The recent unveiling of the Union Budget 2021-22 by the Minister of Finance stirred up much interest, particularly considering that this was the first digital budget presented. This article’s focus is on the infrastructure-related proposals outlined in the budget, with noteworthy points covering areas like production-linked incentives, textiles, infrastructure, road and railway infrastructure, and urban infrastructure, among others.
Production Linked Incentive Scheme (PLI)
As per the new budget, a sum of Rs. 1.97 lakh crore will be allocated over the next five years towards PLI schemes across 13 sectors. This initiative primarily aims to create and develop global manufacturing champions contributing to an AatmaNirbhar Bharat.
The Textiles Sector
A significant move is the introduction of the Mega Investment Textiles Parks (MITRA) scheme. This scheme is expected to bring substantial growth in the textiles sector.
Infrastructure Development
The National Infrastructure Pipeline (NIP) is set to expand to 7,400 projects. Three thrust areas have been identified to increase funding for NIP, including creating institutional structures, monetizing assets, and enhancing share of capital expenditure. With this, a new development financial institution (DFI) is going to be established.
Roads and Highways Infrastructure
An investment of Rs. 1,18,101 lakh crore is proposed, marking it as the highest allocation ever for the Ministry of Road Transport and Highways. New economic corridors and expressways are in planning stages, along with an advanced traffic management system for all new 4 and 6-lane highways.
Railway Infrastructure
Emphasis has been placed on the creation of a future-ready railway system by 2030 under the National Rail Plan for India. The plan includes 100% electrification of Broad-Gauge routes by December 2023 and commissioning of Western and Eastern Dedicated Freight Corridor by June 2022. Measures for passenger convenience and safety are also part of the scheme.
Urban Infrastructure
The budget proposed expansion of the metro rail network along with augmentation of city bus service. ‘MetroLite’ and ‘MetroNeo’ technologies will serve to provide cost-effective metro rail systems while retaining the experience similar to traditional systems.
Power Infrastructure
The budget announced the launch of a comprehensive National Hydrogen Energy Mission 2021-22, with Rs. 3,05,984 crore allocated over five years for a revamped, reforms-based, and result-linked new power distribution sector scheme.
Ports, Shipping, Waterways
Seven projects worth Rs. 2,000 crore are to be offered in Public Private Partnership (PPP)-mode in this financial year for operation of major ports.
Petroleum & Natural Gas
The Ujjwala Scheme is to be extended to cover one crore more beneficiaries. Other proposals include a new gas pipeline project in Jammu & Kashmir and an independent Gas Transport System Operator to coordinate the booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.
