The FM has announced a whopping Rs 2,21,246 crores outlay for road and railway infrastructure for the year 2016-17.
In line with the government’s mission to upgrade road and railway infrastructure, the finance minister has announced a total funding of Rs 2,21,246 crore in the year 2016-17.
Applauding the work of the government in the last one year, Jaitley announced that almost 85 per cent of the 70 ongoing infrastructure projects across the country have been brought back on track.
“Approximately 16-18 km of road construction per day has been achieved by the middle of the current financial year, and the Budget has adopted measures to significantly step up NHAI capabilities in this regards. Roads infrastructure has great influence on real estate development, particularly with the new land it opens up for development through highways and feeder routes,” exclaims Anuj Puri, Chairman & Country Head, JLL India.
For the upcoming financial year, a dedicated fund of Rs 55,000 crore has been announced for improvement of road infrastructure alone. This is expected to give a boost to the housing sector, particularly in the peripheries which has been languishing due to lack of connectivity. Another Rs 12,000 crore is to be generated by the NHAI through tax-free bonds.
In line with this, the minister has also announced upgradation of 50,000km of state highways into national highways. Approval for 10,000 km of national highways is also expected. This is apart from the budget that has already been allocated for the development of rail networks across the country.
Highlighting the emphasis laid on infrastructure development in this Union Budegt, Shrinivas Rao, CEO-APAC, Vestian, says, “Major reform measures like development of Greenfield ports, national waterways, amendments to the Motor Vehicles Act, opening up the road transport sector in passenger segment, upgradation of state highways to national highways and the re-development of un-served and underserved airstrips by the collaboration of Airports Authority of India in conjunction with private partnerships will constructively impact the employment outlook and business optimism in the medium to long term.”
Improved connectivity will help and encourage developers promote real estate even in the far flung regions and hence this decision will prove to be a great asset in the years to come.