Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on Sunday, February 1. The government has increased the infrastructure spending target to ₹12.2 lakh crore for the upcoming financial year. A major focus has been placed on high-emission sectors like steel and cement with a new funding scheme. Developers and builders also received significant attention in this budget to speed up construction projects across the country.
What is the ₹20,000 Crore scheme for industries?
The government announced a ‘Carbon Capture and Utilization’ (CCUS) scheme worth ₹20,000 crore. This fund is specifically designed for steel and cement industries to help them adopt new technologies. These technologies will reduce carbon emissions during production processes.
This financial support will be available to the industries over the next five years. The main goal is to help these heavy industries upgrade their systems without bearing the entire cost burden alone. Market experts believe this move will provide long-term benefits to companies in the steel and cement sectors.
New Benefits for Developers and Key Projects
A new ‘Infrastructure Risk Guarantee Fund’ has been launched for private developers. This fund will help developers get loans from banks easily and manage risks during the construction phase. The government also proposed using REITs to recycle assets of public sector enterprises, creating new opportunities for builders.
Major Infrastructure Announcements:
| Project/Scheme | Details |
|---|---|
| City Economic Regions | ₹5,000 crore per zone for 5 years |
| High-Speed Rail | 7 new corridors (incl. Mumbai-Pune, Bengaluru-Chennai) |
| Freight Corridor | New line from Dankuni (WB) to Surat (Gujarat) |
| Waterways | 20 new national waterways in next 5 years |
| PIO Investment | Limit increased from 5% to 10% |
Additionally, ship repair hubs will be developed in Varanasi and Patna to support inland water transport. These announcements had a positive impact on the market, with shares of infrastructure companies like L&T and NBCC showing gains immediately after the budget speech.
