Union Budget 2014-15: Arun Jaitley announces a development oriented budget
Arun Jaitley’s budget focuses on infrastructure
Finance Minister Arun Jaitley his budget has focused on infrastructure sector. He has made large allocations, set better policy frameworks. Transport and Rural Development Minister Shri Nitin Gadkari has also welcomed the Union Budget and expressed his satisfaction with the allocation of the funds dedicated to the Ministry of Road Transport Infrastructure.
It is seen that India has emerged as the largest PPP markets in the world with over 900 projects in various stages of development. Infrastructure and construction sectors have a significant role in the economy. Growth in these sectors is necessary to revive the economy and generate jobs for millions of our young boys and girls,” said Jaitley in his budget speech.
To streamline the Public Private Partnership mode an institution called “3P India” Rs 500crores has been proposed furthermore, proposals worth Rs 37,880crores have been made in the budget, to be invested in National Highways development as well as that of the state roads. This includes Rs 3000crores for the North eastern region. In the Ports Sector, 16 new projects are proposed with a focus on connectivity. Special Economic Zones will be developed in Kandla port and the JNPT Mumbai. The ministry has also proposed to set up the eBiz platform which will bring the transparency and accountability of the clearances like land acquisition, forest clearances and hurdle for project.
Of 239 central- sector infrastructure projects costing Rs.1, 000crore and above, 110 are delayed, said the government in its Economic Survey released on Wednesday. The cost overrun of these 239 projects is estimated to be Rs.1, 57,802crore, 21.3% of the original cost.
Jaitley has also encouraged banks to extend long-term loans to infrastructure sector with flexible structuring to absorb potential adverse contingencies. To meet their long-term fund raising requirement, banks would be permitted to raise long-term funds for lending to infrastructure sector with minimum regulatory pre-emption.
Nearly 21 road projects worth Rs.26, 000crore failed to get bids in the last two fiscal years. Finance Minister has also promulgated the schemes for development of new airports in Tier I and Tier II cities.
Ahmedabad and Lucknow have been singled out as special beneficiaries of this budget with the allocation of Rs. 100crore towards the deployment of Metro rail systems in these cities. The increased connectivity will raise the scope of real estate development there and also have an impact of property valuations over the mid to long term
FM announces Mission Low Cost Housing for all by 2022 and allocates
funds of Rs. 4,000 crore to NHB Home loan interest exemption raised to Rs. 2 lakh from Rs. 1.5
Arun Jaitley, Union Finance Minister
NHAI targets 8,000 Kms. of road development in FY15 with allocation of Rs.
37, 850 crore budget
Welcomes FDI in real estate and infrastructure sectors & REIT being set up
to finance infrastructure projects