CAPITAL OUTLAY
Capital goods companies expected to post 9-11% revenue growth rate in FY25
As per the analysis, operating margin could moderate 80-100 basis points to 12-13% in fiscal 2025 as the market scenario continues to be highly competitive and exports remain sluggish.
Road construction down by 12.1% to 1288 km in the current financial year up to May 2024
As per the monthly update, released the ministry of road transport and highways (MoRTH) on Wednesday, the capital expenditure incurred during the period stood at Rs 57,925 crore till May 2024, which is 42.5% of the capital outlay under the vote on account provision for the first five months of 2024- 25.
Adani Airport raises RS 150 cr via bond issue
Adani Airport Holdings raises ₹150 crore debt at 9.95% for capital expenditures and transaction costs, issued senior secured non-convertible debentures maturing in June 2028.
New govt to continue to maintain focus on infra sector: Icra
The new Indian government will focus on infrastructure, with higher outlays towards railways, roads, and water, according to Icra. Narendra Modi will assume the role for the third time, but with a smaller-than-expected election victory, the BJP will share power in a coalition government. The capital outlay is expected to sustain growth momentum, as it contributes to GDP multiplier effects and job creation in unskilled and semi-skilled segments.
Reality behind the 8.2% FY24 GDP growth is not as robust
The 8.2% FY24 GDP growth reflects a modest deceleration from 3QFY24 at 8.6%. Real gross value added growth slowed considerably in 4QFY24 to 6.3% from 8.3% in 1QFY24.
India utilised 99.9% of its capex target in FY24
India has used Rs 9,48,506 crore in its capital expenditure in FY24, up from the revised estimate of Rs 9,49,555 crore. The government plans to narrow its fiscal deficit to 5.1% in FY25 from 5.8% in FY24. Private capex is expected to be an important driver of growth and job creation. India's GDP growth was 7.8% in Q4 of FY24, and the overall growth rate is now estimated to be 8.2%.
- Go To Page 1
Saudi Arabia may announce landmark Aramco share sale today: Report
Saudi Arabia may announce a landmark secondary share offering in oil giant Aramco later on Thursday, pending final approval from Crown Prince Mohammed bin Salman, people with knowledge of the matter said.
Airtel likely to be biggest 5G spectrum buyer in June 6 sale: Analysts
Bharti Airtel is expected to increase its sub-GHz airwave holdings in the 900 MHz band across multiple circles in the upcoming spectrum auction, potentially becoming the top buyer despite Reliance Jio submitting the highest earnest money deposit (EMD). Airtel aims to bolster its rural mobile broadband coverage by enhancing its low-band airwaves arsenal. While Jio leads in sub-GHz spectrum holdings, Airtel's recent focus on rural expansion and improved financial position suggests significant investments in 900 MHz spectrum across 12 circles.
Dalal St is likely pricing in a Modi 3.0 but election winners already have a bitter household burden
India's stock market hit an all-time high last week, as investors anticipate a third term for Prime Minister Narendra Modi will boost corporate profits. However, consumer debt poses a significant risk. Slow wage growth, high interest rates, and heavy borrowing have strained spending for over 300 million families. Despite this, investors expect post-election growth in private capital expenditure and infrastructure projects
FY25 capital expenditure outlay may be hiked by 10%
India may increase FY25 capital expenditure by 8-10% from the ₹11.11 lakh crore vote on account allocation, boosted by better tax revenue and a record RBI surplus transfer. The full budget, awaited post-election results on June 4, could see a surge in spending, as per a senior official.
Centre used capex to build quality infrastructure: FM Nirmala Sitharaman
Sitharaman said the share of capex in overall expenditure went up to over 21% in 2023-24 as against just 12% in 2013-14 during the UPA regime, when infrastructure development remained grossly neglected.
PM's active role, personal monitoring responsible for infrastructure sector turnaround, says FM
Nirmala Sitharaman praises PM Narendra Modi for reviving the infrastructure sector, highlighting the neglect during the UPA regime and the significant advancements made under the Modi government, including the expansion of the Metro network, growth in the aviation sector, and initiatives to boost the maritime ecosystem.
India's defence sector has opportunities for USD 138 bn over next 10 years
Nomura's 'India Defence' report projects a substantial USD 138 billion ordering opportunity in India's defence sector over FY24-32, driven by rising demand for equipment and services. Defence capital expenditure is expected to surge to 37% of the total budget by FY30, supported by government policies promoting indigenous manufacturing and technology development.
500 MSMEs apply for sops under two key schemes for green investments and circular economy in first three months of their launch
500 MSEs apply for GIFT and SPICE schemes, with 380 crore loan disbursed. SPICE emphasizes energy-saving benefits until FY27, aiding MSEs in adopting green tech and circular economy projects for sustainable growth.
Vedanta best-placed to ride rising commodity prices, say analysts
Mining conglomerate Vedanta Ltd is expected to see less pressure on cash flows after liability management at the holding company level, and is now best placed to ride rising commodity prices. The company's improved performance in aluminium, power, and zinc led to an EBITDA of Rs 87,600 crore in the January-March quarter, up by 4% quarter-on-quarter. Vedanta is set to complete its alumina/aluminium/international zinc expansion during the current fiscal year (FY25), providing visibility around volume growth and cost reduction FY26 onwards.
