Budget and Infrastructure

2 Feb 2023 , 12:18 PM

• Allocation for highway development across NHAI and MoRTH stands at Rs2.58tn – up 37% vs FY23BE and 25% vs FY23RE. Within this, allocation to NHAI is up 14% (over FY23RE) to Rs1.62tn and allocation to other road works is up 49% (over FY23 RE) to Rs963bn.
• Allocation to Railway capex is up 50% over FY23 RE to Rs2.4tn. Key segments within Railways include New Lines (Rs315bn), Doubling (Rs307bn), Rolling Stock (Rs376bn), and Track renewals (Rs173bn).
• Housing remains in focus under PMAY with allocation at Rs790bn (up 55% vs FY22BE and 3% vs FY22RE).
• Support to state governments with extension of 50yr interest-free loan scheme by one year. This is for Infra capex in FY24 for sectors such Urban Planning and Reforms, Housing for Police Personnel, Construction of Malls and Other Infrastructure.

Analysts of IIFL Capital Services believe positive impact of the budget announcements on the infrastructure sector.