Cement sector bets big on Budget sops

The sufficient fund allocated for the construction and infra segments of the rural heartland of the country and score of other sops for both home buyers and builders including hiking allocation to rural low-cost housing under Pradhan Mantri Awaas Yojana-Gramin scheme to Rs. 23,000-cr from Rs. 16,000-cr will push the demand for cement and allied products to new highs. As a matter of fact, these announcements aimed at boosting rural income, thereby, making housing affordable for the lowest strata of society. Experts opined that infrastructure status for affordable housing projects would give the companies higher access to the capital markets, since housing limits won't be applicable. This could boost housing projects and cement demand and it will also drive housing demand higher. The National Housing Bank will refinance individual housing loans of about Rs. 20,000-cr in 2017-18, so that the proposed target of completing 1 crore houses by 2019 could be achieved.