Interim Budget 2019 Reaction - Mr. K. Ravichandran, Senior VP & Group Head - Corporate Ratings, ICRA
There has been a budgetary allocation of Rs. 550.0 crore (BE 2019-20) for Sagarmala projects vs Rs. 381.1 crore for RE 2018-19. However, around Rs. 200 crore additional funding will be done through Central Road and Infrastructure Fund (CRIF) (Rs. 125 crore funded from CRIF in RE 2018-19). Other proposals include budget allocation of Rs. 214.2 crore for development of ports (RE 2018-19 Rs. 248.7 crore), Grants of Rs. 757 crore to the Inland Water Transport Authority of India (RE 2018-19 Rs. 891.1 crore), plan to scale up the efforts under Sagarmala and speed up the development of Inland Waterways.
The government has reiterated its support towards the plans under the Sagarmala to develop the ports and coastal areas of the country. Further, the announcement to speed up development of other inland waterways (apart from National Waterway 1 which is already under development) is also a positive. However, the allocation to Sagarmala in terms of budgetary support continues to remain low as compared to the cost of planned initiatives under these schemes. The spending under Sagarmala in 2018-19 was lower at only 64% of the budget allocation of Rs 600 crore and the budget allocation for 2019-20 has been reduced to Rs 550 crore. Overall, the impact of the budget is neutral for the sector.
Shares of ICRA LTD. was last trading in BSE at Rs.3019.95 as compared to the previous close of Rs. 3019. The total number of shares traded during the day was 511 in over 13 trades.
The stock hit an intraday high of Rs. 3019.95 and intraday low of 2997. The net turnover during the day was Rs. 1531732.