Implication of #Budget2024 on Infrastructure Sector🏗️
Total Capital expenditure (#capex) planned for FY25 is INR 11trn, i.e. 16% YoY growth💹
⚡Power, Defence or Railways, Which sub-sector will benefit the most?
Read this Mega🧵to know more!
1/8
Total Capital expenditure (#capex) planned for FY25 is INR 11trn, i.e. 16% YoY growth💹
⚡Power, Defence or Railways, Which sub-sector will benefit the most?
Read this Mega🧵to know more!
1/8
Railways🚂
🔸 #railways capex is in line with Interim Budget at INR 2.6trn
🔸Focus more on Engines & Carriers i.e Rolling stock and signaling segments
🔸Wagons procurement capex up to 38,000 wagons and 1,600 electrical locomotives in FY25 i.e. 65% & 33% growth
🚩Dedicated freight corridor allocation down by 18%
2/8
🔸 #railways capex is in line with Interim Budget at INR 2.6trn
🔸Focus more on Engines & Carriers i.e Rolling stock and signaling segments
🔸Wagons procurement capex up to 38,000 wagons and 1,600 electrical locomotives in FY25 i.e. 65% & 33% growth
🚩Dedicated freight corridor allocation down by 18%
2/8
Solar- Good news for Solar glass🌦️
🔸Capex is driven by private sector
🔸Custom duty of 10% has been imposed on solar glass
🔸The onslaught of Chinese solar glass has led to losses and sub-optimal operations of Indian manufacturers
🔸The budget has also exempted machinery for manufacturing of solar cell and modules till FY26
3/8
🔸Capex is driven by private sector
🔸Custom duty of 10% has been imposed on solar glass
🔸The onslaught of Chinese solar glass has led to losses and sub-optimal operations of Indian manufacturers
🔸The budget has also exempted machinery for manufacturing of solar cell and modules till FY26
3/8
Roads🛣️
🔸 Allocation to roads in line at INR 2.8trn
🔸To construct additional #roads, the government is looking for more private investments
🔸Monetisation targets have been raised compared to earlier years at INR 300bn
🔸 NHAI is likely to award projects worth 12,000kms in FY25
4/8
🔸 Allocation to roads in line at INR 2.8trn
🔸To construct additional #roads, the government is looking for more private investments
🔸Monetisation targets have been raised compared to earlier years at INR 300bn
🔸 NHAI is likely to award projects worth 12,000kms in FY25
4/8
Power⚡
🔸 #Power Capex planned INR 0.7trn which will be driven by private sector
🔸Allocation of INR 62bn for Surya Roshni scheme – government has already rolled out the scheme
🔸NTPC and BHEL are likely to form a JV to set up 800MW ultra-supercritical powerplant
5/8
🔸 #Power Capex planned INR 0.7trn which will be driven by private sector
🔸Allocation of INR 62bn for Surya Roshni scheme – government has already rolled out the scheme
🔸NTPC and BHEL are likely to form a JV to set up 800MW ultra-supercritical powerplant
5/8
Water treatment🚰
🔸#Water capex is driven by state
🔸The government has allocated INR 40bn towards interlinking of rivers
🔸Government is also looking to bankroll 100 water supply, sewage treatment, and #wastemanagement projects in the country
6/8
🔸#Water capex is driven by state
🔸The government has allocated INR 40bn towards interlinking of rivers
🔸Government is also looking to bankroll 100 water supply, sewage treatment, and #wastemanagement projects in the country
6/8
Defence🪖
🔸 #Defence expected capex for FY25 is up 9% YoY at INR 1.7trn for FY25 (same as Interim Budget)
7/8
🔸 #Defence expected capex for FY25 is up 9% YoY at INR 1.7trn for FY25 (same as Interim Budget)
7/8
PSU🏢
🔸If looking at #PSUs separately, Food (FCI), Power & Solar segments saw the highest allocation
/The End
🔸If looking at #PSUs separately, Food (FCI), Power & Solar segments saw the highest allocation
/The End
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