Road Developers shares such as IRB Infrastructure and Sadbhav Engineering gained on Monday after the Finance Minister Arun Jaitley proposed an allocation of Rs 55,000 crore in the Union Budget 2016 for the development of roads and highways.
Shares of IRB Infrastructure and Sadbhav Engineering advanced 1.41 per cent, 0.87 per cent, respectively.
Finance Minister Arun Jaitley on Monday announced an outlay of Rs 97,000 crore for the road sector even as he reiterated the government’s commitment to doing away with the permit raj to end roadblocks facing the sector.
With highways sector becoming a focus area for the Narendra Modi government, the game changing initiatives include upgradation of 50,000 kms of state highways into national highways, rolling out of 85 per cent of the stuck Rs 1 lakh crore projects and construction and award of 10,000 km roads each.
“I have proposed an allocation of Rs 55,000 crore in the Budget for Roads and Highways. This will be further topped up by additional Rs 15,000 crore to be raised by NHAI through bonds. Thus the total investment in the road sector, including MGSY (Prime Minister Gram Sadak Yojna) allocation, would be Rs 97,000 crore during 2016-17,” Arun Jaitley said.