The government allocated Rs 5,421 crore to Punjab and Rs 3,416 crore to Haryana for rail infrastructure in the Union Budget. Punjab will develop 30 Amrit stations, and Haryana will develop 34. The budget includes Rs 1,16,000 crore for safety, old track upgrades, and KAVACH safety system. Haryana’s allocation will boost state rail infrastructure.
Mahindra Lifespace Developers has secured a redevelopment project in Lokhandwala Complex, Andheri West, Mumbai, with an estimated revenue of ₹950 crore. The project, part of Maharashtra’s cluster redevelopment policy, strengthens the company’s presence in Mumbai’s western suburbs.
Highway construction in the country is anticipated to slow down in the next two years due to fewer new project awards in 2023-24. Although the road transport ministry aims to surpass the 10,400 km target, achieving and maintaining this pace in the future could be challenging.
Finance Minister Nirmala Sitharaman has allocated Rs 2,500 crore for a new scheme for plug and play industrial parks in Budget 2025-26. The Department for Promotion of Industry and Internal Trade (DPIIT) received a 64% budget increase to Rs 13,145.06 crore. Significant allocations include intellectual property, footwear development, industrial corridor development, and Jammu and Kashmir’s industrial development.
The budget for FY26 aims to boost public-private partnerships (PPPs) in infrastructure with a 10% hike in capital expenditure to `11.21 lakh crore. Emphasis will be on effective implementation through PPP models, with initiatives for a three-year project pipeline and an Urban Challenge Fund of `1 lakh crore.
The budget announced measures including ₹1.5 lakh crore interest-free loans for state capital expenditure and a ₹1 lakh crore Urban Challenge Fund. NaBFID will offer partial credit enhancement to infrastructure bonds, potentially improving ratings and attracting investments from long-term funds. This could decrease borrowing costs and accelerate infrastructure development.
The Indian government increases the Union Housing and Urban Affairs Ministry’s budget allocation by 18% to Rs 96,777 crore for FY 2025-26. Key initiatives include an Urban Challenge Fund of Rs 1 lakh crore, enhanced loans under the PM SVANidhi scheme, and substantial provisions for Pradhan Mantri Awas Yojana and Urban Rejuvenation Mission.
The government will provide data and maps from the PM Gati Shakti portal to the private sector, enabling better infrastructure planning and optimization of logistics. This initiative includes a GIS-enabled platform with over 1,300 data layers, aiming to enhance project planning efficiency through improved access to critical information.
Union Budget: The government allocated Rs 2,873.33 crore for the road transport and highways ministry for 2025-26, a slight increase from the current year. Allocation to the National Highways Authority of India (NHAI) also rose to Rs 1,878 crore. The budget aims to reduce NHAI’s debt by not making provisions for borrowings in the next fiscal year.
Finance Minister Nirmala Sitharaman announced a renewed push for private sector participation in large infrastructure projects. Each infrastructure-related ministry will create a 3-year project pipeline for public-private partnerships. An Urban Challenge Fund of Rs 1 lakh crore will also be set up to finance projects, with private sector support being encouraged through various initiatives and support schemes.
Finance Minister Nirmala Sitharaman announced Rs 1.5 lakh crore in interest-free loans to states for infrastructure, and a new asset monetisation plan targeting Rs 10 lakh crore for projects. Additionally, Rs 500 crore will be allocated for an AI Centre of Excellence in education, and the Jal Jeevan Mission’s outlay will be increased to ensure complete household water supply coverage.
According to the Survey, tabled in Parliament on Friday, public sector efforts cannot fully meet these requirements. Private participation should accelerate in many critical infrastructure sectors in many ways—programme and project planning, financing, construction, maintenance, monetisation and impact assessment, it suggested.
Union Budget: The Indian government has spent over Rs 54 lakh crore on capital expenditure over the past 11 years, but private investment and employment concerns remain. Despite substantial spending on infrastructure, the expected boost in private sector investments has not materialized, raising alarms over India’s long-term economic growth.
Adani Ports and several other companies are interested in acquiring Arshiya Ltd, a logistics firm under insolvency, for its strategic assets including free trade warehousing zones and a large container yard. The company’s liabilities exceed ₹6,647 crore, making it a notable target in India’s booming logistics sector.
According to the preliminary report, done by the Indian Institute of Management Bangalore’s Supply Chain Management Centre (IIMB-SCMC) in partnership with the National Highways Authority of India (NHAI) to assess the socio-economic impact of national highway development during 2013 and 2022, each unit of expenditure made on highway construction resulting in a 3.21 unit increase in GDP growth.
The Ministry of Finance has identified 434 projects under the PM Gati Shakti initiative to boost India’s logistics infrastructure. With an investment of Rs. 11.17 lakh crore, these projects target logistics efficiency through major economic corridors including Energy, Mineral, Cement, Port Connectivity, and High Traffic Density.
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