Budget 21: Infra, cement stocks emerges as govt raises fund allocation to infra projects

Shares of infrastructure and construction-related companies are trading higher after the government gave a boost to infrastructure projects in the Union Budget 2021.

Finance Minister Nirmala Sitharaman in her Union Budget 2021 speech announced a National Bank for Financing Development (NaBFID) to help in the process of infrastructure financing in the country.

As much as Rs 5 lakh crore will be lent by DFI in 3 years' time, the FM said. "We will also introduce a bill to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects. This developmental financial institution will play a key role as an enabler for infrastructure financing in the country," the FM said.

The FM said the National Infrastructure Pipeline has been expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline.

Shares of KNR Constructions, UltraTech Cement, Ramky Infra, SPML Infra, Kakatiya Cement and HG Infra Engg are trading with a gain of 5-8 percent on the BSE.