Decoding Budget 2021 II: Physical Capital & Infrastructure

The most awaited Union Budget 2021 is here! With six new pillars introduced this time, let us understand the announcements made in the second pillar, which is Physical Capital & Infrastructure.

Crux of the Matter

Read Summachar coverage of the first pillar of the budget: Decoding Budget 2021 I: Health And Wellbeing

Pillar 1: Physical &Financial Capital & Infrastructure
Total Outlay:  27.1 lakh Crore
A sharp increase in capital expenditure. Provided ₹ 5.54 lakh crores,  34.5% more than the Budgeted Estimate of 2020-21.

Production Linked Scheme
Outlay: ₹1.97 lakh crores over 5 years for13 manufacturing sectors
Aims at: 
– Bringing scale at size to key sectors
– Nurture global champions
– Provide youth jobs

Mega Investment Textiles Parks (MITRA) 
7 textile parks to be established over 3 years to make the textile industry globally competitive

Expanded National Infrastructure Pipeline (NIP) to 7400 projects
Ways for enriching the NIP funding:
– Creation of Institutional Structures
– Thrust on Monetizing assets
– Enhancing the share of capital expenditure in central and state budgets.

Asset Monetisation
National Monetization Pipeline for brown field projects would be launched. Asset Monetisation dashboard to be created.
Initiatives Includes:
– NHAI Operational Toll  &  PGCIL Asset transmission 
– Oil and Gas Pipelines of GAIL, IOCL and HPCL
– Railway Freight Corridors 
Airports at Tier II and III cities
– Warehousing assets & Sports Stadiums.

Roads & Highways

Economic Corridors announced: 

  1. 3500 km in Tamil Nadu. Outlay – ₹1.03 lakh crores
  2. 1100 kms in Kerala. Outlay – ₹65k crores
  3. 675 kms in West Bengal. Outlay – ₹25k Crores.
  4. 1300 kms in Assam. Outlay – ₹34k Crores, in addition to the existing ₹19k Crores.

Urban & Power Infrastructure

  • Public Bus Transport Service (PPP): ₹18k Crore
  • Metro Light & Metro Neo to be launched at affordable rates in 
  • Fundings provided to following city metros:
    Kochi | Chennai | Bengaluru | Nashik | Nagpur
  • Framework to give consumers choice of selecting from more than one power distribution companies.
  • DISCOMS revamp scheme: 3.05 lakh Crore

The Residuals

  • 100% electrification of Broad-Gauge routes to be completed by December, 2023. 
  • 7 Port Projects worth  ₹ 2000 Crore on a Private-Public Partnership mode.
  • Ujjwala Scheme to extend to 1 Crore more beneficiaries by adding 100 more districts.
  • Gas Pipeline in J&K.
  • Ministry of Jal Shakti is a ministry under the Government of India which was formed in May 2019 under the second Modi ministry. This was formed by merging of two ministries; Ministry of Water Resources, River Development & Ganga Rejuvenation and Ministry of Drinking Water and Sanitation.
  • At 2 hours and 41 minutes, the budget speech was the longest ever delivered by a Finance Minister of India. Nirmala Sitharaman is also only the second woman to present the budget for a second time after Indira Gandhi.
  • The practice of presenting budgets and fiscal policy to parliament was initiated by Sir Robert Walpole in his position as Chancellor, in an attempt to restore the confidence of the public after the chaos unleashed by the collapse of the South Sea Bubble in 1720.