Budget update: Private participation in infrastructure gets a boost

Private participation seems to be the mantra of this year’s Budget outlay

with all the key segments of infrastructure from power sector to ports and

aviation being opened up. An urban reform incentive program with an allocation

of Rs 500 crore is set aside for this purpose. Also Infrastructure Equity fund

(IEF) with an allocation of Rs 1000 crore will be set up to improve existing

infrastructure.

Finance Minster Yashwant Sinha announced that power reforms program will be

taken with a view of curbing power thefts and proliferation through SEB dues and

rising of tax free bonds to recover full payment of current dues. A plan outlay

of Rs 3500 crore will be set up for these reforms and the focus will be shifted

from generation to transmission and distribution.

Plans are afoot to finish the ‘Golden Quadrilateral’ road network to

connect the four corners of the country by 2003, a year ahead, said the finance

minister. Other plans include corporatizing all the major ports of the country

and to open up more private sector participation in this domain.

Besides, plans are afoot to hand over international airports of all 4 metros

to private management and to take to international standards. Also a package

concession is offered for private participation under the Greenfield airport

project which would benefit upcoming projects in Bangalore and Hyderabad.

Tourism is also being tapped and a plan outlay of 225 crore is set up under

which world heritage site Hampi in Karnataka will be upgraded to international

standard, he announced.