Infra stocks rally as government plans to raise Rs 1 lakh crore for sector

MUMBAI: Shares of infrastructure companies surged higher on reports that the government is finalising a huge corpus that will be invested in infrastructure sector.

"The government will soon finalise a dedicated corpus of Rs one lakh crore to invest in infrastructure projects," reported Gaurie Dwivedi, ET NOW quoting sources.

According to sources, the fund will be raised by a corporation and negotiations with global investors are in the last lap.

ET Now has learnt that the government is close to finalising ?the term sheet with a clutch of Japanese investors.

While the government will dilute 26 per cent stake in the entity, it will guarantee a minimum return of 5 per cent to investors.

The corpus could prove to be a game changer for fund-starved infrastructure sector and will help money break ground quite literally.

The proposed corporation, which will be the government's umbrella vehicle for all infra projects, will only fund government owned projects.

With an ambitious target of building close to 11,000 kms per year, the government’s task to raise funds and clear hurdles is cut out.

The Government is also planning to build highway corridors for Uttarakhand and North East.

At 10:40 a.m.; ARSS Infrastructure 5%, IRB Infra gained 4.57 per cent, Gammon Infra 4.95 per cent, Madhucon Projects 4.93 per cent, Pratibha Ind 4.93 per cent and Simplex Projects moved 4.99 per cent higher.