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Mr. Rajeshwar Burla,

Vice President, Corporate Ratings,

ICRA Ltd on Union Budget Impact on Roads sector.

FY2022 remains a crucial year for two reasons: a) the importance of Government spending on infrastructure to revive the economy and b) the significant catch up required in the ongoing Bharatmala and allied programmes. In this backdrop, the massive increase in the budgetary allocation towards capital spend for ministry of road transportation and highways by 32% to Rs. 1,08,230 crore in BE FY2022 bodes well for the road sector. Including the IEBR (market borrowings) and asset monetisation proceeds for NHAI, the total capital outlay increased by 35% to Rs. 1,98,230 crore in BE FY 2022 from Rs. 1,46, 975 crore for BE FY2021.