Budget 2021 Live Updates

 

 
  • Healthcare allocation increased to Rs54600 crore; positive for Dr Lal Path Lab, Thyrocare etc..

  • New Atma Nirbhar Health Young introduced with outlay of Rs 64,180 Crore

  • Rs 2.87 lac cr outlay over 5 years announced for water supply for households; positive for PVC companies like Finolex, Astral, Prince and Supreme

  • Rs2.86 crore households to be benefited under “universal water supply programme” through tap water; positive for pipe companies

  • Scrapping policy introduced to encourage fuel efficiency/green initiative;  vehicles need to go through fitness test

  • Rs35000 crore provided for COVID-19 vaccines;  positive for Cadila, Dr Reddy's

  • PLI scheme for 13 sector at Rs1.97 lakh crore

     

  • PLI scheme for manufacturing for next 5 years

     

  • No increase in PLI schemes beyond Rs1.97lakh crore for 13 sectors

     

  • 7 textile parks to be established in next 3 years

     

  • Voluntary scrappage policy announced for vehicles more than 20 years old and CV more than 15 years old; would have minimal impact on auto industry

  • NIP requires major increase in funding

  • Lending institution for infrastructure projects with capitalisation of Rs20000crore and it should scale up to Rs5trillion in lending portfolio

  • NIP (national infrastructures pipeline) covered over 74000 projects

  • National Infra Projects expanded to 7,400 projects from existing 6,835 projects

  • Positive for Apl Apollo Tubes

  • Formation of infrastructure finance institution- a big positive for infra companies

  • Railways to monetise Direct Freight Corridor after completion; stocks to watch - RITES, IRCON, RVNL and IRFC

  • Sharp increase capital expenditure to Rs4.39 lakh crore over last year, next year capital expenditure Rs 5.54 lakh crore; big positive for infra companies including IRB Infra, L&T, NCC, HG Infra

  • Under Bharatmala, more economic corridors to come. Rs 19,000crore in Assam, Rs1,18,000 crore for ministry of highways

  • Rs25,000 crore allocation for Roads in West Bengal; positive for road companies including PNC infra, HG Infra, NCC, L&T etc..

  • National Infrastructure Pipeline has been expanded to 7,400 projects; projects worth Rs 1.1 lakh crore completed under NIP; to introduce bill to set up DFI with Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects

  • 100% electrification for railways by Dec 2023; positive for IRCON, RITES, RVNL

  • 8500 kms awarding target for roads in FY22; positive for L&T, NCC, HG infra, PNC infra, IRB Infra, Ashoka Buildcon etc.

  • Higher allocation towards different metro projects across the country; positive for JKumar Infra, L&T, ITD Cementation etc.

  • Announcement of Metros in Kochi, Bengaluru, Nashik, Nagpur and other cities; positive for RITES

  • Focus on smart energy meter; to launch hydrogen energy

  • Framework will be put in place to give customers alternatives to choose among more than one Power DISCOMs.

  • Scheme to provide incentives to DISCOMs; positive for PFC, REC

  • Highway works proposed; 3,500 km corridor in Tamil Nadu; 1,100 km in Kerala at investment of Rs 65,000 crore; 675 km in West Bengal at a cost of Rs 95,000 crore and 1,300 km in Assam in the next 3 years

  • Plan to prepare a future-ready railways system by 2030; positive for IRCTC

  • Ujjwala scheme to be extended to 1 Cr additional beneficiaries

     

  • Provisions of the SEBI ACR, Depositories Act, Securities Contract Regulation into a single Securities Markets code.

  • Increase permissible FDI limit to 74% ; positive for life insurance companies - SBI LIFE, HDFC LIFE, Max Life would benefit more.

  • Rs1,000 crore allocation for Solar Energy and Rs500 crore for renewable energy; positive for Adani Green

  • Bad bank will be set up for stressed assets.

  • Depositors should get easy access upto the deposit insurance cover.

     

  • Will infuse more confidence in some of the weaker and vulnerable banks.

  • Rs20,000 crore bank recapitalisation allocation for FY22; positive for PSBs

  • Divestment of BPCL, Air India, Shipping Corp, BEML to complete in FY22; all divestment proposals would be completed in FY22; divestment proceeds seen at Rs175000crore

  • The Govt to monetize 2 PSBs and 1 general insurance company in FY22

  • IPO of LIC will also be competed in FY22

     

  • The Govt revised MSPs thrice last year; paid Rs75,000 crore to farmers for wheat in FY21 as against Rs 33,000 crore in FY14

     

  • Agricultural credit target enhanced to Rs16.4 lakh crore

     

  • 5 major fishing hubs proposed to be set up; positive for Garware Polyfibers, EMMBI, Apex Frozen Food, Waterbase, Avanti Feeds

  • Social Security Benefits will be extended

     

  • Women will be allowed to work in all categories and even in night shifts with adequate protection

     

  • Margin money requirement reduced from 25% to 15%

     

  • Allocated Rs15700crs for the MSME sector; positive for most banks

  • One Nation One Ration system across 32 states and UTs under implementation

     

  • Very interesting scheme giving full benefit to migrant labours in terms of flexible procurement of ration bringing down cost of living for them in metros.

     

  • It would increase availability of affordable labours for industries

  • Merger of SEBI ACT, SCRA, GOV SEC. ACT,  DEPOSITORY ACT as securities market code; positive simplification initiative

     

  • The government paid Rs 62,802 crore in FY20 v/s Rs 33,874 crore in FY14 to wheat farmers. The government is offering MSP of at least 1.5x of production

     

  • Paid wheat farmers rs 75,100 crore wheat MSP in FY21; paid pulse farmers Rs 10,530 crore in FY21, v/s  Rs 8,285 crore in FY20 and Rs 236 crore in FY14; while Cotton farmers received rs 25,974 crore in FY20, compared to Rs 90 crore in FY14.

     

  • The FY22 Agri-Credit target is at Rs 16.5 lakh crore. Further, the Rural Infra Fund has been increased to Rs 40,000 crore.

  • Fiscal deficit for FY21 seen at 9.5% vs. estimate of 7%; Gross borrowing Rs12 lakh cr

  • Expects to maintain fiscal consolidation and to achieve less than 4.5% fiscal deficit by FY26

  • Affordable Housing and rental housing: provided an additional deduction of Rs1.5 lakh; extended the eligibility of this condition to Mar'22

     

  • Affordable housing projects to enjoy tax holiday till Mar'22; positive for affordable financiers like Aavas, Canfin and Repco

     

  • Tax incentives through IFSC; proposed to include tax holiday for capital for aircraft lease companies

     

  • Tax exemption to foreign banks located in the IFSC

  • Capital gains exemption for investment in startups for 1 more year.

  • Duty raise proposed for cotton from nil to 10%; negative for Page Industry, Rupa, Lux Industry, Arvind Fashion

  • Custom duties increased for certain automobile components from existing 2.5-5% to upto 15%; this would increase localisation and motivate domestic auto components manufacturers, though over near term its negative for OEMs; positive for Auto Ancillary Cos.