For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Union Budget 2021: Infrastructure Gets A Big Boost

|

The Infrastructure sector has received a big boost from the government in the Budget of 2021-22.

 

The National Infrastructure Pipeline (NIP) which was announced in December 2019 was launched with 6835 projects; the project pipeline has now expanded to 7,400 projects.

Around 217 projects worth Rs 1.10 lakh crores under some key infrastructure Ministries have been completed.

The NIP is a specific target which this government is committed to achieving over the coming years. It will require a major increase in funding both from the government and the financial sector.

Union Budget 2021: Infrastructure Gets A Big Boost

"In this Budget, I propose to take concrete steps to do this, in three ways: Firstly, by creating the institutional structures; secondly, by a big thrust on monetizing assets, and thirdly by enhancing the share of capital expenditure in central and state budgets. Infrastructure financing - Development Financial Institution (DFI) 45. Infrastructure needs long term debt financing. A professionally managed Development Financial Institution is necessary to act as a provider, enabler and catalyst for infrastructure financing. Accordingly, I shall introduce a Bill to set up a DFI. I have provided a sum of Rs 20,000 crores to capitalise this institution. The ambition is to have a lending portfolio of at least Rs 5 lakh crores for this DFI in three years time," the Finance Minister stated.

 

Debt Financing of InVITs and REITs by Foreign Portfolio Investors will be enabled by making suitable amendments in the relevant legislations. This will further ease access of finance to InVITS and REITs thus augmenting funds for infrastructure and real estate sectors.

Read more about: budget 2021 infrastructure
Story first published: Monday, February 1, 2021, 14:34 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X