Road construction firms gain on plans to allocate proceeds from excise duty hike

The proceeds from the excise duty hike will be used to fund infrastructure development, including 15,000 km of roads

Shares of road construction firms were up 1-8% as the government plans to allocate proceeds from the recent excise duty hike for road construction.

The proceeds from the hike in excise duty on petrol and diesel is going to be allocated to fund an “ambitious infrastructure development programme” this and the next financial year, including 15,000 km of road construction.

The government has decided to increase excise duties on petrol and diesel, both branded and non-branded by Rs 2/litre.

Ashoka Buildcon, IRB Infrastructure, Sadbhav Engineering and IL&FS Transportation Networks were up 1-8% each.