The government on Friday announced to invest Rs 100 lakh crore in infrastructure over the next five years. Tabling the Budget for 2019-20 in Parliament on Friday, Finance Minister Nirmala Sitharaman said "India requires investments averaging Rs 20 lakh crores every year". Ms Sitharaman also proposed setting up a Credit Guarantee Enhancement Corporation for which regulations have been notified by the Reserve Bank of India, among other measures to enhance the sources of capital for infrastructure financing.
"To this end, it is proposed to set up an expert committee to study the current situation relating to long-term finance and our past experience with development finance institutions, and recommend the structure and required flow of funds through development finance institutions, Ms Sitharaman said in her Budget speech for the financial year 2019-20.
The Budget estimated that Railway infrastructure would need an investment of Rs 50 lakh crores between 2018 and 2030. The capital expenditure outlays of Railways will be around Rs 1.5 to Rs 1.6 lakh crores per annum.
The Budget also proposed to use public-private partnership to achieve faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.
Terming the connectivity as the lifeblood of the economy, the minister also announced a slew of steps to scale up infrastructure programmes including augmenting 1,25,000 km of rural roads under the Pradhan Mantri Gram Sadak Yojana at a cost of Rs 80,250 crore and creating a national highways grid.
(With PTI inputs)
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