IRB Infrastructure – A majority of industries in India were moved by the reforms introduced in the Union Budget 2017 by Finance Minister Arun Jaitley. The infrastructure industry, especially road and railways managed to stay on top of the list. In combination with the affordable housing finance, this change should bring in positive multiplier effects. IRB Infrastructure owner Virendra Mhaiskar is also expected to experience a transformation in their business.
Besides boosting the cement and construction companies, the budget focuses on affordable housing complemented by other policies that is expected to support the real progress in infrastructure industry. A total expend of Rs 3,96,135 crore is increased by 10% on the infrastructure over the revised estimate of Financial Year 2017. The capex on defense is hoped to increase to Rs 86,488 crore, i.e., 20.6%.
Meanwhile, the roadways and highways allocation goes up from Rs 52,447 crore to Rs 64,900 crore as per revised estimate. The rural roads construction escalates from 73 km/day in 2011-14 to 133 km/day.
The Finance Minister Arun Jaitley is appreciated for sticking to the planned reforms and not coming up with any surprises in the Budget. Indian investors are expected to be contented by the fact that newer projects are on the way to the market on the back of higher outlay. The best thing about the infrastructure-related budget reform is that a surplus amount of expenditure is booked for railways’ safety fund.
The enhancement of capex for roads, railways, and related infrastructure is an excellent boost to the sector. The finance minister showed confidence in assigning states as a joint partner along with boosting the infrastructural projects. This will add up to the long non-existent successes in the past.
The Budget is looked upon as a boost to the infrastructure industry, particularly highways. The sector which is in focus, will prove to be a game changer for the multi-modal logistic parks and passenger station. The budget on the whole has come out positively in favor of the infrastructure area, which will have respective reflection on the Virendra Mhaiskar-led IRB Infrastructure too.