CapitalMarket.com - Infra shares extend Thursday's gains as PM sets optimistic target for FY 2013
Hot Pursuit Friday, June 08, 2012 13:07 Hrs IST

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Infra shares extend Thursday's gains as PM sets optimistic target for FY 2013

Eight infrastructure shares rose by 0.19% to 10.06% at 13:05 IST on BSE, extending Thursday's gain triggered after Prime Minister Manmohan Singh laid out ambitious infrastructure development plans for the current fiscal year

Reliance Infrastructure (up 3.25%), L&T (up 0.36%), IVRCL (up 3.06%), IL&FS Transportation Network (up 2.23%), Gammon India (up 0.26%), Valecha Engineering (up 10.06%), HCC (up 0.19%) and NCC (up 2.61%) edged higher.

Meanwhile, the BSE Sensex was down 93.80 points or 0.56% to 16,555.25

Infrastructure shares extended Thursday's gains as Prime Minister Manmohan Singh set optimistic targets for the major infrastructure sectors for the year ending March 2013 on Wednesday. He laid out ambitious infrastructure development plans which included plans to award 9,500 kilometer (kms) of roads for construction this year, which as per a report marks an 18.7% increase over previous year. Over 4,000 kms for maintenance of roads is also planned under the new system.

Manmohan Singh said that the needs of the infrastructure sector are vast estimated at over $1 trillion in the next five years. The government alone cannot invest such huge amounts and therefore it is important that we involve the private sector in our efforts, through Public Private Partnerships (PPP), he added.

The ambitious infrastructure development plans for the current fiscal year was an effort to counter criticism over a perceived policy paralysis that has led India into its worst slowdown in nearly a decade.

In Railways, the government plans to award work on the Elevated Rail Corridor in Mumbai, two new Loco manufacturing units and the public private partnership (PPP) stretch of the Dedicated Freight corridor, in addition to redeveloping 4 or 5 stations through PPP mode in the current year.

In shipping, Singh said the government has set the challenging task of awarding work for two new major PPP Ports, the first in decades, in addition to capacity addition targets which are three times the targets for the last year. In civil aviation, work will be awarded in the current year on three new Greenfield airports in Navi Mumbai, Goa and Kannur and new international airports at Lucknow, Varanasi, Coimbatore, Trichy and Gaya, Singh said. Also, two new hubs will be developed in the country making India a destination as well as a transit point. In power, the government plans to add a record 18,000 megawatts (MW) of capacity this year, Singh said.

"I would urge all the ministries to go the extra mile in implementing what we have planned. I would expect them to very expeditiously resolve any inter-ministerial differences or turf battles that might arise as we move forward. I wish you all the very best and I look forward to reviewing the second and third quarterly progress reports," Singh said after chairing a meeting with ministers holding key infrastructure portfolios

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