UNION BUDGET-2014:INFRASTRUCTURE

School of management,manipal

INFRASTRUCTURE ‘Economic development’. Necessary to:

Create employment opportunities,Mobilize resources,Generate revenue, which will help revive the

economy. Huge facelift in the Union Budget 2014.

Measures will raise adequate resources for the economic development of the country. This will certainly help reviving the ailing economy.

PROPOSALS: RURAL & URBAN DEVELOPMENT

Rs 7,600 crore for developing 100 smart cities. Budgetary allocation for this fiscal is raised by

133%. More on amenities in cities as well as smart transport.

Extending central funds to augment urban infrastructure in 500 cities and towns, providing safe drinking water, sewerage, solid waste management & digital connectivity.

Urban renewal & promoting affordable housing in urban areas.

Syama Prasad Mookerjee Rurban Mission.

PROPOSALS: RAILWAYS

Diamond Quadrilateral rail network . Announcing a bullet train. Rs 100 crore for Metro projects in Lucknow &

Ahmedabad. Metro projects in two million- plus cities. The Rail Budget has also proposed to attract

private domestic investment and FDI in infrastructure.

PROPOSALS: ROAD TRANSPORT

Rs7,060 crore for 100 smart cities & satellite towns with transport & infrastructure.

Rs 14,389 crore for Pradhan Mantri Gram Sadak Yojna (PMGSY).

NH construction of 8500 km. Work on select expressways in parallel to the

development of the Industrial Corridors will be initiated.

Rs37,800 crore to National Highways Authority of India for roads & Rs14,000 crore for rural roads , which includes ` 3000 crores for the North East.

PROPOSALS: AIRPORTS

New Airports

Airports in tier I and tier II cities-public-private partnership model.

PROPOSALS: WATERWAYS

Development of inland waterways & harbor projects.

11635 crore for the development of Outer Harbour Project in Tuticorn for phase I.

Comprehensive policy-to promote Indian ship building industry.

Inland Navigation:

Project on Ganges, Jal Marg Vikas to be developed between Allahabad and Haldia.

The existing impasse in the coal sector will be

resolved and adequate quantity of coal

Ultra-Modern Super Critical Coal Based Thermal

Power Technology.

PROPOSALS: COAL

PROPOSALS:POWER

PROPOSALS:POWER NEW & RENEWABLE ENERGY

Ultra Mega Solar Power Projects in Rajasthan,

Gujarat, Tamil Nadu, and Laddakh in J&K.

Scheme for solar power driven agricultural

pump sets & water pumping stations for

energizing one lakh pumps.

100 crore is set aside for the development of 1

MW Solar Parks on the banks of canals.

PROPOSALS: PETROLEUM & NATURAL GAS

15,000 km of existing gas pipeline systems in

the country, an additional 15,000 km of

pipelines.

Benefits:

Increase the usage of gas, domestic as well as

imported.

FINANCE IN FOCUS

IRB Infrastructure Developers Ltd, Simplex Projects Ltd & Gammon Infrastructure Projects Ltd will see higher order inflows in the short term and healthier book-to-bill ratios.

Reduction of customs & excise taxes to boost domestic manufacturing, particularly in power, steel, etc.

Tax regime-Infrastructural Investment Trusts (InvITs) & Real Estate Investments (REITs) in accordance with the regulations of SEBI.

PROPOSALS: Rural Infrastructure Development Fund (RIDF) by

an additional Rs 5,000 crore. In addition, an amount of Rs 100 crores has been set aside for the Agri-Tech infrastructural funds.

Boarder infrastructure, Earmarked Rs 2250 crore. For scientific warehousing infrastructure, Rs

5,000 crore.

PROPOSALS: Deendayal Upadhyaya Gram Jyoti Yojana and

earmarked Rs 500 crore for the scheme.

Strengthening & revival of the SEZ. SEZs will be effective instruments for :

Employment generation,Industrial production,Export promotion.

900 projects are in various stages of development, To streamline the PPP(Public Private Partnership) models, the Union Budget has proposed an institution called 3P & earmarks Rs 500 crore.

IMPACT As spending improves, new orders will flow in

for engineering, procurement and construction companies.

Infrastructure funding to get impetus because of change in rules for banks.

Better roads & more infrastructure projects will boost demand for logistics. The trucking industry should benefit too.

Spurt in demand for capital goods & heavy engineering as well.

Cement sector to gain as investment cycle kick-starts through government, industrial and real estate projects.

THANK YOU