Budget highlights: Infrastructure, Textile, Transport, Power, SME

The following are the proposals related to the development of infrastructure and industry, contained in the Union Budget 2012-13 presented today.


 Government has approved guidelines for establishing joint venture companies by defence PSUs in PPP mode.

 First Infrastructure Debt Fund with an initial size of `8,000 crore launched earlier this month.

 Tax free bonds of `60,000 crore to be allowed for financing infrastructure projects in 2012-13.

 A harmonised master list of infrastructure sector approved by the Government.

 IIFCL has put in place a structure for credit enhancement and take-out finance for easing access of credit to infrastructure projects.

 National Manufacturing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 10 crore jobs.

Power and Coal

 Coal India Limited advised to sign fuel supply agreements with power plants, having long-term PPAs with DISCOMs and getting commissioned on or before March 31, 2015.

External Commercial Borrowings (ECB) to be allowed to part finance Rupee debt of existing power projects.

Transport: Roads and Civil Aviation

 Target of covering a length of 8,800 kilometre under NHDP next year.

 Allocation of the Road Transport and Highways Ministry enhanced by 14 per cent to `25,360 crore.

 ECB proposed to be allowed for capital expenditure on the maintenance and operations of toll systems for roads and highways, if they are part of original project.

 Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users.

 ECB to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US $ 1 billion.

 Proposal to allow foreign airlines to participate upto 49 per cent in the equity of an air transport undertaking under active consideration of the government.

Delhi Mumbai Industrial Corridor

 In September 2011 central assistance of `18,500 crore spread over 5 years approved. US $ 4.5 billion as Japanese participation in the project.

Housing Sector

 Various proposals to address the shortage of housing for low income groups in major cities and towns including allowing ECB for low cost housing projects and setting up of a credit guarantee trust fund etc.


 Government has taken steps to finalise pricing and investment policies for urea to reduce India’s import dependence in urea.


 Government has announced a financial package of `3,884 crore for waiver of loans of handloom weavers and their cooperative societies.

 Two more mega handloom clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighbouring districts in Jharkhand to be set up.

 Three Weaver’s Service Centres one each in Mizoram, Nagaland and Jharkhand to be set up for providing technical support to poor handloom weavers.

 `500 crore pilot scheme announced for promotion and application of Geo-textiles in the North Eastern Region.

 A powerloom mega cluster to be set up in Ichalkaranji in Maharashtra with a budget allocation of `70 crore.

Micro, Small and Medium Enterprises

 `5,000 crore India Opportunities Venture Fund to be set up with SIDBI.

 To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently.

 Policy requiring Ministries and CPSEs to make a minimum of 20 per cent of their annual purchases from MSEs approved. Of this, 4 per cent earmarked for procurement from MSEs owned by SC/ST entrepreneurs.