BUDGET EXPECTATIONS: INFRASTRUCTURE

17 Jan 2023 , 09:35 AM

The infrastructure sector expects the Government to continue taking steps towards achieving the Gati Shakti and NIP targets. The capital expenditure is expected to be increased by 15-20% from Rs. 7.5 trillion in FY2023 BE. Major focus is expected to be on key infrastructure segments like roads, railways and urban infrastructure. Dedicated allocations for specified large infrastructure projects announced such as High-Speed Rail, Jal Jeevan Mission, Bharat Mala, Sagar Mala, Smart Cities, Inland Waterways development can help expedite these programmes.

The infrastructure sector also expects measures to improve long-term funding availability for the sector. For this, ramp-up in lending/investment by the newly set up DFI – NaBFID – and the NIIF and incremental allocations towards these will be important. Incentivising debt raising by select infra PSUs similar to infrastructure bonds/tax-free bonds may also support funding availability for the sector. Measures to revive private sector interest in taking up new projects, including faster resolution of disputes, are also expected.