The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States.
Capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs. 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20.
The ‘Effective Capital Expenditure’ of the Centre is budgeted at Rs. 13.7 lakh crore, which will be 4.5 per cent of GDP.
The Harmonized Master List of Infrastructure will be reviewed by an expert committee for recommending the classification and financing framework suitable for Amrit Kaal.
The newly established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power, which are predominantly dependent on public resources
Even the Government has decided to continue the 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions, with a significantly enhanced outlay of Rs 1.3 lakh crore.
(a) Railways
A capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest ever outlay and about 9 times the outlay made in 2013- 14.
One hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified and they will be taken up on priority with investment of Rs. 75,000 crore, including Rs. 15,000 crore from private sources.
(b) Regional Connectivity
Fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
(c) Urban Development
Urban Infrastructure Development Fund (UIDF) will be established through use of priority sector lending shortfall, which will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.
