Modi Unveils Ambitious $70 B Housing and Urban Development Plan Across India

Mukesh Buch
25 Jun, 2015
New York City

Prime Minister Modi unveiled three pronged plan to kick off housing projects, build smart cities and provide infrastructure to smaller cities. The ambitious plan calls for government spending of $70 billion over the next seven years. Investors took positive view of the plan and bid up stocks.

[R]6:00 PM Mumbai – Prime Minister Modi unveiled three pronged plan to kick off housing projects, build smart cities and provide infrastructure to smaller cities. The ambitious plan calls for government spending of $70 billion over the next seven years. Investors took positive view of the plan and bid up stocks.[/R]

Stocks traded higher on Dalal Street and market indexes advanced for the ninth time in last ten trading sessions after Prime Minister Narendra Modi sought more homes built for poor.

Prime Minister unveiled three schemes that will accelerate home buildings across the nation, build 100 “smart cities” and rejuvenate 500 cities that lack infrastructure.

The government plans to build 20 million or 2 crore homes at the expense of ₹300,000 crore. The government plans to spend additional ₹48,000 crore in building smart cities and ₹50,000 crore in urban renewal projects.

Rupee strengthened 2 paisa to 63.58 against one U.S. dollar.

The Sensex Index advanced 166.30 or 0.6% to close at 27,895.97. The CNX Nifty increased 37.15 or 0.4% to 8,398.

Gainers & Losers

Adani Enterprises Limited dropped 2.6% to ₹94.50 after the oil and gas explorer’s subsidiary plans to rearrange budget for its $7.72 billion Carmichael coal mine project in Australia.

Cupid Limited surged 19.9% to ₹97 after the healthcare products maker won an order worth ₹103.23 crore or $16.28 million from the National Department of Health, South Africa.

Gujarat Alkalies and Chemicals Limited fell 0.5% to ₹166.10 after the caustic soda maker signed an agreement with U.S.-based Nalco to set-up caustic soda project and coal based power plant at Dahej, Gujarat.

MMTC Limited soared 18% to ₹54.30 after company said that the government approved the renewal of agreement to supply up to 16.5 million tons of high grade iron ore to steel plants in Japan and South Korea over three years.

Srei Infrastructure Finance Limited increased 1.3% to ₹36.60 after the financial services provider plans to raise up to ₹500 crore through a bond offering.

Tech Mahindra Limited dropped 2.5% to ₹532.50 and the software services provider’s subsidiary received an IT services project for about £50 million or ₹500 crore from U.K.-based Circle Health.