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IMPACT OF
BUDGET ON
INFRASTRUCTUR
E

Executive Summary
The Union Budget, presented on 28 Feb.,2015
The budget usually affects companies across
sectors.
Fastest growing economy.
Rs. 70,000 crores to Infrastructure sector
Tax-free bonds for projects in rail, road and
irrigation
National Investment and Infrastructure Fund

Nifty

As on 28
Feb.,2015

Bharti
Airtel

LT

Power
Grid

IRB

Relian
ce
Infra
Tata
Comm

Adani
Ports

JP Power

BHEL
JP
Associ

Siem
ens
CESC

Sub-Sector

Roads
Connects Rural centre with urban centre across
the country
Spending on roads will go up by INR 14000
crores.
Government Aims
To

complete

100,000

km

of

under

construction roads
Providing sanction for another 100,000 km
Impact
This gives a significant push to companies

Power

No country can grow at a significant rate

without adequate power.
To enhance the generation of power.
Government Aim
Power Electrification by 2020
5 New Ultra Mega Power Projects (4,000
MWs each) under plug and play model.
Impact
Unlock investments to the extent of 1 lakh
crore.
Plug & Play model will help rule out delays

Infrastructure Finance
The budget usually provides for financing the
infrastructure sector through institutions.
Government Aim
Will establish National Infra Fund, to allocate
Rs 20,000 crore
Tax free infrastructure bonds
Impact
This will help, completing projects in the rail,
road and irrigation sector
This will enable the Trust to raise debt, and

Real Estate
This is also an important part of the budget
every year.
Government Aim
Housing for all - To build 60 million houses
in urban and rural areas
New bill to curb benami transactions in real
estate
Impact
Affordable House for everyone.
Increase in demand for Cement which is

Railways
Railways are the lifeline of Indian goods as well
as passenger movement.
India has one of the largest railway networks in
the world.
Government Aim
Spending on railway will go up by INR 10,000
crore
Allocation 1200 cr. towards Delhi-Mumbai
Industrial Corridor (DMIC) as ordering picks
up throughout the Year.

Ports
There are 12 Major ports in India
Government Aim
Ports in public sector will be encouraged, to
corporatize, and become companies under
the Companies Act.
Utilize huge land resources lying unused with
them.
Impact
This could facilate airport-type concessions.
Boost revenue for major port

Points not mentioned in Budget

No mention of smart cities
No substantial development of Airport
No Tax Holiday for companies

Conclusion
Spending on roads will go up by INR 140 billion,
on railways by INR 100 billion. Off-balancesheet borrowing of INR 200 billion a year is
proposed.
If all these are summed up, this comes to less
than 0.4% of GDP. This is not going to make a
difference to the demand side of the economy,
even if we think that all this spending hits the
economy in 2015-16 itself.
However, a group of initiatives could constitute

Overall Impact on Infrastructure Sector

NEUTRAL