<span style="font-weight: bold;">Proposals</span><br />
<br />
<ul>
<li>Total budgetary allocation for the sector (including PMGSY) raised by 6.7 per cent to Rs 89,544 crore from Rs 83,900 crore in the previous year.</li>
<li>The government continues its thrust on the PMGSY with an allocation of Rs 19,000 crore, which is the same as that of FY2018.</li>
<li>The Phase III of PMGSY has been launched to connect hospitals and schools v major link routes in the interiors of villages. The government¦s target is to construct 57,000 km of road network, involving 28.35 crore man days. </li>
<li>Equity raising plans proposed for the NHAI to part fund the ambitious Bharatmala programme.</li>
<li>The government, along with the regulators, will promote investments in A-rated bonds against the current rating threshold of AA.</li></ul><br />
<span style="font-weight: bold;">Impact: Neutral</span><br />
The total budgetary allocations including the performance-based funding (PBFF), the Central Road Fund (CRF) and GBS to fund the ambitious new highway development programme (including Bharatmala) is estimated at Rs 343,045 crore over FY2019v20. Therefore, starting this Budget, the allocations to the Road Ministry was expected to increase substantially. However, the budgetary allocation (excluding PMGSY) was raised 8.7 per cent to Rs 70,544 crore from Rs 64,900 crore in the previous year. A major part of the Bharatmala is expected to be undertaken by the NHAI. To bridge the shortfall in budgetary allocation, the NHAI is expected to raise funds by monetising more assets through tollvoperatevtransfer and InvIT routes (by transferring mature assets to special purpose vehicles or SPVs). <br />
<br />
Thrust on the PMGSY continued through advancement of completion target to 2019. Allocation to PMGSY remained at Rs 19,000 crore, which is the same as that of FY2018. This is expected to boost the order book of medium-sized road construction companies over the next two years. Further, Phase III of PMGSY is planned to be launched to connect hospitals and schools with major link routes in the interiors of villages. <br />
FlashNews:
Tata Power Renewables Signs PPA for 80 MW Dispatchable Green Energy Project in Mumbai
IndiGo to Resume China Flights from October 26 as India-China Air Services Restart
From Muddy Tracks to Expressways: Bihar’s Quiet Road Revolution
Indian Railways Launches Assured Transit Container Service from Delhi to Kolkata
IGL Opens New Delhi Office as Minister Puri Highlights India’s Clean Energy Push and Refining Ambitions
Road Construction May Hit Five-Year Low in FY2026, Cautions ICRA
Delhi Airport Rolls Out E-Arrival Card for Foreign Travellers to Streamline Immigration
From Muddy Tracks to Expressways: Bihar’s Quiet Road Revolution
NMIA Secures DGCA Aerodrome Licence Ahead of October Launch
India Re-elected to ICAO Council with Enhanced Global Support
India’s Renewable Energy Surge: ICRA Projects 35 GW Capacity in FY2026
Air Marshal Bharti Calls for Full Indigenisation to Win Future Wars
Air India, Airbus Launch Advanced Pilot Training Hub in Gurugram
India-Bhutan Rail Links Signal Strategic Leap in Himalayan Connectivity
India Anchors $8 Billion Maritime Investment Wave
India’s Deepwater Energy Ambitions Ignite with Andaman Basin Gas Discovery
Mumbai-Ahmedabad bullet train corridor to emerge as major economic cluster: Ashwini Vaishnaw
IndiGo Adds 12 New Domestic Routes in October, Strengthens Regional Air Connectivity Across India
IndiGo Deepens Indian Ocean Connectivity with New Routes to Bali and Malé
Home » Post Budget Analysis | Infrastructure: Road
Post Budget Analysis | Infrastructure: Road
Roads & Highways
January 1, 2018January 1, 2018

Leave a Reply
You must be logged in to post a comment.