FM hikes infrastructure spendings by 23% in budget
Finance Minister Pranab Mukherjee has proposed an allocation of Rs2,14,000 crore for infrastructure sector, which is 23.3% higher than current year. This amounts to 48.5% of the Gross Budgetary support to plan expenditure.
Announcing the General Budget 2011-12, the Finance Minister said that in order to give a boost to infrastructure development in railways, ports, housing and highways development, it has been proposed to allow tax-free bonds of Rs30,000 crore to be issued by various government undertakings in the year 2011-12. This includes Indian Railway Finance Corporation Rs10,000 crore; National Highway Authority of India Rs10,000 crore; HUDCO Rs5000 crore and Ports Rs5000 crore.
Mukherjee also said that India Infrastructure Finance Company Limited (IIFCL) is expected to achieve a cumulative disbursement of Rs25,000 crore by March 31, 2012. Under the “take out financing scheme”, seven projects have been sanctioned with a debt of Rs1500 crore. Another Rs5000 crore will be sanctioned during 2011-12, he informed.