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Union budget may boost growth in infra sector

Union budget may boost growth in infra sector
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Union Budget 2013-14 is expected to boost growth in the infrastructure sector as it has announced several new initiatives, analysts feel.

For example, the budget proposed taking up two new cities -” Dholera in Maharashtra and Shendra Bidkin in Gujarat -” under the Delhi Mumbai Industrial Corridor Project.

Finance Minister P Chidambaram said the government will provide additional funds for the project in 2013-14, if required. Two new industrial corridors, connecting Chennai-Bangalore and Bangalore-Mumbai, will also be taken up shortly, the minister.

The budget announced the setting up of a Rs 1,840 crore power transmission line connecting Srinagar with Leh next financial year.

The Budget also promised a gas pricing policy and clearing New Exploration and Licensing Policy blocks and the five-million-tonne- per annum Dabhol LNG terminal.

The ports sector, which managed to meet a dismal 42 per cent of investment target in the 11th Plan period, witnessed a major push.

The budget announced the creation of an additional 142-million tonne (mn t) cargo handling capacity -” 100 mn t through the creation of two major ports in West Bengal and Andhra Pradesh, and 42 mn t through the setting up of an outer harbour in Tamil Nadu at an estimated Rs 7,500 crore.

He urged state governments to adopt the financial restructuring plan for ailing electricity distribution companies.

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