Budget 2020-21 puts special focus on infrastructure

The Union Budget 2020-21, presented in the Parliament on February 1, emphasised on infrastructure as a key driving force for economic development. In line with this, the Government of India has launched the National Infrastructure Pipeline with more than 6,500 projects worth over US$1.4 trillion that are to be completed in the coming five years. These projects seek to improve the ease of living and as a result, the economic prosperity of all citizens, contributing to the US$5-trillion economic target.  

Projects under the National Infrastructure Pipeline will include housing, safe drinking water, access to clean and affordable energy, healthcare for all, world-class educational institutes, modern railway stations, airports, bus terminals, metro and railway transportation, logistics and warehousing, irrigation projects, etc. Apart from income opportunities related to the development, operation, and maintenance of these infrastructure projects, they are expected to create vast employment opportunities.

The Government has allotted over US$23.9 billion for transport infrastructure for 2020-21. Additionally, the Government is looking to launch the National Logistics Policy soon which will further boost activity in the infrastructure space. 

Some of the leading projects will include: 

• Development of 2,500 km access control highways, 9,000 km of economic corridors, 2,000 km of coastal and land port roads and 2,000 km of strategic highways
• Electrification of around 27,000 km of tracks, four stations are to be redeveloped and operation of 150 passenger trains would be done through PPP mode
• The Government to consider corporatising at least one major port and list it on stock exchanges, other seaports, and inland waterways to be made more efficient 
• 100 additional airports to be developed by 2024 to under the Udaan scheme, air fleet number shall go up from the present 600 to 1200 during this time. 
• All states and union territories to replace conventional energy meters by prepaid smart meters in the next three years. This will boost efficiency in power distribution
• The Government has proposed to provide around US$3.1 billion to power and renewable energy sector in 2020-21 to improve capacity and power supply 
• The Government plans to expand the national gas grid from the present 16,200 km to 27,000 km. This will improve energy security in growing markets