Construction shares in demand after Cabinet's reforms push

Hindustan Construction Company (up 3.74%), Sadbhav Engineering (up 2.25%), Valecha Engineering (up 1.63%), IVRCL (up 1.57%), Unity Infraprojects (up 1.52%), NCC (up 1.05%), C & C Constructions (up 1.03%), KNR Constructions (up 0.92%), Tarmat (up 0.81%), Gammon India (up 0.79%), Madhucon Projects (up 0.15%) and Era Infra Engineering (up 0.11%), edged higher.

The BSE Sensex was almost flat at 19,228.41.

As per the Cabinet approval, the ceiling of 4,000 km of four laning in NHDP Phase-IV has been enhanced to 8000 kilometre (km). Such projects will henceforth be undertaken on Build Operate Transfer BOT (Toll) mode only, based on the traffic justification as per IRC code and guidelines, the government said in a statement.

 

Projects with traffic between 5,000 Passenger Car Units (PCUs) and 10,000 PCUs that are not viable to be developed on BOT (Toll) mode could be allowed to be developed directly on EPC mode. In the current year 2012-13, the Ministry of Road Transport and Highways proposes to take up 4,000 km on EPC basis.

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