The Union Budget 2024-25 reinforces the thrust on infrastructure development with capital spending being raised by 11 per cent to Rs 11.11 trillion or 3.4 per cent of the GDP. Some of the key highlights in various infrastructure sectors are as follows:
The Union Government has allocated Rs 2,652 billion for Indian Railways (IR) under the Union Budget 2024-25. Of the total outlay, Rs 2,520 billion will be provided by the central government as gross budgetary support (GBS) while a sum of Rs 30 billion will be generated through internal resources of IR, Rs 2 billion through the Nirbhaya fund and Rs 100 billion through external sources. Of the total allocation, funds worth Rs 364.02 billion have been allocated for construction of new lines, Rs 293.12 billion for doubling, Rs 47.19 billion for gauge conversion, Rs 64.72 billion for electrification, Rs 403.13 billion for rolling stock and Rs 46.47 billion for Signalling and Telecommunication (S&T).
As per the Union Budget 2024-25, the central government will promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects in partnership with the state governments and multilateral development banks. These projects will also attempt to use treated water for irrigation activities and filling up of tanks in nearby areas.
While presenting the Union Budget 2024-25, Nirmala Sitharaman, Minister of Finance and Corporate Affairs has proposed the development of DPI applications by private sector at a population scale, especially in the areas of credit, e-commerce, education, health, law and justice, logistics, micro, small, and medium enterprises (MSMEs), service delivery, and urban governance. The aim is to generate productivity gains, business opportunities, and innovation. It has also been proposed to increase the basic customs duty (BCD) on printed circuit board assembly (PCBA) on specified telecom equipment from 10 per cent to 15 per cent. The move is aimed at providing a big boost to domestic telecom manufacturing industry.
Meanwhile, a reduction in BCD from 20 per cent to 15 per cent has been proposed on electronic items including mobile phones, mobile PCBA, and mobile chargers. The Minister has also proposed setting up a venture capital fund of Rs 10 billion for expanding the space economy by five times in the next ten years. The announcement is in line with the government’s commitment to advance the Indian space sector, which gained momentum since the successful Chandrayaan-3 and Aditya L-1 missions in 2023. The proposed VC fund will provide the necessary financial resources to foster innovation and expansion in the sector. The government had earlier stated that it aims to increase India’s share in the global space economy five-fold by 2030, reaching 10 per cent from the current 2 per cent. By 2047, the target is to achieve a 15 per cent share in the global space economy.
The finance minister also announced key measures to enhance energy security. The government will collaborate with the private sector on research and development for Bharat Small Modular Reactors and new nuclear energy technologies, and establish Bharat Small Reactors. A policy document titled “Energy Transition Pathways” will be released to balance employment, growth, and environmental sustainability.
A policy to promote pumped storage projects for electricity storage will be introduced. A joint venture between NTPC Limited and Bharat Heavy Electrical Limited will be established to create an 800 MW commercial plant using advanced ultra super critical technology. Furthermore, a roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘perform, achieve and trade’ mode to ‘Indian carbon market’ mode will be put in place.
Furthermore, due to the sufficient domestic manufacturing capacity of solar glass and tinned copper, they will no longer be exempt from custom duties. The PM-Surya Ghar: Muft Bijli Yojana has been allocated Rs 62.50 billion. The target is 10 million household rooftop solar installations. They will receive 300 units of free electricity every month. Around 1.4 million applications have already been received.
For 2024-25, the net budgetary allocation for the Ministry of Power has been pegged at Rs 205.02 billion (as against Rs 206.71 billion budgeted in 2023-24). Meanwhile, the net budgetary allocation for the Ministry of New and Renewable Energy is Rs 191 billion for 2024-25 (as against Rs 102.22 billion budgeted in 2023-24).
In order to enhance road connectivity, under the Union Budget 2024-25, an outlay of Rs 260 billion has been proposed for four road projects in Bihar. These include Patna-Purnea expressway, Buxar-Bhagalpur highway, Bodhgaya-Rajgir-Vaishali-Darbhanga spurs and an additional two-lane bridge over river Ganga in Buxar.