Budget 2024: Stocks of Road Construction Companies Catch Investors' Attention as FM Announces New Road Projects in Bihar!

Finance Minister Nirmala Sitharaman has presented an extensive plan to improve the nation’s infrastructure in the Union Budget 2024-25.

Finance Minister Nirmala Sitharaman has unveiled a robust plan to bolster the nation’s infrastructure in the Union Budget 2024-25, with a marked increase in fiscal support and a strong focus on private sector participation.

Key Infrastructure Projects

The government has earmarked significant funds for several major infrastructure projects, particularly in road connectivity including Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, Spurs in Bodhgaya, Rajgir, Vaishali, and Darbhanga. An additional 2-lane bridge over the river Ganga at Buxar. These projects will be developed at a total cost of Rs 26,000 crore.

Infrastructure Developments in Bihar

The budget includes plans for new airports, medical colleges, and sports infrastructure in Bihar, alongside a provision of Rs 2.66 lakh crore for rural development, including rural infrastructure.

Industrial Parks and Corridors

The government will develop investment-ready "plug and play" industrial parks in or near 100 cities, in collaboration with states and the private sector, through improved town planning schemes. Additionally, twelve industrial parks will be sanctioned under the National Industrial Corridor Development Programme.

Capital Expenditure

A substantial provision of Rs 11,11,111 crore has been allocated for capital expenditure, representing 3.4 per cent of GDP. This significant investment aims to maintain the strong multiplier effect on the economy seen from previous infrastructure investments.

Interest-Free Loans Infrastructure Development

State governments will be encouraged to provide similar support for infrastructure development, aligned with their priorities. A provision of Rs 1.5 lakh crore has been made for long-term interest-free loans to assist states in their resource allocation.

Furthermore, to boost private sector investment in infrastructure, the government will promote viability gap funding and establish enabling policies and regulations. A market-based financing framework will also be introduced. This comprehensive infrastructure enhancement plan aims to strengthen the nation’s economic foundation, improve connectivity, and foster sustainable growth over the next five years.

Stocks To Keep on Radar

Following the announcement, these road construction and infrastructure-related stocks will be in focus: Larsen and Toubro, IRB Infra, Engineers India, PNC Infratech, HG Infra Engineering, KNR Constructions, Ashoka Buildcon, Uday Shivakumar Infra, Brahmaputra infrastructure, and Akash infra projects.

Investors must keep these stocks on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.