On Anvil: ₹ 30 Lakh Crore Transport Boost

NEW DELHI: The Narendra Modi government is likely to allocate nearly Rs 30-lakh-crore investment in transport sector in the next five years, which is nearly a third of the Rs 100-lakh-crore investment push for the infrastructure sector to boost economic growth and job creation.

The largest chunk is proposed to be invested in railways, river-linking and highway expansion programme, according to the details of future investment that the BJP had prepared at the time of releasing the election manifesto. In addition, defence modernisation, which requires a spend of Rs 9 lakh crore, is also part of the plan.

While investment of Rs 10 lakh crore has been estimated for building new corridors for bullet trains and dedicated freight movement, around Rs 3 lakh crore is proposed to be allocated for the port sector over the next five years, with a large chunk earmarked for the Sagarmala project.

Apart from railway, roads, ports, airports, the allocation also envisages a focus on social infrastructure — education & health — and the farm sector, where investment is seen to be lagging.

Sources said the sectoral allocation can be tweaked depending on the pace of work undertaken or new requirements that may arise during implementation.

Apart from budgetary allocation, support through viability gap funding and investment by public sector companies is also included in the capex estimates. Since 2013-14, capital expenditure has increased by 113% to Rs 9.6 lakh crore and it is proposed to rise with faster GDP growth over the next five years. This is expected to result in more rapid job creation as labour costs are estimated to be around Rs 10 lakh crore.

With PM Narendra Modi keen to revive the plan for inter-linking of rivers, the BJP blueprint has suggested that 37 rivers would be taken up to transfer water from surplus to deficit areas. While implementing this plan is expected to cost around Rs 11 lakh crore, nearly Rs 7 lakh crore may have to be allocated for the next five years. Investment of another Rs 7 lakh crore has been worked out for upgrading other urban infrastructure. Sources said according to the blueprint prepared by the party, Rs 5 lakh crore would be spent for urban housing scheme to provide financial assistance for approximately two crore houses.

The huge thrust on urban infrastructure gains importance considering that India is rapidly urbanising and there is significant growth in the number of people migrating from rural areas to cities and towns, triggering the need to augment the existing infrastructure.

Source: ToI

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