Why this infrastructure stock is a big beneficiary of Union Budget 2024

The government has enhanced infrastructure allocations for the development of the eastern region with a focus on Andhra Pradesh and Bihar. The Central Government will provide funds under the budgetary allocation as well as facilitate financial support through multilateral development agencies. This will mean huge order inflows for the Andhra-based construction player NCC. With project execution capabilities and experience in diverse projects, NCC will be a big gainer of the Union Budget’s focus on the eastern region.

The Central Government will support the infrastructure development of Andhra’s proposed capital  Amaravati, the dream city of Chandrababu Naidu who is a key ally of the ruling NDA (National Democratic Alliance) regime. The government will provide Rs 15,000 crore in the current financial year for the development of the capital city with additional allocations expected in the future. Apart from the capital city, the government will focus on other infrastructure projects in Andhra Pradesh such as the Polavaram Irrigation project, and water, rail and road projects in other regions of Andhra Pradesh such as Kopparathy and Orvakal industrial nodes. Moreover, the government will provide for the development of the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra.

In Bihar, the government will support the development of road connectivity projects worth Rs 26,000 crore as well as a power project worth Rs 21,400 crore. New airports, medical colleges, and sports infrastructure will also be built in Bihar.

Moreover, the overall development of infrastructure in other eastern states such as Odisha, Jharkhand, and West Bengal will provide order opportunity for NCC.