The Union Finance Minister Shri Arun Jaitley while presenting his maiden Budget, in the Lok Sabha today announced that his Government has a major focus of providing good infrastructure, including public transport, solid waste disposal, sewerage treatment and drinking water in the urban areas. The Budgetary provision for the Pooled Municipal Debt Obligation Facility has been enhanced from ₹ 5000 crores to ₹ 50,000 crores with extension of the facility by five years to March 31, 2019. Shri Jaitley informed the House that this facility was set up in 2006 with participation of several banks to promote and finance infrastructure projects in Urban Areas on shared risk basis.

Shri Jaitley said that for urban renewal of cities and towns, four fundamental activities are necessary like provision of safe drinking water and sewerage management, use of recycled water for growing organic fruits and vegetables, solid waste management and digital connectivity. The Finance Minister said it is the vision of this Government that at least five hundred (500) such habitations must be provided support, while harnessing private capital and expertise through PPPs, to renew their infrastructure and services in the next ten years.

Government will encourage development of metro rail systems, including light rail systems, in the PPP mode, supported by the Central Government. Shri Jaitley stressed that for two million plus cities, planning of metro projects must begin now and in the current fiscal, a sum of ₹ 100 crore has been allocated for Metro Projects in Lucknow and Ahmedabad.

Urban infrastructure funding expanded to strengthen pooled municipal debt facility and support metro projects via PPPs and central backing. Central government enhances and extends the Pooled Municipal Debt Obligation Facility to continue financing urban infrastructure on a shared-risk, bank-participation basis, targeting public transport, solid waste disposal, sewerage treatment and drinking water. The policy prioritises safe drinking water, sewerage management, recycled water use, solid waste management and digital connectivity, and promotes leveraging private capital and expertise through PPP arrangements to renew urban infrastructure, alongside central support for metro rail planning and initial project funding.