Huge allocation for infrastructure

Announcing the Budget 2011-12 here on Monday, Finance Minister Pranab Mukherjee proposed an allocation of Rs 2,14,000 crore for the infrastructure sector, which is 23.3 per cent higher than current year. This amounts to 48.5 per cent of the gross budgetary support to plan expenditure.

The finance minister said in order to give a boost to infrastructure development in railways, ports, housing and highways development, it has been proposed to allow tax-free bonds of Rs 30,000 crore to be issued by various government undertakings in the year 2011-12.

This includes Indian Railway Finance Corporation Rs 10,000 crore, National Highway Authority of India Rs 10,000 crore, HUDCO Rs 5,000 crore and Ports Rs 5,000 crore.

He said India Infrastructure Finance Company Limited is expected to achieve a cumulative disbursement of Rs 25,000 crore by March 31, 2012. Under the “take out financing scheme”, seven projects have been sanctioned with a debt of Rs 1,500 crore. Another Rs 5,000 crore will be sanctioned during 2011-12, he said.

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