Finance minister Nirmala Sitharaman made a slew of proposals while presenting the Union Budget 2023 that can directly benefit the country’s steel and cement sectors. Sitharaman announced a capital outlay of Rs 2.04 lakh crore for Indian Railways, the highest-ever outlay and about 9 times the Budget outlay in 2013-14. This is likely to spur steel consumption by the railway sector, said ratings firm ICRA Ltd.
The rating agency further said that the finance minister announcing 50 new airports and additional infrastructure will significantly boost steel demand. “50 additional airports, helipads, water aerodromes, and advanced landing grounds to be revived for improving regional air connectivity,” Sitharaman said.
In another positive development for both the steel and cement sectors, the Finance Minister also proposed 100 critical transport infrastructure projects for last- and first-mile connectivity for ports, coal, steel, fertiliser, and food grain sectors to be taken up on priority with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources.
Union Budget 2023 also brought some cheer to the cement sector as well. Allocation towards the Pradhan Mantri Awas Yojana (PMAY), a flagship mission of the Indian government being implemented by the Ministry of Housing and Urban Affairs (MoHUA), was increased by 66 percent to Rs 79,000 crore.
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