Budget 2021-22 had set the stage for infrastructure with a substantial allocation of Rs5.54 lakh cr (35% increase in capital expenditure YoY) and the sector was also made as one of the 6 pillars to drive India’s next phase of growth story.
Budget this year is expected to continue the momentum with a further increase in allocation given the multiplier benefits that can boost employment and economic development, according to experts.
More details are expected on the implementation planning of projects under Gati Shakti and mechanisms to accelerate progress under National Infrastructure Pipeline (NIP). As of date, ~50% of projects under NIP have been awarded and 5% have reached completion.
“The upcoming budget could be a great opportunity to announce India’s plans on climate adaptation and resilient infrastructure agenda. Many countries including the US for example have drafted plans across 20+ federal agencies to ensure facilities and operations become more resilient to climate change and have made a substantial capital allocation in this direction as part of the Infra bill,” said Suresh Subudhi, Managing Director and Senior Partner, BCG and Yashi Tandon, Senior Knowledge Analyst, BCG.
Meanwhile, Amit Kapur, Joint Managing Partner, J Sagar Associates (JSA) has said that to actualize the ambitious targets set out for investments and employment generation through the National Infrastructure Pipeline, overcoming the challenges posed by COVID the Union Budget to set out a clear policy track for infrastructure development covering
PREMIUM
