Nirmala Sitharaman announced capital outlay of ₹2.4 lakh crore for the Railways. This highest ever outlay is about 9 times the outlay made in 2013- 14. Additionally, one hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. They will be taken up on priority with investment of ₹75,000 crore, including ₹15,000 crore from private sources. She further said that fifty additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
The government envisions to tap the vast coastline through PPP mode with VGF and promote energy efficient, low cost mode of transport for freight and passengers.
“Investments in infrastructure and productive capacity have a large multiplier impact on growth and employment”, Union Finance Minister Nirmala Sitharaman mentioned it during the Union Budget Speech 2023-24 in the Parliament.
The finance minister also announced that an Urban Infrastructure Development Fund (UIDF) will be established through use of priority sector lending shortfall. This fund will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 & Tier 3 cities.
Additionally, states will also be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.
Rampraveen Swaminathan, CEO, Mahindra Logistics, welcoming the budget said, “This budget focuses on sustainable growth and infrastructure development. The announcement of setting up Urban Investment development fund (UIDF) for Tier 2 and Tier 3 cities will provide a much-needed boost for smoother and faster logistics transportation and will further ensure greater connectivity in tier-2 and tier-3 cities. Identifying 100 critical transport infrastructure projects will have a positive impact on the nation’s last and first mile connectivity. Additionally, the announcement of 50 new airports, helipads, and aerodromes will enhance the regional air connectivity across the country whereas the highest ever allocated capital outlay to Indian Railways will add to the smooth connectivity between different points of country and easy and faster freight movement.”
