• UGI USER
  • Jul 29, 2024
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BUDGET PUSH FOR INFRASTRUCTURE

Why in the News?

  • Finance Minister Nirmala Sitharaman’s Budget for 2024-25 allocates ₹11.8 lakh crore for capital expenditure, comprising 3.3% of GDP, aimed at boosting state spending on infrastructure.
  • States will receive ₹1.5 lakh crore as long-term interest-free loans for infrastructure development.
Source:FortuneIndia

Sectors in Focus

  • Transport: The transport sector’s allocation forms the bulk of infrastructure expenditure at 11.29%, with the Ministry of Roads, Transport, and Highways receiving ₹2.7 lakh crore.
  • Railways: The outlay continues to be over 3%, with a record allocation of over ₹2.55 lakh crore, focusing on projects like automatic train protection systems.
  • Power: Marginal improvement in allocations.
  • Aviation and Shipping: The Ministry of Civil Aviation saw a 21% decline in allocation, while the shipping sector’s budget stagnated.

Challenges and Private Sector Reluctance

  • Roads: Despite the expansion of the national highway network, profitability of new agreements remains untested, with a need to shift focus from asset creation to maintenance and safety.
  • Railways: Challenges include skewed freight movement, delay in infrastructure provision, and need for efficient freight vehicle operations.
  • Shipping and Airports: The need for a plan to develop underutilized ports and the privatization of additional airports are crucial.
  • Private Investment: Market risks and project delays impact returns, leading to reluctance in private sector investments.
Government Schemes for Infrastructure Development in India

  • Bharatmala Pariyojana: Focuses on improving road connectivity across the country, with an emphasis on constructing highways and expressways to enhance the transportation network.
  • Sagarmala Programme: Aims at port modernization, new port development, enhancing port connectivity, and promoting coastal community development.
  • Pradhan Mantri Awas Yojana (Urban and Rural): Seeks to provide affordable housing to urban and rural poor, with a target of constructing millions of homes.
  • Smart Cities Mission: Enhances urban infrastructure by developing 100 smart cities with better public services, transportation, and ICT infrastructure.
  • AMRUT (Atal Mission for Rejuvenation and Urban Transformation): Focuses on urban renewal and infrastructure development, including water supply, sewerage, and urban transport projects.

Associated Article:

https://universalinstitutions.com/infrastructure/