102 Lakh Cr Infrastructure investment plan; to halt economic slowdown.
Finance minister Nirmala Sitharaman has come up with a Rs 102 lakh crore infrastructure investment plan for the next five years. Almost 20% of this amount will be spent on new projects to begin with.
The next few weeks will see Rs 3 lakh crore of state projects being added in the next few weeks. The announcement has come when the central government is trying its best to step up investment and the pipeline is seen to be signalling a step in that direction. This will also raise employment.
The move will lead to faster expansion of economic activity in the
country . Faster construction of new roads, power facilities and ports
along with irrigation facilities are expected. This will also result in demand for cement and steel, which have been hit by the current economic slowdown.
As per the finance minister, these projects are over and above the already spent Rs 51 lakh crore spent by the Centre and states during the last six years. Nearly 43% of the projects are under implementation, while another 33% are at conceptualisation stage.
While the Centre and the states will equally split 78% of the proposed investments, the remaining 22% will come from the private sector with non-government participation expected to increase in the coming years.
“Creation of the national infrastructure pipeline in a short span of time is a positive step… The front-loading of capex is also positive for construction sector,” ICRA’s Senior Vice-President and Group-Head, Corporate Ratings Shubham Jain said.