Budget 2019: Modi government to invest whopping Rs 100 lakh crore in infrastructure sector over next five years
Budget 2019: Carrying on with its infrastructure push, the Modi government on Friday announced an investment of Rs 100 lakh crore in the sector for the next five years.
Budget 2019: Carrying on with its infrastructure push, the Modi government on Friday announced an investment of Rs 100 lakh crore in the sector for the next five years. While addressing the Lok Sabha, FM Nirmala Sitharaman said that an expert committee would be setup to recommend structure and flow of fund. "100 lakh crore rupees to be invested in infrastructure sector over next five years, Expert Committee to be set up to recommend structure and flow of funds through development finance institutions," the finance minister said.
She added that a massive programme of railway station modernization to be launched this year. The Union Finance Minister also stressed that the railways need an investment of Rs 50 lakh crore from 2018 to 2030 and proposed public private partnership to unleash faster development of passenger and freight services.
Amit Gupta, Director, Deloitte Touche Tohmatsu India LLP told Zee Business Online that the budget speech has emphasized on providing a massive push to all kinds of physical connectivity by taking forward programs across various key sub-sectors such as roads, rail, inland waterways, air connectivity.
"While details would need to be studied, a number of measures for enhancing the flow of money for infrastructure sector such as setting up of Credit Guarantee Enhancement Corporation to deepen markets for long-term bonds with specific focus on infra sector, leveraging Public Private Partnerships to unleash progress on infrastructure creation in Railways, permitting FDI in securities issued by InVits, enhancing FDI in aviation are all welcome measures, which can propel infrastructure development in the country," he said.
"Given that the capital expenditure outlays of railways is between Rs 1.5 to 1.6 lakh crore per annum, completing even all sanctioned projects would take decades. It is therefore proposed to use public private partnership to unleash faster development and completion of tracks and rolling stock manufacture and also delivery of passenger freight services," Sitharaman had said her is speech earlier.
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