Road developers gain over 4% on investment plans in Budget 2014

MUMBAI: Shares of road developers rose by as much as 4.2 per cent today after Finance Minister Arun Jaitley proposed a Rs 37,880 crore investment in National Highways Authority of India and state roads in the current fiscal.

IRB Infrastructure Developers' scrip settled 4.18 per cent higher, while Ashoka Buildcon rose by 2.47 per cent and GMR Infrastructure was up 0.89 per cent on the BSE.

"It looks like the Finance Ministry and Ministry for Transport & Highways seem to be collaborating with each other with the Finance Minister echoing the Transport Ministers roadmap to lay down 23 kms of road/highway everyday," said Samir Kanabar, Tax Partner-Infrastructure Practice, Ernst & Young.

This vision has been well augmented by the proposed infusion of funds into NHAI and the proposal to work on select expressways in conjunction with the development of industrial corridor, he added.

The Finance Minister announced an allocation of Rs 37,880 crore for National Highways Authority of India and State Roads, out of which Rs 3,000 crore will be spent in the North East.

He announced that during the current financial year, a target of construction of 8,500 km of National Highways will be achieved.

The FM also announced initiation of work on select expressways in parallel to the development of industrial corridors.