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🔶Railways sector:
Some key Developments & Opportunities in the Indian Railways sector:
🔹Government Investment: The Union Budget has allocated ₹2.40 lakh crore for capital investment in the Indian Railways, marking a significant increase from the previous year & reflecting strong governmental support.
🔹Infrastructure Expansion: Projects include doubling railway lines over 2,800 km, gauge conversion over 150 km, and new lines covering 600 km, offering numerous opportunities for railway stocks through key project tenders and bids.
🔹Increasing Passenger Traffic: With passenger traffic projected to reach 12 billion per year by 2031, Indian Railways is upgrading over 1,000 coaches and introducing new high-comfort trains like Vande Bharat and Amrit Bharat Express.
🔹Track Renewal and High-Speed Trains: Increased allocation for track renewal to support the launch of high-speed Vande Bharat trains, enhancing both speed and safety.
🔹Freight Traffic Growth: Anticipated rise in freight demand to 8 million tonnes by 2031, supported by the development of six high-capacity, high-speed corridors for efficient freight movement.
🔶Railways Sector Stocks:
🔹Titagarh Rail Systems Ltd
🔹Texmaco Rail & Engineering Ltd
🔹Jupiter Wagons Ltd
🔹Indian Railway Finance Corporation Ltd
🔶Defense Industry:
Some key Developments & opportunities in the Indian Defense Industry:
🔹Expansive Opportunity Pipeline: The defense industry is set to grow significantly, with an opportunity pipeline worth ~US$ 110 billion over the next 6-8 years. This includes major investments in aerospace (US$ 44 billion), shipbuilding (US$ 40 billion), and missiles/artillery (US$ 26 billion).
🔹Enhancing National Security: Increased tensions with neighboring countries such as China and Pakistan have prompted a strategic defense restructuring. This involves enhancing domestic production and export capacities to better address national security concerns.
🔹 Agnipath Scheme: This defense initiative targets reducing costs associated with personnel & pensions, which make up 51% of the defense budget, reallocating funds to critical defense capital procurement to boost operational & procurement efficiency.
🔹Export Goals: India aims to significantly increase its defense exports, targeting Rs 350 billion by FY25.
🔹 Indigenization Efforts: The Government of India is promoting the 'Atmanirbhar' (self-reliant) defense initiative, which includes:
🔸Increasing the required indigenized content across various defense categories.
🔹Strategic Partnership Model: Promotes private sector participation in defense manufacturing.
🔹Import Embargo: Lists 411 items that are banned from import to boost the domestic industry.
🔹Indigenization Lists: Includes 2,166 items that Defense Public Sector Undertakings (DPSUs) must source domestically.
🔹FDI Enhancement: Increases the Foreign Direct Investment limit to 74% under the automatic route to encourage more foreign investment.
🔹Defense Corridors: Establishes dedicated defense manufacturing corridors in Uttar Pradesh and Tamil Nadu to localize the development of defense technology and infrastructure.
🔶Defense Sector Stocks:
🔹Hindustan Aeronautics Ltd
🔹Garden Reach Shipbuilders & Engineers Ltd
🔹Bharat Electronics Ltd
🔹Cochin Shipyard Ltd
🔶Green Energy Sector:
Some key Developments & Opportunities in the Indian Green Energy Sector:
🔹Solar and Wind Capacity Expansion: By FY28, India plans to add 130-140 GW of solar capacity and 24-25 GW of wind capacity. This growth is supported by an aggressive government tendering roadmap.
🔹Surge in Solar Module Exports: Restrictions on Chinese goods have boosted Indian solar module exports, enhancing India's stature as a key global player in solar technology.
🔹PLI Scheme for Domestic Manufacturing: The Production Linked Incentive (PLI) scheme for solar module manufacturing initially had a financial outlay of 45 billion, which was later increased to 240 billion to support the sector's growth.
🔹Modernization of Power Grids: As India and other nations modernize their electrical grids, there is increasing demand for infrastructure such as towers, smart meters, and transformers to improve reliability and meet rising energy demands.
🔶Green Energy Sector Stocks:
🔹KPI Green Energy Ltd
🔹Waaree Renewables Technologies Ltd
🔹Sterling & Wilson Renewable Energy Ltd
🔹Inox Wind Ltd
🔶Public Infra Sector:
Some key Developments & Opportunities in the Indian Public Infra Sector:
🔹Water Management: "Har Ghar Nal se Jal" aims to ensure clean drinking water to all households using technology to reduce water wastage and upgrading sewage treatment facilities.
🔹Aviation Sector Growth: Enhancing air connectivity through the development of new airports, modernization of existing ones, and expansion of international airports to increase air traffic.
🔹Affordable Housing: Strengthening the RERA Act to enhance transparency and consumer protection in the real estate sector.
🔹Tourism Development: Promoting sustainable ecotourism in lesser-known areas, including major river ecosystems and adventure tourism in the northeast, focusing on regions like Lakshadweep and the Andaman and Nicobar Islands.
🔶Public Infra Sector Stocks:
🔹Va Tech Wabag Ltd
🔹Praveg Ltd
🔹Interglobe Aviation Ltd
🔹HFCL Ltd
🔹Jash Engineering Ltd
🔹GMR Airports Infrastructure Ltd
🔶Transmissions & Distribution Sector:
Some key Developments & Opportunities in the Indian Green Energy Sector:
🔹Enhancing Transformation Capacity: The government is focused on adding specific transformation capacity for each new megawatt generated to prevent line congestion and ensure consistent electricity supply, particularly in interstate transmissions.
🔹Renewable Energy Driving Transmission Capex: The shift towards renewable energy, which introduces fluctuating voltages, necessitates significant upgrades to the transmission infrastructure. This includes expanding the grid and enhancing stability by replacing and upgrading older transformers and other equipment.
🔹Resurgence in T&D Capital Expenditure:
Over the next 3-4 years, the Indian electric grid is poised for significant investments totaling ~₹2.4 trillion. This Capex will enhance inter-state transmission connectivity, facilitating the integration of green energy to achieve a 500 GW capacity by 2030.
🔶Transmissions & Distribution Stocks:
🔹Hitachi Energy India Ltd
🔹Siemens Ltd
🔹Voltamp Transformers Ltd
🔹Schaeffler India Ltd
🔹Power Grid Corporation of India Ltd
🔹REC Ltd
🔹Apar Industries Ltd
