New initiatives for infrastructure development

New initiatives for infrastructure development

Highlighting the criticality of investment in the infrastructure for the growth of the economy, the Budget has proposed new initiatives which involves giving boost to National Highway development programme and building urban and rural infrastructure.  

The Finance Minister in his Budget speech laid special emphasis on the Infrastructure development in the country. Infrastructure Finance Company Limited(IIFCL), will evolve a takeout financing scheme in consultation with banks to facilitate incremental lending to the sector. IIFCL will refinance 60 percent of commercial bank loans for Public Private Partnership projects in critical sectors over the next fifteen to eighteen months.

For improving the road infrastructure, the allocation to the National Highway Authority of India for the National Highway development programme has been stepped up by 23 Percent .

Giving importance to building Urban infrastructure, allocations under Jawaharlal Nehru National Urban Renewal Mission has been stepped up by 87 Percent .

The Finance minister proposed to enhance the allocation for housing and provision of basic amenities to urban poor to 3,973 Crores .

Provision for the Brihan Mumbai storm water Drainage project funded through central assistance to address the problem of flooding in Mumbai enhanced from 200 Crore Rupees to 500 Crore Rupees. 

With a view to reduce the gap between demand and supply in power sector, a steep 160 Percent increase in the allocation has been proposed for the Accelerated Power Development and Reform Programme.  

The Government proposes to setup an expert group to advise on a viable and sustainable system of pricing petroleum products. 

The Budget proposes setting up of one Handloom mega cluster each in West Bengal and Tamil Nadu and a Power loom mega Cluster in Rajastan. New mega clusters for carpets to be also setup in Srinagar and Mirzapur.

The proposed Budgetary allocation for the Commonwealth games has been substantially increased from 2,112 crores in the Interim Budget to 3,472 crores in the Budget for 2009-10.