Govt announces Rs 1,00,000 cr for infrastructure
Press Trust of India
Tuesday, July 14, 2009
(Mumbai)
The government on Monday announced higher allocations in a number of infrastructure sector projects saying IIFCL and banks are equipped to support projects involving investment to the tune of Rs 1,00,000 crore in infrastructure.
Moreover, it also announced raising the allocation for National Highways Authority of India (NHAI) by 23 per cent for the National Highways Development Project (NHDP) over 2008-09.
"The investment in infrastructure for the growth of economy is critical. The IIFCL and banks are now in a position to support projects involving a total investment of Rs 1,00,000 crore in infrastructure. Combined with the steps we are taking to increase public investment in infrastructure, this will provide a big boost to such investment," Finance Minister Pranab Mukherjee said presenting the Budget.
IIFCL, set up as a special purpose vehicle for providing long term financial assistance to infrastructure projects will be given greater flexibility, he said.
"...The government has decided that IIFCL will refinance 60 per cent of commercial bank loans for PPP projects in critical sectors over the next fifteen to eighteen months," Mr. Mukherjee said.
The allocation for NHDP was also increased to Rs 8,578.45 crore over Rs 6,972.47 crore in 2008-09.
Allocation for Railways has been increased to Rs 15,800 crore in 2009-10 from Rs 10,800 crore. While, rural infrastructure saw an increase of 45 per cent over the budgetary estimate of 2008-09 for six schemes.
For Pradhanmantri Gram Sadak Yojana Rs 12,000 crore has been earmarked, for Rajiv Gandhi Gramin Vidyutikaran Yojana Rs 7,000 crore has been assigned and Indira Awas Yojana got Rs 8,800 crore.
The government stepped up the allocation for Jawaharlal Nehru Urban Renewal Mission (JNNRUM) by 87 per cent to 12,887 crore.
"To improve the lot of the urban people, I propose to enhance the allocation for housing and provision of basic amenities to urban poor to Rs 3,973 crore in the current year's Budget," Mr. Mukherjee said.
The Accelerated Power Development and Reform Programme (APDRP) witnessed a steep increase of 160 per cent to Rs 2,080 crore above the allocation in the budgetary estimate of 2008-09.
Seeking to double the indigenous production of natural gas, Mr. Mukherjee in his budget speech said, "LNG infrastructure in the country is also being expanded. Government proposes to develop a blueprint for long distance gas highways leading to a National Gas Grid."