Budget 2024: FM proposes ₹26,000 cr to support road connectivity

In a bid to boost infrastructure development in the country, Finance Minister Nirmala Sitharaman has announced road connectivity projects with a total outlay of ₹26,000 crore. The projects include the Patna-Purnea expressway, Buxar-Bhagalpur expressway, Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and an additional two-lane bridge over the river Ganga at Buxar.

Additionally, the government will initiate power projects, including a 2,400 MW plant in Pirpainti, Bihar, costing ₹21,400 crore.

“New airports, medical colleges and sport infrastructure in Bihar will be constructed,” the FM adds.

Additional allocations to support capital investments will be provided. The Bihar government's request for external assistance from multilateral development banks will be expedited.

The Finance Minister added that the government recognises Andhra Pradesh's need for capital and will provide special financial support of ₹15,000 crore through multilateral development agencies. She mentioned that ₹15,000 crore will be arranged in the current financial year, with additional amounts to be provided in future years.

"The government is committed to financing and completion of the polavaram irrigation project, which is the lifeline for Andhra Pradesh and its farmers, this will facilitate our country’s food security as well," the FM says.

Under the Andhra Pradesh Reorganisation Act, funds will be provided to promote industrial development by supporting essential infrastructure such as water, power, railways, and roads in the Kombardi node on the Visakhapatnam-Chennai industrial corridor and the Varabakkal node on the Hyderabad-Bengaluru industrial corridor.

"Special financial support of ₹15,000 crore provided for Andhra Pradesh Reorganisation Act in current FY," the FM adds.

"An additional investment will be provided this year towards capital investment to support economic growth. Grants will be given to the backward regions of Rayalaseema, Prakasam, and North Coastal Andhra, as stated in the Act," she adds.

The Finance Minister stated that the government aims to maintain robust fiscal support for infrastructure projects over the next five years. For the fiscal year 2024-25, the government will allocate ₹11.11 lakh crore towards capital expenditure. The Accelerated Irrigation Benefit Programme will receive ₹11,500 crore to support projects like the Kosi-Mechi intra-state link. Assistance will be provided to Assam and Himachal Pradesh for flood management, and to Uttarakhand and Sikkim for addressing losses due to cloudbursts, flash floods, and landslides.

A provision of ₹1.5 lakh crore has been allocated for long-term interest-free loans to support infrastructure investments by state governments.

Additionally, under Phase IV, PMGSY will provide all-weather connectivity to 25,000 rural habitations.