Road developer stocks gain on infrastructure measures in Budget 2016
BT Online February 29, 2016
Shares of road developer companies such as GMR Infra, IRB Infra, Sadbhav Engineering gained up to 4 per cent after Finance Minister Arun Jaitley unveiled encouraging measures for the sector in Budget 2016.
IRB Infrastructure stock gained as much as 3.96 per cent to Rs 211.95 on the Bombay Stock Exchange (BSE). Stocks of Sadbhav Engineering, Ashoka Buildcon and GMR Infra also gained.
In a major push on infrastructure, FM Jaitley announced allocation of Rs 97,000 crore for the roads sector in the union budget for the next fiscal year.
This amount includes the Rs 19,000 crore he has allocated for rural roads under the Pradhanmatri Gram Sadak Yojna.
The finance minister also announced that road transport in the passenger segment would be opened up to the private sector.
Describing the legacy of problems in the roads sector that his government had inherited, Jaitley said around 70,000 road projects had got stalled, locking investment of up to Rs 1 lakh crore.
"I am happy to announce that our efforts have put back on track 85 per cent of these stalled road projects," Jaitley told parliament.