Roads and railways to spend Rs 2.18 lakh crore on capex in 2016-17

Stating that infrastructure and investment as the fifth support pillar of budget theme ‘Transform India’, FM Arun Jaitley has proposed a total outlay of Rs 2,18,000 crore on capital expenditure of roads and railways in 2016-17. For speeding-up of the process of road construction, an allocation of Rs 27,000 crore has been purposed for Pradhan Mantri Gram Sadak Yojna (PMGSY) and Rs 55,000 crore for Road Transport and Highways. Another Rs 15,000 crore are to be raised by NHAI through bonds. An outlay towards capital expenditure of the railways is proposed at Rs 121,000 crore.
 
While nearly 10,000 kms of national highways are expected to be approved in 2016-17, additional 50,000 kms of state highways will also be taken-up for upgradation as national highways. The total outlay for infrastructure in budgetary estimates 2016-17 stands at Rs 221,246 crore.
   
The government intends to enact necessary amendments in the Motor Vehicles Act and open-up the road transport sector in the passenger segment. An enabling eco-system will be provided for the states which will have the choice of adopting the new legal framework. Entrepreneurs will be able to operate buses on various routes, subject to certain efficiency and safety norms. This will benefit the poor and middle class, encourage new investment, promote start up entrepreneurs and create new jobs. This is a major reform measure.
 
“We are planning to develop new greenfield ports both in the eastern and western coasts of the country. The work on the National Waterways is also being expedited Rs 800 crore has been provided for these initiatives,” said the Finance Minister. In civil aviation sector, Airport Authority of India, in partnership with state governments, will revive un-served and underserved airstrips.