Infrastructure Investment Engine

Budget 2025-26, core to the vision of Viksit Bharat @ 2047, allocates INR11.21 lakh crore for the infrastructure sector. Each infrastructure-related Ministry will come up with a 3-year pipeline of projects that can be implemented in PPP mode. An outlay of `1.5 lakh crore is proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms. The second Asset Monetization Plan 2025-30 will be launched to plough back capital of `10 lakh crore in new projects and regulatory and fiscal measures will be finetuned to support the Plan.

 There is a hike for roads by 2.4%. Nearly 60% of the total allocation is set aside for the National Highways Authority of India at `1.7 lakh crore. Pradhan Mantri Gram Sadak Yojana has been allocated `19,000 crore, 31% higher than the revised estimate for 2024-25.

 To boost the inland waterways in the country, a budget of `1,944 crore has been provided for the Inland Water Transport Authority of India (IWAI) in FY2025-26.

The projects identified under Sagarmala are expected to mobilise over `5 lakh crore of infrastructure investment, double share of domestic waterways (inland and coastal) in the modal mix, generate logistic cost saving, boost merchandise export and create new jobs. This also includes projects for development of minor ports, the summary said.

Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages. This will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy. Large ships above a specified size will be included in the infrastructure harmonized master list (HML) and shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem.

A Maritime Development Fund with a corpus of `25,000 crore will be set up for distributed support and promoting competition. This will have up to 49% contribution by the Government, and the balance will be mobilized from ports and private sector.

The UDAN scheme which had connected 88 airports and operationalized 619 routes will be modified and launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly, aspirational, and North East region districts.

Greenfield airports will be facilitated in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta. Financial support will be provided for the Western Koshi Canal ERM Project benefitting a large number of farmers cultivating over 50,000 hectares of land in the Mithilanchal region of Bihar.

The Budget allocation for Indian Railways for FY 2025-26 stands at `2.65 lakh crore, the same as last year’s allocation. However, allocation to Dedicated Freight Corridor Corporation of India, has shown decrease. The FY 2025-26 Budget has accounted for manufacturing 100 non-AC Amrit Bharat trains, 50 NAMO Bharat trains certified for running at 130kmph for shorter distance city connections and 200 Vande Bharat trains (sleeper and chair car trains).

Finance Minister Nirmala Sitharaman has presented a historic budget of the country. This budget is characterised to accelerate our economy. Just like always, this time also, she has given the infrastructure sector priority – the budget for the sector has increased and it will help infra and roads…

When it comes to the transport sector, we import crude oil worth `22 lakh crores. This is challenging for the economy. This budget focuses on alternative fuels and biofuel. Lithium-ion batteries will get cheaper now. Scooter, electric scooter, electric car, bus, truck, all will become cheaper…

– Shri. Nitin Gadkari
Honourable Minister of Road Transport and Highways