Infrastructure gets a fillip; Rs 60,000 crore initiative

The initiative includes 48 new road projects with a total length of over 10,000 KM estimated at Rs 40,000 crore, National Rail Vikas Yojana projects worth Rs 8,000 crore, modernisation of two airports and two seaports at an estimated cost of Rs 11,000 crore and two global standard international convention centres at an estimated cost of Rs 1,000 crore. According to industry experts, enhanced investment in the infrastructure will certainly generate more demand for core commodities like cement and steel. The government has proposed that the North-South and East-West corridors will be funded through the additional levy of a cess of 50 paise per litre of diesel and motor spirit which is likely to contribute a further Rs 2,600 crore for road development.

The 48 projects in the road sector will be over and above of National Highway Development Programme. Under this, nearly 3,000 kms will be taken up for four laning in the first year itself. Resources for rural roads will also be augmented. In the rail sector, a special purpose vehicle has been set up to take up projects worth Rs 8,000 crore for the golden quadrilateral. To improve the aviation infrastructure, two private airports will be developed in Bangalore and Hyderabad while Mumbai and Delhi airports will be modernised to create a hub for international travelling. For this, two separate companies will be formed with initial equity participation from the Airports Authority of India.

Besides this, comprehensive modernisation projects will be implemented at Navi Mumbai and Kochi ports.

Given the importance of transmission in the power sector, the Budget has proposed to reduce customs duty on specific equipment for high voltage transmission projects from 25 per cent to 5 per cent.