The move is expected to be positive for companies like L&T, KNR Constructions, Sadbhav Engineering, Ashoka Buildcon, PNC Infratech and JMC Projects.

This will also be positive for the cement sector. Ultratech Cement, Shree Cement, The Ramco Cements and JK Lakshmi Cement may benefit.

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(This is a developing story. Check back for more details)
Moneycontrol News
first published: Feb 1, 2021 12:17 pm

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