Union Budget 2010 Impact on Infrastructure sector

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The Finance Minister Pranab Mukherjee in his Union budget 2010 speech gave due importance to the expansion of excellent quality of physical infrastructure in the form of roads, airports, ports and railways to maintain economic development. He proposed few initiatives which are estimated to have a considerable impact on Infrastructure Sector in FY 2010-11.

Union Budget 2010 Impact on Infrastructure sector

While talking about bridging the policy gaps in Infrastructure sector, the Finance Minister in his Union budget 2010 speech proposed the sustain the driving force for improving infrastructure in urban and rural districts. He allocated ` 1, 73,552 crore for infrastructure growth in the country in budget 2010.

Government has set the target of constructing 20km of national highways on daily basis and to trigger these changes projects have been undertaken via public private partnerships (PPPs). The FM increase the allotment of road transport to ` 19, 894 crore against the previous ` 17, 520 crore for 2010-11. In an attempt to revise and enlarge the railway network, he also allocated ` 16, 752 crore while presenting the union budget.

He notified the completion of introductory activities for the establishment of 6 industrial investment nodules with ecological infrastructure of international standard. In addition, the Delhi-Mumbai Industrial Corridor project has been undertaken for integrated local expansion.

Restoration of Infrastructure Bonds after a period of 5 years was also in the Budget 2010 agenda. It is one of the best tax saving schemes and keeping this in consideration the FM has proposed an extra limit of ` 20, 000/- for investing in Infrastructure Bonds.

In order to provide long term monetary support to infrastructure projects, government has also set up the India Infrastructure Finance Company Limited (IIFCL). The expenditures of IIFCL are likely to reach ` 9, 000 crore by the end of March 2010 and ` 20, 000 crore in the corresponding period of FY 2011.

Last updated on : 15-05-2011

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