Many infrastructure stocks gained attention in Saturday’s trading session after Finance Minister Nirmala Sitharaman announced various revamps for the sector in Budget 2025.
An Urban Challenge Fund of Rs 1 lakh crore will be established to transform cities into dynamic growth hubs, promote innovative redevelopment, and enhance water and sanitation infrastructure.
The fund will cover up to 25 percent of the cost of the projects, provided at least 50 percent is funded through bonds, loans, or PPPs. An allocation of Rs 10,000 crore has been proposed for 2025-26.
Further, states will receive an outlay of Rs 1.5 lakh crore in interest-free loans over a 50-year period to drive infrastructure development.
A second asset monetisation plan has been announced for FY 2025-30 similar to the one in 2021. It aims to maximise the value of public assets and inject Rs 10 lakh crore into new projects.
Finally, each infrastructure ministry and state will be required to develop a three-year project pipeline, with financial and technical support available through the India Infrastructure Project Development Fund.
Listed below are the stocks that are set to benefit from these announcements made in the 2025 Budget:
1. Larsen & Toubro (L&T)
Larsen and Toubro Limited is a major player in infrastructure projects. They are a multi-international conglomerate in EPC solutions for major sectors. These include infrastructure, defence, process industries, hydrocarbons, power, IT, and financial services. The company has a strong global presence, catering to domestic as well as international clients.
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2. IRB Infrastructure Developers Ltd
IRB Infrastructure Developers Ltd is a renowned infrastructure development and construction company in India, known for its expertise in the roads and highways sector. The company also has a diversified presence across various other segments of the infrastructure industry, including airport development, real estate projects and road maintenance.
3. NCC Limited
NCC is an active construction and infrastructure development company with a pan India presence and nearly 500 building projects. They cover sectors such as transportation, water, environment, irrigation and railway among others.
4. KNR Constructions Ltd
Based in Hyderabad, KNR Constructions Ltd is a leading infrastructure project development company providing EPC services in segments that include roads, highways, irrigation and many more.
Written by Shwetha Sairam
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