What the Budget does
- Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) to be continued during the Eleventh Plan period with a capital subsidy of Rs 28,000 crore. Allocation of Rs 5,500 crore for 2008-09.
- Corpus for the Rural Infrastructure Development Fund (RIDF-XIV) to be raised in 2008-09 to Rs 14,000 crore, with a separate window for rural roads.
Impact on sector
- No relief to the infrastructure financing sector in terms of tax rates.
- Infrastructure financing companies to benefit under the public private partnerships proposed under various infrastructure schemes. The corpus for the Rural Infrastructure Development Fund will facilitate such PPP projects in the rural segments as well.
- Companies that finance rural electrification will benefit from the additional subsidy offered to RGGVY.
Also read: How Budget affects your stocks
Impact on companies
- Rural Electrification Corporation will benefit from the additional subsidy offered to RGGVY.
- IDFC to benefit from private participation in infrastructure projects.
- HDFC to benefit from the subsidies offered to rural housing due to the company's focus on the same.
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