Exceeding target: Oil PSUs made a capex of ₹1.28 lakh cr in FY24
State-run oil companies exceeded capex targets, with IndianOil leading in spending. ONGC focused on drilling more wells for energy prospects. HPCL invested in a refinery project, while GAIL and Oil India also increased spending.
Govt plans major capital goods production push
India is considering expanding its capital goods promotion scheme to include sectors like pharmaceuticals and textiles. The current scheme primarily supports electrical component and automobile manufacturing, but the government is now considering extending support to other sectors. Plans are also being considered to introduce new-age technologies beyond electric vehicles, batteries, and automobile manufacturing.
Max Healthcare readies Rs 5,500-crore outlay for capacity expansion
Max Healthcare has 4,000 beds, mainly concentrated in Delhi NCR. Of the fresh capacity, about 2,600 beds will become available over the next four years. The hospital chain is planning to open 300 beds in Delhi shortly besides commissioning 1,000 beds each in FY25 and FY26.
Buy L&T on dips; worries over FMCG stocks continue: Sudip Bandyopadhyay
Sudip Bandyopadhyay shares insights on various sectors. Recommends quality stocks like Larsen & Toubro and highlights optimism for TCS, concerns in FMCG & chemicals, and potential in commercial real estate and metal sectors. He further says Monday's correction and maybe a few more days’ corrections which we will see, provides a good opportunity to buy some of the quality stocks which have corrected.
Cabinet approves 'India AI Mission' with an outlay of Rs 10,371.92 cr for five years
The Union Cabinet has approved a Rs 10,371.92 crore 'India AI mission' for five years to promote Artificial Intelligence in India. The mission aims to establish a comprehensive ecosystem for AI innovation, democratize computing access, improve data quality, develop indigenous AI capabilities, attract top talent, enable industry collaboration, provide startup risk capital, ensure socially impactful AI projects, and bolster ethical AI.
Govt spent 80% of revised FY24 capex outlay
The official said the collections under various small savings scheme remain healthy this fiscal and will be in sync with the revised estimate. The net mop-up for senior citizens breached ₹90,000 crore as of end-January this fiscal, way above that of ₹37,362 crore in the whole of FY23. The surge is mainly driven by the 2023 Budget move to double the deposit limit under the scheme to₹30 lakh.
HFCL announces optical fibre cable plant in Poland at initial outlay of up to Rs 144 cr
HFCL is expanding into Europe by setting up an optical fibre cable manufacturing plant in Poland. The move is part of the company's global expansion strategy to meet the growing demand for optical fibre cables (OFC) in European markets. The manufacturing facility in Poland will have an initial capacity of 3.25 million fibre km (fkm) and can be scaled up to 7 million fkm.
Electronics parts PLI: Centre, companies get on call with ₹20,000 crore outlay on the agenda
As per MeitY, building an electronics components and semiconductor ecosystem is at the heart of electronics manufacturing and is a naturally extended outcome towards producing the finished electronics products. "An electronic device consists of a high density of components and the manufacturing of these components holds immense job and value addition potential," Meity said, while seeking inputs from the industry.
FM Nirmala Sitharaman: With 17% hike in outlay, Interim Budget focus still on capital expenditure
Finance Minister Nirmala Sitharaman underscores the significance of capital expenditure in the FY25 interim budget, citing its economic multiplier effect. She highlights a 17% increase in capex outlay to ₹11.11 lakh crore, exceeding nominal GDP growth. Sitharaman asserts that robust capital spending drives infrastructure development, boosts employment, and enhances living standards. The Rajya Sabha passes key financial bills, affirming the government's fiscal course correction post-pandemic, without compromising welfare spending.
Higher outlay for roads to push ongoing projects; pvt funds to pave a new path
The 2.7% hike in the budget for road transport and highways will be committed to ongoing projects. The government plans to attract private investment through build-operate-transfer (BOT) and public-private-partnership (PPP) models, as well as asset monetisation. The government aims to bid out 54 road projects worth over ₹2.2 lakh crore. However, experts note that the real increase in capital expenditure is not more than 5% due to a 6% increase in construction material costs. The government aims to reduce travel time, enhance travel experience, and lower logistics costs.
Govt invites bids for setting up ACC units under PLI scheme for battery storage
PLI scheme 'National Programme on Advanced Chemistry Cell Battery Storage' promotes manufacturing of technology-agnostic ACC in India. "With this bidding process, the prospective applicants can submit their bids to set up domestic manufacturing facility for ACC, which will help them qualify for incentives under PLI ACC scheme," the heavy industries ministry stated.
Capital outlay for renewables, roads to surge 33% in 2 years: Crisil
Road project building is likely to rise to as much as 13,000 kilometres a year, from about 10,000 kilometres, led by the Hybrid Annuity Model (HAM), said Crisil. HAM was implemented in 2016 which reduced the risk of completion of a road project to encourage companies to bid for it.
PPP push: FinMin asks infra depts to identify projects for private partnership
India's finance ministry has asked infrastructure departments to identify possible projects for private partnership. The move aims to draw greater private capital into public infrastructure and reduce delays, through particular focus on sectors like urban infrastructure, railways and roads. The ministry plans to roll out a public-private partnership architecture and standard model concession agreement framework for various infrastructure sectors.
BJP-led government in Tripura presents state budget for 2023-24 with an outlay of Rs 27,654.40 crore
Tripura Chief Minister Manik Saha on Friday described the 2023-24 Budget as inclusive and future-oriented, highlighting its benefits for all sections of society.
Load More
