INFRASTRUCTURE SECTOR<br />
OVERVIEW <br />According to 11thplan infrastructure investment will be around Rs.20,54,205 crore.<br />33.74% of this inve...
OVERVIEW<br />Sub-sectors where achievements have been above or close to target are<br />Telecommunication<br />Village el...
GROWTH IN CORE INFRASTRUCTURE SERVICES<br />
CHALLENGES<br />To make huge capacity addition in a time-bound manner while ensuring that projects embody value for money ...
CHALLENGES<br />To meet the challenge some innovative ideas and new models of financing would be required<br />Channeling ...
INCREMENT FLOW OF BANK CREDIT TO INFRASTRUCTURE (in crore)<br />
NON FINANCIAL CHALLENGES<br />Tendering of unviable projects<br />Bad quality of engineering and Planning at DPR stage<br ...
BUDGET PROPOSAL 2011-12<br />Allocation of Rs. 2,14,000 crorefor infrastructure in 2011-12. <br />This is an increase of 2...
BUDGET PROPOSAL 2011-12<br />To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued...
BUDGET PROPOSAL 2011-12<br />IIFCL to achieve cumalativedisbursement target of 20,000 croreby March 31, 2011 and 25,000 cr...
BUDGET PROPOSAL 2011-12<br />Under take out financing scheme, seven projects sanctioned with debt of 1,500 crore. Another ...
BUDGET PROPOSAL 2011-12<br />Government to come up with a comprehensive policy for further developing PPP projects<br />Vi...
BUDGET PROPOSAL 2011-12<br />Bharat nirman have been alloted 58,000 crore.<br />PradhanMantri Gram SadakYojna (PMGSY) <br ...
BUDGET PROPOSAL 2011-12<br />To attract foreign funding for infrastructure, infra debt funds to be notified, with attracti...
COMPARISON WITH PREVIOUS YEAR<br />Figures in Rs crore<br />
Important features…<br />Rural Basic Infrastructure Development fund corpus will be raised from Rs. 16,000 Crores to Rs. 1...
CONTD…<br />Allocations for RashtriyaKrushiVikasYojana have been raised from Rs. 6,775 Crores to Rs. 7,860 Crores.<br />Pl...
BHARAT NIRMAN<br />
Scenario of forthcoming financial year:<br />It is expected that the economic growth rate of India would be 9% for 2011-12...
IMPACT<br />Increase in Budgetary allocation will lead to growth in real estate sector as many new projects will be starte...
IMPACT<br />Higher investments for building cold chains will lead to lowered down the wastage of perishable food products ...
CONCERNS<br />Infra financing addressed partly, though execution.<br />Limit for infra bonds not increased; concerns still...
RECOMMENDATION<br />80 per cent minimum norm for physical acquisition of land before tendering should be strictly enforced...
RECOMMENDATION<br />To overcome execution issues during the construction/building stage, the best available talent/skilled...
I AM INDIA<br />
Presented By:<br />AbhishekMittal<br />AnkitMalilk<br />PriyankaRawat<br />ReemaPuniani<br />Robin Bansal<br />
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Budget Presentation

