FY 2021-22, Indian Union Budget Part (A) – 2

Indian Union Budget| FY 2021-22

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Read the ———–> Indian Union BUdget Part (a)-1 .

2. Physical and Financial Capital and Infrastructure.

For FY 2021-22, government increased the capital expenditure and provided Rs.5.54 lakh crores which is 34.5% more than the BE of 2020-21. The government allocated Rs.4.12 lakh crores for capital Expenditure in BE 2020-21.

Ministry of Finance, India, kept a sum of more than Rs.44,000/- crores in the budget head of the department of Economic Affairs to be provided for projects/programs/departments that show good progress on capital expenditure.

Finance Minister said that we would also be providing more than Rs.2 lakh crores to States and Autonomous Bodies for their Capital Expenditure.

a) Roads and Highways Infrastructure:

Rs.1,18,101 lakh crores allotted to Ministry of Road Transport and Highways , of which Rs. 1,08,230/- for the capital.

Flagship projects: Roads and Highways

Major Expressways/Corridors

1. Delhi-Mumbai Express: Remaining 260 km will be awarded before 31.03.2021.
2. Bengaluru-Chennai Expressway: 278km will be initiated in the current financial year. Construction will begin in 2021-22.
3. Delhi-Dehradun economic corridor: 210 km corridor will be initiated in the current financial year. Construction will begin in 2021-22.
4. Kanpur-Lucknow expressway: 63km expressway providing an alternate route to NH 27 will be initiated in 2021-22.
5. Chennai- Salem corridor: 277 km expressway will be awarded and construction would start in 2021-22.
6. Raipur-Vishakapatnam: 464 km passing through Chattisgarh, Odisha, and North Andhra Pradesh will be awarded in the current year. Construction will start in 2021-22.
7. Amritsar – Jamnagar: Construction will commence in 2021-22.
8. Delhi-Katra: Construction will commence in 2021-22.

Advanced traffic management system with speed radars, variables message signboards, GPS enabled recovery vans will be installed in all new four and six-lane highways. 

4 Major Projects

Bharatamala Pariyojana Project:

• More than 13,000km length of roads, at a cost of RS.3.3 lakh crores, has already been awarded under the Rs.5.35 lakh crores Bharatamala Pariyojana Project of which 3,800 kms have been constructed.
• By March 2022, we would be awarding another 8,500 kms and complete an additional 11,000 kms of national highway corridors.

b) Urban Infrastructure: (Buses & Metro)

• Metro:

Central Counter part funding will be provided to:

• A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities.
• Two new technologies i.e., “MetroLite” & “MetroNeo” will be deployed to provide metro rail systems at much lesser cost with same experience, convenience and safety in Tier-2 cities and peripheral areas of Tier-1 cities.

• City Bus :

• With Rs.18,000/- crores a new scheme will be launched at a cost to support augmentation of public bus transport services.

• Finance Minister said this scheme will boost the automobile sector, provide fillip to economic growth, create employment opportunities for our youth and enhance ease of mobility for urban residents.

c) Railway Infrastructure:

Indian Railways have been prepared a National Rail Plan for India-2030. The plan is to create a “future ready” Railway system by 2030.

Ministry of Finance introduced Rs.1,10,055/- crores, for Railways of Which Rs.1,07,100/- crores is for capital expenditure.

To bringing down the logistic costs for our industry is at the core of our strategy to enable “Make in India”. It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022. Railways will monitise Dedicated Freight Corridor assets for operations and maintenance, after commissioning.

d) National Infrastructure Pipeline (NIP):

• The NIP was launched with 6835 projects in December 2019.
• The project pipeline has now expanded to 7400 projects
• Around 217 projects worth Rs.1.10 lakh crores under some key infrastructure Ministries have been completed.

In this budget government propose to take concrete steps to do this, in three ways:

 1) By creating the institutional structures.

 2) By a big thrust on monetizing assets.

 3) Enhancing the share of capital expenditure in central and state budgets.  

e) AtmaNirbhar Bharat – Production Linked Incentive Scheme (PLI) :

The government declared Rs.1.97 lakh cores, over five years for 13 sectors.
Our manufacturing companies need to become an integral part of global supply chains and cutting edge technology. This scheme will help to achieve our manufacturing sector to grow in double digits on a sustained basis.

d) Infrastructure Financing – Development Financial Institution (DFI) :

Government providing a sum of Rs.20,000 /- crores to capitalize DFI.

This Development Financial Institution act as a provider, enabler and catalyst for infrastructure financing. The main ambition is to have a lending portfolio of at least Rs.5 lakh crores for this DFI in 3years time.

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Also Read:

1. FY-2021-22-indian-union-budget-part-a-1

2. Basic Information about Indian stock market.