The infrastructure and cement industry is finally seeing promises made by the Narendra Modi fulfilled as executives say demand has increased on back of government initiatives. The cement sector is witnessing volume pick up on the back of initiatives taken by the government in the construction and infrastructure space. There has been an uptick in volume since January and prices have increased backed by strong demand says, Atul Daga, CFO of Ultratech Cement .
This growth in volume is driven by the government spending in northern India and the clearing of stuck road projects. Ultratech is functioning at 90 percent capacity in select parts of the country. However, the company is yet to see traction from the south Indian market, he added.
Sudhir Hoshing, Joint MD of IRB Infra said that land acquisition is no longer a hurdle and National Highway Authority of India (NHAI) awards have rapidly increased in the last 2-3 months. Traffic has grown 7-8 percent on the back of which a tariff growth of 3 percent was clocked in FY16. There has been a significant improvement in the road sector under the Prime Minister Modi’s government and the company plans to commission two projects by the end of fiscal year 2017.