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Budget Presentation

  1. 1.
  2. 2. INFRASTRUCTURE SECTOR<br />
  3. 3. OVERVIEW <br />According to 11thplan infrastructure investment will be around Rs.20,54,205 crore.<br />33.74% of this investment is coming from private sector.<br />During 2007-08 to 2009-10 capacity addition has been lower than the target<br />Power<br />Roads(NHDP)<br />New Railway lines and doubling of railway lines<br />
  4. 4. OVERVIEW<br />Sub-sectors where achievements have been above or close to target are<br />Telecommunication<br />Village electrified under RGGVY<br />Railway line electrification<br />Railway gauge conversion<br />New and renewal of roads construction under PMGSY <br />
  5. 5. GROWTH IN CORE INFRASTRUCTURE SERVICES<br />
  6. 6. CHALLENGES<br />To make huge capacity addition in a time-bound manner while ensuring that projects embody value for money and investment results in world class infrastructure<br />Infrastructure should at the same time be affordable and Sustainable<br />The public-sector investment would have to increase from 13,11,293 crore in the Eleventh Plan to about 20,49,620 crore.<br />
  7. 7. CHALLENGES<br />To meet the challenge some innovative ideas and new models of financing would be required<br />Channeling domestic and foreign financial savings of this scale into infrastructure requires a judicious mix of policy interventions which balances the growth and stability objectives<br />
  8. 8. INCREMENT FLOW OF BANK CREDIT TO INFRASTRUCTURE (in crore)<br />
  9. 9. NON FINANCIAL CHALLENGES<br />Tendering of unviable projects<br />Bad quality of engineering and Planning at DPR stage<br />Lack of standardized and Sub-optimal contracts<br />land acquisition delays<br />Slow approval processes, especially environmental and forest clearances<br />Insufficient optimization of procurement costs (of PSUs)<br />Weak performance management in nodal agencies and PSUs and<br />Inadequate availability of skilled and semi-skilled manpower.<br />
  10. 10. BUDGET PROPOSAL 2011-12<br />Allocation of Rs. 2,14,000 crorefor infrastructure in 2011-12. <br />This is an increase of 23.3 per cent over 2010-11. <br />This also amounts to 48.5 per cent of total plan allocation<br />
  11. 11. BUDGET PROPOSAL 2011-12<br />To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued by Government undertakings during 2011-12<br />Indian Railway Finance Corporation Rs.10,000 crore<br />National Highway Authority of India Rs.10,000 crore<br />HUDCO Rs.5000 crore<br />Ports Rs.5000 crore<br />
  12. 12. BUDGET PROPOSAL 2011-12<br />IIFCL to achieve cumalativedisbursement target of 20,000 croreby March 31, 2011 and 25,000 crore by March 31, 2012<br />Roads & bridges, railways, seaports, airports, inland waterways, other transportation projects;<br />Power;<br />Urban transport, water supply, sewerage, solid waste management and other physical infrastructure in urban areas;<br />
  13. 13. BUDGET PROPOSAL 2011-12<br />Under take out financing scheme, seven projects sanctioned with debt of 1,500 crore. Another 5,000 crore will be sanctioned during 2011-12.<br />Rural Infra Development Fund – corpus increased to Rs 18,000 crore.<br />FII Investment in corporate bonds in infra sector raised to 40 billion USD<br />
  14. 14. BUDGET PROPOSAL 2011-12<br />Government to come up with a comprehensive policy for further developing PPP projects<br />Viability gap funding for capital investment in setting up of storage capacity.<br />Infra status for cold chains and post-harvest storage facility. <br />Infra status for capital investment in fertilizer production<br />
  15. 15. BUDGET PROPOSAL 2011-12<br />Bharat nirman have been alloted 58,000 crore.<br />PradhanMantri Gram SadakYojna (PMGSY) <br />Accelerated Irrigation Benefit Programme<br />Rajiv Gandhi GrameenVidyutikaranYojna<br />IndiraAwasYojna<br />National Rural Drinking Water Programme<br />Rural telephony <br />
  16. 16. BUDGET PROPOSAL 2011-12<br />To attract foreign funding for infrastructure, infra debt funds to be notified, with attractive TDS rate of 5%. Income of Fund exempt from tax<br />Parallel Excise Duty exemption for domestic suppliers producing capital goods needed for expansion of existing mega or ultra mega power projects.<br />Full exemption from basic Customs Duty to bio-asphalt and specified machinery for application in the construction of national highways.<br />
  17. 17. COMPARISON WITH PREVIOUS YEAR<br />Figures in Rs crore<br />
  18. 18. Important features…<br />Rural Basic Infrastructure Development fund corpus will be raised from Rs. 16,000 Crores to Rs. 18,000 Crores.<br />Rural housing board fund budget is raised to Rs. 3,000 crores.<br />Rs. 500 Crores will be given for SIDBI to refinance banks which give loans to micro, small and medium sized organizations.<br />From October 2011, daily ten lakhs of Aadhar cards will be issued. <br />
  19. 19. CONTD…<br />Allocations for RashtriyaKrushiVikasYojana have been raised from Rs. 6,775 Crores to Rs. 7,860 Crores.<br />Plan to provide rural broadband connectivity for 2,50,000 panchayitis of the nation within three years. <br />Rs. 21,000 Crores will be allotted for SarvaSikshaAbhayaan, which is 40% more than the present budget. <br />Rs. 200 Crores to be spent for purifying lakes and few more rivers other than Ganga.<br />
  20. 20. BHARAT NIRMAN<br />
  21. 21. Scenario of forthcoming financial year:<br />It is expected that the economic growth rate of India would be 9% for 2011-12.<br />Rs. 2,14,000 Crores are allotted for infrastructure field, which is 23.3% more than the present budget. It occupies 48.5% of the total planning budget.<br />Rs. 1,60,887 Crores are allotted for social aspects, which is seventeen prevent more than the present budget. It comes up to 36.4 percent of total planning budget.<br />Rs. 52,057 crores will be allotted for education field. It is 24% more than the previous year’s budget.<br />Rs. 40,000 crores of aim for investment withdrawal.<br />Abiding to hold 51% share in government sector industries.<br />
  22. 22. IMPACT<br />Increase in Budgetary allocation will lead to growth in real estate sector as many new projects will be started this year.<br />Investors will benefit due to tax deductions available and companies will benefit as it will ease their financing needs<br />As FII limit is increase this will lead to Higher foreign flows into infrastructure sector.<br />
  23. 23. IMPACT<br />Higher investments for building cold chains will lead to lowered down the wastage of perishable food products and give the boost to Food processing companies.<br />
  24. 24. CONCERNS<br />Infra financing addressed partly, though execution.<br />Limit for infra bonds not increased; concerns still exist for financing of USD 1 trillion during the 12th Plan<br />Ease in financing of long term funds needed by infrastructure companies as banks are largely constrained due to asset liability mismatch and at 13% of outstanding credit of banks, infrastructure sector is close to the maximum sectoral allocation limit<br />
  25. 25. RECOMMENDATION<br />80 per cent minimum norm for physical acquisition of land before tendering should be strictly enforced through suitable disincentives<br />To overcome execution issues during the construction/building stage, the best available talent/skilled manpower, for the planning process and at project document preparation stage, needs to be hired<br />
  26. 26. RECOMMENDATION<br />To overcome execution issues during the construction/building stage, the best available talent/skilled manpower, for the planning process and at project document preparation stage, needs to be hired<br />Significant upfront investment in engineering and planning (for example project creation, contracting, tendering, project scheduling) is required.<br />
  27. 27. I AM INDIA<br />
  28. 28. Presented By:<br />AbhishekMittal<br />AnkitMalilk<br />PriyankaRawat<br />ReemaPuniani<br />Robin Bansal<br />

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