Budget Series: Infrastructure
The total capital outlay for the infrastructure sector has been budgeted to increase by 20.8% to Rs 5.97 lakh crore in FY18-19.
The infrastructure sector expects continued thrust from the government towards revival of investment cycle in the form of further increase in budgetary allocations towards infrastructure sector with focus on roads, railways and urban infrastructure. Apart from these core subsectors the special focus of this Budget 2018 has been on rural infrastructure through development of rural roads, houses, sanitation, irrigation and water supply.
With an aim to bring back the flagging revenues of the national transporter back on track, Arun Jaitley announced a capital expenditure allocation of Rs 1.48 crore for the railways. This includes redevelopment of 600 major railway stations and setting up of escalators and CCTVs and Wi-Fi facilities. This will help digitalization of Indian railways along with improvement on safety. Delays and accidents, the two main problem faced by India’s national railway system, is expected to be solved with current budget allocation. companies that carry out civil works and offer track-laying and electrification services will benefit.
Continuing the focus on increasing air connectivity, the government proposed to increase the standards to accommodate 1 billion flights a year. The government also announced an allocation of Rs 1,014.09 crore for the upcoming financial year towards revival of 50 airports and viability gap funding for improving aviation infrastructure in the north-east states under the flagship regional connectivity scheme. Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the government last year shall connect 56 unserved airports and 31 unserved helipads across the country.The amount allocated this year is almost five times as per the revised estimates of 2017-18.
In order to boost domestic defence production, government aims at bringing out new industry-friendly policy and has opened the sector under FDI.
It has also provided direction on the long-term projects being undertaken under the Smart Cities Mission and AMRUT programme. Of the 100 cities mandated for upgrade under the Smart Cities Mission, 99 have been selected so far. The programme would involve capital outlay of Rs 2.04 lakh crore (projects worth Rs 2,350 crore completed and works of Rs 20,852 crore under progress). Similarly, under AMRUT, state-level plans for providing water supply in 500 cities with a capex of Rs 77,640 crore have been approved.
The infrastructure sector expects continued thrust from the government towards revival of investment cycle in the form of further increase in budgetary allocations towards infrastructure sector with focus on roads, railways and urban infrastructure. Apart from these core subsectors the special focus of this Budget 2018 has been on rural infrastructure through development of rural roads, houses, sanitation, irrigation and water supply.
With an aim to bring back the flagging revenues of the national transporter back on track, Arun Jaitley announced a capital expenditure allocation of Rs 1.48 crore for the railways. This includes redevelopment of 600 major railway stations and setting up of escalators and CCTVs and Wi-Fi facilities. This will help digitalization of Indian railways along with improvement on safety. Delays and accidents, the two main problem faced by India’s national railway system, is expected to be solved with current budget allocation. companies that carry out civil works and offer track-laying and electrification services will benefit.
Continuing the focus on increasing air connectivity, the government proposed to increase the standards to accommodate 1 billion flights a year. The government also announced an allocation of Rs 1,014.09 crore for the upcoming financial year towards revival of 50 airports and viability gap funding for improving aviation infrastructure in the north-east states under the flagship regional connectivity scheme. Regional connectivity scheme of UDAN (Ude Desh ka Aam Nagrik) initiated by the government last year shall connect 56 unserved airports and 31 unserved helipads across the country.The amount allocated this year is almost five times as per the revised estimates of 2017-18.
In order to boost domestic defence production, government aims at bringing out new industry-friendly policy and has opened the sector under FDI.
It has also provided direction on the long-term projects being undertaken under the Smart Cities Mission and AMRUT programme. Of the 100 cities mandated for upgrade under the Smart Cities Mission, 99 have been selected so far. The programme would involve capital outlay of Rs 2.04 lakh crore (projects worth Rs 2,350 crore completed and works of Rs 20,852 crore under progress). Similarly, under AMRUT, state-level plans for providing water supply in 500 cities with a capex of Rs 77,640 crore have been approved.
The increased expenditure in infrastructure to INR 5.97L crore is rightfully been directed towards will help make India more competitive by reducing supply chain jobs. It shall also contribute to the growth in jobs and exports. the company engaged in construction and housing segment coupled with company engaged in railway and road project is expected to get boost. Cement and steel sector should do well if infrastructure does well
CREDITS : POOJA SACHDEVA 2nd year
ISHIKA JAIN 2nd year
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CREDITS : POOJA SACHDEVA 2nd year
ISHIKA JAIN 2nd year
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