Shares of 12 construction companies were up by 0.78% to 8.46% at 15:05 IST on BSE after the government approved highway projects worth about Rs 6.92 lakh crore.
Meanwhile, the S&P BSE Sensex was up 450.61 points, or 1.38% to 33,057.95.Sadbhav Engineering (up 8.46%), KNR Constructions (up 7.37%), Hindustan Construction Company (HCC) (up 5.92%), IRB Infrastructure Developers (up 5.41%), NCC (up 5.17%), Dilip Buildcon (up 4.45%), Gayatri Projects (up 3.92%), Gammon Infrastructure Projects (up 3.57%), NBCC (India) (up 3.11%), Patel Engineering (up 2.97%), RPP Infra Projects (up 2.15%) and Tarmat (up 0.78%), edged higher.
The government on Tuesday, 24 October 2017, approved to develop approximately 83,677 km of roads at an investment of Rs 6.92 lakh crore by 2022. The highway construction programme is aimed at pushing economic activity and generating at least 14.20 crore man-days across the country over the next five years.
The programme includes the Bharatmala scheme, under which 34,800 km of highways would be constructed at the cost of Rs 5.35 lakh crore. Under Bharatmala, the road transport and highways ministry will construct 9,000 km of economic corridors across the country. The project also entails constructing 6,000 km long inter corridor and feeder routes, 2,000 km of border and international connectivity roads, 5,000 km to be upgraded under the national corridor efficiency programme, 800 km of greenfield expressways, 10,000 km under the national highway development programme (NHDP) and 2,000 km of coastal and port connectivity roads.
For the highway construction programme, Rs 2.09 lakh crore will be raised as debt from the market, Rs 1.06 lakh crore of private investments would be mobilized through public private partnership (PPP) and Rs 2.19 lakh crore is to be provided out of accruals to the Central Road Fund (CRF), toll operate transfer (ToT) monetisation proceeds and toll collections of National Highways Authority of India (NHAI).
In addition to 34,800 km under Bharatmala, NHAI will parallel implement the balance works of 48,877 km roads under other current schemes with an outlay of Rs 1.57 lakh crore. This will be financed by providing Rs 97000 crore from CRF and Rs 59000 crore as gross budgetary support.
Further, central and state governments will spend another Rs 88185 crore in the next three years towards constructing rural roads under Pradhan Mantri Gram Sadak Yojana. In addition, roads worth Rs 11,725 crore, involving 5411 km of upgradation of existing roads and construction of new roads in 44 left wing extremism (LWE) districts, will be completed by 2019-2020.
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