Budget 2021: Infrastructure gets big boost
What's the story
Union Finance Minister Nirmala Sitharaman on Monday unveiled India's first post-COVID-19 Union Budget for the financial year 2021-2022.
Sitharaman said the Budget rests on six pillars, from healthcare to infrastructure. She proposed the expansion of the National Infrastructure Pipeline (NIP), raising the rural infrastructure fund, among other key announcements.
Here's all Sitharaman said on infrastructure in her Budget speech.
NIP
NIP expanded to cover 7,400 projects
"The National Infrastructure Pipeline, launched with 6,835 projects, has now expanded to 7,400 projects," Sitharaman said.
She said around 217 projects worth Rs. 1.10 lakh crore under some key infrastructure ministries have been completed.
The government proposed three concrete steps for this program: creating institutional structure, big thrust on monetization of assets, and enhancing the share of capital expenditure in central and state budget.
Information
NIP covers projects under energy, water, sanitation, among other sectors
The NIP aims to invest in projects spanning across sectors such as energy, social and commercial infrastructure, communication, water, and sanitation. It is jointly funded by the central government (39%), state government (40%), and the private sector (21%).
NIP
'Infrastructure needs long-term debt financing'
Sitharaman said, "Infrastructure needs long-term debt financing. A professionally managed development financial institution is necessary to act as provider, enabler, and catalyst for infrastructure financing."
The government plans to set up a National Bank for Financing Infrastructure and Development. This will be established on a capital base of Rs. 20,000 crore and have a lending target of Rs. 5 lakh crore in three years.
Road infrastructure
Four states get funds for developing road infrastructure
"More economic corridors are being planned to boost road infrastructure," Sitharaman said, proposing an increase in expenditure to Rs. 5.54 lakh crore in FY22.
She said the government aims to complete 11,000 km of national highway infrastructure, including a 3,500 km corridor in Tamil Nadu, 1,100 km in Kerala, 675 km in West Bengal, and 1,300 km in Assam in the next 3 years.
Rural infrastructure
Rural infrastructure development fund increased to Rs. 40,000 crore
Sitharaman said the allocation to rural infrastructure development has been increased to Rs. 40,000 crore for the next fiscal from Rs. 30,000 crore in FY21.
The agriculture infrastructure fund outlay will be increased to Rs. 40,000 crore, and the micro-irrigation corpus will be doubled to Rs. 10,000 crore, she said, adding that 1,000 more mandis will be integrated with the electronic national market.