What are the Opportunities for Infra Companies Emanating from the Union Budget of India in 2023?
The Union Budget of India for 2023 is here. The honorable FM has announced several measures which are aimed at boosting infrastructure development in the country. We walk you through some of the opportunities for infrastructure EPC companies, which are as follows:
1. Increased Capex Allocation for Building India’s Infrastructure
The highlight of this year’s union budget is the mega capex push worth INR 5.54 lakh crores. The capex allocation represents an 11% hike over last year.
The capital expenditure will provide opportunities to EPC companies to participate in new infra projects and secure contracts under the auspices of the National Infrastructure Pipeline.
2. Focus on Infrastructure Development in Tier 3 Cities and Rural Areas
The government has announced several measures to enhance rural infrastructure, including the creation of a rural infrastructure development fund and the development of rural industrial clusters. This presents opportunities for EPC companies to participate in projects aimed at improving rural infrastructure.
3. Outlay of INR 2.5 Lakh Crore for the Development of Roads and Highways
The union budget has emphasized the importance of road and highway development, with a target to construct 40 km of roads per day. The outlay of INR 2.5 lakh crores for roads and highways is expected to create opportunities worth INR 1.8 lakh crores for project developers and those worth INR 0.7 lakh crores for MRO solutions providers.
4. Expansion of Port & Terminal Infrastructure Under the Union Budget
India already has an active and operational policy framework for the development of ports and terminals called the “Bharatmala Scheme”. This year’s union budget makes a capex outlay of INR 1608 crores for the development of ports & terminals. This presents opportunities for infrastructure companies to participate in port development projects.
5. Climate Action and Shift Towards Green Manufacturing and Renewable Energy
The union budget for 2023 marks the beginning of India’s pivot towards green manufacturing and renewable energy. The outlay on green hydrogen alone is INR 35,000 crores. This presents opportunities for infrastructure companies to participate in renewable energy projects.
Overall, the Union Budget of India for 2023 presents a range of opportunities for infrastructure companies looking to participate in the development of physical infrastructure in the country.
Explore the detailed analysis of opportunities in the National Infrastructure Pipeline and procurement and supply chain recommendations for CEOs, CFOs, CTOs, and CPOs of EPC project developers and sub-contractors in the e-book: “Union Budget 2023; The Decision Maker’s Vantage Point”.