Budget 2019: Massive push for Infrastructure
This article was published on : July 15, 2019
Infrastructure sector gets massive push in the Budget 2019, as the announcement emphasized on funding of various initiatives like Roads, Railways and Urban Infrastructure.
Transport sector has been allocated an enhanced outlay of Rs 83,000Cr. Besides, the Government also has plans to carry out a comprehensive restructuring of National Highway Programme to ensure that the National Highway Grid of desirable length and capacity is created using financeable model. The centre government will also help state governments to develop road network.
The government also has plans for using rivers for cargo transportation, a move that will decongest roads and railways. Greater emphasis on projects such as industrial corridors, DFC, Bharatmala, Sagarmala and UDAN schemes are believed to improve connectivity and increase competitiveness. Road corridor project Bharatmala, port-linked industrialization plan Sagarmala will help in bridging the rural-urban divide and improve transport infrastructure.
The government has set an investment target of ₹80,250Cr for phase three of the Pradhan Mantri Gram Sadak Yojana, under which the government wants to build 1,25,000 km of village roads
To boost investment, the government will also encourage foreign portfolio investors to invest in infrastructure debt funds, plans to introduce credit default swaps for the infrastructure sector, deepen the corporate bond market, and encourage equity investment by non-residential Indians.
The budget has also outlined various proposals for giving a boost to manufacturing of electric vehicles and developing India as a global hub.
The Government has also plans to provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. To further incentivise e-mobility, customs duty is being exempted on certain parts of electric vehicles.