Budget 2017:Infra sector grabs lion's share at Rs 3.96 lakh cr

Allocating lion's share of Rs 3.95 lakh crore for infrastructure development and terming the sector as top priority of the government, Finance Minister Arun Jaitley today said the magnitude of investment in the space is bound to spur growth.
Terming railways, roads and rivers as the "lifeline" of the country, the Finance Minister while presenting the Budget for 2017-18, said, "Total allocation for infrastructure stands at a record level Rs 3,96,135 crore in 2017-18."
The allocation for infrastructure in 2016-17 budgetary estimate was Rs 3,48,952 crore which was revised to Rs 3,58,634 crore.
"This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities," he said.

Jaitley said infrastructure was the thrust area of the government for efficiency, productivity and quality of life and approach was to spend more on infrastructure development.
Terming the Budget for 2017-18 as a "revolutionary Budget" in the history of India, Road Transport, Highways and Shipping Minister Nitin Gadkari said infrastructure space has been a major beneficiary of the budget and accordingly government is giving topmost priority in developing the sectors be it highways, waterways or multimodal hubs.

He said work worth Rs 4.71 lakh crore is already on in the
sector and pace would be accelerated to augment highways, waterways and shipping sectors adding that a massive Sagarmala project for port-led coastal economic development is already underway.

Jaitley further said the World Bank is more optimistic and has projected a GDP growth of 7 per cent in 2016-17, 7.6 per cent in 2017-18 and 7.8 per cent in 2018-19. "...This pick up in our economy is premised upon our policy and determination to continue with economic reforms, increase in public investment in infrastructure and development projects," the FM said.
He added, "Railways, roads and rivers are the lifeline of our country. I feel privileged to present the first combined Budget of independent India that includes the railways also. We are now in a position to synergise the investments in railways, roads, waterways and civil aviation. For 2017-18, the total capital and development expenditure of railways has been pegged at Rs 1,31,000 crore. This includes Rs 55,000 crore provided by the government."

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He said in the road sector, the budget allocation has been increased to Rs 64,900 crore from Rs 57,976 crore.
Coastal connectivity roads of 2,000 kms have been identified for construction and development. This will facilitate better connectivity with ports and remote villages.
"The total length of roads, including those under PMGSY, built from 2014-15 till the current year is about 1,40,000 kms which is significantly higher than previous three years," he said.
Also, the Minister said an effective multi-modal logistics and transport sector will make the economy more competitive and a specific programme for development of multi-modal logistics parks, together with multi-modal transport facilities, will be drawn up and implemented.

Besides, select airports in tier 2 cities will be taken up for operation and maintenance in the PPP mode. Airport Authority of India Act will be amended to enable effective monetisation of land assets. The resources, so raised, will be utilised for airport upgradation.
As far as the Pradhan Mantri Gram Sadak Yojana (PMGSY) is concerned, he said it is implemented as never before and the pace of construction of PMGSY roads has accelerated to reach 133 km per day in 2016-17, as against an average of 73 km during the period 2011-2014.
"We have also taken up the task of connecting habitations with more than 100 persons in left wing extremism affected Blocks. We have committed to complete the current target under PMGSY by 2019. I have provided a sum of Rs 19,000 crore in 2017-18 for this scheme. Together with the contribution of States, an amount of Rs 27,000 crore will be spent on PMGSY in 2017-18," he said.

Also, the Minister said the government proposed to facilitate higher investment in affordable housing.
"Affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits," he said.
Terming telecom as an important component of infrastructure ecosystem, he said the recent spectrum auctions have removed spectrum scarcity in the country.
He said allocation under BharatNet Project has been stepped up to Rs 10,000 crore in 2017-18 and by the end of 2017-18, high speed broadband connectivity on optical fibre will be available in more than 1,50,000 gram panchayats, with wifi hot spots and access to digital services at low tariffs.

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In solar energy, the government has proposed to take up the second phase of Solar Park development for additional 20,000 MW capacity.
About redressing disputes in the infrastructure space, the Finance Minister said a dispute redressal mechanism will be in place.
"I had stated in my last Budget speech that a Bill will be introduced to streamline institutional arrangements for resolution of disputes in infrastructure related construction contracts, PPP and public utility contracts."
He said that after extensive stakeholders' consultations, the government has decided that the required mechanism would be instituted as part of the Arbitration and Conciliation Act 1996.

"An Amendment Bill will be introduced in this regard," he said.