Budget 2024: Cement Sector To Get Boost From Focus On Infra, Affordable Housing
The Union government to meet the housing needs of 10 million urban families through an investment of Rs 10 lakh crore.
The central government maintained its focus on infrastructure investment and affordable housing in the Union Budget 2024–25. There were major announcements with respect to housing schemes and a 16% rise in infrastructure allocation to Rs 14.8 lakh crore.
The continued momentum in infrastructure spending stands to benefit cement demand, according to brokerages. The investments announced in Bihar and Andhra Pradesh also stand to benefit the cement players in the region.
Union Budget: Key Takeaways
Major announcements for infrastructure and housing include:
Affordable housing budget outlay rose 56% to Rs 84,700 crore.
The government to formulate transit-oriented development plans for 14 large cities with a population above 3 million.
30 million additional houses under the PM Awas Yojana (Urban).
The government to meet housing needs of 10 million urban families through an investment of Rs 10 lakh crore.
Promotion of water supply, sewage treatment and solid-waste management projects and services for 100 large cities.
Provision of Rs 1.5-lakh-crore long-term interest-free loans to support infra investments by various states.
Allocations For Andhra Pradesh, Bihar
The 2024 budget also laid emphasis on the development of states like Andhra Pradesh and Bihar with a set of project announcements:
To provide Rs 15,000 crore in financial support for the Andhra Pradesh Reorganisation Act.
Investments in infra in Andhra Pradesh for developing the Vishakhapatnam–Chennai and Hyderabad–Bengaluru economic industrial corridors.
Financing and early completion of the Polavaram irrigation project in Andhra Pradesh.
Development of road and power projects in Bihar at a cost of Rs 26,000 crore and Rs 21,000 crore.
Development of industrial node at Gaya, Bihar.
Projects in Bihar worth Rs 11,500 crore to combat floods.
Who Benefits?
The overall infrastructure development in the country creates demand for all cement players. However, the focus on Andhra Pradesh and Bihar stands to benefit cement players with a presence in the east and south regions, such as UltraTech Cement Ltd., ACC Ltd., Shree Cement Ltd., Dalmia Bharat Ltd., Nuvoco Vistas Corp., the Ramco Cements, Deccan Cements Ltd., KCP Ltd. and Sagar Cements Ltd.
